[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 3741 Introduced in Senate (IS)]

111th CONGRESS
  2d Session
                                S. 3741

 To provide U.S. Customs and Border Protection with authority to more 
    aggressively enforce trade laws relating to textile or apparel 
                   articles, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             August 5, 2010

Mrs. Hagan (for herself and Mr. Graham) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To provide U.S. Customs and Border Protection with authority to more 
    aggressively enforce trade laws relating to textile or apparel 
                   articles, 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 AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Textile 
Enforcement and Security Act of 2010''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Textile or apparel article defined.
 TITLE I--ADDITIONAL AUTHORITIES FOR U.S. CUSTOMS AND BORDER PROTECTION

Sec. 101. Findings.
Sec. 102. Seizure and forfeiture of certain textile or apparel articles 
                            and use of amounts from fines, penalties, 
                            and forfeitures.
Sec. 103. Increase in certain TAPP positions and Import Specialist 
                            positions and biennial review of staff 
                            levels.
Sec. 104. Implementation report.
Sec. 105. Definitions.
             TITLE II--AMENDMENTS TO THE TARIFF ACT OF 1930

Sec. 201. Additional requirements for importation of textile or apparel 
                            articles.
Sec. 202. Definition of person for penalties for fraud, gross 
                            negligence, and negligence relating to 
                            import documentation.
Sec. 203. Special provisions regarding certain violations relating to 
                            import documentation.
Sec. 204. Electronic preference verification system for origin of 
                            textile or apparel articles under CAFTA, 
                            NAFTA, and other free trade agreements.
Sec. 205. Nonresident importer declaration program for textile or 
                            apparel articles.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Establishment of Office of Textile and Apparel Trade 
                            Enforcement within the Department of 
                            Justice.

SEC. 2. TEXTILE OR APPAREL ARTICLE DEFINED.

    (a) In General.--In this Act, the term ``textile or apparel 
article'' means any of the following:
            (1) Any good classifiable in chapters 50 through 63 of the 
        HTS.
            (2) Any good classifiable under one of the following HTS 
        headings or subheadings:
                    (A) 3005.90.
                    (B) 3921.12.15.
                    (C) 3921.13.15.
                    (D) 3921.90.2550.
                    (E) 4202.12.40-80.
                    (F) 4202.22.40-80.
                    (G) 4202.32.40-95.
                    (H) 4202.92.05.
                    (I) 4202.92.15-30.
                    (J) 4202.92.60-90.
                    (K) 6405.20.60.
                    (L) 6406.10.77.
                    (M) 6406.10.90.
                    (N) 6406.99.15.
                    (O) 6501.
                    (P) 6502.
                    (Q) 6504.
                    (R) 6505.90.
                    (S) 6601.10-99.
                    (T) 7019.19.15.
                    (U) 7019.19.28.
                    (V) 7019.40-59.
                    (W) 8708.21.
                    (X) 8804.
                    (Y) 9113.90.40.
                    (Z) 9404.90.
                    (AA) 9612.10.9010.
    (b) HTS Defined.--In subsection (a), the term ``HTS'' means the 
Harmonized Tariff Schedule of the United States.

 TITLE I--ADDITIONAL AUTHORITIES FOR U.S. CUSTOMS AND BORDER PROTECTION

SEC. 101. FINDINGS.

    The Congress finds the following:
            (1) The Textile and Apparel Policy and Programs division of 
        the Office of International Trade within U.S. Customs and 
        Border Protection (in this title referred to as the ``TAPP'') 
        has, with respect to textile or apparel articles, the authority 
        to direct the implementation and enforcement of free trade 
        agreements, multilateral agreements, bilateral textile 
        agreements, preference programs, and all other trade 
        legislation affecting textiles and apparel articles.
            (2) The primary focus of the TAPP is to ensure the 
        effective implementation of all trade enforcement activities 
        involving textile or apparel articles, including preventing 
        origin fraud, preventing circumvention of the requirements to 
        obtain preferential trade treatment under free trade agreements 
        and trade preference programs in order to avoid quotas or 
        duties, providing for the collection of appropriate duties, and 
        providing for the correct valuation of articles.
            (3) The TAPP headquarters office is currently below its 
        optimal staffing levels and the TAPP personnel efforts should 
        be targeted at retaining senior staff and hiring new qualified 
        personnel so that the division is brought up to optimal 
        staffing levels. These positions should be designated as not 
        only policy positions, but enforcement positions as well.
            (4) The TAPP should implement special operations, Textile 
        Product Verification Teams (in this title referred to as 
        ``TPVTs''), and other actions under U.S. Customs and Border 
        Protection authority to ensure enforcement of trade laws 
        relating to imports of textile or apparel articles in a timely 
        manner as concerns arise, specifically as they relate to 
        enforcement of the North American Free Trade Agreement, the 
        Dominican Republic-Central America-United States Free Trade 
        Agreement, and all other free trade agreements and preference 
        programs, in order to prevent transshipments and origin fraud.
            (5) U.S. Customs and Border Protection should ensure that 
        seizures, detentions, special operations, and TPVTs remain the 
        primary focus of its textile or apparel articles enforcement 
        efforts.

SEC. 102. SEIZURE AND FORFEITURE OF CERTAIN TEXTILE OR APPAREL ARTICLES 
              AND USE OF AMOUNTS FROM FINES, PENALTIES, AND 
              FORFEITURES.

    (a) Seizure and Forfeiture.--The following penalties shall apply 
with respect to an importation of a textile or apparel article:
            (1) In the case of importation for which a trade preference 
        has been claimed and with respect to which the textile or 
        apparel article has been either misdescribed on entry as to 
        country of origin or for which the importer of record does not 
        verify actual country of origin, for purposes of avoiding a 
        duty or other obligation to the United States Government, the 
        textile or apparel article shall be subject to seizure and 
        forfeiture consistent with United States customs laws.
            (2) In the case of importation by an importer of record who 
        provides false information with respect to the physical address 
        of the importer or who does not meet the requirements of 
        section 484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1484 
        (a)(2)(B)), the textile or apparel article shall be subject to 
        seizure and forfeiture consistent with United States customs 
        laws.
    (b) Use of Amounts From Fines, Penalties, and Forfeitures.--
            (1) In general.--Notwithstanding any other provision of 
        law, the Secretary of Homeland Security or the Secretary of the 
        Treasury--
                    (A) shall use amounts from fines, penalties, and 
                forfeitures of property for violations of any law 
                regarding the import of textile or apparel articles 
                enforced by the Secretary of Homeland Security to pay 
                for expenses directly related to investigations of, and 
                civil or criminal enforcement proceedings on, 
                violations of any law regarding the import of textile 
                or apparel articles, including any necessary expenses 
                for equipment, training, travel, witnesses, and 
                contracting services directly related to such 
                investigations or proceedings; and
                    (B) may use amounts from fines, penalties, and 
                forfeitures of property for violations of any law 
                regarding the import of textile or apparel articles 
                enforced by the Secretary of Homeland Security to pay 
                for a reward of not less than 20 percent of the amount 
                of the fine, penalty, or forfeiture of property 
                collected or $20,000, whichever is the lesser amount, 
                to any person who furnishes information that leads to 
                an arrest, conviction, civil penalty assessment, or 
                forfeiture of property for any violation of any law 
                regarding the import of textile or apparel articles 
                enforced by the Secretary.
            (2) Liability for storage and disposal costs.--Any person 
        found in an administrative or judicial proceeding to have 
        violated a law regarding the import of textile or apparel 
        articles enforced by the Secretary of Homeland Security or the 
        Secretary of the Treasury shall be liable for the cost incurred 
        in the storage and disposal of any textile or apparel articles 
        seized in connection with the violation.
            (3) Rule of construction.--Amounts from fines, penalties, 
        and forfeitures of property for violations of any law regarding 
        the importation of textile or apparel articles enforced by the 
        Secretary of Homeland Security or the Secretary of the Treasury 
        to pay for expenses described in paragraph (1)(A) or a reward 
        described in paragraph (1)(B) are in addition to amounts 
        otherwise available for such purposes.

SEC. 103. INCREASE IN CERTAIN TAPP POSITIONS AND IMPORT SPECIALIST 
              POSITIONS AND BIENNIAL REVIEW OF STAFF LEVELS.

    (a) Increase in Certain TAPP Positions.--As soon as practicable 
after the date of the enactment of this Act, the Commissioner shall 
ensure that--
            (1) the Textile Operations Branch (or any successor or 
        related Branch) of the TAPP shall consist of, at a minimum, one 
        Branch Chief and seven Operations Staff, of which not less than 
        one Operations Staff shall be assigned to each of the CAFTA-DR 
        countries and not less than one Operations Staff shall be 
        assigned to the People's Republic of China for purposes of 
        Customs services and textile or apparel preference 
        verification;
            (2) the Textile/Apparel Policy Branch (or any successor or 
        related Branch) of the TAPP shall consist of, at a minimum, one 
        Branch Chief and three Operations Staff and two textile trade 
        analysts; and
            (3) the Quota Branch (or any successor or related Branch) 
        of the TAPP shall consist of, at a minimum, one Branch Chief 
        and four Operations Staff.
    (b) Increase in Certain Import Specialist Positions.--As soon as 
practicable after the date of the enactment of this Act, the 
Commissioner shall allocate, to the 15 largest (by value of entries) 
United States ports of entry for textile or apparel articles, Import 
Specialists that are trained in fraud relating to imports of textile or 
apparel articles so that the level of Import Specialist positions is 
not less than 150 percent of the level of Import Specialist positions 
(as of the date of the enactment of this Act) at such ports of entry.
    (c) Biennial Review of Staff Levels.--Not later than two years 
after the date of the enactment of this Act, and every two years 
thereafter, the Commissioner shall review the TAPP staff levels and 
determine whether there is need for additional staff to carry out the 
duties of the TAPP.
    (d) CAFTA-DR Country Defined.--In this section, the term ``CAFTA-DR 
country'' has the meaning given the term in section 3(2) of the 
Dominican Republic-Central America-United States Free Trade Agreement 
Implementation Act (19 U.S.C. 4002(2)).

SEC. 104. IMPLEMENTATION REPORT.

    Not later than one year after the date of the enactment of this 
Act, the Commissioner shall transmit to Congress a report on the 
implementation of this title.

SEC. 105. DEFINITIONS.

    For purposes of this title:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner responsible for U.S. Customs and Border 
        Protection.
            (2) Enter; entry.--The terms ``enter'' and ``entry'' refer 
        to the entry, or withdrawal from warehouse for consumption, in 
        the customs territory of the United States.
            (3) Importer of record.--The term ``importer of record'' 
        has the meaning given the term in section 484 of the Tariff Act 
        of 1930 (19 U.S.C. 1484).
            (4) Special operations.--The term ``special operations'' 
        means an initiative that is--
                    (A) implemented to address specific instances of 
                transactions that do not comply with United States 
                trade laws with respect to textile or apparel articles;
                    (B) used to address any import violations involving 
                textile or apparel articles, including fraud, quota 
                requirements, revenue collection, trade preferences or 
                requirements under free trade agreements, product 
                safety, anti-dumping and countervailing duties, or 
                intellectual property rights; or
                    (C) initiated to address a singular instance or a 
                pattern of high-risk behavior, involving a particular 
                commodity or other trade issue, including valuation, 
                origin fraud, or trade preference violation, on the 
                part of a country, importer, or manufacturer.
            (5) TAPP.--The term ``TAPP'' means the Textile and Apparel 
        Policy and Programs division of the Office of International 
        Trade within U.S. Customs and Border Protection.
            (6) TPVTs.--The term ``TPVTs'' means Textile Product 
        Verification Teams.

             TITLE II--AMENDMENTS TO THE TARIFF ACT OF 1930

SEC. 201. ADDITIONAL REQUIREMENTS FOR IMPORTATION OF TEXTILE OR APPAREL 
              ARTICLES.

    (a) Affidavit Requirement.--Section 484(a) of the Tariff Act of 
1930 (19 U.S.C. 1484(a)) is amended by adding at the end the following:
            ``(3) Affidavit requirement.--
                    ``(A) In general.--The documentation or information 
                required under paragraph (1) with respect to imported 
                textile or apparel articles shall include an affidavit 
                with respect to each importation of such merchandise 
                that includes the information described in subparagraph 
                (B).
                    ``(B) Required information.--The information 
                described in this paragraph is the following:
                            ``(i) The physical address of the 
                        manufacturer.
                            ``(ii) The contact person's name and 
                        complete contact information.
                            ``(iii) A description of the articles, such 
                        as fiber content, yarn content, fabric type.
                            ``(iv) The purchase order or invoice number 
                        issued for the sale with quantities included.
                            ``(v) The date of sale or shipment of the 
                        articles.
                            ``(vi) If available, the container number 
                        and bill of lading number for the articles 
                        delivered to the customer.
                    ``(C) Form.--The affidavit required under this 
                paragraph may be submitted to U.S. Customs and Border 
                Protection in electronic form.
                    ``(D) Definition.--In this paragraph, the term 
                `textile or apparel article' has the meaning given the 
                term in section 2 of the Textile Enforcement and 
                Security Act of 2010.''.
    (b) Bonding Requirement.--Section 623(b) of the Tariff Act of 1930 
(19 U.S.C. 1623(b)) is amended by adding at the end the following:
            ``(5) In the case of importation of textile or apparel 
        articles, the Secretary of the Treasury shall by regulation or 
        specific instruction require, or authorize Customs officers to 
        require, the amount of the bond to include amounts equal to any 
        duties, fees, and penalties estimated to be payable on such 
        articles. For purposes of this paragraph, amounts equal to any 
        penalties estimated to be payable on such articles shall be 
        based on a risk assessment of the importer. In this paragraph, 
        the term `textile or apparel article' has the meaning given the 
        term in section 2 of the Textile Enforcement and Security Act 
        of 2010.''.
    (c) Effective Date.--The amendments made by subsections (a) and (b) 
shall apply with respect to articles entered, or withdrawn from 
warehouse for consumption, on or after the date that is 180 days after 
the date of the enactment of this Act.

SEC. 202. DEFINITION OF PERSON FOR PENALTIES FOR FRAUD, GROSS 
              NEGLIGENCE, AND NEGLIGENCE RELATING TO IMPORT 
              DOCUMENTATION.

    (a) In General.--Section 592(a)(1) of the Tariff Act of 1930 (19 
U.S.C. 1592(a)(1)) is amended in the matter preceding subparagraph (A) 
by striking ``no person'' and inserting ``no producer, manufacturer, 
supplier, seller, importer, exporter, or other person''.
    (b) Conforming Amendment.--Section 592A(a)(1) of the Tariff Act of 
1930 (19 U.S.C. 1592a(a)(1)) is amended by inserting ``importer,'' 
after ``exporter,''.

SEC. 203. SPECIAL PROVISIONS REGARDING CERTAIN VIOLATIONS RELATING TO 
              IMPORT DOCUMENTATION.

    (a) Publication of Names of Certain Violators.--Section 592A(a)(1) 
of the Tariff Act of 1930 (19 U.S.C. 1592a(a)(1)), as amended by this 
Act, is further amended in the matter preceding subparagraph (A) by 
striking ``is authorized to'' and inserting ``shall''.
    (b) List of High-Risk Countries.--Section 592A(b)(1) of the Tariff 
Act of 1930 (19 U.S.C. 1592a(b)(1)) is amended in the first sentence--
            (1) by striking ``is authorized to'' and inserting 
        ``shall''; and
            (2) by inserting after ``quotas'' the following: ``or 
        duties''.

SEC. 204. ELECTRONIC PREFERENCE VERIFICATION SYSTEM FOR ORIGIN OF 
              TEXTILE OR APPAREL ARTICLES UNDER CAFTA, NAFTA, AND OTHER 
              FREE TRADE AGREEMENTS.

    (a) Establishment.--Not later than 180 days after the date of the 
enactment of this Act, the President, acting through the Commissioner 
responsible for U.S. Customs and Border Protection and in coordination 
with the head of the Office of Textiles and Apparel of the Department 
of Commerce, shall establish an electronic verification system for 
tracking textile or apparel articles imported or exported under the 
Dominican Republic-Central America-United States Free Trade Agreement, 
the North American Free Trade Agreement, or any other free trade 
agreement to which the United States is a party to ensure compliance 
with the respective requirements of such agreements.
    (b) Implementation.--The President shall seek to enter into 
consultations and agreements as appropriate with the government of each 
foreign country that is party to any agreement described in subsection 
(a) for purposes of implementing the system established under 
subsection (a).
    (c) Confidentiality.--The system established under subsection (a) 
shall ensure that proprietary information, such as information about 
supply chain participants, are coded so that only U.S. Customs and 
Border Protection and the Office of Textiles and Apparel personnel can 
access such information.
    (d) Sense of Congress.--It is the sense of Congress that the 
President should seek to make the integration of the system established 
under subsection (a) in future free trade agreements a priority in 
negotiations for such agreements.

SEC. 205. NONRESIDENT IMPORTER DECLARATION PROGRAM FOR TEXTILE OR 
              APPAREL ARTICLES.

    (a) Establishment of Program.--The President shall establish and 
maintain a nonresident importer declaration program with respect to the 
importation of textile or apparel articles. The program shall require 
nonresident importers of textile or apparel articles to provide the 
information required under subsection (b) and declare the information 
required under subsection (c), and require that such information 
accompany the entry summary documentation for such textile or apparel 
articles.
    (b) Information Required.--The President shall require the 
following information to be submitted by any nonresident importer 
seeking to import textile or apparel articles:
            (1) An identification of a resident agent in the State in 
        which the port of entry is located who is authorized to accept 
        service of process against the nonresident importer in 
        connection with the importation of the textile or apparel 
        articles.
            (2) A certification that the resident agent described in 
        paragraph (1) has assets in the United States in sufficient 
        amounts for the purpose of ensuring the payment of any 
        additional loss of revenue not covered by any surety bond or 
        for any civil penalties levied by the Federal Government in 
        connection with the importation of the textile or apparel 
        articles.
            (3) A copy of the commercial invoice accompanying the 
        shipment of the textile or apparel articles, including the 
        name, address, and contact information for each person in the 
        transaction, such as the trading house, the freight forwarder, 
        and the ultimate purchaser of the goods.
    (c) Declarations Required.--Pursuant to procedures prescribed by 
the President, any nonresident importer seeking to import textile or 
apparel articles shall declare the following:
            (1) The nonresident importer has secured a bond in 
        connection with the importation of the textile or apparel 
        articles as required by section 623(b)(5) of the Tariff Act of 
        1930 (as added by section 201(b) of this Act).
            (2) The nonresident importer has established a power of 
        attorney in connection with the importation of the textile or 
        apparel articles.
    (d) Penalties.--
            (1) In general.--It shall be unlawful for any person to 
        import into the United States textile or apparel articles in 
        knowing violation of this section.
            (2) Civil penalties.--Any person who violates paragraph (1) 
        shall be liable for a civil penalty of not more than $50,000 
        for each such violation.
            (3) Other penalties.--In addition to the penalties provided 
        for in paragraph (2), any violation of this section that 
        violates any other customs law of the United States shall be 
        subject to any applicable civil and criminal penalty, including 
        seizure and forfeiture, that may be imposed under such customs 
        law or title 18, United States Code, with respect to the 
        importation of textile or apparel articles.
    (e) Nonresident Importer Defined.--In this section, the term 
``nonresident importer'' means--
            (1) an individual that is not a citizen of the United 
        States or an alien lawfully admitted for permanent residence in 
        the United States; or
            (2) a partnership, corporation, or other commercial entity 
        that is not organized under the laws of a jurisdiction within 
        the customs territory of the United States (as such term is 
        defined in General Note 2 of the Harmonized Tariff Schedule of 
        the United States) or in the Virgin Islands of the United 
        States.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. ESTABLISHMENT OF OFFICE OF TEXTILE AND APPAREL TRADE 
              ENFORCEMENT WITHIN THE DEPARTMENT OF JUSTICE.

    (a) Establishment.--The Attorney General shall establish within the 
Department of Justice the Office of Textile and Apparel Trade 
Enforcement.
    (b) Timing.--The Attorney General shall establish the Office by not 
later than the end of the 180-day period beginning on the date of the 
enactment of this Act.
    (c) Staff.--The Office shall have a director, at least three 
attorneys, and such other staff as may be necessary.
    (d) Functions.--The Office shall be responsible for carrying out 
all functions of the Department of Justice relating to relevant 
enforcement cases.
    (e) Venue.--Notwithstanding the provisions of chapter 87 of title 
28, United States Code, relating to venue, a relevant enforcement case 
may be prosecuted only in the United States District Court for the 
Middle District of North Carolina.
    (f) Relevant Enforcement Cases.--In this section, a case is a 
``relevant enforcement case'' if the case--
            (1) is referred to the Department of Justice by the 
        Department of Homeland Security; and
            (2) relates to the enforcement of laws with respect to the 
        importation of textile or apparel articles.
                                 <all>