[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 1631 Introduced in Senate (IS)]

111th CONGRESS
  1st Session
                                S. 1631

To reauthorize customs facilitation and trade enforcement functions and 
                   programs, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 6, 2009

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

_______________________________________________________________________

                                 A BILL


 
To reauthorize customs facilitation and trade enforcement functions and 
                   programs, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Customs 
Facilitation and Trade Enforcement Reauthorization Act of 2009''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
                     TITLE I--CUSTOMS FACILITATION

        Subtitle A--Functions Other Than Investigative Functions

Sec. 101. Establishment of Agency; Commissioner.
Sec. 102. Officers and employees.
Sec. 103. Separate budget for U.S. Customs and Border Protection 
                            Agency.
Sec. 104. Revolving fund.
Sec. 105. Advances in foreign countries.
Sec. 106. Advances for enforcement of customs provisions.
Sec. 107. Certification of reason for advance.
Sec. 108. Payments in foreign countries; claims for reimbursement.
Sec. 109. Customs administration.
Sec. 110. Personnel.
Sec. 111. Authorization of appropriations.
                  Subtitle B--Investigative Functions

Sec. 121. Establishment of Agency.
Sec. 122. Separate budget for U.S. Immigration and Customs Enforcement 
                            Agency.
Sec. 123. Undercover investigative operations.
Sec. 124. Authorization of appropriations.
                    Subtitle C--Joint Strategic Plan

Sec. 131. Joint Strategic Plan.
  TITLE II--CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND TRANSPARENCY

           Subtitle A--Customs Facilitation and Transparency

Sec. 201. Trade benefits under the Customs-Trade Partnership Against 
                            Terrorism.
Sec. 202. Customs Facilitation Partnership Program.
Sec. 203. Consultations with respect to mutual recognition agreements.
Sec. 204. Commercial Customs Operations Advisory Committee.
Sec. 205. Automated Commercial Environment computer system.
Sec. 206. International Trade Data System.
Sec. 207. Electronic submission of public comments.
                     Subtitle B--Trade Enforcement

            Chapter 1--Commercial Risk Assessment Targeting

Sec. 211. Commercial Targeting Division and National Targeting and 
                            Analysis Groups.
Sec. 212. Annual illegal drug control law enforcement strategy.
Sec. 213. Report on oversight of revenue protection and enforcement 
                            measures by the inspector general.
Sec. 214. Report on security and revenue measures with respect to 
                            merchandise transported in bond.
Sec. 215. Importer of record program.
                  Chapter 2--Import Health and Safety

Sec. 221. Interagency Import Safety Working Group.
Sec. 222. Joint Import Safety Rapid Response Plan.
Sec. 223. Training.
  Chapter 3--Import-Related Protection of Intellectual Property Rights

Sec. 231. Intellectual property rights.
Sec. 232. National Intellectual Property Rights Coordination Center.
Sec. 233. Joint strategic plan for the enforcement of intellectual 
                            property rights.
Sec. 234. Repeated import-related infringement of intellectual property 
                            rights.
Sec. 235. Personnel dedicated to the enforcement of intellectual 
                            property rights.
Sec. 236. Training with respect to the enforcement of intellectual 
                            property rights.
Sec. 237. Recordation of works for which a copyright is pending.
Sec. 238. Availability of samples to owners of copyrights and 
                            trademarks or persons injured by the 
                            importation of circumvention devices.
Sec. 239. Seizure of circumvention devices.
Sec. 240. Information for travelers regarding violations of 
                            intellectual property rights.
Sec. 241. International cooperation and information sharing.
Sec. 242. Sense of Congress regarding recordation process.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Consultation on trade and customs revenue functions.
Sec. 302. Drawback for exported merchandise.
Sec. 303. Penalties for customs brokers.
Sec. 304. Articles repaired or altered.
Sec. 305. Charter flights.
Sec. 306. Symposium fees.
Sec. 307. Pilot program for establishing 24-hour commercial land border 
                            ports of entry.
Sec. 308. Prohibition on importation of goods made with forced or 
                            indentured labor or by benefit of human 
                            trafficking.
Sec. 309. Honey transshipment.
Sec. 310. Contraband archaeological or ethnological materials.
Sec. 311. De minimis and informal entries.

SEC. 2. DEFINITIONS.

    In this Act:
            (1) Commercial customs operations advisory committee.--The 
        term ``Commercial Customs Operations Advisory Committee'' means 
        the Advisory Committee established pursuant to section 202 of 
        this Act or any successor committee.
            (2) Customs and trade laws of the united states.--The term 
        ``customs and trade laws of the United States'' includes the 
        following:
                    (A) The Tariff Act of 1930.
                    (B) Section 249 of the Revised Statutes of the 
                United States (19 U.S.C. 3).
                    (C) Section 2 of the Act of March 4, 1923 (19 
                U.S.C. 6).
                    (D) Section 13031 of the Consolidated Omnibus 
                Budget Reconciliation Act of 1985 (19 U.S.C. 58c).
                    (E) Section 251 of the Revised Statutes of the 
                United States (19 U.S.C. 66).
                    (F) Section 1 of the Act of June 26, 1930 (19 
                U.S.C. 68).
                    (G) The Foreign Trade Zones Act (19 U.S.C. 81a et 
                seq.).
                    (H) Section 1 of the Act of March 2, 1911 (19 
                U.S.C. 198).
                    (I) The Trade Act of 1974.
                    (J) The Trade Agreements Act of 1979.
                    (K) The North American Free Trade Area 
                Implementation Act.
                    (L) The Uruguay Round Agreements Act.
                    (M) The Caribbean Basin Economic Recovery Act.
                    (N) The Andean Trade Preference Act.
                    (O) The African Growth and Opportunity Act.
                    (P) The Act of March 3, 1927 (44 Stat. 1381, 
                chapter 348; 19 U.S.C. 2071 et seq.).
                    (Q) The Customs Enforcement Act of 1986 (Public Law 
                99-570; 100 Stat. 3207-79).
                    (R) The Customs and Trade Act of 1990 (Public Law 
                101-382; 104 Stat. 629).
                    (S) The Customs Procedural Reform and 
                Simplification Act of 1978 (Public Law 95-410; 92 Stat. 
                888).
                    (T) The Trade Act of 2002 (Public Law 107-210; 116 
                Stat. 933).
                    (U) The Convention on Cultural Property 
                Implementation Act (19 U.S.C. 2601 et seq.).
                    (V) The Act of August 7, 1939 (53 Stat. 1263, 
                chapter 566; 19 U.S.C. 2077 et seq.).
                    (W) Any other provision of law vesting customs 
                revenue functions in the Secretary of the Treasury.
                    (X) Any other provision of law relating to customs 
                facilitation or trade enforcement that is administered 
                by the U.S. Customs and Border Protection Agency on 
                behalf of any Federal agency that is required to 
                participate in the International Trade Data System.
                    (Y) Any other provision of customs or trade law 
                administered by the U.S. Customs and Border Protection 
                Agency.
            (3) Customs revenue function.--The term ``customs revenue 
        function'' has the meaning given that term in section 415 of 
        the Homeland Security Act of 2002 (6 U.S.C. 215).
            (4) Private sector entity.--The term ``private sector 
        entity'' means--
                    (A) an importer;
                    (B) an exporter;
                    (C) a forwarder;
                    (D) an air, sea, or land carrier or shipper;
                    (E) a contract logistics provider;
                    (F) a customs broker; or
                    (G) any other person involved in the importation or 
                exportation of goods into or out of the United States.
            (5) Joint strategic plan.--The term ``Joint Strategic 
        Plan'' means the plan required by section 123A of the Customs 
        and Trade Act of 1990, as added by section 131 of this Act.
            (6) Trade support network.--The term ``Trade Support 
        Network'' means the network of private sector entities that 
        provide input on the design and development of modernization 
        projects of the U.S. Customs and Border Protection Agency.

                     TITLE I--CUSTOMS FACILITATION

        Subtitle A--Functions Other Than Investigative Functions

SEC. 101. ESTABLISHMENT OF AGENCY; COMMISSIONER.

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

``SECTION 1. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION 
              AGENCY; COMMISSIONER.

    ``(a) Establishment of U.S. Customs and Border Protection Agency.--
There is established in the Department of Homeland Security the U.S. 
Customs and Border Protection Agency.
    ``(b) Establishment of Commissioner of U.S. Customs and Border 
Protection.--The head of the U.S. Customs and Border Protection Agency 
shall be a Commissioner of U.S. Customs and Border Protection (in this 
Act, referred to as the `Commissioner'), who shall--
            ``(1) be appointed by the President, by and with the advice 
        and consent of the Senate;
            ``(2) carry out the duties described in subsection (c); and
            ``(3) report directly to the Secretary of Homeland 
        Security.
    ``(c) Duties.--
            ``(1) In general.--The duties of the Commissioner shall 
        be--
                    ``(A) to carry out the duties and powers prescribed 
                by law and such other duties as the Secretary of 
                Homeland Security may assign;
                    ``(B) to direct the administration of the 
                commercial operations as described in paragraph (2) and 
                the noncommercial operations of the U.S. Customs and 
                Border Protection Agency; and
                    ``(C) to otherwise safeguard the economic and 
                homeland security interests of the United States at 
                land borders and ports of entry.
            ``(2) Commercial operations.--The commercial operations of 
        the U.S. Customs and Border Protection Agency shall include--
                    ``(A) administering any customs revenue function 
                delegated by the Secretary of the Treasury to the 
                Secretary of Homeland Security pursuant to section 412 
                of the Homeland Security Act of 2002 (6 U.S.C. 212);
                    ``(B) facilitating legitimate international trade, 
                and enforcing the customs and trade laws of the United 
                States to the extent of the authority of the 
                Commissioner under such laws;
                    ``(C) coordinating all efforts of the Department of 
                Homeland Security to facilitate legitimate 
                international trade and to enforce the customs and 
                trade laws of the United States;
                    ``(D) coordinating, on behalf of the Department of 
                Homeland Security, efforts among executive branch 
                agencies to facilitate legitimate trade and to enforce 
                the customs and trade laws of the United States, 
                including--
                            ``(i) representing the Department of 
                        Homeland Security in interagency fora 
                        addressing such efforts; and
                            ``(ii) coordinating with the Director of 
                        U.S. Immigration and Customs Enforcement to 
                        develop and implement the Joint Strategic Plan 
                        required under section 123A of the Customs and 
                        Trade Act of 1990 (as added by section 131 of 
                        the Customs Facilitation and Trade Enforcement 
                        Reauthorization Act of 2009);
                    ``(E) coordinating, on behalf of the United States, 
                efforts with foreign customs agencies to facilitate 
                legitimate international trade and to enforce the 
                customs and trade laws of the United States and of 
                foreign countries;
                    ``(F) consulting with the Committee on Finance of 
                the Senate and the Committee on Ways and Means of the 
                House of Representatives on a regular and timely basis 
                regarding the status and substance of international 
                negotiations relating to the customs and trade laws of 
                the United States, or of foreign countries, in which 
                personnel of the U.S. Customs and Border Protection 
                Agency are participating;
                    ``(G) collecting, assessing, and disseminating 
                information as appropriate and in accordance with law, 
                regarding cargo destined for the United States, to 
                ensure that such cargo complies with the customs and 
                trade laws of the United States and to facilitate the 
                legitimate international trade of such cargo;
                    ``(H) soliciting and considering on a regular basis 
                input from the private sector, including the Commercial 
                Customs Operations Advisory Committee, the Trade 
                Support Network, and private sector entities affected 
                by the efforts of the Federal Government to facilitate 
                legitimate international trade and to enforce the 
                customs and trade laws of the United States, with 
                respect to--
                            ``(i) the implementation of new or amended 
                        customs and trade laws; and
                            ``(ii) the development, implementation, or 
                        revision of policies or regulations 
                        administered by the U.S. Customs and Border 
                        Protection Agency;
                    ``(I) consulting on a regular basis with the 
                Committee on Appropriations and the Committee on 
                Finance of the Senate and the Committee on 
                Appropriations and the Committee on Ways and Means of 
                the House of Representatives, regarding the resource 
                needs of the U.S. Customs and Border Protection Agency 
                to safeguard the economic security interests of the 
                United States at land borders and ports of entry; and
                    ``(J) otherwise advising the Secretary of Homeland 
                Security with respect to the development of policies 
                associated with facilitating legitimate international 
                trade and enforcing the customs and trade laws of the 
                United States.
            ``(3) Definitions.--The terms `Commercial Customs 
        Operations Advisory Committee', `customs and trade laws of the 
        United States', `private sector entity', and `Trade Support 
        Network' have the meaning given such terms in section 2 of the 
        Customs Facilitation and Trade Enforcement Reauthorization Act 
        of 2009.
    ``(d) Compensation.--The Commissioner of U.S. Customs and Border 
Protection, Department of Homeland Security, shall be compensated at 
the rate of pay for level III of the Executive Schedule as provided in 
section 5314 of title 5, United States Code.
    ``(e) Absence or Disability of Commissioner.--The Principal Deputy 
Commissioner, appointed pursuant to section 2, shall act as 
Commissioner of U.S. Customs and Border Protection during the absence 
or disability of the Commissioner of U.S. Customs and Border 
Protection, or in the event that there is no Commissioner of U.S. 
Customs and Border Protection.''.
    (b) Administrative Continuity.--The Act of March 3, 1927 (44 Stat. 
1381, chapter 348; 19 U.S.C. 2073), is amended by striking section 3 
and inserting the following:

``SEC. 3. TRANSFER OF FUNCTIONS, ASSETS, LIABILITIES, AND DUTIES.

    ``(a) In General.--Section 411 of the Homeland Security Act of 2002 
(6 U.S.C. 211) is repealed, and the functions and associated personnel, 
assets, and liabilities, identified under such section 411 on the day 
before the date of the enactment of the Customs Facilitation and Trade 
Enforcement Reauthorization Act of 2009, are transferred to the U.S. 
Customs and Border Protection Agency.
    ``(b) Continuation in Office.--The individual serving as 
Commissioner of Customs, in the Department of Homeland Security on the 
day before the date of the enactment of the Customs Facilitation and 
Trade Enforcement Reauthorization Act of 2009 may serve as the 
Commissioner of the U.S. Customs and Border Protection Agency until the 
earlier of--
            ``(1) the date on which such individual is no longer 
        eligible to serve as Commissioner of Customs; or
            ``(2) the date on which a person nominated by the President 
        to be the Commissioner of U.S. Customs and Border Protection is 
        confirmed by the Senate.''.
    (c) Reference.--On and after the effective date of this Act, any 
reference in law or regulations to the ``Commissioner of Customs'' or 
the ``Commissioner of the Customs Service'' shall be deemed to be a 
reference to the Commissioner of U.S. Customs and Border Protection 
established pursuant to the first section of the Act of March 3, 1927, 
as amended by subsection (a) of this section.
    (d) Conforming Amendments.--
            (1) Title 5.--Section 5314 of title 5, United States Code, 
        is amended by striking ``Commissioner of Customs, Department of 
        the Treasury'' and inserting ``Commissioner of U.S. Customs and 
        Border Protection, Department of Homeland Security''.
            (2) Table of contents.--The table of contents for the 
        Homeland Security Act of 2002 is amended by striking the item 
        relating to section 411 and inserting the following:

``Sec. 411. Reserved.''.

SEC. 102. OFFICERS AND EMPLOYEES.

    (a) In General.--The Act of March 3, 1927 (44 Stat. 1381, chapter 
348; 19 U.S.C. 2072), is amended by striking section 2 and inserting 
the following:

``SEC. 2. PRINCIPAL DEPUTY COMMISSIONER; DEPUTY COMMISSIONER; OTHER 
              OFFICERS.

    ``(a) Principal Deputy Commissioner.--
            ``(1) In general.--There shall be in the U.S. Customs and 
        Border Protection Agency established by the first section, 1 
        Principal Deputy Commissioner who shall be appointed by the 
        President, by and with the advice and consent of the Senate.
            ``(2) Committee referral.--As an exercise of the rulemaking 
        power of the Senate, a nomination for Principal Deputy 
        Commissioner of U.S. Customs and Border Protection shall be 
        referred to the Committee on Finance of the Senate.
            ``(3) Duties.--The duties of the Principal Deputy 
        Commissioner shall include--
                    ``(A) primary oversight of the commercial 
                operations of the U.S. Customs and Border Protection 
                Agency;
                    ``(B) overseeing the operations of the Office of 
                Trade established pursuant to section 4 of this Act;
                    ``(C) coordinating the establishment of standards 
                and policies for designing, developing, delivering, and 
                evaluating training programs for the U.S. Customs and 
                Border Protection Agency personnel with 
                responsibilities for customs facilitation and trade 
                enforcement;
                    ``(D) overseeing the development and implementation 
                of information technology, research, and communication 
                functions, including automation and modernization 
                strategies, that support the operations of the U.S. 
                Customs and Border Protection Agency, including the 
                implementation of the Automated Commercial Environment 
                computer system authorized under section 13031(f)(5) of 
                the Consolidated Omnibus Budget and Reconciliation Act 
                of 1985 (19 U.S.C. 58c(f)(5));
                    ``(E) overseeing the administration of customs 
                revenue functions performed by the U.S. Customs and 
                Border Protection Agency;
                    ``(F) overseeing the administration of the 
                financial management activities of the U.S. Customs and 
                Border Protection Agency, including accounting, 
                budgeting, procurement, logistics, financial systems, 
                policy, planning, and audit oversight;
                    ``(G) overseeing the public communication efforts 
                of the U.S. Customs and Border Protection Agency; and
                    ``(H) overseeing the human resources operations of 
                the U.S. Customs and Border Protection Agency.
            ``(4) Compensation.--The Principal Deputy Commissioner of 
        U.S. Customs and Border Protection, Department of Homeland 
        Security, shall be compensated at the rate of pay for level IV 
        of the Executive Schedule as provided in section 5315 of title 
        5, United States Code.
            ``(5) Absence or disability of principal deputy 
        commissioner.--The Assistant Commissioner of the Office of 
        Trade, established under section 4, shall act as the Principal 
        Deputy Commissioner during the disability of the Principal 
        Deputy Commissioner, or in the event that there is no Principal 
        Deputy Commissioner.
    ``(b) Deputy Commissioner.--
            ``(1) In general.--There shall be in the U.S. Customs and 
        Border Protection Agency, 1 Deputy Commissioner, who shall be a 
        member of the Senior Executive Service compensated at the 
        maximum rate of pay provided for in section 5382 of title 5, 
        United States Code.
            ``(2) Duties.--The duties of the Deputy Commissioner shall 
        include--
                    ``(A) primary oversight of the security operations 
                of the U.S. Customs and Border Protection Agency, 
                including field operations at land borders and ports of 
                entry;
                    ``(B) overseeing the noncommercial analysis and 
                dissemination of information collected by the U.S. 
                Customs and Border Protection Agency; and
                    ``(C) overseeing the enforcement of laws, other 
                than the customs and trade laws of the United States, 
                by the U.S. Customs and Border Protection Agency at 
                land borders and ports of entry, including the 
                detection, interdiction, or apprehension of cargo 
                destined for the United States or persons seeking entry 
                into the United States in contravention of such laws.
    ``(c) Other Officers.--The Secretary of Homeland Security may 
appoint such other officers as are necessary to manage the individual 
offices within the U.S. Customs and Border Protection Agency. Any 
appointment of personnel under this subsection shall be subject to the 
provisions of the civil service laws, and the salaries shall be fixed 
in accordance with chapter 51 and subchapter III of chapter 53 of title 
5, United States Code.''.
    (b) Trade Offices and Functions.--The Act of March 3, 1927 (44 
Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), is amended by 
inserting after section 3 the following:

``SEC. 4. OFFICE OF TRADE.

    ``(a) Establishment of Office of Trade.--There shall be within the 
U.S. Customs and Border Protection Agency an Office of Trade that shall 
be headed by an Assistant Commissioner.
    ``(b) Transfer of Assets, Function, and Personnel; Elimination of 
Offices.--
            ``(1) Office of international trade.--
                    ``(A) Transfer.--Not later than 30 days after the 
                date of the enactment of the Customs Facilitation and 
                Trade Enforcement Reauthorization Act of 2009, the 
                Secretary of Homeland Security shall transfer the 
                assets, functions, personnel, and liabilities of the 
                Office of International Trade established pursuant to 
                section 402 of the Security and Accountability for 
                Every Port Act of 2006 (Public Law 109-347; 120 Stat. 
                1924) to the Office of Trade established pursuant to 
                subsection (a) of this section.
                    ``(B) Elimination.--Not later than 30 days after 
                the date of the enactment of the Customs Facilitation 
                and Trade Enforcement Reauthorization Act of 2009, the 
                Office of International Trade established pursuant to 
                section 402 of the Security and Accountability for 
                Every Port Act of 2006 shall be abolished.
                    ``(C) Limitation on funds.--No funds appropriated 
                to the U.S. Customs and Border Protection Agency or the 
                Department of Homeland Security may be used to transfer 
                the assets, functions, personnel, and liabilities of 
                the Office of International Trade to an office other 
                than the Office of Trade established pursuant to 
                subsection (a) of this section.
            ``(2) Office of international affairs.--
                    ``(A) Transfer.--Not later than 90 days after the 
                date of the enactment of the Customs Facilitation and 
                Trade Enforcement Reauthorization Act of 2009, the 
                Secretary of Homeland Security shall transfer the 
                assets, functions, personnel, and liabilities of the 
                Office of International Affairs (described in section 
                415(8) of the Department of Homeland Security Act of 
                2002 (6 U.S.C. 215(8))) to the Office of Trade 
                established pursuant to subsection (a) of this section.
                    ``(B) Elimination.--Not later than 90 days after 
                the date of the enactment of the Customs Facilitation 
                and Trade Enforcement Reauthorization Act of 2009, the 
                Office of International Affairs shall be abolished.
                    ``(C) Limitation on funds.--No funds appropriated 
                to the U.S. Customs and Border Protection Agency or the 
                Department of Homeland Security may be used to transfer 
                the assets, functions, personnel, and liabilities of 
                the Office of International Affairs to an office other 
                than the Office of Trade established pursuant to 
                subsection (a) of this section.
            ``(3) Other transfers.--
                    ``(A) In general.--The Commissioner is authorized 
                to transfer any other assets, functions, or personnel 
                within the U.S. Customs and Border Protection Agency to 
                the Office of Trade established pursuant to subsection 
                (a) of this section.
                    ``(B) Congressional notification.--Not less than 90 
                days prior to such transfer, the Commissioner shall 
                notify the Committee on Finance of the Senate and the 
                Committee on Ways and Means of the House of 
                Representatives of the specific assets, functions, or 
                personnel to be transferred, and the reason for such 
                transfer.
    ``(c) Assistant Commissioner.--
            ``(1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall appoint an Assistant Commissioner who 
        shall--
                    ``(A) be the head of the Office of Trade;
                    ``(B) report to the Principal Deputy Commissioner 
                of U.S. Customs and Border Protection; and
                    ``(C) be employed without regard to any provision 
                of law regulating employment or compensation at a rate 
                not to exceed the rate of pay for level IV of the 
                Executive Schedule as provided in section 5315 of title 
                5, United States Code.
            ``(2) Qualifications.--A person appointed to be the 
        Assistant Commissioner of the Office of Trade shall have a 
        minimum of 10 years of professional experience in the operation 
        of the customs and trade laws of the United States, not less 
        than 5 of which shall be in non-Federal Government service.
            ``(3) Duties.--The duties of the Assistant Commissioner 
        shall include--
                    ``(A) directing the development and implementation 
                of rules, regulations, decisions, notices, and 
                abstracts, related to the customs and trade laws of the 
                United States administered by the Agency;
                    ``(B) advising the Commissioner with respect to the 
                impact on international trade of any program or 
                regulation otherwise proposed or administered by the 
                Agency;
                    ``(C) directing the definition and administration 
                of the trade priority issue areas identified by the 
                Commissioner in the Joint Strategic Plan required under 
                section 123A of the Customs and Trade Act of 1990;
                    ``(D) otherwise advising the Commissioner with 
                respect to the development and implementation of the 
                Joint Strategic Plan required under section 123A of the 
                Customs and Trade Act of 1990;
                    ``(E) directing the trade enforcement and 
                compliance assessment activities of the Agency, 
                including the activities of the National Targeting and 
                Analysis Groups established under section 211 of the 
                Customs Facilitation and Trade Enforcement 
                Reauthorization Act of 2009;
                    ``(F) overseeing the trade modernization activities 
                of the Agency, including the development and 
                implementation of the Automated Commercial Environment 
                computer system authorized under section 13031(f)(5) of 
                the Consolidated Omnibus Budget and Reconciliation Act 
                of 1985 (19 U.S.C. 58c(f)(5)) and support for the 
                establishment of the International Trade Data System 
                under the oversight of the Department of the Treasury 
                pursuant to section 411(d) of the Tariff Act of 1930 
                (19 U.S.C. 1411(d));
                    ``(G) advising the Commissioner with respect to 
                matters arising in the World Customs Organization;
                    ``(H) directing the administration of customs 
                revenue functions otherwise provided by law or 
                delegated by the Commissioner; and
                    ``(I) preparing an annual report to be submitted to 
                the Committee on Finance of the Senate and the 
                Committee on Ways and Means of the House of 
                Representatives not later than March 1 of each calendar 
                year, summarizing the changes to customs regulations, 
                practices, and procedures adopted by the U.S. Customs 
                and Border Protection Agency during the preceding 
                calendar year, the public vetting that occurred with 
                respect to each such change, and the interagency 
                consultation that occurred with respect to each such 
                change.
    ``(d) Trade Advocate.--The Commissioner shall appoint within the 
Office of Trade, a Trade Advocate, who shall report directly to the 
Assistant Commissioner.
            ``(1) Duties.--The Trade Advocate shall--
                    ``(A) serve as the primary liaison between the U.S. 
                Customs and Border Protection Agency and the public 
                with respect to the Agency's administration of customs 
                facilitation and trade enforcement functions;
                    ``(B) serve as a liaison between the Office of 
                Trade and the Office of Field Operations with respect 
                to the administration of customs facilitation and trade 
                enforcement functions;
                    ``(C) consult with interested persons in the 
                private sector, the Commercial Customs Operations 
                Advisory Committee, and the Trade Support Network, for 
                their input with respect to the Agency's--
                            ``(i) development and implementation of 
                        rules, regulations, decisions, notices, and 
                        abstracts, related to the customs and trade 
                        laws of the United States administered by the 
                        Agency;
                            ``(ii) development of the Joint Strategic 
                        Plan required under section 123A of the Customs 
                        and Trade Act of 1990;
                            ``(iii) assessment of the effectiveness of 
                        customs facilitation and trade enforcement 
                        efforts; and
                            ``(iv) trade modernization activities, 
                        including the development and implementation of 
                        the Automated Commercial Environment computer 
                        system authorized under section 13031(f)(5) of 
                        the Consolidated Omnibus Budget and 
                        Reconciliation Act of 1985 (19 U.S.C. 
                        58c(f)(5)) and support for the establishment of 
                        the International Trade Data System under the 
                        oversight of the Department of the Treasury 
                        pursuant to section 411(d) of the Tariff Act of 
                        1930 (19 U.S.C. 1411(d));
                    ``(D) advise the Commissioner with respect to the 
                consultations described in subparagraph (C); and
                    ``(E) otherwise consult with the public as directed 
                by the Commissioner or by law.
            ``(2) Elimination of office.--
                    ``(A) Transfer.--Not later than 30 days after the 
                date of the enactment of the Customs Facilitation and 
                Trade Enforcement Reauthorization Act of 2009, the 
                Secretary of Homeland Security shall transfer the 
                assets, functions, personnel, and liabilities of the 
                Office of Trade Relations in the U.S. Customs and 
                Border Protection Agency to the Office of Trade 
                established pursuant to subsection (a) of this section.
                    ``(B) Elimination.--Not later than 30 days after 
                the date of the enactment of the Customs Facilitation 
                and Trade Enforcement Reauthorization Act of 2009, the 
                Office of Trade Relations in the U.S. Customs and 
                Border Protection Agency shall be abolished.
                    ``(C) Limitation on funds.--No funds appropriated 
                to the U.S. Customs and Border Protection Agency or the 
                Department of Homeland Security may be used to transfer 
                the assets, functions, personnel, and liabilities of 
                the Office of Trade Relations to an office other than 
                the Office of Trade established pursuant to subsection 
                (a) of this section.

``SEC. 5. ESTABLISHMENT OF THE CUSTOMS FACILITATION AND TRADE 
              ENFORCEMENT DIVISION IN THE OFFICE OF FIELD OPERATIONS; 
              DIVISION PERSONNEL.

    ``(a) Establishment.--There is established within the Office of 
Field Operations of the U.S. Customs and Border Protection Agency a 
Customs Facilitation and Trade Enforcement Division.
    ``(b) Appointment.--The head of the Customs Facilitation and Trade 
Enforcement Division shall be a Deputy Assistant Commissioner, who 
shall--
            ``(1) be appointed by the Commissioner subject to the 
        provisions of the civil service laws; and
            ``(2) whose salary shall be fixed in accordance with 
        chapter 51 and subchapter III of chapter 53 of title 5, United 
        States Code.
    ``(c) Duties.--The duties of the Deputy Assistant Commissioner 
shall include--
            ``(1) overseeing the customs facilitation and trade 
        enforcement activities at ports of entry by personnel within 
        the Office of Field Operations, including the activities of 
        Commercial Enforcement Officers provided for under subsection 
        (d)(2);
            ``(2) overseeing the operational training of personnel 
        within the Office of Field Operations at ports of entry to 
        administer the customs facilitation and trade enforcement 
        functions of the U.S. Customs and Border Protection Agency;
            ``(3) evaluating on a regular basis the operational 
        effectiveness of the customs facilitation and trade enforcement 
        activities at ports of entry by personnel of the Office of 
        Field Operations;
            ``(4) overseeing the coordination of customs facilitation 
        and trade enforcement efforts between the Office of Field 
        Operations and the Office of Trade established under section 4;
            ``(5) consulting regularly with the Trade Advocate 
        established under section 4(d) with respect to any input 
        received regarding the customs facilitation and trade 
        enforcement efforts of the U.S. Customs and Border Protection 
        Agency;
            ``(6) ensuring uniform administration and implementation 
        among ports of entry of new or revised customs and trade laws, 
        regulations, or policies, related to the customs facilitation 
        and trade enforcement efforts of the U.S. Customs and Border 
        Protection Agency;
            ``(7) implementing the operational provisions of the Joint 
        Strategic Plan required under section 123A of the Customs and 
        Trade Act of 1990 related to the customs facilitation and trade 
        enforcement efforts of the U.S. Customs and Border Protection 
        Agency at ports of entry;
            ``(8) ensuring the prompt collection of available data 
        regarding cargo that violates the customs and trade laws of the 
        United States, and the prompt issuance of Trade Alerts pursuant 
        to section 211 of the Customs Facilitation and Trade 
        Enforcement Reauthorization Act of 2009; and
            ``(9) otherwise overseeing the customs facilitation and 
        trade enforcement activities of personnel within the Office of 
        Field Operations at ports of entry, as directed by the 
        Commissioner.
    ``(d) Personnel.--
            ``(1) Headquarters personnel.--In addition to the Deputy 
        Assistant Commissioner, the Commissioner shall designate and 
        dedicate not less than 5 full-time equivalent personnel to 
        operate the Customs Facilitation and Trade Enforcement Division 
        in the Office of Field Operations.
            ``(2) Commercial enforcement officers.--
                    ``(A) In general.--Not later than September 30, 
                2011, the Commissioner shall designate and dedicate 
                within the Office of Field Operations not less than 40 
                Commercial Enforcement Officers.
                    ``(B) Assignment.--The Commissioner shall assign 
                the Commercial Enforcement Officers authorized under 
                this section among the 40 United States ports of entry 
                that experienced the highest volume of trade during 
                fiscal year 2009.
                    ``(C) Duties.--The duties of a Commercial 
                Enforcement Officer shall be--
                            ``(i) to supervise all trade enforcement 
                        activities of personnel of the Office of Field 
                        Operations at the port of entry to which the 
                        Commercial Enforcement Officer has been 
                        assigned;
                            ``(ii) to coordinate with the Office of 
                        Trade all trade enforcement activities at the 
                        port of entry to which the Commercial 
                        Enforcement Officer has been assigned;
                            ``(iii) to direct the training of personnel 
                        at the port of entry to which the Commercial 
                        Enforcement Officer has been assigned to 
                        effectuate the trade enforcement activities of 
                        the Office of Field Operations; and
                            ``(iv) to otherwise conduct trade 
                        enforcement activities at the port of entry to 
                        which the Commercial Enforcement Officer has 
                        been assigned.

``SEC. 6. ESTABLISHMENT OF INTERAGENCY CUSTOMS REVIEW BOARD.

    ``(a) Establishment.--There is established an interagency Customs 
Review Board.
    ``(b) Membership.--The interagency Customs Review Board shall be 
comprised of the Commissioner, the Assistant Secretary for Policy in 
the Department of Homeland Security, the Assistant Secretary for Tax 
Policy in the Department of the Treasury, the Under Secretary for 
International Trade in the Department of Commerce, and 1 Deputy United 
States Trade Representative designated by the United States Trade 
Representative to serve on the interagency Customs Review Board. The 
interagency Customs Review Board shall be cochaired by the Commissioner 
and the Assistant Secretary for Tax Policy in the Department of the 
Treasury.
    ``(c) Duties.--Before the U.S. Customs and Border Protection Agency 
may publicly propose or adopt a proposed change to a customs 
regulation, interpretation, or practice, the interagency Customs Review 
Board shall review the proposed change to determine if the proposed 
change conforms to the international trade obligations of the United 
States.''.
    (c) Conforming Amendment.--Section 5315 of title 5, United States 
Code, is amended by adding at the end the following:
            ``Principal Deputy Commissioner of U.S. Customs and Border 
        Protection, Department of Homeland Security.''.

SEC. 103. SEPARATE BUDGET FOR U.S. CUSTOMS AND BORDER PROTECTION 
              AGENCY.

    (a) In General.--The President shall include in each budget 
transmitted to Congress under section 1105 of title 31, United States 
Code, 2 separate budget requests for the U.S. Customs and Border 
Protection Agency--
            (1) 1 for the commercial operations of the Agency; and
            (2) 1 for the noncommercial operations of the Agency.
    (b) Repeal.--
            (1) In general.--Section 414 of the Homeland Security Act 
        of 2002 (6 U.S.C. 214) is hereby repealed.
            (2) Conforming amendment.--The table of contents for the 
        Homeland Security Act of 2002 is amended by striking the item 
        relating to section 414 and inserting the following:

``Sec. 414. Reserved.''.

SEC. 104. REVOLVING FUND.

    The matter under the heading ``revolving fund, bureau of customs'' 
in the Treasury and Post Office Departments Appropriation Act, 1950 (63 
Stat. 360, chapter 286; 19 U.S.C. 2074), is amended by striking 
``United States Customs Service'' and inserting ``U.S. Customs and 
Border Protection Agency''.

SEC. 105. ADVANCES IN FOREIGN COUNTRIES.

    The first section of the Act of May 6, 1939 (53 Stat. 660, chapter 
115; 19 U.S.C. 2076), is amended by striking ``United States Customs 
Service'' and inserting ``U.S. Customs and Border Protection Agency or 
the U.S. Immigration and Customs Enforcement Agency''.

SEC. 106. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.

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

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

    ``The Commissioner of U.S. Customs and Border Protection and the 
Director of U.S. Immigration and Customs Enforcement, with the approval 
of the Secretary of Homeland Security and the Secretary of the 
Treasury, are each authorized to direct the advance of funds by the 
Fiscal Service in the Department of the Treasury, in connection with 
the enforcement of the customs and trade laws of the United States (as 
defined in section 2 of the Customs Facilitation and Trade Enforcement 
Reauthorization Act of 2009).''.

SEC. 107. CERTIFICATION OF REASON FOR ADVANCE.

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

SEC. 108. PAYMENTS IN FOREIGN COUNTRIES; CLAIMS FOR REIMBURSEMENT.

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

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

    ``The provisions of this Act shall not affect payments made for the 
U.S. Customs and Border Protection Agency or the U.S. Immigration and 
Customs Enforcement Agency in foreign countries, or the right of any 
officer or employee of such Agencies to claim reimbursement for 
personal funds expended in connection with the enforcement of the 
customs and trade laws of the United States (as defined in section 2 of 
the Customs Facilitation and Trade Enforcement Reauthorization Act of 
2009).''.

SEC. 109. CUSTOMS ADMINISTRATION.

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

``SEC. 113. CUSTOMS ADMINISTRATION.

    ``(a) In General.--The Commissioner of U.S. Customs and Border 
Protection and the Director of U.S. Immigration and Customs Enforcement 
each shall--
            ``(1) develop and implement accounting systems that 
        accurately determine and report the allocation of the personnel 
        and other resources of the U.S. Customs and Border Protection 
        Agency and the U.S. Immigration and Customs Enforcement Agency 
        among the various operational functions of each Agency, 
        including merchandise processing and customs and trade law 
        enforcement; and
            ``(2) develop and implement periodic labor distribution 
        surveys of major workforce activities within the U.S. Customs 
        and Border Protection Agency and the U.S. Immigration and 
        Customs Enforcement Agency to determine the cost of the various 
        operational functions of each Agency and the extent to which 
        the costs of one Agency are covered by the other Agency.
    ``(b) Survey Reports.--The Commissioner of U.S. Customs and Border 
Protection and the Director of U.S. Immigration and Customs Enforcement 
shall each, not later than June 30, 2010, submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a report on the results of the first surveys 
implemented under paragraph (2) of subsection (a).''.

SEC. 110. PERSONNEL.

    (a) In General.--Subsection (a) of section 401 of the Security and 
Accountability for Every Port Act of 2006 (6 U.S.C. 115(a)) is amended 
to read as follows:
    ``(a) Director of Trade Policy.--
            ``(1) In general.--There shall be in the Office of Policy 
        and Planning of the Department of Homeland Security a Director 
        of Trade Policy, who shall--
                    ``(A) coordinate with the Commissioner of U.S. 
                Customs and Border Protection to ensure that the 
                economic security interests of the United States 
                associated with international trade are considered in 
                the development and implementation of policies within 
                the Department of Homeland Security; and
                    ``(B) submit to the Committee on Finance of the 
                Senate and the Committee on Ways and Means of the House 
                of Representatives, not later than December 15 of each 
                year, a report describing how the Department of 
                Homeland Security accounted for the economic security 
                interests of the United States associated with 
                international trade in developing and implementing 
                policies during the preceding fiscal year.
            ``(2) Qualifications.--The Director of Trade Policy shall 
        have significant experience in the development, operation, or 
        administration of United States trade policy, and shall be 
        compensated at a rate of pay that is not less than the rate of 
        pay for grade 14 of the General Schedule under section 5332 of 
        title 5, United States Code.''.
    (b) New Personnel.--Subsection (c) of section 412 of the Homeland 
Security Act of 2002 (16 U.S.C. 212(c)) is amended to read as follows:
    ``(c) New Personnel.--Not later than 90 days after the date of the 
enactment of the Customs Facilitation and Trade Enforcement 
Reauthorization Act of 2009, the Secretary of the Treasury shall 
designate and dedicate not less than 5 full-time equivalent personnel 
to work exclusively with the Deputy Assistant Secretary of the Treasury 
for Tax, Trade, and Tariff Policy in the performance and oversight of 
customs revenue functions.''.

SEC. 111. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 301 of the Customs Procedural Reform and 
Simplification Act of 1978 (19 U.S.C. 2075) is amended by redesignating 
subsection (h) as subsection (i) and by striking subsections (a) 
through (g) and inserting the following:
    ``(a) In General.--
            ``(1) Fiscal years beginning october 1, 2009.--For the 
        fiscal year beginning October 1, 2009, and each fiscal year 
        thereafter, there are authorized to be appropriated to the 
        Department of Homeland Security for the U.S. Customs and Border 
        Protection Agency only such sums as may hereafter be authorized 
        by law.
            ``(2) Requirement for authorization.--The authorization of 
        the appropriations for the U.S. Customs and Border Protection 
        Agency for each fiscal year after fiscal year 2009 shall 
        specify--
                    ``(A) the amount authorized for the fiscal year for 
                the salaries and expenses of the Agency in conducting 
                commercial operations; and
                    ``(B) the amount authorized for the fiscal year for 
                the salaries and expenses of the Agency for other than 
                commercial operations.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for the salaries and expenses of the U.S. Customs and 
Border Protection Agency that are incurred in commercial operations 
such sums as are necessary for fiscal years 2010, 2011, and 2012.
    ``(c) Customs User Fee Account.--The monies authorized to be 
appropriated pursuant to subsection (b) for any fiscal year, except for 
such sums as may be necessary for the salaries and expenses of the U.S. 
Customs and Border Protection Agency that are incurred in connection 
with the processing of merchandise that is exempt from the fees imposed 
pursuant to section 13031(a) (9) and (10) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(a) (9) and (10)) shall 
be appropriated from the Customs User Fee Account.
    ``(d) Mandatory 10-Day Deferment.--No part of the funds 
appropriated under subsection (a) for any fiscal year may be used to 
provide less time for the collection of estimated duties than the 10-
day deferment procedure in effect on January 1, 1981.
    ``(e) Overtime Pay Limitations; Waiver.--No part of the funds 
appropriated pursuant to subsection (a) for any fiscal year may be used 
for administrative expenses to pay any employee of the U.S. Customs and 
Border Protection Agency 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 Agency.
    ``(f) Pay Comparability Authorization.--For the fiscal year 
beginning October 1, 2009, and for each fiscal year thereafter, there 
are authorized to be appropriated to the Department of Homeland 
Security for salaries of the U.S. Customs and Border Protection Agency 
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).
    ``(g) Use of Savings Resulting From Administrative 
Consolidations.--If savings in salaries and expenses result from the 
consolidation of administrative functions within the U.S. Customs and 
Border Protection Agency, the Commissioner of U.S. Customs and Border 
Protection shall apply the savings, to the extent the savings are not 
needed to meet emergency requirements of the Agency, to strengthening 
the commercial operations of the Agency by increasing the number of 
personnel dedicated to administering customs revenue functions.
    ``(h) Allocation of Resources; Report to Congressional 
Committees.--The Commissioner of U.S. Customs and Border Protection 
shall notify the Committee on Finance of the Senate and the Committee 
on Ways and Means of the House of Representatives at least 180 days 
prior to taking any action that would--
            ``(1) result in any significant reduction in force of 
        employees of the U.S. Customs and Border Protection Agency 
        other than by means of attrition;
            ``(2) result in any significant reduction in hours of 
        operation or services rendered at any office of the U.S. 
        Customs and Border Protection Agency or any United States port 
        of entry;
            ``(3) eliminate or relocate any office of the U.S. Customs 
        and Border Protection Agency;
            ``(4) eliminate any United States port of entry; or
            ``(5) significantly reduce the number of employees assigned 
        to any office or any function of the U.S. Customs and Border 
        Protection Agency.''.
    (b) Resource Optimization Model.--Subsection (i) of section 301 of 
the Customs Procedural Reform and Simplification Act of 1978, as 
redesignated by subsection (a), is amended by striking ``Resource 
Allocation Model'' each place it appears in the text and in the heading 
and inserting ``Resource Optimization Model''.
    (c) Conforming Amendments.--
            (1) In general.--Subsection (c) of section 5 of the Act of 
        February 13, 1911 (19 U.S.C. 267(c)), is amended to read as 
        follows:
    ``(c) Limitations.--
            ``(1) Fiscal year cap.--The aggregate of overtime pay under 
        subsection (a) of this section (including commuting 
        compensation under subsection (a)(2)(B) of this section) and 
        premium pay under subsection (b) of this section that an 
        employee of the U.S. 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 Agency.
            ``(2) Exclusivity of pay under this section.--An employee 
        of the U.S. Customs and Border Protection Agency who receives 
        overtime pay under subsection (a) of this section, or premium 
        pay under subsection (b) of this section for time worked, may 
        not receive pay or other compensation for that work under any 
        other provision of law.''.
            (2) Basic pay.--Section 8331(3)(G) of title 5, United 
        States Code, is amended--
                    (A) by striking ``a customs officer'' and inserting 
                ``employee of the U.S. Customs and Border Protection 
                Agency''; and
                    (B) by striking ``customs officers'' and inserting 
                ``such employees''.

                  Subtitle B--Investigative Functions

SEC. 121. ESTABLISHMENT OF AGENCY.

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

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

    ``(a) Establishment of Agency.--There shall be in the Department of 
Homeland Security an agency to be known as the U.S. Immigration and 
Customs Enforcement Agency.
    ``(b) Establishment of Director.--
            ``(1) In general.--The head of the U.S. Immigration and 
        Customs Enforcement Agency shall be a Director of U.S. 
        Immigration and Customs Enforcement, who shall--
                    ``(A) be appointed by the President, by and with 
                the advice and consent of the Senate;
                    ``(B) carry out the duties and powers described in 
                subsection (c), prescribed by law, and prescribed by 
                the Secretary of Homeland Security;
                    ``(C) report directly to the Deputy Secretary of 
                Homeland Security;
                    ``(D) have a minimum of 5 years professional 
                experience in law enforcement, and a minimum of 5 years 
                of management experience; and
                    ``(E) advise the Secretary with respect to any 
                policy or operation of the U.S. Immigration and Customs 
                Enforcement Agency that may affect the Bureau of 
                Citizenship and Immigration Services established under 
                subtitle E (redesignated as the U.S. Citizenship and 
                Immigration Services), including potentially 
                conflicting policies or operations.
            ``(2) Committee referral.--As an exercise of the rulemaking 
        power of the Senate, any nomination for Director of U.S. 
        Immigration and Customs Enforcement shall be referred to the 
        Committee on Finance. If the Committee on Finance has not 
        reported such nomination at the close of the 30th day after its 
        referral to such Committee, the Committee shall be 
        automatically discharged from further consideration of such 
        nomination and such nomination shall be referred to the 
        Committee on the Judiciary.
    ``(c) Duties of Director.--The duties of the Director shall 
include--
            ``(1) establishing and overseeing the administration of 
        policies with respect to functions--
                    ``(A) performed under the detention and removal 
                program, the intelligence program, and the 
                investigations program that were transferred to the 
                Under Secretary for Border and Transportation Security 
                by section 441 of this Act and delegated to the 
                Assistant Secretary for Immigration and Customs 
                Enforcement on the day before the date of the enactment 
                of the Customs Facilitation and Trade Enforcement 
                Reauthorization Act of 2009; and
                    ``(B) otherwise vested in the Assistant Secretary 
                on the day before the date of the enactment of the 
                Customs Facilitation and Trade Enforcement 
                Reauthorization Act of 2009;
            ``(2) advising the Secretary of Homeland Security with 
        respect to any policy or operation of the U.S. Immigration and 
        Customs Enforcement Agency that may affect the U.S. Citizenship 
        and Immigration Services established under subtitle E, 
        including potentially conflicting policies and operations;
            ``(3) conducting investigations of violations of the 
        customs and trade laws of the United States (as that term is 
        defined in section 2 of the Customs Facilitation and Trade 
        Enforcement Reauthorization Act of 2009), including 
        investigations of violations of laws that protect intellectual 
        property rights or prohibit the importation of goods that pose 
        a threat to the health or safety of consumers in the United 
        States; and
            ``(4) coordinating with the Commissioner of U.S. Customs 
        and Border Protection to ensure the development and 
        implementation of the Joint Strategic Plan required under 
        section 123A of the Customs and Trade Act of 1990.
    ``(d) Deputy Director.--The Secretary of Homeland Security is 
authorized to appoint, in the U.S. Immigration and Customs Enforcement 
Agency established by subsection (a), 1 Deputy Director. Such 
appointment shall be subject to the provisions of the civil service 
laws and the salary shall be fixed in accordance with chapter 51 and 
subchapter III of chapter 53 of title 5, United States Code.
    ``(e) Absence or Disability of Director or Deputy Director.--
            ``(1) Director.--The Secretary of Homeland Security is 
        authorized to designate an officer of the U.S. Immigration and 
        Customs Enforcement Agency to serve as Director of U.S. 
        Immigration and Customs Enforcement, during the absence or 
        disability of the Director of U.S. Immigration and Customs 
        Enforcement, or in the event that there is no Director of U.S. 
        Immigration and Customs Enforcement.
            ``(2) Deputy director.--The Secretary of Homeland Security 
        is authorized to designate an officer of the U.S. Immigration 
        and Customs Enforcement Agency to serve as Deputy Director of 
        U.S. Immigration and Customs Enforcement, during the absence or 
        disability of the Deputy Director of U.S. Immigration and 
        Customs Enforcement, or in the event that there is no Deputy 
        Director of U.S. Immigration and Customs Enforcement.
    ``(f) Additional Officers.--The Secretary of Homeland Security may 
appoint such officers as are necessary to manage the individual offices 
within the U.S. Immigration and Customs Enforcement Agency. 
Appointments under this paragraph 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.
    ``(g) Duties of Personnel.--The personnel of the U.S. Immigration 
and Customs Enforcement Agency shall conduct and prosecute 
investigations for the enforcement of the customs and trade laws of the 
United States, and perform such other duties as are prescribed by law 
or by the Secretary of Homeland Security.
    ``(h) Program To Collect Information Relating to Foreign 
Students.--The Director of the U.S. Immigration and Customs Enforcement 
Agency 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 U.S. Immigration and Customs 
Enforcement Agency.
    ``(i) Chief of Policy and Strategy.--
            ``(1) In general.--There shall be a position of Chief of 
        Policy and Strategy for the U.S. Immigration and Customs 
        Enforcement Agency.
            ``(2) Functions.--In consultation with personnel in local 
        offices of the U.S. Immigration and Customs Enforcement Agency, 
        the Chief of Policy and Strategy shall be responsible for--
                    ``(A) making policy recommendations and performing 
                policy research and analysis on immigration enforcement 
                issues; and
                    ``(B) coordinating immigration policy issues with 
                the Chief of Policy and Strategy for the Bureau of 
                Citizenship and Immigration Services established under 
                subtitle E, as appropriate.
    ``(j) Legal Advisor.--There shall be a principal legal advisor to 
the Director of U.S. Immigration and Customs Enforcement. The legal 
advisor shall provide specialized legal advice to the Director of 
Immigration and Customs Enforcement and shall represent the U.S. 
Immigration and Customs Enforcement Agency in all exclusion, 
deportation, and removal proceedings before the Executive Office for 
Immigration Review.''.
    (b) Compensation.--
            (1) In general.--Section 5315 of title 5, United States 
        Code, is amended by adding at the end the following:
            ``Director of U.S. Immigration and Customs Enforcement, 
        Department of Homeland Security.''.
            (2) Continuation in office.--The individual serving as 
        Assistant Secretary for Immigration and Customs Enforcement of 
        the Department of Homeland Security on the day before the date 
        of the enactment of this Act may serve as Director of U.S. 
        Immigration and Customs Enforcement until the earlier of--
                    (A) the date on which such individual is no longer 
                eligible to serve as Assistant Secretary; or
                    (B) the date on which a person nominated by the 
                President to be the Director of U.S. Immigration and 
                Customs Enforcement is confirmed by the Senate.
            (3) Reference.--On and after the effective date of this 
        Act, any reference to the Assistant Secretary for Immigration 
        and Customs Enforcement of the Department of Homeland Security, 
        shall be deemed to be a reference to the Director of U.S. 
        Immigration and Customs Enforcement.
    (c) Conforming Amendments.--
            (1) Subtitle d.--The heading for subtitle D of title IV of 
        the Homeland Security Act of 2002 is amended by striking the 
        matter preceding section 441 and inserting the following:

                 ``Subtitle D--Enforcement Functions''.

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

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

                 ``Subtitle D--Enforcement Functions''.

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

SEC. 122. SEPARATE BUDGET FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT 
              AGENCY.

    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 U.S. Immigration and Customs Enforcement Agency--
            (1) 1 for the customs operations of the Agency; and
            (2) 1 for the operations of the Agency other than customs 
        operations.

SEC. 123. UNDERCOVER INVESTIGATIVE OPERATIONS.

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

``SEC. 3131. UNDERCOVER INVESTIGATIVE OPERATIONS OF THE U.S. 
              IMMIGRATION AND CUSTOMS ENFORCEMENT AGENCY.

    ``(a) Certification Required for Exemption of Undercover Operations 
From Certain Laws.--With respect to any undercover investigative 
operation of the U.S. Immigration and Customs Enforcement Agency (in 
this section referred to as the `Agency') that is necessary for the 
detection and prosecution of offenses against the United States that 
are within the jurisdiction of the Secretary of Homeland Security--
            ``(1) sums authorized to be appropriated may be used--
                    ``(A) to purchase property, buildings, and other 
                facilities, and to lease space, within the United 
                States, the District of Columbia, and the territories 
                and possessions of the United States without regard 
                to--
                            ``(i) sections 1341 and 3342 of title 31, 
                        United States Code;
                            ``(ii) sections 3732(a) and 3741 of the 
                        Revised Statutes of the United States (41 
                        U.S.C. 11(a) and 22);
                            ``(iii) section 8141 of title 40, United 
                        States Code; and
                            ``(iv) sections 304(a) and 305 of the 
                        Federal Property and Administrative Services 
                        Act of 1949 (41 U.S.C. 254(a) and 255); and
                    ``(B) to establish or to acquire proprietary 
                corporations or business entities as part of the 
                undercover operation, and to operate such corporations 
                or business entities without regard to sections 9102 
                and 9103 of title 31, United States Code;
            ``(2) sums authorized to be appropriated for the Agency and 
        the proceeds from the undercover operation, may be deposited in 
        banks or other financial institutions without regard to the 
        provisions of section 648 of title 18 and section 3302 of title 
        31, United States Code; and
            ``(3) the proceeds from the undercover operation may be 
        used to offset necessary and reasonable expenses incurred in 
        such operation without regard to the provision of section 3302 
        of title 31, United States Code;
only upon written certification of the Director of the U.S. Immigration 
and Customs Enforcement Agency (or, if designated by the Director, such 
other officer within the U.S. Immigration and Customs Enforcement 
Agency) that any action authorized by paragraph (1), (2), or (3) of 
this subsection is necessary for the conduct of such undercover 
operation.
    ``(b) Liquidation of Corporations and Business Entities.--If a 
corporation or business entity established or acquired as part of an 
undercover operation under subsection (a)(1)(B) of this section with a 
net value over $50,000 is to be liquidated, sold, or otherwise disposed 
of, the U.S. Immigration and Customs Enforcement Agency, as much in 
advance as the Director (or, if designated by the Director, such other 
officer within the Agency) determines is practicable, shall report the 
circumstances to the Secretary of Homeland Security and the Secretary 
of the Treasury. The proceeds of the liquidation, sale, or other 
disposition, after obligations are met, shall be deposited in the 
Treasury of the United States as miscellaneous receipts.
    ``(c) Deposits of Proceeds.--As soon as the proceeds from an 
undercover investigative operation with respect to which an action is 
authorized and carried out under paragraphs (2) and (3) of subsection 
(a) of this section are no longer necessary for the conduct of such 
operation, such proceeds, or the balance of such proceeds remaining at 
the time, shall be deposited into the Treasury of the United States as 
miscellaneous receipts.
    ``(d) Audits.--
            ``(1) In general.--The Director of U.S. Immigration and 
        Customs Enforcement shall--
                    ``(A) conduct a detailed financial audit of each 
                undercover investigative operation that is closed in 
                each fiscal year;
                    ``(B) submit the results of the audit in writing to 
                the Secretary of Homeland Security and the Secretary of 
                the Treasury; and
                    ``(C) not later than 180 days after such undercover 
                operation is closed, submit a report to the Congress 
                concerning such audit.
            ``(2) Report.--The Director shall also submit a report 
        annually to the Congress specifying with respect to the 
        Agency's undercover investigative operations--
                    ``(A) the number, by program, of undercover 
                investigative operations pending at the end of the 1-
                year period for which such report is submitted;
                    ``(B) the number, by program, of undercover 
                investigative operations commenced in the 1-year period 
                preceding the period for which such report is 
                submitted; and
                    ``(C) the number, by program, of undercover 
                investigative operations closed in the 1-year period 
                preceding the period for which such report is submitted 
                and, with respect to each such closed undercover 
                operation, the results obtained and any civil claims 
                made with respect thereto.
    ``(e) Definitions.--For purposes of subsection (d), the following 
definitions apply:
            ``(1) Closed.--The term `closed' refers to the earliest 
        point in time at which--
                    ``(A) all criminal proceedings (other than appeals) 
                are concluded; or
                    ``(B) covert activities are concluded, whichever 
                occurs later.
            ``(2) Employees.--The term `employees' means employees of 
        the U.S. Immigration and Customs Enforcement Agency, as defined 
        in section 2105 of title 5, United States Code.
            ``(3) Undercover investigative operation; undercover 
        operation.--
                    ``(A) In general.--The terms `undercover 
                investigative operation' and `undercover operation' 
                mean any undercover investigative operations of the 
                U.S. Immigration and Customs Enforcement Agency--
                            ``(i) in which--
                                    ``(I) the gross receipts (excluding 
                                interest earned) exceed $50,000; or
                                    ``(II) expenditures (other than 
                                expenditures for salaries of employees) 
                                exceed $150,000; and
                            ``(ii) which is exempt from section 3302 or 
                        9102 of title 31, United States Code.
                    ``(B) Exception.--Clauses (i) and (ii) of 
                subparagraph (A) shall not apply with respect to the 
                report required under paragraph (2) of subsection (d) 
                of this section.''.

SEC. 124. AUTHORIZATION OF APPROPRIATIONS.

    Title III of the Customs Procedural Reform and Simplification Act 
of 1978 (19 U.S.C. 2075) is amended by inserting after section 301 the 
following:

``SEC. 302. AUTHORIZATION OF APPROPRIATIONS FOR CERTAIN CUSTOMS 
              ENFORCEMENT ACTIVITIES.

    ``(a) In General.--
            ``(1) Fiscal years beginning on or after october 1, 2009.--
        For the fiscal year beginning October 1, 2009, and each fiscal 
        year thereafter, there are authorized to be appropriated to the 
        Department of Homeland Security for the U.S. Immigration and 
        Customs Enforcement Agency only such sums as may hereafter be 
        authorized by law.
            ``(2) Specification of amounts.--The authorization of the 
        appropriations for the U.S. Immigration and Customs Enforcement 
        Agency for each fiscal year after fiscal year 2009 shall 
        specify--
                    ``(A) the amount authorized for the fiscal year for 
                the salaries and expenses of the Agency in conducting 
                customs operations; and
                    ``(B) the amount authorized for the fiscal year for 
                the salaries and expenses of the Agency for other than 
                customs operations.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for the salaries and expenses of the U.S. Immigration and 
Customs Enforcement Agency that are incurred in customs operations such 
sums as are necessary for fiscal years 2010, 2011, and 2012.''.

                    Subtitle C--Joint Strategic Plan

SEC. 131. JOINT STRATEGIC PLAN.

    (a) In General.--Title I of the Customs and Trade Act of 1990 
(Public Law 101-382; 104 Stat. 629) is amended by inserting after 
section 123, the following new section:

``SEC. 123A. JOINT STRATEGIC PLAN.

    ``(a) In General.--Not later than June 30, 2010, and every 2 years 
thereafter, the Commissioner of U.S. Customs and Border Protection and 
the Director of U.S. Immigration and Customs Enforcement shall jointly 
develop and submit to the Committee on Finance of the Senate and the 
Committee on Ways and Means of the House of Representatives, a Joint 
Strategic Plan.
    ``(b) Contents.--The Joint Strategic Plan required under this 
section shall be comprised of a comprehensive multiyear plan for 
enforcing the customs and trade laws of the United States (as defined 
in section 2(2) of the Customs Facilitation and Trade Enforcement 
Reauthorization Act of 2009) and for facilitating the international 
trade of the United States, and shall include--
            ``(1) a summary of actions taken to date to better enforce 
        the customs and trade laws of the United States and to better 
        facilitate the international trade of the United States, 
        including a description and analysis of specific performance 
        measures to evaluate the progress of the U.S. Customs and 
        Border Protection Agency and the U.S. Immigration and Customs 
        Enforcement Agency in meeting each such responsibility;
            ``(2) a statement of objectives and plans for further 
        improving the enforcement of the customs and trade laws of the 
        United States and the facilitation of the international trade 
        of the United States;
            ``(3) a specific identification of priority trade issues 
        that pose a high risk to public health and safety or to the 
        public fisc, and a description of strategies and plans for 
        addressing each such risk;
            ``(4) a description of efforts made to improve consultation 
        and coordination among Federal agencies, and in particular 
        between the U.S. Customs and Border Protection Agency and the 
        U.S. Immigration and Customs Enforcement Agency, regarding the 
        enforcement of the customs and trade laws of the United States 
        and the facilitation of the international trade of the United 
        States;
            ``(5) a description of the training that has occurred to 
        date within the U.S. Customs and Border Protection Agency and 
        the U.S. Immigration and Customs Enforcement Agency to improve 
        the enforcement of the customs and trade laws of the United 
        States and the facilitation of the international trade of the 
        United States;
            ``(6) a specific identification of any domestic or 
        international best practices that may further improve the 
        enforcement of the customs and trade laws of the United States 
        and the facilitation of the international trade of the United 
        States; and
            ``(7) any legislative recommendations to further improve 
        the enforcement of the customs and trade laws of the United 
        States or the facilitation of the international trade of the 
        United States.
    ``(c) Consultations.--
            ``(1) In general.--In developing the Joint Strategic Plan 
        required under this section, the Commissioner and the Director 
        shall consult with--
                    ``(A) appropriate officials from the relevant 
                Federal departments and agencies, including--
                            ``(i) the Department of the Treasury;
                            ``(ii) the Department of Agriculture;
                            ``(iii) the Department of Commerce;
                            ``(iv) the Department of Justice;
                            ``(v) the Department of the Interior;
                            ``(vi) the Department of Health and Human 
                        Services;
                            ``(vii) the Food and Drug Administration;
                            ``(viii) the Consumer Product Safety 
                        Commission; and
                            ``(ix) the Office of the United States 
                        Trade Representative; and
                    ``(B) the Commercial Customs Operations Advisory 
                Committee and the Trade Support Network.
            ``(2) Other consultations.--In developing the Joint 
        Strategic Plan required under this section, the Commissioner 
        and the Director shall seek to consult with--
                    ``(A) appropriate officials from relevant foreign 
                law enforcement agencies and international 
                organizations, including the World Customs 
                Organization; and
                    ``(B) private sector entities as defined in section 
                2(4) of the Customs Facilitation and Trade Enforcement 
                Reauthorization Act of 2009.''.
    (b) Conforming Amendment.--The table of contents for the Customs 
and Trade Act of 1990 is amended by inserting after the item relating 
to section 123, the following new item:

``Sec. 123A. Joint Strategic Plan.''.

  TITLE II--CUSTOMS FACILITATION, TRADE ENFORCEMENT, AND TRANSPARENCY

           Subtitle A--Customs Facilitation and Transparency

SEC. 201. TRADE BENEFITS UNDER THE CUSTOMS-TRADE PARTNERSHIP AGAINST 
              TERRORISM.

    (a) In General.--The Secretary of Homeland Security, acting through 
the Commissioner of U.S. Customs and Border Protection and in 
consultation with the entities specified in subsection (b), shall 
develop and implement additional trade benefits to be provided to Tier 
1, Tier 2, and Tier 3 participants in the Customs-Trade Partnership 
Against Terrorism under subtitle B of title II of the Security and 
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.).
    (b) Entities Specified.--The entities specified in this subsection 
are--
            (1) the Commercial Customs Operations Advisory Committee 
        established under section 204;
            (2) the Trade Support Network;
            (3) the Committee on Finance of the Senate; and
            (4) the Committee on Ways and Means of the House of 
        Representatives.
    (c) Reports.--
            (1) In general.--Not later than December 31, 2010, the 
        Secretary of Homeland Security, acting through the Commissioner 
        of U.S. Customs and Border Protection, shall submit to the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives a report--
                    (A) describing the trade benefits provided to Tier 
                1, Tier 2, and Tier 3 participants in the Customs-Trade 
                Partnership Against Terrorism as of the date on which 
                the report is submitted; and
                    (B) describing the additional trade benefits 
                developed under subsection (a) that have not been 
                implemented as of the date on which the report is 
                submitted.
            (2) Progress report.--Not later than December 31, 2011, and 
        December 31, 2012, the Commissioner shall submit to the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives a report on the 
        progress made in providing the additional trade benefits 
        developed under subsection (a).

SEC. 202. CUSTOMS FACILITATION PARTNERSHIP PROGRAM.

    Title IV of the Tariff Act of 1930 (19 U.S.C. 1401 et seq.) is 
amended by adding at the end the following:

``SEC. 499A. CUSTOMS FACILITATION PARTNERSHIP PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall establish a voluntary government-
        private sector program to be known as the `Customs Facilitation 
        Partnership Program' (in this section referred to as the 
        `Partnership Program') to facilitate the entry of merchandise 
        into the United States and to provide benefits described in 
        paragraph (3) to persons described in paragraph (2) that meet 
        or exceed the requirements of the Partnership Program 
        established under subsection (b)(2).
            ``(2) Persons described.--Persons described in this 
        paragraph are persons involved in the entry of merchandise into 
        the United States, including intermodal transportation system 
        providers, contract logistics providers, air, land, and sea 
        carriers, customs brokers, importers, and forwarders.
            ``(3) Benefits described.--
                    ``(A) In general.--The benefits described in this 
                paragraph are such benefits as the Commissioner 
                considers appropriate for the purpose of facilitating 
                the entry of merchandise into the United States, 
                including--
                            ``(i) taking into account the participation 
                        of persons in the Partnership Program in 
                        assessing the risk posed by such persons for 
                        the purposes of commercial risk assessment 
                        targeting under section 211; and
                            ``(ii) to the extent practicable, giving 
                        priority to persons participating in the 
                        Partnership Program with respect to the 
                        clearance of merchandise during activities to 
                        resume trade after an incident in which 
                        merchandise entering the United States was 
                        found to pose a threat to the health or safety 
                        of consumers in the United States.
                    ``(B) Consultation.--In developing benefits under 
                subparagraph (A) to be provided to persons 
                participating in the Partnership Program, the 
                Commissioner shall consult with the Commercial Customs 
                Operations Advisory Committee established under section 
                204 of the Customs Facilitation and Trade Enforcement 
                Reauthorization Act of 2009.
    ``(b) Application for Participation.--
            ``(1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall establish procedures in accordance with 
        this subsection for persons described in subsection (a)(2) to 
        apply to participate in the Partnership Program.
            ``(2) Minimum requirements.--
                    ``(A) In general.--The Commissioner shall establish 
                minimum requirements for participation in the 
                Partnership Program.
                    ``(B) Specific considerations.--In determining 
                whether a person meets the minimum requirements for 
                participation in the Partnership Program, the following 
                shall be considered:
                            ``(i) The person's history of entering 
                        merchandise into the United States.
                            ``(ii) The persons's history of compliance 
                        with the customs and trade laws of the United 
                        States (as defined in section 2 of the Customs 
                        Facilitation and Trade Enforcement 
                        Reauthorization Act of 2009), including--
                                    ``(I) properly maintaining importer 
                                of record numbers;
                                    ``(II) properly maintaining customs 
                                bonds as required by law; and
                                    ``(III) promptly responding to 
                                requests from the U.S. Customs and 
                                Border Protection Agency for 
                                information or notices of action, 
                                liquidated damages, or civil penalties.
            ``(3) Certification and verification of applications.--A 
        person who applies to participate in the Partnership Program 
        may participate in the Partnership Program after the 
        Commissioner--
                    ``(A) certifies the person as complying with the 
                requirements established under paragraph (2); and
                    ``(B) verifies the information contained in the 
                person's application pursuant to paragraph (4).
            ``(4) Verification of applications.--
                    ``(A) In general.--The Commissioner shall establish 
                procedures for verifying the information contained in 
                applications for participation in the Partnership 
                Program. The verification of such information may 
                include a document review or any other verification 
                method that the Commissioner determines to be 
                necessary.
                    ``(B) Timing.--To the extent practicable, the 
                Commissioner shall verify the information contained in 
                an application for participation in the Partnership 
                Program not later than 90 days after receiving the 
                application.
    ``(c) Reverifications; Maintenance of Eligibility.--
            ``(1) Reverification of participants.--The Commissioner of 
        U.S. Customs and Border Protection shall establish--
                    ``(A) a process for reverifying that persons 
                participating in the Partnership Program continue to 
                meet the requirements established under subsection 
                (b)(2); and
                    ``(B) a process by which persons participating in 
                the Partnership Program are selected for 
                reverification--
                            ``(i) based on an assessment of the risk 
                        posed by such persons; or
                            ``(ii) using random sampling.
            ``(2) Consequences for lack of compliance.--If the 
        Commissioner determines, in conducting a reverification under 
        paragraph (1) of a person participating in the Partnership 
        Program, that the person fails to meet the requirements for 
        participation in the Partnership Program established under 
        subsection (b)(2), or if the Commissioner is unable to reverify 
        that the person meets those requirements, the Commissioner may 
        suspend all or some of the benefits provided to the person 
        under the Partnership Program until the Commissioner is able to 
        reverify that the person meets those requirements.
    ``(d) False or Misleading Information.--If a person participating 
in the Partnership Program intentionally provides false or misleading 
information to the Commissioner of U.S. Customs and Border Protection 
in the application submitted under subsection (b)(1), during the 
verification process under subsection (b)(4), or during the 
reverification process under subsection (c), the Commissioner shall, in 
addition to any other penalty provided by law--
            ``(1) deny to the person the benefits provided to the 
        person under the Partnership Program; and
            ``(2) prohibit the person from further participation in the 
        Partnership Program.
    ``(e) Appeals.--
            ``(1) In general.--
                    ``(A) Appeals of denials of application.--A person 
                who submits an application under subsection (b)(1) to 
                participate in the Partnership Program may appeal a 
                decision of the Commissioner of U.S. Customs and Border 
                Protection denying participation in the Partnership 
                Program under subsection (b)(3).
                    ``(B) Appeals of denials of benefits or suspensions 
                of participation.--A person who participates in the 
                Partnership Program may appeal a decision of the 
                Commissioner denying or suspending benefits provided to 
                the person under the Partnership Program under 
                subsection (c) or (d) or prohibiting the person from 
                further participation in the Partnership Program under 
                subsection (d).
            ``(2) Filing of appeal.--A person who files an appeal under 
        paragraph (1) shall file the appeal with the Commissioner not 
        later than 90 days after the date on which the person receives 
        notice of the decision of the Commissioner being appealed.
            ``(3) Final determination.--The Commissioner shall make a 
        final determination with respect to an appeal under paragraph 
        (1) not later than 180 days after the date on which the appeal 
        is filed under paragraph (2).
    ``(f) Administrative Provisions.--
            ``(1) Staffing.--The Commissioner of U.S. Customs and 
        Border Protection shall designate, train, and maintain not 
        fewer than 7 full-time equivalent personnel in the Office of 
        Trade of the U.S. Customs and Border Protection Agency to 
        administer the Partnership Program.
            ``(2) Confidential information safeguards.--The 
        Commissioner, in consultation with the Commercial Customs 
        Operations Advisory Committee established under section 204 of 
        the Customs Facilitation and Trade Enforcement Reauthorization 
        Act of 2009, shall establish procedures to safeguard 
        confidential data collected, stored, or shared with the U.S. 
        Customs and Border Protection Agency or any other Federal 
        agency during the verification process under subsection (b)(4) 
        or the reverification process under subsection (c)(1).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the provisions of 
this section.''.

SEC. 203. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION AGREEMENTS.

    Not later than 30 days before entering into a Mutual Recognition 
Arrangement or similar agreement between the United States and a 
foreign government providing for mutual recognition of supply chain 
security programs, the Secretary of Homeland Security shall consult 
with the Committee on Finance of the Senate and the Committee on Ways 
and Means of the House of Representatives.

SEC. 204. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.

    (a) Establishment.--Not later than June 30, 2010, the Secretary of 
the Treasury and the Secretary of Homeland Security shall jointly 
establish a Commercial Customs Operations Advisory Committee (in this 
section referred to as the ``Advisory Committee'').
    (b) Membership.--
            (1) In general.--The Advisory Committee shall be comprised 
        of--
                    (A) 20 individuals appointed under paragraph (2);
                    (B) the Assistant Secretary for Tax Policy of the 
                Department of the Treasury and the Assistant Secretary 
                of Policy and Planning of the Department of Homeland 
                Security, who shall jointly co-chair meetings of the 
                Advisory Committee; and
                    (C) the Commissioner of U.S. Customs and Border 
                Protection and the Director of U.S. Immigration and 
                Customs Enforcement, who shall serve as deputy co-
                chairs of meetings of the Advisory Committee.
            (2) Appointment.--Not later than June 30, 2010, the 
        Secretary of the Treasury and the Secretary of Homeland 
        Security shall jointly appoint 20 individuals from the private 
        sector to the Advisory Committee, not more than 10 of whom 
        shall be of the same political party. Each individual shall be 
        appointed to the Advisory Committee for a term of up to 4 
        years, and may be reappointed to subsequent terms but may not 
        serve more than 2 terms sequentially.
            (3) Qualifications.--The individuals appointed to the 
        Advisory Committee shall be broadly representative of the 
        sectors of the United States economy affected by the commercial 
        operations of the U.S. Customs and Border Protection Agency and 
        the U.S. Immigration and Customs Enforcement Agency.
            (4) Transfer of membership.--The Secretary of the Treasury 
        and the Secretary of Homeland Security may transfer members 
        serving on the Advisory Committee on Commercial Operations of 
        the United States Customs Service established under section 
        9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 
        U.S.C. 2071 note) on the day before the date of the enactment 
        of this Act to the Advisory Committee established under 
        subsection (a).
    (c) Duties.--The Advisory Committee established under subsection 
(a) shall--
            (1) advise the Secretary of the Treasury and the Secretary 
        of Homeland Security on all matters involving the commercial 
        operations of the U.S. Customs and Border Protection Agency and 
        the U.S. Immigration and Customs Enforcement Agency, including 
        advising with respect to significant changes that are proposed 
        with respect to agency regulations, policies, or practices;
            (2) provide recommendations to the Secretary of the 
        Treasury and the Secretary of Homeland Security on improvements 
        to the commercial operations of the U.S. Customs and Border 
        Protection Agency and the U.S. Immigration and Customs 
        Enforcement Agency; and
            (3) perform such other functions relating to the commercial 
        operations of the U.S. Customs and Border Protection Agency and 
        the U.S. Immigration and Customs Enforcement Agency as 
        prescribed by law or as the Secretary of the Treasury and the 
        Secretary of Homeland Security jointly direct.
    (d) Meetings.--
            (1) In general.--The Advisory Committee shall meet at the 
        call of the Secretary of the Treasury and the Secretary of 
        Homeland Security or at the call of not less than \2/3\ of the 
        membership of the Advisory Committee.
            (2) Number of meetings.--The Advisory Committee shall, at a 
        minimum, meet at least 4 times each calendar year. Additional 
        meetings may be called of such special task forces or other 
        groups made up of members of the Advisory Committee as the 
        Advisory Committee determines appropriate.
            (3) Addition of agenda items.--Any member of the Advisory 
        Committee may add an item to the agenda of a meeting not less 
        than 3 days before the meeting.
            (4) Open meetings.--A meeting of the Advisory Committee 
        shall be open to the public unless the Secretary of the 
        Treasury and the Secretary of Homeland Security determine that 
        the meeting will include matters the disclosure of which would 
        seriously compromise the development of policies, priorities, 
        or negotiating objectives or positions that could impact the 
        commercial operations of the U.S. Customs and Border Protection 
        Agency or the U.S. Immigration and Customs Enforcement Agency.
    (e) Reports.--
            (1) Annual report.--Not later than December 31 of each 
        calendar year, the Advisory Committee shall submit to the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives a report that--
                    (A) describes the activities of the Advisory 
                Committee during the preceding fiscal year; and
                    (B) sets forth any recommendations of the Advisory 
                Committee regarding the commercial operations of the 
                U.S. Customs and Border Protection Agency and the U.S. 
                Immigration and Customs Enforcement Agency during the 
                preceding fiscal year.
            (2) Additional reports.--The Advisory Committee may submit 
        directly to the Committee on Finance of the Senate and the 
        Committee on Ways and Means of the House of Representatives 
        such additional reports on the commercial operations of the 
        U.S. Customs and Border Protection Agency and the U.S. 
        Immigration and Customs Enforcement Agency as the Advisory 
        Committee determines appropriate.
    (f) Applicability of Federal Advisory Committee Act.--The 
provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall 
apply to the Advisory Committee, except as follows:
            (1) Subsections (a) and (b) of section 10 of such Act 
        (relating to open meetings and availability of information) 
        shall not apply.
            (2) Section 11 of such Act (relating to the availability of 
        transcripts of meetings) shall not apply.
            (3) Section 14(a)(2) of such Act (relating to termination) 
        shall be applied by substituting ``4-year period'' for ``two-
        year period''.
    (g) Conforming Amendment.--
            (1) In general.--Effective June 30, 2010, section 9503(c) 
        of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 
        2071 note) is repealed.
            (2) Reference.--Any reference in law to the Advisory 
        Committee on Commercial Operations of the United States Customs 
        Service established under section 9503(c) of the Omnibus Budget 
        Reconciliation Act of 1987 (19 U.S.C. 2071 note) made on or 
        after June 30, 2010, shall be deemed a reference to the 
        Commercial Customs Operations Advisory Committee established 
        under subsection (a).

SEC. 205. AUTOMATED COMMERCIAL ENVIRONMENT COMPUTER SYSTEM.

    (a) Funding.--Section 13031(f)(5) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``2003, 2004, and 2005'' and 
                inserting ``2010, 2011, and 2012''; and
                    (B) by striking ``$350,000,000'' and inserting 
                ``$325,000,000''; and
            (2) in subparagraph (B)--
                    (A) by striking ``2003 through 2005'' and inserting 
                ``2010 through 2012''; and
                    (B) by striking ``for the development'' and 
                inserting ``to complete the development''.
    (b) Report.--Section 311(b)(3) of the Customs Border Security Act 
of 2002 (19 U.S.C. 2075 note) is amended to read as follows:
            ``(3) Report.--
                    ``(A) In general.--Not later than December 31, 
                2009, the Commissioner of U.S. Customs and Border 
                Protection shall submit to the Committee on 
                Appropriations and the Committee on Finance of the 
                Senate and the Committee on Appropriations and the 
                Committee on Ways and Means of the House of 
                Representatives a report specifying--
                            ``(i) the plans of the U.S. Customs and 
                        Border Protection Agency and deadlines for 
                        incorporating all cargo release data elements 
                        into the Automated Commercial Environment 
                        computer system not later than September 30, 
                        2012, to conform with the admissibility 
                        criteria of agencies participating in the 
                        International Trade Data System identified 
                        pursuant to section 411(d)(4)(A)(iii) of the 
                        Tariff Act of 1930;
                            ``(ii) the Agency's remaining priorities 
                        for incorporating entry summary data elements, 
                        cargo manifest data elements, and cargo 
                        financial data elements into the Automated 
                        Commercial Environment computer system; and
                            ``(iii) the Agency's objectives, plans, and 
                        deadlines for implementing the priorities 
                        identified under clause (ii) not later than 
                        September 30, 2012.
                    ``(B) Update of reports.--Not later than December 
                31, 2010, and September 30, 2011, the Commissioner 
                shall submit to the Committee on Appropriations and the 
                Committee on Finance of the Senate and the Committee on 
                Appropriations and the Committee on Ways and Means of 
                the House of Representatives an updated report 
                addressing each of the matters referred to in 
                subparagraph (A).''.
    (c) Government Accountability Office Report.--Not later than 
December 31, 2012, the Comptroller General of the United States shall 
submit to the Committee on Appropriations and the Committee on Finance 
of the Senate and the Committee on Appropriations and the Committee on 
Ways and Means of the House of Representatives a report--
            (1) evaluating the cost and effectiveness of the efforts of 
        the U.S. Customs and Border Protection Agency to complete the 
        development, establishment, and implementation of the Automated 
        Commercial Environment computer system; and
            (2) assessing the extent to which any additional 
        functionality may be added into the Automated Commercial 
        Environment computer system at a reasonable cost.

SEC. 206. INTERNATIONAL TRADE DATA SYSTEM.

    (a) Information Technology Infrastructure.--Section 411(d) of the 
Tariff Act of 1930 (19 U.S.C. 1411(d)) is amended--
            (1) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
            (2) by inserting after paragraph (3) the following:
            ``(4) Information technology infrastructure.--
                    ``(A) In general.--The Secretary shall work with 
                the head of each agency participating in the ITDS and 
                the Interagency Steering Committee to ensure that each 
                such agency--
                            ``(i) develops and maintains the necessary 
                        information technology infrastructure to 
                        support the operation of the ITDS;
                            ``(ii) enters into a memorandum of 
                        understanding, or takes such other action as is 
                        necessary, to provide for the information 
                        sharing between the agency and the U.S. Customs 
                        and Border Protection Agency necessary for the 
                        operation and maintenance of the ITDS; and
                            ``(iii) not later than November 30, 2009, 
                        identifies and transmits to the Commissioner of 
                        U.S. Customs and Border Protection the 
                        admissibility criteria and data elements 
                        required by the agency to authorize the release 
                        of cargo by the U.S. Customs and Border 
                        Protection Agency for incorporation into the 
                        operational functionality of the Automated 
                        Commercial Environment computer system.''; and
            (3) in paragraph (5), as redesignated, by striking ``each 
        fiscal year'' and inserting ``each of the fiscal years 2010 
        through 2013''.
    (b) Authorization of Appropriations.--Section 13031(f)(5) of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(f)(5)), as amended by section 205(a), is further amended by 
striking subparagraph (C) and inserting the following:
    ``(C) Of the amounts deposited in the account established under 
subparagraph (A), there shall be available to the Secretary of the 
Treasury $25,000,000 for each of the fiscal years 2010, 2011, and 2012, 
to remain available until expended, to carry out the provisions of 
section 411(d)(4)(A) of the Tariff Act of 1930.''.

SEC. 207. ELECTRONIC SUBMISSION OF PUBLIC COMMENTS.

    Not later than December 31, 2009, the Commissioner of U.S. Customs 
and Border Protection shall provide--
            (1) for the electronic submission and posting of any public 
        comments solicited by the U.S. Customs and Border Protection 
        Agency on the Internet website of the Agency; and
            (2) for the prompt posting of public comments associated 
        with any rulemaking of the Agency on the Federal Government 
        Internet website for Federal regulations, www.regulations.gov, 
        or any successor website.

                     Subtitle B--Trade Enforcement

            CHAPTER 1--COMMERCIAL RISK ASSESSMENT TARGETING

SEC. 211. COMMERCIAL TARGETING DIVISION AND NATIONAL TARGETING AND 
              ANALYSIS GROUPS.

    (a) Establishment of Commercial Targeting Division.--
            (1) In general.--The Secretary of Homeland Security shall 
        establish and maintain within the Office of Trade of the U.S. 
        Customs and Border Protection Agency, established under section 
        4 of the Act of March 3, 1927, as added by section 102, a 
        Commercial Targeting Division.
            (2) Composition.--The Commercial Targeting Division shall 
        be composed of--
                    (A) headquarters personnel led by an Executive 
                Director, who shall report to the Assistant 
                Commissioner of the Office of Trade; and
                    (B) individual National Targeting and Analysis 
                Groups, each led by a Director who shall report to the 
                Executive Director of the Commercial Targeting 
                Division.
            (3) Duties.--The Commercial Targeting Division shall be 
        dedicated--
                    (A) to the development and conduct of commercial 
                risk assessment targeting with respect to cargo 
                destined for the United States in accordance with 
                subsection (c); and
                    (B) to issuing Trade Alerts described in subsection 
                (d).
    (b) National Targeting and Analysis Groups.--
            (1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall determine the priorities of the 
        National Targeting and Analysis Groups referred to in 
        subsection (a)(2)(B), to include the enforcement, with respect 
        to the importation of merchandise into the United States, of--
                    (A) intellectual property rights;
                    (B) health and safety laws and regulations;
                    (C) agriculture-related laws and regulations;
                    (D) textile- and apparel-related laws and 
                regulations;
                    (E) general revenue laws and regulations; and
                    (F) non-general revenue laws and regulations, 
                including with respect to antidumping and 
                countervailing duties.
    (c) Commercial Risk Assessment Targeting.--In carrying out its 
duties with respect to commercial risk assessment targeting, the 
Commercial Targeting Division shall--
            (1) establish targeted risk assessment methodologies and 
        standards--
                    (A) for evaluating the risk that cargo destined for 
                the United States may violate the customs and trade 
                laws of the United States; and
                    (B) for issuing, as appropriate, Trade Alerts 
                described in subsection (d); and
            (2) to the extent practicable and otherwise authorized by 
        law, use information available from the Automated Commercial 
        System, the Automated Commercial Environment computer system, 
        the Automated Targeting System, the Automated Entry System, the 
        International Trade Data System, and the Treasury Enforcement 
        Communications System, and any successor systems, to administer 
        the methodologies and standards established under paragraph 
        (1).
    (d) Trade Alerts.--
            (1) Issuance.--Based upon the application of the targeted 
        risk assessment methodologies and standards established under 
        subsection (c), the Executive Director of the Commercial 
        Targeting Division and the Directors of the National Targeting 
        and Analysis Groups may issue Trade Alerts to directors of 
        United States ports of entry directing further inspection, or 
        physical examination or testing, of specific merchandise to 
        ensure compliance with all applicable customs and trade laws 
        and regulations administered by the U.S. Customs and Border 
        Protection Agency.
            (2) Determinations not to implement trade alerts.--The 
        director of a United States port of entry may determine not to 
        conduct further inspections, or physical examination or 
        testing, pursuant to a Trade Alert issued under paragraph (1) 
        if--
                    (A) the director finds that such a determination is 
                justified by port security interests; and
                    (B) notifies the Deputy Assistant Commissioner of 
                the Customs Facilitation and Trade Enforcement Division 
                of the Office of Field Operations, established under 
                section 5 of the Act of March 3, 1927, as added by 
                section 102, of the determination and the reasons for 
                the determination not later than 48 hours after making 
                the determination.
            (3) Summary of determinations not to implement.--The Deputy 
        Assistant Commissioner for Customs Facilitation and Trade 
        Enforcement shall--
                    (A) compile an annual public summary of all 
                determinations by directors of United States ports of 
                entry under paragraph (2) and the reasons for those 
                determinations; and
                    (B) submit the summary to the Committee on Finance 
                of the Senate and the Committee on Ways and Means of 
                the House of Representatives not later than December 31 
                of each year.
            (4) Inspection defined.--In this subsection, the term 
        ``inspection'' means the comprehensive evaluation process used 
        by the U.S. Customs and Border Protection Agency, other than 
        physical examination or testing, to permit the entry of 
        merchandise into the United States, or the clearance of 
        merchandise for transportation in bond through the United 
        States, for purposes of--
                    (A) assessing duties;
                    (B) identifying restricted or prohibited items; and
                    (C) ensuring compliance with all applicable customs 
                and trade laws and regulations administered by the 
                Agency.
    (e) Use of Trade Data for Commercial Enforcement Purposes.--Section 
343(a)(3) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended--
            (1) by striking subparagraph (F); and
            (2) by redesignating subparagraphs (G) through (L) as 
        subparagraphs (F) through (K), respectively.

SEC. 212. ANNUAL ILLEGAL DRUG CONTROL LAW ENFORCEMENT STRATEGY.

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

``SEC. 123. ANNUAL ILLEGAL DRUG CONTROL LAW ENFORCEMENT STRATEGY.

    ``(a) Reports on Violation Estimates.--Not later than June 30, 
2010, and annually thereafter, the Commissioner of U.S. Customs and 
Border Protection and the Director of U.S. Immigration and Customs 
Enforcement shall jointly develop and submit to the chairperson and 
ranking member of the Committee on Finance of the Senate and of the 
Committee on Ways and Means of the House of Representatives (in this 
section referred to as the `Committees') in accordance with subsection 
(d) a report that contains an estimate of--
            ``(1) the number and extent of violations of the illegal 
        drug control laws specified in subsection (b) that are likely 
        to occur during the year following the report; and
            ``(2) the relative incidence of the violations described in 
        paragraph (1) among the various United States ports of entry 
        and customs regions within the customs territory of the United 
        States during the year preceding the report.
    ``(b) Illegal Drug Control Laws Specified.--The Commissioner of 
U.S. Customs and Border Protection and the Director of U.S. Immigration 
and Customs Enforcement, after consultation with the Committees--
            ``(1) shall, not later than December 31, 2009, prepare a 
        list of those provisions of the illegal drug control laws of 
        the United States with respect to which the U.S. Customs and 
        Border Protection Agency and the U.S. Immigration and Customs 
        Enforcement Agency have enforcement responsibility and to which 
        the reports required by subsection (a) will apply; and
            ``(2) may periodically update the list developed under 
        paragraph (1), as warranted.
    ``(c) Enforcement Strategy.--Not later than 90 days after 
submitting a report under subsection (a), the Commissioner of U.S. 
Customs and Border Protection and the Director of U.S. Immigration and 
Customs Enforcement shall jointly--
            ``(1) develop or update a strategy for enforcing the 
        illegal drug control laws specified in subsection (b) in a 
        nationally uniform manner and addressing the violations 
        estimated in the report during the period covered by the 
        report; and
            ``(2) submit to the chairperson and ranking member of each 
        of the Committees a confidential report setting forth the 
        details of the strategy described in paragraph (1).
    ``(d) Confidentiality.--The contents of any report submitted to the 
chairperson and ranking member of each of the Committees under 
subsection (a) or (c) are confidential and the disclosure of the 
contents is restricted to--
            ``(1) officers and employees of the United States 
        designated by the Commissioner of U.S. Customs and Border 
        Protection or the Director of U.S. Customs and Immigration 
        Enforcement to have access to the contents of the report;
            ``(2) the chairperson and ranking member of each of the 
        Committees; and
            ``(3) such Members of Congress and staff of such Members as 
        the chairperson or ranking member of either of the Committees 
        may authorize to have access to the contents of the report.''.
    (b) Conforming Amendment.--The table of contents for the Customs 
and Trade Act of 1990 is amended by striking the item relating to 
section 123 and inserting the following:

``Sec. 123. Annual illegal drug control law enforcement strategy.''.

SEC. 213. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT 
              MEASURES BY THE INSPECTOR GENERAL.

    The Inspector General of the Department of Homeland Security shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report assessing the 
following:
            (1) The effectiveness of the measures taken by the U.S. 
        Customs and Border Protection Agency with respect to revenue 
        protection, including--
                    (A) the collection of countervailing and 
                antidumping duties;
                    (B) the assessment and collection of commercial 
                fines and penalties; and
                    (C) the adequacy of the policies of the Agency with 
                respect to monitoring and tracking of merchandise 
                transported in bond and collecting duties, as 
                appropriate.
            (2) The effectiveness of actions taken by the U.S. Customs 
        and Border Protection Agency to measure accountability and 
        performance with respect to revenue protection.
            (3) The number and outcome of investigations instituted by 
        the U.S. Customs and Border Protection Agency with respect to 
        the underpayment of duties.
            (4) The adequacy of training with respect to the collection 
        of duties provided for personnel of the U.S. Customs and Border 
        Protection Agency.

SEC. 214. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO 
              MERCHANDISE TRANSPORTED IN BOND.

    (a) In General.--Not later than December 31 of 2009, 2011, and 
2013, the Secretary of Homeland Security and the Secretary of the 
Treasury shall jointly submit to the Committee on Finance of the Senate 
and the Committee on Ways and Means of the House of Representatives a 
report on efforts undertaken by the U.S. Customs and Border Protection 
Agency to ensure the secure transportation of merchandise in bond 
through the United States and the collection of revenue owed upon the 
entry of such merchandise into the United States for consumption.
    (b) Contents.--The report required by subsection (a) shall include 
information, for the 2 fiscal years preceding the submission of the 
report, on--
            (1) the overall number of entries of merchandise for 
        transportation in bond through the United States;
            (2) the ports at which merchandise arrives in the United 
        States for transportation in bond and at which records of the 
        arrival of such merchandise are generated;
            (3) the average time taken to  reconcile such records with 
        the records at the final destination of the merchandise in the 
        United States to demonstrate that the merchandise reaches its 
        final destination or is reexported;
            (4) the average time taken to transport merchandise in bond 
        from the port at which the merchandise arrives in the United 
        States to its final destination in the United States;
            (5) the total amount of duties, taxes, and fees owed with 
        respect to shipments of merchandise transported in bond and the 
        total amount of such duties, taxes, and fees paid;
            (6) the total number of notifications by carriers of 
        merchandise being transported in bond that the destination of 
        the merchandise has changed; and
            (7) the number of entries that remain unreconciled.

SEC. 215. IMPORTER OF RECORD PROGRAM.

    (a) Establishment.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary of Homeland Security shall 
establish an importer of record program to assign and maintain importer 
of record numbers.
    (b) Requirements.--The Secretary of Homeland Security shall ensure 
that, as part of the importer of record program, the U.S. Customs and 
Border Protection Agency--
            (1) develops criteria that importers must meet in order to 
        obtain an importer of record number;
            (2) provides a process by which importers are assigned 
        importer of record numbers;
            (3) maintains a centralized database of importer of record 
        numbers, including a history of importer of record numbers 
        associated with each importer;
            (4) evaluates the accuracy of the database; and
            (5) takes measures to ensure that duplicate importer of 
        record numbers are not issued.
    (c) Report.--Not later than 1 year after the date of the enactment 
of this Act, the Secretary of Homeland Security shall submit to the 
Committee on Finance of the Senate and the Committee on Ways and Means 
of the House of Representatives a report on the importer of record 
program established under subsection (a).
    (d) Number Defined.--In this subsection, the term ``number'', with 
respect to an importer of record, means a filing identification number 
described in section 24.5 of title 19, Code of Federal Regulations (as 
in effect on the day before the date of the enactment of this Act).

                  CHAPTER 2--IMPORT HEALTH AND SAFETY

SEC. 221. INTERAGENCY IMPORT SAFETY WORKING GROUP.

    (a) Establishment.--There is established an interagency Import 
Safety Working Group.
    (b) Membership.--The interagency Import Safety Working Group shall 
consist of the following officials or their designees:
            (1) The Secretary of Homeland Security, who shall serve as 
        the Chair.
            (2) The Secretary of Health and Human Services, who shall 
        serve as the Vice Chair.
            (3) The Secretary of the Treasury.
            (4) The Secretary of Agriculture.
            (5) The United States Trade Representative.
            (6) The Director of the Office of Management and Budget.
            (7) The Commissioner of the Food and Drug Administration.
            (8) The Commissioner of U.S. Customs and Border Protection.
            (9) The Chairman of the Consumer Product Safety Commission.
            (10) The head of any other Federal department or agency 
        designated by the President to participate in the interagency 
        Import Safety Working Group, as appropriate.
    (c) Duties.--The duties of the interagency Import Safety Working 
Group shall include--
            (1) consulting on the development of the Joint Import 
        Safety Rapid Response Plan required by section 222;
            (2) periodically evaluating the adequacy of the plans, 
        practices, and resources of the Federal Government dedicated to 
        ensuring the safety of imports into the United States, 
        including--
                    (A) reviewing the engagement and cooperation of 
                foreign governments and foreign manufacturers in 
                facilitating the inspection and certification, as 
                appropriate, of such imports and the facilities 
                producing such imports to ensure the safety of such 
                imports into the United States; and
                    (B) recommending additional administrative measures 
                designed to ensure the safety of imports, as 
                appropriate;
            (3) identifying best practices to assist United States 
        importers in taking all appropriate steps to ensure the safety 
        of imports into the United States, including with respect to--
                    (A) the inspection of manufacturing facilities in 
                foreign countries;
                    (B) the inspection of imports destined for the 
                United States before exportation from a foreign country 
                or before distribution in the United States; and
                    (C) the protection of the international supply 
                chain (as defined in section 2 of the Security and 
                Accountability For Every Port Act of 2006 (6 U.S.C. 
                901));
            (4) identifying best practices to assist Federal, State, 
        and local governments and agencies, and port authorities, to 
        improve communication and coordination among such agencies and 
        authorities in responding to any threats to public health and 
        safety associated with specific imports into the United States; 
        and
            (5) otherwise identifying appropriate steps to increase the 
        accountability of United States importers and the engagement of 
        foreign government agencies with respect to ensuring the safety 
        of imports into the United States.

SEC. 222. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.

    (a) In General.--Not later than December 31, 2009, the Secretary of 
Homeland Security, in consultation with the interagency Import Safety 
Working Group, shall develop a plan (to be known as the ``Joint Import 
Safety Rapid Response Plan'') that sets forth protocols and defines 
practices for the U.S. Customs and Border Protection Agency to use--
            (1) in taking action in response to, and coordinating 
        Federal responses to, an incident in which cargo destined for 
        or merchandise entering the United States has been identified 
        as posing a threat to the health or safety of consumers in the 
        United States; and
            (2) in recovering from or mitigating the effects of actions 
        and responses to an incident described in paragraph (1).
    (b) Contents.--The Joint Import Safety Rapid Response Plan shall 
address--
            (1) the statutory and regulatory authorities and 
        responsibilities of the U.S. Customs and Border Protection 
        Agency and other Federal departments and agencies in responding 
        to an incident described in subsection (a)(1);
            (2) the protocols and practices to be used by the U.S. 
        Customs and Border Protection Agency when taking action in 
        response to, and coordinating Federal responses to, an incident 
        described in subsection (a)(1);
            (3) the measures to be taken by the U.S. Customs and Border 
        Protection Agency and other Federal departments and agencies in 
        recovering from or mitigating the effects of actions taken in 
        response to an incident described in subsection (a)(1) after 
        the incident; and
            (4) exercises that the U.S. Customs and Border Protection 
        Agency may conduct in conjunction with Federal, State, and 
        local departments and agencies to simulate responses to an 
        incident described in subsection (a)(1).
    (c) Updates of Plan.--The Secretary of Homeland Security shall 
review and update the Joint Import Safety Rapid Response Plan, as 
appropriate, after conducting exercises under subsection (d).
    (d) Import Health and Safety Exercises.--
            (1) In general.--The Secretary of Homeland Security and the 
        Commissioner of U.S. Customs and Border Protection shall 
        periodically engage in the exercises referred to in subsection 
        (b)(4), in conjunction with Federal, State, and local 
        departments and agencies, as appropriate, to test and evaluate 
        the protocols and practices identified in the Joint Import 
        Safety Rapid Response Plan at United States ports of entry.
            (2) Requirements for exercises.--In conducting exercises 
        under paragraph (1), the Secretary and the Commissioner shall--
                    (A) make allowance for the resources, needs, and 
                constraints of United States ports of entry of 
                different sizes in representative geographic locations 
                across the United States;
                    (B) base evaluations on current risk assessments of 
                merchandise entering the United States at 
                representative United States ports of entry located 
                across the United States; and
                    (C) ensure that such exercises are conducted in a 
                manner consistent with the National Incident Management 
                System, the National Response Plan, the National 
                Infrastructure Protection Plan, the National 
                Preparedness Guidance, the Maritime Transportation 
                System Security Plan, and other such national 
                initiatives of the Department of Homeland Security, as 
                appropriate.
            (3) Requirements for testing and evaluation.--The Secretary 
        and the Commissioner shall ensure that the testing and 
        evaluation carried out in conducting exercises under paragraph 
        (1)--
                    (A) are performed using clear and objective 
                performance measures; and
                    (B) result in the identification of specific 
                recommendations or best practices for responding to an 
                incident described in subsection (a)(1).
            (4) Dissemination of recommendations and best practices.--
        The Secretary and the Commissioner shall--
                    (A) share the recommendations or best practices 
                identified under paragraph (3) among the members of the 
                interagency Import Safety Working Group and with, as 
                appropriate--
                            (i) State and local governments;
                            (ii) tribal and foreign governments; and
                            (iii) private sector entities (as defined 
                        in section 2); and
                    (B) use such recommendations and best practices to 
                update the Joint Import Safety Rapid Response Plan.

SEC. 223. TRAINING.

    The Commissioner of U.S. Customs and Border Protection shall ensure 
that personnel of the U.S. Customs and Border Protection Agency 
assigned to ports of entry are trained to effectively administer the 
provisions of this chapter and to otherwise assist in ensuring the 
safety of imports into the United States.

  CHAPTER 3--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

SEC. 231. INTELLECTUAL PROPERTY RIGHTS.

    In this chapter (other than section 232), the term ``intellectual 
property rights'' refers to copyrights, trademarks, and other forms of 
intellectual property rights that are enforced by the U.S. Customs and 
Border Protection Agency.

SEC. 232. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER.

    (a) Establishment.--The Secretary of Homeland Security shall--
            (1) establish within the U.S. Immigration and Customs 
        Enforcement Agency a National Intellectual Property Rights 
        Coordination Center; and
            (2) appoint an Assistant Director to head the National 
        Intellectual Property Rights Coordination Center.
    (b) Duties.--The duties of the Assistant Director of the National 
Intellectual Property Rights Coordination Center shall include--
            (1) coordinating the investigation of sources of goods 
        imported into the United States that infringe intellectual 
        property rights to identify organizations that produce, 
        smuggle, or distribute such goods;
            (2) coordinating training for domestic and international 
        law enforcement agencies on investigative best practices to 
        develop and expand the capability of such agencies to enforce 
        intellectual property rights;
            (3) coordinating activities conducted by the United States 
        to prevent the importation or exportation of goods that 
        infringe intellectual property rights;
            (4) supporting the interdiction of goods destined for the 
        United States that infringe intellectual property rights;
            (5) collecting information regarding infringements of 
        intellectual property rights from non-Federal sources;
            (6) integrating information from domestic and international 
        law enforcement agencies with information received from non-
        Federal sources regarding infringements of intellectual 
        property rights; and
            (7) disseminating information regarding infringements of 
        intellectual property rights to other Federal agencies for use 
        in appropriate investigative and tactical activities.
    (c) Coordination With Other Agencies.--In carrying out the duties 
described in subsection (b), the Assistant Director of the National 
Intellectual Property Rights Coordination Center shall coordinate 
with--
            (1) the U.S. Customs and Border Protection Agency;
            (2) the Food and Drug Administration;
            (3) the Department of Justice;
            (4) the Department of Commerce;
            (5) the United States Postal Inspection Service;
            (6) any Federal, State, local, or international law 
        enforcement agencies the Director of U.S. Immigration and 
        Customs Enforcement considers appropriate; and
            (7) any other entities the Director of U.S. Immigration and 
        Customs Enforcement considers appropriate.

SEC. 233. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL 
              PROPERTY RIGHTS.

    The Commissioner of U.S. Customs and Border Protection and the 
Director of U.S. Immigration and Customs Enforcement shall include in 
the Joint Strategic Plan (as defined in section 2)--
            (1) a description of the efforts of the Department of 
        Homeland Security to enforce intellectual property rights;
            (2) a list of the 10 United States ports of entry where the 
        U.S. Customs and Border Protection Agency has seized the most 
        goods, by volume, that infringe intellectual property rights 
        during the most recent 2-year period for which data are 
        available; and
            (3) a recommendation for the optimal allocation of 
        personnel, resources, and technology to ensure that the U.S. 
        Customs and Border Protection Agency and the U.S. Immigration 
        and Customs Enforcement Agency are adequately enforcing 
        intellectual property rights.

SEC. 234. REPEATED IMPORT-RELATED INFRINGEMENT OF INTELLECTUAL PROPERTY 
              RIGHTS.

    (a) In General.--The Assistant Commissioner of the Office of Trade 
of the U.S. Customs and Border Protection Agency shall identify and 
maintain a confidential list of persons described in subsection (b) 
that have a history of attempting to import goods that infringe 
intellectual property rights into the United States.
    (b) Persons Described.--Persons described in this subsection are 
persons involved in the entry of goods into the United States, 
including intermodal transportation system providers, contract 
logistics providers, air, land, and sea carriers, customs brokers, 
importers, and forwarders.
    (c) Commercial Risk Assessment Targeting.--The Commercial Targeting 
Division of the Office of Trade established under section 211 shall 
consider the list under subsection (a) when establishing targeted risk 
assessment methodologies and standards under section 211(c).
    (d) Removal From List.--The Assistant Commissioner of the Office of 
Trade shall--
            (1) periodically review the list of persons under 
        subsection (a); and
            (2) remove persons from the list that have demonstrated a 
        pattern of compliance with intellectual property rights.

SEC. 235. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL 
              PROPERTY RIGHTS.

    (a) In General.--The Commissioner of U.S. Customs and Border 
Protection shall ensure that sufficient personnel are assigned 
throughout the U.S. Customs and Border Protection Agency who have 
responsibility for preventing the importation of goods that infringe 
intellectual property rights into the United States, including the 
Commercial Targeting Division established under section 211 and the 
Office of Rulings and Regulations of the Office of Trade.
    (b) Port Personnel.--The Commissioner of U.S. Customs and Border 
Protection shall ensure that at least 1 full-time employee with 
principal responsibility for preventing the importation into the United 
States of goods that infringe intellectual property rights is assigned 
to each United States port of entry on the list required by section 
233(2).
    (c) Staffing.--The Commissioner of U.S. Customs and Border 
Protection shall assign not fewer than 3 full-time employees of the 
U.S. Customs and Border Protection Agency to the National Intellectual 
Property Rights Coordination Center established under section 232.
    (d) Report.--Not later than December 31, 2010, the Commissioner of 
U.S. Customs and Border Protection shall submit to the Committee on 
Finance of the Senate and the Committee on Ways and Means of the House 
of Representatives a report estimating the average time required by the 
Office of Rulings and Regulations of the Office of Trade to make a 
determination with respect to whether goods detained by the U.S. 
Customs and Border Protection Agency infringe intellectual property 
rights, distinguishing among types of intellectual property rights.

SEC. 236. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL 
              PROPERTY RIGHTS.

    (a) Training.--The Commissioner of U.S. Customs and Border 
Protection shall ensure that officers of the U.S. Customs and Border 
Protection Agency are trained to effectively detect and identify goods 
destined for the United States that infringe intellectual property 
rights, including through the use of technologies identified under 
subsection (b).
    (b) Identification of New Technologies.--In consultation with 
private sector entities (as defined in section 2), the Commissioner of 
U.S. Customs and Border Protection shall identify--
            (1) technologies with the cost-effective capability to 
        detect and identify goods at United States ports of entry that 
        infringe intellectual property rights; and
            (2) cost-effective programs for training officers of the 
        U.S. Customs and Border Protection Agency to use such 
        technologies.
    (c) Donations of Technology.--Not later than 180 days after the 
date of the enactment of this Act, the Commissioner of U.S. Customs and 
Border Protection shall promulgate regulations to enable the U.S. 
Customs and Border Protection Agency to receive donations of hardware, 
software, equipment, and similar technologies, and to accept training 
and other support services from private sector entities.

SEC. 237. RECORDATION OF WORKS FOR WHICH A COPYRIGHT IS PENDING.

    (a) In General.--Section 526 of the Tariff Act of 1930 (19 U.S.C. 
1526) is amended--
            (1) by redesignating subsection (f) as subsection (g); and
            (2) by inserting after subsection (e) the following:
    ``(f) Recordation of Works for Which a Copyright Is Pending.--
            ``(1) In general.--Subject to paragraph (3), a person who 
        submits an application to the Copyright Office of the Library 
        of Congress for registration of a copyright under title 17, 
        United States Code, with respect to a work described in 
        paragraph (2) may request the Commissioner of U.S. Customs and 
        Border Protection--
                    ``(A) to record the application of the person for 
                registration of the copyright; and
                    ``(B) to enforce the copyright for which the person 
                submitted the application to the same extent and in the 
                same manner as if the copyright was registered with the 
                Copyright Office.
            ``(2) Eligible works.--Works described in this paragraph 
        are recordings, motion pictures, or similar works otherwise 
        eligible for registration under title 17, United States Code.
            ``(3) Proof of subsequent registration.--
                    ``(A) In general.--Not later than the date that is 
                30 days after the date on which the Copyright Office 
                registers, or denies the registration of, the copyright 
                of a person who requested that the Commissioner record 
                the application for the copyright under paragraph (1), 
                the person shall submit to the Commissioner proof of 
                the registration of the copyright or a notice of the 
                denial of the registration of the copyright, as the 
                case may be.
                    ``(B) Notices to commissioner while application 
                pending.--Not later than 1 year after the date on which 
                a person requests that the Commissioner record the 
                application of the person for a copyright under 
                paragraph (1), and annually thereafter until the 
                Copyright Office registers the copyright or denies the 
                application for the copyright, the person shall submit 
                to the Commissioner a notice that the application for 
                the copyright remains pending before the Copyright 
                Office.
                    ``(C) Cancellation of recordation.--The 
                Commissioner may cancel the recordation of an 
                application for a copyright under paragraph (1) if--
                            ``(i) the person who requested that the 
                        Commissioner record the application for the 
                        copyright--
                                    ``(I) fails to submit proof of the 
                                registration of the copyright to the 
                                Commissioner by the date required under 
                                subparagraph (A); or
                                    ``(II) fails to submit a notice 
                                that the application for the copyright 
                                remains pending by a date required 
                                under subparagraph (B); or
                            ``(ii) the Commissioner receives notice 
                        that the Copyright Office denied the 
                        application for the copyright.''.
    (b) Conforming Amendment.--Subsection (g) of such section 526, as 
redesignated by subsection (a), is amended by striking ``(e)'' and 
inserting ``(e) or (f)''.

SEC. 238. AVAILABILITY OF SAMPLES TO OWNERS OF COPYRIGHTS AND 
              TRADEMARKS OR PERSONS INJURED BY THE IMPORTATION OF 
              CIRCUMVENTION DEVICES.

    (a) Merchandise That May Infringe a Copyright or Trademark.--The 
Commissioner of U.S. Customs and Border Protection may provide a sample 
of merchandise detained or seized by the U.S. Customs and Border 
Protection Agency because the merchandise may infringe a copyright or 
trademark to the owner of the copyright or trademark (as the case may 
be) to conduct physical examination or testing to determine if the 
merchandise infringes the copyright or trademark (as the case may be).
    (b) Circumvention Devices.--The Commissioner of U.S. Customs and 
Border Protection may provide a sample of merchandise detained or 
seized by the U.S. Customs and Border Protection Agency because the 
importation of the merchandise may be prohibited by subsection (a)(2) 
or (b)(1) of section 1201 of title 17, United States Code, to any 
person who may be injured by the importation of the merchandise to 
conduct physical examination or testing to determine if the importation 
of the merchandise is prohibited under either such subsection.
    (c) Bond Requirement for Merchandise Over $100.--If the value of a 
sample of merchandise described in subsection (a) or (b) is more than 
$100, the Commissioner of U.S. Customs and Border Protection shall 
require a person requesting such a sample to furnish a bond in the form 
and amount specified by the director of the United States port of entry 
where the merchandise entered the United States.

SEC. 239. SEIZURE OF CIRCUMVENTION DEVICES.

    (a) In General.--Section 596(c)(2) of the Tariff Act of 1930 (19 
U.S.C. 1595a(c)(2)) is amended--
            (1) in subparagraph (E), by striking ``or'';
            (2) in subparagraph (F), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(G) the U.S. Customs and Border Protection Agency 
                determines it is a technology, product, service, 
                device, component, or part thereof the importation of 
                which is prohibited under section 1201(a)(2) or 
                1201(b)(1) of title 17, United States Code.''.
    (b) Publication.--Not later than 15 days after seizing merchandise 
pursuant to section 596(c)(2)(G) of the Tariff Act of 1930, as added by 
subsection (a), the Commissioner of U.S. Customs and Border Protection 
shall publish on the Internet website of the U.S. Customs and Border 
Protection Agency information regarding the merchandise seized to 
permit any person to identify the merchandise and determine whether the 
merchandise is--
            (1) a technology, product, service, device, component, or 
        part thereof described in section 1201(a)(2) of title 17, 
        United States Code, that--
                    (A) is primarily designed or produced for the 
                purpose of circumventing a technological measure that 
                effectively controls access to a work for which the 
                person has a copyright that is registered under title 
                17, United States Code, or that is otherwise recorded 
                with the U.S. Customs and Border Protection Agency;
                    (B) has only limited commercially significant 
                purpose or use other than to circumvent such a 
                technological measure; or
                    (C) is marketed for use in circumventing such a 
                technological measure; or
            (2) a technology, product, service, device, component, or 
        part thereof described in section 1201(b)(1) of title 17, 
        United States Code, that--
                    (A) is primarily designed or produced for the 
                purpose of circumventing protection afforded by a 
                technological measure that effectively protects a right 
                of the person for a work or a portion of a work that is 
                registered under title 17, United States Code, or that 
                is otherwise recorded with the U.S. Customs and Border 
                Protection Agency;
                    (B) has only limited commercially significant 
                purpose or use other than to circumvent protection 
                afforded by such a technological measure; or
                    (C) is marketed for use in circumventing protection 
                afforded such a technological measure.
    (c) Application.--Not later than 30 days after publishing the 
information required under subsection (b) with respect to seized 
merchandise, any person that determines that the seized merchandise is 
merchandise that infringes a right of the person as described in 
subsection (b) (or an agent of such a person) may submit to the U.S. 
Customs and Border Protection Agency an application that--
            (1) identifies the person as a person who holds such a 
        right (or an agent of such a person); and
            (2) requests the information described in subsection (d).
    (d) Disclosure.--Not later than 30 days after receiving an 
application described in subsection (c), the U.S. Customs and Border 
Protection Agency shall disclose to the person who submitted the 
application the following information:
            (1) The date of importation of the merchandise seized.
            (2) The United States port of entry at which the 
        merchandise was seized.
            (3) A description of the merchandise.
            (4) The quantity of merchandise seized.
            (5) The country of origin of the merchandise.
            (6) The name and address of the foreign manufacturer of the 
        merchandise.
            (7) The name and address of the exporter of the 
        merchandise.
            (8) The name and address of the importer of the 
        merchandise.

SEC. 240. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF 
              INTELLECTUAL PROPERTY RIGHTS.

    The Secretary of Homeland Security shall develop and carry out an 
educational campaign to inform travelers entering or leaving the United 
States about the legal, economic, and public health and safety 
implications of acquiring goods that infringe intellectual property 
rights outside the United States and importing such goods into the 
United States in violation of United States law.

SEC. 241. INTERNATIONAL COOPERATION AND INFORMATION SHARING.

    (a) Cooperation.--To the extent practicable and appropriate, the 
Secretary of Homeland Security shall coordinate with the competent law 
enforcement authorities of foreign governments, including by sharing 
information relevant to enforcement actions, to enhance the efforts of 
United States and foreign law enforcement agencies to enforce 
intellectual property rights.
    (b) Technical Assistance.--To the extent practicable and 
appropriate, the Secretary of Homeland Security shall provide technical 
assistance to competent law enforcement authorities of foreign 
governments to enhance the ability of such authorities to enforce 
intellectual property rights.

SEC. 242. SENSE OF CONGRESS REGARDING RECORDATION PROCESS.

    It is the sense of Congress that the Commissioner of U.S. Customs 
and Border Protection should work with the Under Secretary for 
Intellectual Property and Director of the United States Patent and 
Trademark Office of the Department of Commerce and the Register of 
Copyrights of the Library of Congress to consider a system under 
which--
            (1) a trademark may be recorded with the U.S. Customs and 
        Border Protection Agency simultaneously with the issuance of 
        trademark registration by the United States Patent and 
        Trademark Office; and
            (2) a copyright may be recorded with the U.S. Customs and 
        Border Protection Agency simultaneously with the registration 
        of a copyright by the Register of Copyrights.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.

    Section 401(c) of the Safety and Accountability for Every Port Act 
(6 U.S.C. 115(c)) is amended--
            (1) in paragraph (1), by striking ``on Department policies 
        and actions that have'' and inserting ``not later than 30 days 
        after proposing, and not later than 30 days before finalizing, 
        any Department policies, initiatives, or actions that will 
        have''; and
            (2) in paragraph (2)(A), by striking ``not later than 30 
        days prior to the finalization of'' and inserting ``not later 
        than 60 days before proposing, and not later than 60 days 
        before finalizing,''.

SEC. 302. DRAWBACK FOR EXPORTED MERCHANDISE.

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

``SEC. 313. DRAWBACK FOR EXPORTED MERCHANDISE.

    ``(a) Definitions.--In this section:
            ``(1) Bill of materials; formula.--The terms `bill of 
        materials' and `formula' mean records kept in the ordinary 
        course of business that identify each component incorporated 
        into merchandise or that identify the quantity of each element, 
        material, chemical, mixture, or other substance incorporated 
        into merchandise.
            ``(2) Commissioner.--The term `Commissioner' means the 
        Commissioner of U.S. Customs and Border Protection.
            ``(3) Destruction.--The term `destruction' means a process 
        by which merchandise loses all commercial value, other than the 
        value of any material that may be recovered when the 
        merchandise is destroyed.
            ``(4) Direct identification.--The term `direct 
        identification' means identifying, for drawback purposes, 
        merchandise when exported as the same merchandise previously 
        imported or as merchandise into which the imported merchandise 
        is incorporated using--
                    ``(A) the serial number or other unique identifier 
                of the merchandise; or
                    ``(B) such accounting methods as are provided for 
                by regulation by the Commissioner.
            ``(5) Directly.--The term `directly' means a transfer of 
        merchandise from 1 person to another person without any 
        intermediate transfer.
            ``(6) Fungible.--The term `fungible' means, with respect to 
        merchandise, merchandise that is commercially identical to 
        other merchandise in all instances.
            ``(7) Good subject to chile fta drawback.--The term `good 
        subject to Chile FTA drawback' has the meaning given that term 
        in section 203(a) of the United States-Chile Free Trade 
        Agreement Implementation Act (19 U.S.C. 3805 note).
            ``(8) Good subject to nafta drawback.--The term `good 
        subject to NAFTA drawback' has the meaning given that term in 
        section 203(a) of the North American Free Trade Agreement 
        Implementation Act (19 U.S.C. 3333(a)).
            ``(9) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States (19 U.S.C. 1202).
            ``(10) Incorporated.--The term `incorporated' means any 
        operation by which merchandise becomes classifiable in a 
        different 8-digit HTS subheading number.
            ``(11) Indirectly.--The term `indirectly' means a transfer 
        of merchandise from 1 person to another person with 1 or more 
        intermediate transfers.
            ``(12) NAFTA country.--The term `NAFTA country' has the 
        meaning given that term in section 2 of the North American Free 
        Trade Agreement Implementation Act (19 U.S.C. 3301).
            ``(13) Schedule b.--The term `Schedule B' means the 
        Department of Commerce Schedule B, Statistical Classification 
        of Domestic and Foreign Commodities Exported from the United 
        States.
            ``(14) Substitute merchandise.--The term `substitute 
        merchandise' means merchandise that is substituted for other 
        merchandise for drawback purposes pursuant to subsection 
        (b)(3).
            ``(15) Vessel.--The term `vessel' includes vessels, parts 
        of vessels, aircraft, and parts of aircraft.
    ``(b) In General.--
            ``(1) Drawback.--If merchandise is imported into the United 
        States and merchandise described in paragraph (2) is then 
        exported, duties, fees, and taxes paid upon entry or 
        importation of the merchandise shall be refunded as drawback in 
        an amount determined under subsection (d).
            ``(2) Eligible merchandise.--
                    ``(A) In general.--Merchandise described in this 
                paragraph is--
                            ``(i) the imported merchandise;
                            ``(ii) merchandise that is substituted for 
                        the imported merchandise pursuant to paragraph 
                        (3);
                            ``(iii) merchandise into which the imported 
                        merchandise or substitute merchandise is 
                        incorporated; or
                            ``(iv) merchandise that is substituted, 
                        pursuant to paragraph (3), for merchandise into 
                        which the imported merchandise or substitute 
                        merchandise is incorporated.
                    ``(B) Identification of merchandise.--A person 
                claiming drawback under this section shall demonstrate 
                that the merchandise being exported is merchandise 
                described in this paragraph based on information 
                contained in the line item for the imported merchandise 
                on the entry summary form and information contained in 
                the line item for the exported merchandise in the 
                automated export system.
            ``(3) Substitution.--
                    ``(A) In general.--Except as provided in this 
                paragraph, merchandise may be substituted for other 
                merchandise if it can be demonstrated that the 
                merchandise was classifiable under the same 8-digit HTS 
                subheading number as the other merchandise at some 
                point during the 5-year period beginning on the date on 
                which the merchandise was imported.
                    ``(B) Limitation on substitution based on excise 
                tax rate.--Notwithstanding subparagraph (A), 
                merchandise subject to one excise tax rate may not be 
                substituted for merchandise subject to another excise 
                tax rate.
                    ``(C) Special rules.--
                            ``(i) In the case of merchandise that is 
                        classifiable under heading 2710 or 3901 through 
                        3914 of the HTS, the merchandise may be 
                        substituted for other merchandise if the 
                        merchandise is classifiable under the same 8-
                        digit HTS subheading number as the other 
                        merchandise under the HTS as in effect on 
                        January 1, 2000.
                            ``(ii) Merchandise that is classifiable 
                        under subheading 2204.21.50, 2204.29.20, or 
                        2204.29.60 of the HTS may be substituted for 
                        other merchandise that is classifiable under 
                        any such subheading.
                            ``(iii) Merchandise that is classifiable 
                        under subheading 2204.21.80, 2204.29.40, or 
                        2204.29.80 of the HTS may be substituted for 
                        other merchandise that is classifiable under 
                        any such subheading.
                    ``(D) Classification.--The Schedule B number for 
                merchandise may be used for purposes of determining 
                under subparagraph (A) or (C) if the merchandise is or 
                has been classifiable under the same 8-digit HTS 
                subheading number as other merchandise.
            ``(4) Eligibility for drawback for merchandise incorporated 
        into other merchandise.--Imported merchandise described in 
        paragraph (1) that is incorporated into other merchandise shall 
        be eligible for drawback under this section regardless of the 
        number of times the merchandise is incorporated into other 
        merchandise or such other merchandise is incorporated into 
        other merchandise if the merchandise is otherwise eligible for 
        drawback under this section.
            ``(5) Special rules for ethyl alcohol.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, in the case of any duty paid under 
                subheading 9901.00.50 of the HTS on imports of ethyl 
                alcohol or a mixture of ethyl alcohol, such duty may 
                not be refunded if the exported merchandise upon which 
                a drawback claim is based does not contain ethyl 
                alcohol or a mixture of ethyl alcohol.
                    ``(B) Applicability.--This paragraph shall apply 
                with respect to--
                            ``(i) imports of ethyl alcohol or a mixture 
                        of ethyl alcohol entered for consumption, or 
                        withdrawn from warehouse for consumption, on or 
                        after October 1, 2008; and
                            ``(ii) imports of ethyl alcohol or a 
                        mixture of ethyl alcohol entered for 
                        consumption, or withdrawn from warehouse for 
                        consumption, on or after October 1, 2008, if a 
                        duty drawback claim is filed with respect to 
                        such imports on or after October 1, 2010.
    ``(c) Eligibility To Claim Drawback.--
            ``(1) Person making claim.--A person may claim drawback 
        under this section if the person--
                    ``(A)(i) imports the merchandise on which the claim 
                is based; or
                    ``(ii) obtains the importer's permission to claim 
                the drawback; and
                    ``(B)(i) exports the merchandise on which the claim 
                is based; or
                    ``(ii) obtains the exporter's permission to claim 
                drawback.
            ``(2) Claim for drawback on merchandise incorporated.--If 
        drawback is claimed with respect to imported merchandise or 
        substitute merchandise incorporated into other merchandise, the 
        person making the claim shall submit a bill of materials or 
        formula identifying the imported merchandise or substitute 
        merchandise and the merchandise into which it is incorporated 
        by the 8-digit HTS subheading number and the quantity of the 
        imported merchandise or substitute merchandise (as the case may 
        be) and the merchandise into which it is incorporated. Imported 
        merchandise or substitute merchandise shall be deemed 
        incorporated into other merchandise if the bill of materials or 
        formula for such other merchandise includes the imported 
        merchandise or substitute merchandise.
            ``(3) Electronic filing.--A claim for drawback under this 
        section shall be filed electronically.
            ``(4) Time limit for claim.--Drawback may be paid under 
        this section only if the claim for drawback is filed not later 
        than 5 years after the date on which the merchandise is 
        imported. If merchandise with respect to which drawback is 
        claimed is imported on more than 1 date, the earliest date of 
        importation shall be used for purposes of this paragraph.
    ``(d) Amount of Drawback.--
            ``(1) In general.--The amount of drawback paid pursuant to 
        this section shall be equal to 99 percent of the product of--
                    ``(A) the number of units of merchandise exported 
                to claim drawback with respect to imported merchandise, 
                and
                    ``(B) the lesser of--
                            ``(i) the average of duties, taxes, and 
                        fees paid for each unit of the imported 
                        merchandise with respect to which drawback is 
                        claimed, or
                            ``(ii) the average amount of duties, taxes, 
                        and fees that would apply to the exported 
                        merchandise if the exported merchandise were 
                        imported.
            ``(2) Limitation.--The amount of duties, taxes, and fees 
        that may be refunded as drawback with respect to imported 
        merchandise pursuant to this subsection shall be reduced by the 
        amount of any duties, taxes, and fees previously refunded to a 
        person with respect to such merchandise.
    ``(e) Refunds, Waivers, or Reductions Under Certain Free Trade 
Agreements.--
            ``(1) In general.--Subject to section 508(b)(2)(B) of the 
        Tariff Act of 1930 (19 U.S.C. 1508(b)(2)(B)), if merchandise 
        that is exported to a NAFTA country is a good subject to NAFTA 
        drawback, no customs duties on the good may be refunded, 
        waived, or reduced in an amount that exceeds the lesser of--
                    ``(A) the total amount of customs duties paid or 
                owed on the good on importation into the United States; 
                or
                    ``(B) the total amount of customs duties paid on 
                the good on importation into the NAFTA country.
            ``(2) Special rule for canada.--If Canada ceases to be a 
        NAFTA country and the suspension of the operation of the United 
        States-Canada Free-Trade Agreement thereafter terminates, then 
        for purposes of subsection (b), the shipment to Canada during 
        the period such Agreement is in operation of merchandise made 
        from or substituted for a good eligible for drawback under 
        section 204(a) of the United States-Canada Free-Trade Agreement 
        Implementation Act of 1988 (Public Law 100-449; 19 U.S.C. 2112 
        note) does not constitute an exportation.
            ``(3) Special rule for chile.--
                    ``(A) In general.--For purposes of subsections (b) 
                and (g)(2), if merchandise that is exported to Chile is 
                a good subject to Chile FTA drawback, no customs duties 
                on the good may be refunded, waived, or reduced, except 
                as provided in subparagraph (B).
                    ``(B) Amount of customs duties.--The customs duties 
                referred to in subparagraph (A) may be refunded, 
                waived, or reduced by--
                            ``(i) 100 percent during the 8-year period 
                        beginning on January 1, 2004;
                            ``(ii) 75 percent during the 1-year period 
                        beginning on January 1, 2012;
                            ``(iii) 50 percent during the 1-year period 
                        beginning on January 1, 2013; and
                            ``(iv) 25 percent during the 1-year period 
                        beginning on January 1, 2014.
            ``(4) Fungible merchandise exported to nafta countries or 
        chile.--
                    ``(A) Fungible merchandise exported to nafta 
                countries.--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 be treated as an 
                exportation of substitute merchandise for purposes of 
                drawback under subsection (b)(3).
                    ``(B) Fungible merchandise exported to chile.--
                Beginning on January 1, 2015, the exportation to Chile 
                of merchandise that is fungible with and substituted 
                for imported merchandise, other than merchandise 
                described in paragraphs (1) through (5) of section 
                203(a) of the United States-Chile Free Trade Agreement 
                Implementation Act (19 U.S.C. 3805 note), shall not be 
                treated as an exportation of substitute merchandise for 
                purposes of drawback under subsection (b)(3). The 
                preceding sentence shall not be construed to permit the 
                substitution of merchandise under subsection (b) with 
                respect to merchandise described in paragraph (2) of 
                section 203(a) of the United States-Chile Free Trade 
                Agreement Implementation Act.
    ``(f) Proof of Exportation.--A person claiming drawback under this 
section shall submit, as proof of exportation, 1 of the following:
            ``(1) The record of exportation entered in the United 
        States Government automated export system or, if the exporter 
        is unable to use that system, evidence of information similar 
        to the information contained in such a record.
            ``(2) In the case of a drawback claim filed pursuant to 
        paragraph (1) or (2) of subsection (e), the entry records from 
        Canada or Mexico.
            ``(3) In the case of a deemed export, any record that 
        establishes the deemed export.
    ``(g) Special Eligibility Rules.--
            ``(1) Destruction of merchandise.--
                    ``(A) Eligibility for drawback.--Drawback under 
                this section may be claimed with respect to imported 
                merchandise if--
                            ``(i) the imported merchandise or 
                        merchandise into which the imported merchandise 
                        is incorporated--
                                    ``(I) is not exported because of 
                                its destruction; and
                                    ``(II) was not used in the United 
                                States before its destruction; and
                            ``(ii) the person claiming the drawback 
                        uses direct identification to identify the 
                        imported merchandise that is destroyed or 
                        incorporated into other merchandise that is 
                        destroyed.
                    ``(B) Amount of drawback.--Subject to subparagraph 
                (C), the amount of drawback paid pursuant to 
                subparagraph (A) shall be the amount of drawback 
                determined under subsection (d)(1).
                    ``(C) Limitations.--
                            ``(i) Duties, taxes, and fees previously 
                        refunded.--The amount of duties, taxes, and 
                        fees to be refunded with respect to imported 
                        merchandise pursuant to this paragraph shall be 
                        reduced by the amount of any duties, taxes, and 
                        fees previously refunded to an importer of 
                        record or the person claiming drawback with 
                        respect to such merchandise.
                            ``(ii) Value of materials recovered during 
                        destruction.--The value of the imported 
                        merchandise with respect to which drawback is 
                        claimed shall be reduced by the value of any 
                        materials recovered during the destruction of 
                        the merchandise (including the value of any tax 
                        benefit or royalty payment with respect to such 
                        materials).
            ``(2) Vessels built for residents of a foreign country.--
        Drawback under this section may be claimed for materials 
        imported and used in the construction and equipment of vessels 
        built for foreign account and ownership, or for the government 
        of any foreign country, notwithstanding that such vessels may 
        not within the strict meaning of the term be exported.
            ``(3) Agricultural products.--No drawback may be claimed 
        under this section for an agricultural product with respect to 
        which an over-quota rate of duty has been paid, unless--
                    ``(A) the product is identified as the imported 
                agricultural product using direct identification; and
                    ``(B) the product has not been used in the United 
                States.
            ``(4) Merchandise not regularly entered.--Imported 
        merchandise that is not regularly entered, or withdrawn from 
        warehouse for consumption, does not satisfy the exportation or 
        destruction requirements of this section.
            ``(5) Certain exported merchandise.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), upon the exportation of flavoring 
                extracts, flavors, medicines, medicinal preparations, 
                or perfumes 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 in an amount equal to the tax found 
                to have been paid on the alcohol so used.
                    ``(B) Limitation.--If drawback has been claimed 
                under section 5114 of the Internal Revenue Code of 1986 
                with respect to flavoring extracts, flavors, medicines, 
                medicinal preparations, or perfumes manufactured or 
                produced in the United States, the amount of drawback 
                under this paragraph shall be limited to $1 per proof 
                gallon.
                    ``(C) Form of claim.--A claim for drawback under 
                this paragraph shall be submitted in such form, at such 
                times, and under such conditions as the Secretary of 
                the Treasury shall prescribe by regulation.
    ``(h) Prohibition on Other Claims for Drawback.--Merchandise that 
is exported or destroyed to satisfy a claim for drawback shall not be 
the basis of any other claim for drawback, except that appropriate 
credit and deductions for claims covering components or ingredients of 
such merchandise shall be made in computing drawback payments.
    ``(i) Liability for Claim.--
            ``(1) In general.--Any person making a claim for drawback 
        with respect to imported merchandise shall be liable for the 
        full amount of the drawback on the imported merchandise.
            ``(2) Liability of importers.--An importer shall be liable 
        for any drawback claim made by another person with respect to 
        imported merchandise in an amount equal to the amount of 
        duties, taxes, and fees that the importer authorizes the other 
        person to claim with respect to the imported merchandise.
            ``(3) Joint and several liability.--Any person described in 
        paragraphs (1) and (2) shall be jointly and severally liable 
        for the amount described in paragraph (2).
            ``(4) Order of recovery.--The Secretary of the Treasury 
        shall seek to recover the amount of the drawback from a person 
        described in paragraph (1) before seeking recovery from an 
        importer described in paragraph (2).
    ``(j) Payment From Receipts of Puerto Rico.--A drawback under this 
section for merchandise shall be paid from the customs receipts of 
Puerto Rico if the duties for such merchandise were originally paid 
into the Treasury of Puerto Rico.''.
    (b) Technical and Conforming Amendments.--
            (1) Refunds.--Section 505(b) of the Tariff Act of 1930 (19 
        U.S.C. 1505(b)), is amended by adding at the end the following: 
        ``Refunds of excess moneys deposited, as determined on a 
        liquidation or reliquidation, shall be reduced by any amount 
        paid, on an accelerated basis or otherwise, to a person 
        claiming drawback pursuant to section 313.''.
            (2) Review of protests.--The second sentence of section 
        515(a) of the Tariff Act of 1930 (19 U.S.C. 1515(a)) is amended 
        by striking the period at the end and inserting ``in accordance 
        with section 505.''.
            (3) Refunds, waivers, and reductions of duty under nafta.--
        Section 508(b)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
        1508(b)(2)(B)) is amended by striking ``section 313(n)(2) or 
        (o)(1)'' and inserting ``section 313(e)(1)''.
    (c) Effective Date.--
            (1) In general.--The amendments made by this section 
        shall--
                    (A) take effect on the date on which the 
                Commissioner of U.S. Customs and Border Protection 
                publishes in the Federal Register a finding that the 
                Automated Commercial Environment computer system is the 
                exclusive system of record in the United States for 
                filing entry summaries; and
                    (B) except as provided in paragraph (2), apply to 
                drawback claims filed with respect to merchandise that 
                enters the United States on or after such date.
            (2) Transition rule.--During the 1-year period beginning on 
        the date described in paragraph (1)(A), a person may elect to 
        file a claim for drawback under--
                    (A) section 313 of the Tariff Act of 1930, as 
                amended by this section; or
                    (B) section 313 of the Tariff Act of 1930, as in 
                effect on the day before the date described in 
                paragraph (1)(A).
    (d) Government Accountability Office Report.--Not later than 
October 1, 2012, the Comptroller General of the United States shall 
submit to the Committee on Finance of the Senate and the Committee on 
Ways and Means of the House of Representatives a report that contains--
            (1) an evaluation of the costs and benefits to the Federal 
        Government, and the benefits to the private sector, resulting 
        from the implementation of section 313 of the Tariff Act of 
        1930, as amended by this section; and
            (2) an assessment of the extent to which the implementation 
        of such section 313 may permit a person claiming drawback with 
        respect to imported merchandise to receive drawback in excess 
        of the duties, taxes, or fees paid on the imported merchandise.

SEC. 303. PENALTIES FOR CUSTOMS BROKERS.

    (a) In General.--Section 641(d)(1) of the Tariff Act of 1930 (19 
U.S.C. 1641(d)(1)) is amended--
            (1) in subparagraph (E), by striking ``; or'' and inserting 
        a semicolon;
            (2) in subparagraph (F), by striking the period and 
        inserting ``; or''; and
            (3) by adding at the end the following:
                    ``(G) has been convicted of committing or 
                conspiring to commit an act of terrorism described in 
                section 2332b of title 18, United States Code.''.
    (b) Technical Amendments.--Section 641 of the Tariff Act of 1930 
(19 U.S.C. 1641) is amended--
            (1) in subsection (g)(2)(B), by striking ``Secretary's 
        notice'' and inserting ``notice under subparagraph (A)''; and
            (2) by striking ``Customs Service'' each place it appears 
        and inserting ``U.S. Customs and Border Protection Agency''.

SEC. 304. ARTICLES REPAIRED OR ALTERED.

    (a) Articles Exported and Returned, Not Advanced or Improved in 
Condition.--Subchapter I of chapter 98 of the Harmonized Tariff 
Schedule of the United States is amended--
            (1) in the article description for the item relating to 
        subheading 9801.00.20, by inserting ``bailment agreements, or 
        for warehousing, repackaging, or both,'' after ``similar use 
        agreements,''; and
            (2) by adding at the end of the U.S. Notes the following:
    ``3.(a) For purposes of subheading 9801.00.20, fungible goods 
exported from the United States--
            ``(i) may be commingled; and
            ``(ii) the origin, value, and classification of such goods 
        may be accounted for using an inventory management method.
    ``(b) If a person chooses to use an inventory management method 
under subdivision (a) with respect to fungible goods, the person shall 
use the same inventory management method for those goods with respect 
to which the person claims fungibility.
    ``(c) For purposes of this note--
            ``(i) the term `fungible good' means any good that is 
        commercially identical to another good in all instances; and
            ``(ii) the term `inventory management method' means any 
        method for managing inventory that is based on generally 
        accepted accounting principles.
    ``4. For purposes of subheading 9801.00.26--
            ``(a) an article is sold for exportation and exported to an 
        individual outside of the United States for personal use if the 
        article--
                    ``(i) is sold to the individual through the 
                Internet or a catalogue or in any other similar manner; 
                and
                    ``(ii) delivered to the individual from a 
                warehouse, distribution center, or similar facility in 
                the United States; and
            ``(b) an article exported to an individual under 
        subdivision (a) is reimported as a personal return if the 
        article is--
                    ``(i) returned by the individual to the warehouse, 
                distribution center, or similar facility in the United 
                States from which the article was delivered; and
                    ``(ii) resold, without regard to whom the article 
                is resold.''.
    (b) Articles Exported and Returned, Advanced or Improved Abroad.--
Subchapter II of chapter 98 of the Harmonized Tariff Schedule of the 
United States is amended by adding at the end of U.S. Note 3 the 
following:
            ``(f)(i) For purposes of subheadings 9802.00.40 and 
        9802.00.50, fungible goods exported from the United States for 
        the purposes described in such subheadings--
                    ``(A) may be commingled; and
                    ``(B) the origin, value, and classification of such 
                goods may be accounted for using an inventory 
                management method.
            ``(ii) If a person chooses to use an inventory management 
        method under this subdivision with respect to fungible goods, 
        the person shall use the same inventory management method for 
        those goods with respect to which the person claims 
        fungibility.
            ``(iii) For purposes of this subdivision--
                    ``(A) the term `fungible good' means any good that 
                is commercially identical to another good in all 
                instances; and
                    ``(B) the term `inventory management method' means 
                any method for managing inventory that is based on 
                generally accepted accounting principles.''.

SEC. 305. CHARTER FLIGHTS.

    Section 13031(e)(1) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended--
            (1) by striking ``(1) Notwithstanding section 451 of the 
        Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of 
        law (other than paragraph (2))'' and inserting the following:
    ``(1)(A) Notwithstanding section 451 of the Tariff Act of 1930 (19 
U.S.C. 1451) or any other provision of law (other than subparagraph (B) 
and paragraph (2))''; and
            (2) by adding at the end the following:
    ``(B)(i) An appropriate officer of the U.S. Customs and Border 
Protection Agency may assign a sufficient number of employees from the 
Agency (if available) to perform services described in clause (ii) for 
a charter air carrier (as defined in section 40102(a)(13) of title 49, 
United States Code) for a charter flight arriving after normal 
operating hours at an airport that is an established port of entry 
serviced by the Agency, notwithstanding that overtime funds for those 
services are not available, if the charter air carrier--
            ``(I) not later than 4 hours before the flight arrives, 
        specifically requests that such services be provided; and
            ``(II) pays any overtime fees incurred in connection with 
        such services.
    ``(ii) Services described in this clause are customs services for 
passengers and their baggage or any other such service that could 
lawfully be performed during regular hours of operation.''.

SEC. 306. SYMPOSIUM FEES.

    (a) In General.--The Secretary of Homeland Security may collect 
fees from any non-Federal participant in a conference, seminar, 
exhibition, symposium, or similar meeting conducted by the Department 
of Homeland Security in advance of such a meeting to offset the costs 
to the Department of conducting the meeting.
    (b) Excess Fees.--Any fees collected by the Secretary pursuant to 
subsection (a) that exceed the actual costs to the Department of 
conducting a meeting referred to in that subsection shall be deposited 
into the Treasury as miscellaneous receipts.

SEC. 307. PILOT PROGRAM FOR ESTABLISHING 24-HOUR COMMERCIAL LAND BORDER 
              PORTS OF ENTRY.

    (a) In General.--The President shall establish a pilot program 
under which the President shall--
            (1) pursuant to chapter 223 of the Act of August 1, 1914 
        (19 U.S.C. 2), designate certain land border crossings as 
        commercial ports of entry in accordance with subsection (b); 
        and
            (2) ensure that each commercial port of entry designated 
        under paragraph (1) has sufficient resources--
                    (A) to carry out the functions of a commercial port 
                of entry, including accepting entries of merchandise, 
                collecting duties, and enforcing the customs and trade 
                laws of the United States; and
                    (B) to perform the functions described in 
                subparagraph (A) 24 hours a day.
    (b) Designation.--
            (1) In general.--Not later than 180 days after the date of 
        the enactment of this Act, the President shall designate as 24-
        hour commercial ports of entry under the pilot program--
                    (A) not less than 1 and not more than 3 land border 
                crossings on the northern border of the United States 
                that meet the criteria described in paragraph (2); and
                    (B) not less than 1 and not more than 3 land border 
                crossings on the southern border of the United States 
                that meet the criteria described in paragraph (2).
            (2) Criteria for designation.--The criteria described in 
        this paragraph are, with respect to a land border crossing, the 
        following:
                    (A) The land border crossing is located in a State 
                that has 2 or fewer 24-hour commercial ports of entry.
                    (B) The land border crossing is located on land 
                owned by the United States Government.
                    (C) An environmental assessment has been made of 
                the land on which the border crossing is located.
                    (D) The costs associated with the designation of 
                the land border crossing as a commercial port of entry 
                do not exceed $30,000,000.
                    (E) Based on an economic study, a determination is 
                made that the designation will have a positive economic 
                impact on the local community where the land border 
                crossing is located.
                    (F) The appropriate authorities of the Government 
                of Canada or Mexico, as the case may be, have expressed 
                an intention to commit resources to a similar 
                designation of a corresponding foreign port.
                    (G) A State or local government has demonstrated 
                support for the designation through infrastructure 
                improvements to facilitate the operation of the land 
                border crossing as a 24-hour commercial port of entry.
    (c) Report.--Not later than 90 days before the President makes a 
determination under subsection (d)(1), the President shall submit to 
the Committee on Finance of the Senate and Committee on Ways and Means 
of the House of Representatives a report that provides--
            (1) a comparison of the vehicle traffic crossing at each 
        land border crossing--
                    (A) before the designation of the crossing as a 24-
                hour commercial port of entry under the pilot program; 
                and
                    (B) after the port of entry becomes fully 
                operational as a 24-hour commercial port of entry under 
                the pilot program;
            (2) an estimate of the total value of commercial goods that 
        crossed each land border crossing designated as a 24-hour 
        commercial port of entry after becoming fully operational as a 
        24-hour commercial port of entry; and
            (3) a comparison of--
                    (A) wait times at other ports of entry in each 
                State in which a port of entry is designated as a 24-
                hour commercial port of entry under the pilot program 
                during the 2-year period preceding the designation; and
                    (B) wait times at such other ports of entry in the 
                State after the port of entry in the State designated 
                as a 24-hour commercial port of entry becomes fully 
                operational as a 24-hour commercial port of entry.
    (d) Termination.--
            (1) Determination of economic benefit.--Not later than the 
        date that is 2 years after the date on which a port of entry 
        becomes fully operational as a 24-hour commercial port of entry 
        under the pilot program, the President shall--
                    (A) determine whether the operation of the port of 
                entry 24 hours a day provides a net economic benefit to 
                the United States; and
                    (B) submit to the Committee on Finance of the 
                Senate and the Committee on Ways and Means of the House 
                of Representatives a report on that determination and 
                the reasons for that determination.
            (2) Termination.--If the President determines under 
        paragraph (1) that operating a port of entry 24 hours a day 
        does not provide a net economic benefit to the United States, 
        that port of entry shall cease to operate 24 hours a day on the 
        date on which the President submits the report under paragraph 
        (1)(B).

SEC. 308. PROHIBITION ON IMPORTATION OF GOODS MADE WITH FORCED OR 
              INDENTURED LABOR OR BY BENEFIT OF HUMAN TRAFFICKING.

    (a) Goods Made With Forced Labor.--
            (1) In general.--Section 307 of the Tariff Act of 1930 (19 
        U.S.C. 1307) is amended to read as follows:

``SEC. 307. PROHIBITION ON IMPORTATION OF GOODS MADE WITH FORCED OR 
              INDENTURED LABOR OR BY BENEFIT OF HUMAN TRAFFICKING.

    ``(a) Prohibition on Importation.--No good may be imported into the 
United States, if that good was produced, in whole or in part--
            ``(1) with convict labor, forced labor, or indentured labor 
        under penal sanctions;
            ``(2) by means of coercion (as defined in section 103 of 
        the Trafficking Victims Protection Act of 2000 (22 U.S.C. 
        7102)), including by means of an employer withholding the 
        passport or other travel documents of a foreign worker in order 
        to compel the production of that good; or
            ``(3) by 1 or more individuals who, at the time of the 
        production were being subjected to a severe form of trafficking 
        in persons (as defined in section 103 of the Trafficking 
        Victims Protection Act of 2000 (22 U.S.C. 7102)).
    ``(b) Civil Penalties.--
            ``(1) In general.--Any person who violates any provision of 
        this section or any regulation issued under this section may, 
        in addition to any other civil or criminal penalty that may be 
        imposed under this Act or title 18, United States Code, or any 
        other provision of law, be assessed a civil penalty by the 
        Secretary of Homeland Security of not more than--
                    ``(A) for the first violation, an amount equal to 3 
                times the value of the goods imported or attempted to 
                be imported in violation of this section; and
                    ``(B) for the second and subsequent violations, an 
                amount equal to 6 times the value of the goods imported 
                or attempted to be imported in violation of this 
                section.
            ``(2) Debarment.--
                    ``(A) In general.--The Secretary may prohibit a 
                person from importing any good into the United States, 
                or exporting any good from the United States, if the 
                Secretary finds that the person has engaged in a 
                pattern or practice of actions that has resulted in a 
                final determination with respect to the assessment of 
                civil or criminal penalties for knowing and intentional 
                or grossly negligent violations of any provision of 
                this section or any regulation issued under this 
                section.
                    ``(B) Reinstatement.--The Secretary may retract a 
                prohibition imposed with respect to a person under 
                subparagraph (A) if the Secretary determines that 
                changed circumstances warrant such a retraction.
            ``(3) Notice.--No penalty may be assessed under this 
        section against a person for violating a provision of this 
        section or a regulation issued under this section unless the 
        person is given notice and opportunity for a hearing with 
        respect to such violation in accordance with section 554 of 
        title 5, United States Code.
    ``(c) Definitions.--In this section:
            ``(1) Child labor.--The terms `forced labor' and 
        `indentured labor' include forced or indentured child labor.
            ``(2) Convict labor.--The term `convict labor' means work 
        performed by an individual while imprisoned by a foreign 
        government and without compensation.
            ``(3) Forced labor.--The term `forced labor' means all work 
        or service that is exacted from any person under the menace of 
        any penalty for nonperformance and in which the person does not 
        engage voluntarily.
            ``(4) Goods.--The term `goods' means goods, wares, 
        articles, and merchandise.
            ``(5) Indentured labor under penal sanctions.--The term 
        `indentured labor under penal sanctions' means work performed 
        under a contract if the contract can be enforced through the 
        imposition of a penalty or imprisonment.
            ``(6) Produced.--The term `produced' means produced, mined, 
        or manufactured.''.
            (2) Effective date.--The amendment made by this subsection 
        applies to goods entered, or withdrawn from warehouse for 
        consumption, on or after the date that is 15 days after the 
        date of the enactment of this Act.
    (b) Monitoring and Reporting.--
            (1) Establishment of office for labor enforcement.--
                    (A) In general.--There is established within the 
                U.S. Immigration and Customs Enforcement Agency of the 
                Department of Homeland Security an Office for Labor 
                Enforcement (in this subsection referred to as the 
                ``Office'') to coordinate enforcement of the 
                prohibition on importing goods described in section 307 
                of the Tariff Act of 1930, as amended by this section.
                    (B) Assistant director.--The Office shall be headed 
                by the Assistant Director for Labor Enforcement who 
                shall--
                            (i) be appointed by the Secretary of 
                        Homeland Security, in consultation with the 
                        Secretary of the Treasury; and
                            (ii) report to the Director of U.S. 
                        Immigration and Customs Enforcement.
                    (C) Duties.--The Assistant Director shall--
                            (i) oversee the investigations of the U.S. 
                        Immigration and Customs Enforcement Agency with 
                        respect to the prohibition on importing goods 
                        described in section 307 of the Tariff Act of 
                        1930;
                            (ii) coordinate efforts to enforce the 
                        prohibition on importing goods described in 
                        section 307 of the Tariff Act of 1930, and 
                        centralize information collected with respect 
                        to that prohibition, by--
                                    (I) the U.S. Immigration and 
                                Customs Enforcement Agency;
                                    (II) the U.S. Customs and Border 
                                Protection Agency;
                                    (III) the Department of the 
                                Treasury;
                                    (IV) the Department of State;
                                    (V) the Department of Labor;
                                    (VI) the Department of Commerce; 
                                and
                                    (VII) the Foreign Agricultural 
                                Service of the Department of 
                                Agriculture;
                            (iii) coordinate with foreign governments 
                        to prevent the exportation to the United States 
                        of goods prohibited under section 307 of the 
                        Tariff Act of 1930;
                            (iv) prepare and publish the list of 
                        producers described in paragraph (2); and
                            (v) report annually, as described in 
                        paragraph (3), to the Committee on Finance of 
                        the Senate and the Committee on Ways and Means 
                        of the House of Representatives.
            (2) List of producers.--
                    (A) In general.--The list described in this 
                paragraph is a list compiled and regularly updated by 
                the Assistant Director for Labor Enforcement that 
                includes the name and country of each producer of goods 
                the importation of which is prohibited under section 
                307 of the Tariff Act of 1930. The list and regular 
                updates shall be published in the Federal Register.
                    (B) Removal from list.--The Assistant Director may 
                remove a producer from the list under subparagraph (A) 
                if the Assistant Director determines that changed 
                circumstances warrant such a removal.
            (3) Report.--The report required by paragraph (1)(C)(vi) is 
        a report submitted 180 days after the date of the enactment of 
        this Act, and annually thereafter, that contains the following:
                    (A) The volume and value of goods made with child 
                labor, convict labor, forced labor, indentured labor 
                under penal sanctions, or any other coercion (as such 
                terms are defined in section 307 of the Tariff Act of 
                1930) that are seized upon arrival in the United 
                States.
                    (B) A description of the goods described in 
                subparagraph (A).
                    (C) An assessment of the extent to which child 
                labor, convict labor, forced labor, indentured labor 
                under penal sanctions, or any other coercion are used 
                in producing goods destined for the United States.
                    (D) The progress being made in identifying and 
                interdicting goods that are destined for the United 
                States that are made with child labor, convict labor, 
                forced labor, indentured labor under penal sanctions, 
                or any other coercion.
                    (E) The most recent list of producers compiled 
                pursuant to subsection (b)(2).
            (4) Other duties.--The Office shall also be responsible for 
        investigations relating to fraud, gross negligence, and 
        negligence under section 592 of the Tariff Act of 1930 (19 
        U.S.C. 1592) with respect to violations of section 307 of such 
        Act.
    (c) Conforming Amendment.--Section 501 of the U.S.-China Relations 
Act of 2000 (22 U.S.C. 6961) is repealed.

SEC. 309. HONEY TRANSSHIPMENT.

    (a) In General.--The Commissioner of U.S. Customs and Border 
Protection shall direct appropriate personnel and resources of the U.S. 
Customs and Border Protection Agency to address concerns that honey is 
being imported into the United States in violation of the customs and 
trade laws of the United States.
    (b) Country of Origin.--
            (1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall compile a database of the individual 
        characteristics of honey produced in foreign countries to 
        facilitate the verification of country of origin markings of 
        imported honey.
            (2) Engagement with foreign governments.--The Commissioner 
        shall seek to engage the customs agencies of foreign 
        governments for assistance in compiling the database described 
        in paragraph (1).
    (c) Sense of Congress.--It is the sense of Congress that the 
Commissioner of the Food and Drug Administration should promptly 
establish a national standard of identity for honey for the 
Commissioner of U.S. Customs and Border Protection to use to ensure 
that imports of honey are--
            (1) classified accurately for purposes of assessing duties; 
        and
            (2) denied entry into the United States if such imports 
        pose a threat to the health or safety of consumers in the 
        United States.

SEC. 310. CONTRABAND ARCHAEOLOGICAL OR ETHNOLOGICAL MATERIALS.

    (a) In General.--The Commissioner of U.S. Customs and Border 
Protection shall ensure that appropriate personnel of the U.S. Customs 
and Border Protection Agency are trained in the detection, 
identification, and detention of archaeological or ethnological 
materials the importation of which violates the customs and trade laws 
of the United States.
    (b) Training.--The Commissioner of U.S. Customs and Border 
Protection is authorized to accept training and other support services 
from experts outside of the Federal Government in the detection, 
identification, and detention of archaeological or ethnological 
materials described in subsection (a).

SEC. 311. DE MINIMIS AND INFORMAL ENTRIES.

    (a) De Minimis Value.--Section 321(a)(2)(C) of the Tariff Act of 
1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking ``$200'' and 
inserting ``$500''.
    (b) Entry Under Regulations.--Section 498 of the Tariff Act of 1930 
(19 U.S.C. 1498) is amended--
            (1) in subsection (a), by striking paragraph (1) and 
        inserting the following:
            ``(1) Merchandise, when different commercial facilitation 
        and risk considerations that may vary for different classes or 
        kinds of merchandise or different classes of transactions may 
        dictate;'';
            (2) by redesignating subsection (b) as subsection (c); and
            (3) by inserting after subsection (a) the following:
    ``(b) Entry of Merchandise Valued at $2,500 or Less.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary of the Treasury shall prescribe rules and regulations 
        for the declaration and entry of merchandise if the aggregate 
        value of the shipment of merchandise does not exceed $2,500.
            ``(2) Exception.--The rules and regulations prescribed 
        under paragraph (1) shall not apply to articles that--
                    ``(A) have a value in excess of $250; and
                    ``(B) are classified under section VII, VIII, XI, 
                or XII, chapter 94, or subchapter III or IV of chapter 
                99 of the Harmonized Tariff Schedule of the United 
                States.''.
                                 <all>