[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6642 Introduced in House (IH)]

112th CONGRESS
  2d Session
                                H. R. 6642

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            December 7, 2012

Mr. Brady of Texas introduced the following bill; which was referred to 
 the Committee on Ways and Means, and in addition to the Committees on 
   Homeland Security and the Budget, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To reauthorize customs trade facilitation and 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 Trade 
Facilitation and Enforcement Act of 2012''.
    (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. Designation of trade oversight personnel.
Sec. 111. Consultation on trade and customs revenue functions.
Sec. 112. Authorization of appropriations.
                  Subtitle B--Investigative Functions

Sec. 121. Separate budget for U.S. Immigration and Customs Enforcement.
Sec. 122. 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. Consultations with respect to mutual recognition agreements.
Sec. 202. Commercial Customs Operations Advisory Committee.
Sec. 203. Automated Commercial Environment computer system.
Sec. 204. International Trade Data System.
                     Subtitle B--Trade Enforcement

            Chapter 1--Commercial Risk Assessment Targeting

Sec. 211. Commercial Targeting Division and National Targeting and 
                            Analysis Groups.
Sec. 212. Centers of Excellence and Expertise.
Sec. 213. Report on oversight of revenue protection and enforcement 
                            measures.
Sec. 214. Report on security and revenue measures with respect to 
                            merchandise transported in bond.
Sec. 215. Report on effectiveness of trade enforcement activities.
Sec. 216. Priorities and performance standards for Customs 
                            modernization, trade facilitation, and 
                            trade enforcement functions and programs.
Sec. 217. Educational seminars to improve efforts to classify and 
                            appraise imported articles and to improve 
                            trade enforcement efforts.
                    Chapter 2--Importer Requirements

Sec. 221. Importer of record program.
Sec. 222. Customs broker identification of importers.
Sec. 223. Establishment of ``new importer'' program.
Sec. 224. Requirements applicable to non-resident importers.
Sec. 225. Certified importer program.
  Chapter 3--Import-Related Protection of Intellectual Property Rights

Sec. 231. Exchange of information related to trade enforcement.
TITLE III--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY 
                                 ORDERS

Sec. 301. Short title.
Sec. 302. Definitions.
Sec. 303. Application to Canada and Mexico.
    Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws

Sec. 311. Trade Remedy Law Enforcement Division.
Sec. 312. Collection of information on evasion of trade remedy laws.
Sec. 313. Access to information.
Sec. 314. Cooperation with foreign countries on preventing evasion of 
                            trade remedy laws.
Sec. 315. Trade negotiating objectives.
                       Subtitle B--Other Matters

Sec. 321. Allocation and training of personnel.
Sec. 322. Annual report on prevention of evasion of antidumping and 
                            countervailing duty orders.
Sec. 323. Addressing circumvention by new shippers.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Penalties for customs brokers.
Sec. 402. De minimis value and entry under regulations.
Sec. 403. Collection and remittance of certain Customs User Fees.
Sec. 404. Drawback and refunds.
Sec. 405. Amendments to chapter 98 of the Harmonized Tariff Schedule of 
                            the United States.
                     TITLE V--OTHER TRADE AGENCIES

Sec. 501. United States International Trade Commission.
Sec. 502. Office of the United States Trade Representative.

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) Commercial operations.--The term ``commercial 
        operations'', with respect to the U.S. Customs and Border 
        Protection Agency, includes--
                    (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;
                    (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) 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;
                    (G) soliciting and considering on a regular basis 
                input from the private sector, including the Commercial 
                Customs Operations Advisory Committee, the Trade 
                Support Network, and other 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 of the United States; 
                        and
                            (ii) the development, implementation, or 
                        revision of policies or regulations 
                        administered by the U.S. Customs and Border 
                        Protection Agency; and
                    (H) 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) 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 
                established pursuant to section 411(d) of the Tariff 
                Act of 1930 (19 U.S.C. 1411(d)), as amended by section 
                204 of this Act.
                    (Y) Any other provision of customs or trade law 
                administered by the U.S. Customs and Border Protection 
                Agency.
            (4) 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).
            (5) Importer.--The term ``importer'' means one of the 
        parties qualifying as an importer of record under section 
        484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
        1484(a)(2)(B)).
            (6) Nonresident importer.--The term ``nonresident 
        importer'' means an importer who is--
                    (A) an individual who is not a citizen of the 
                United States or an alien lawfully admitted for 
                permanent residence in the United States; or
                    (B) 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.
            (7) Joint strategic plan.--The term ``Joint Strategic 
        Plan'' means the plan required by section 131 of this Act.
            (8) Trade support network.--The term ``Trade Support 
        Network'' means representatives of the private sector 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:

``SEC. 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 Commissioner shall--
                    ``(A) carry out the duties and powers prescribed by 
                law or by the Secretary of Homeland Security;
                    ``(B) direct the administration of the commercial 
                operations of the U.S. Customs and Border Protection 
                Agency and the enforcement of the customs and trade 
                laws of the United States; and
                    ``(C) otherwise safeguard the economic and homeland 
                security interests of the United States at land borders 
                and ports of entry.
            ``(2) Definitions.--In this subsection, the terms 
        `commercial operations' and `customs and trade laws of the 
        United States' have the meanings given such terms in section 2 
        of the Customs Trade Facilitation and Enforcement Act of 2012.
    ``(d) Absence or Disability of Commissioner.--The Deputy 
Commissioner of U.S. Customs and Border Protection, 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.--
            (1) In general.--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.--Effective on the date of the enactment of the 
Customs Trade Facilitation and Enforcement Act of 2012, the functions 
and associated personnel, assets, and liabilities, identified under 
section 411 of the Homeland Security Act of 2002 (6 U.S.C. 211) on the 
day before such date of enactment, 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 Trade Facilitation 
and Enforcement Act of 2012 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.''.
            (2) Repeal.--Section 411 of the Homeland Security Act of 
        2002 (6 U.S.C. 211), and the item relating to that section in 
        the table of contents for that Act, are repealed.
    (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 section 1 of the Act of March 3, 1927, as 
amended by subsection (a) of this section.
    (d) Compensation.--Section 5314 of title 5, United States Code, is 
amended by striking ``Commissioner of Customs, Department of Homeland 
Security'' and inserting ``Commissioner of U.S. Customs and Border 
Protection, Department of Homeland Security''.

SEC. 102. OFFICERS AND EMPLOYEES.

    (a) Deputy Commissioner.--Section 2 of the Act of March 3, 1927 (44 
Stat. 1381, chapter 348; 19 U.S.C. 2072), is amended by striking 
subsection (a) and inserting the following:
    ``(a) Deputy Commissioner.--
            ``(1) In general.--There shall be in the U.S. Customs and 
        Border Protection Agency established by the first section, 1 
        Deputy Commissioner who shall be appointed by the President, by 
        and with the advice and consent of the Senate.
            ``(2) Qualifications.--A person appointed to be the Deputy 
        Commissioner of U.S. Customs and Border Protection shall have a 
        minimum of 10 years of professional experience in the operation 
        of the customs and trade laws of the United States.
            ``(3) Duties.--The duties of the Deputy Commissioner shall 
        include--
                    ``(A) overseeing the commercial operations of the 
                U.S. Customs and Border Protection Agency, including 
                the operations of the Office of International Trade and 
                all other offices of the Agency whose duties primarily 
                relate to the commercial operations of the Agency;
                    ``(B) resolving issues relating to the commercial 
                operations of the U.S. Customs and Border Protection 
                Agency, including liaising between offices primarily 
                charged with carrying out the commercial operations of 
                the Agency and any operational or port level office, 
                including the Office of Field Operations or any 
                successor office, in the administration of duties 
                relating to the commercial operations of the Agency;
                    ``(C) overseeing the development and implementation 
                information technology, research, and communication 
                functions of the U.S. Border and Protection Agency that 
                affect the commercial operations of the Agency, 
                including modernization strategies, that support the 
                commercial operations of the 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));
                    ``(D) overseeing the customs revenue functions of 
                the U.S. Customs and Border Protection Agency in 
                consultation, as appropriate, with the Deputy Assistant 
                Secretary for Tax, Trade, and Tariff Policy of the 
                Department of the Treasury or any successor position;
                    ``(E) overseeing the administration of customs 
                revenue functions of the U.S. Customs and Border 
                Protection Agency; and
                    ``(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 administration of the commercial 
                operations of the U.S. Customs and Border Protection 
                Agency, including--
                            ``(i) 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 
                        Agency are participating;
                            ``(ii) the resource needs of the Agency in 
                        relation to the commercial operations of the 
                        Agency;
                            ``(iii) any proposed changes to policy, 
                        regulations, interpretations, or practices that 
                        relate to commercial operations;
                            ``(iv) any legislative proposals that the 
                        Agency or the Department of Homeland Security 
                        provides to other committees of the Senate or 
                        the House of Representatives or individual 
                        members of such committees that relate to the 
                        commercial operations of the Agency; and
                            ``(v) the implementation of new or amended 
                        customs and trade laws of the United States.
            ``(4) Absence or disability of deputy commissioner.--The 
        Assistant Commissioner of the Office of International Trade 
        shall act as the Deputy Commissioner during the disability of 
        the Deputy Commissioner, or in the event that there is no 
        Deputy Commissioner.''.
    (b) Trade Advocate.--Section 2 of the Act of March 3, 1927 (44 
Stat. 1381, chapter 348; 19 U.S.C. 2072), as amended by subsection (a) 
of this section, is further amended by striking subsection (b) and 
inserting the following:
    ``(b) Trade Advocate.--
            ``(1) In general.--The Commissioner shall appoint within 
        the U.S. Customs and Border Protection Agency, a Trade 
        Advocate, who shall report directly to the Commissioner.
            ``(2) Qualifications.--A person appointed to be Trade 
        Advocate shall have not less than 5 years experience working in 
        international trade in the private sector.
            ``(3) 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) assist the Commissioner in resolving issues 
                relating to the commercial operations of the Agency by 
                effectively communicating the perspectives held by 
                interested parties in the private sector and other 
                private commercial interests;
                    ``(C) consult with interested parties 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, and notices 
                        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 131 of the Customs 
                        Trade Facilitation and Enforcement Act of 2012;
                            ``(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.''.
    (c) Other Officers.--Section 2 of the Act of March 3, 1927 (44 
Stat. 1381, chapter 348; 19 U.S.C. 2072), as amended by subsections (a) 
and (b) of this section, is further amended by striking subsection (c) 
and inserting the following:
    ``(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 of such 
personnel shall be fixed in accordance with chapter 51 and subchapter 
III of chapter 53 of title 5, United States Code.''.
    (d) Office of International Trade.--Section 2(d) of the Act of 
March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), is 
amended--
            (1) in paragraph (1), by striking ``United States Customs 
        and Border Protection'' and inserting ``U.S. Customs and Border 
        Protection Agency''; and
            (2) in paragraph (2)--
                    (A) in the heading, by striking ``; elimination of 
                offices'';
                    (B) by striking subparagraph (A) and inserting the 
                following:
                    ``(A) Office of field operations.--
                            ``(i) Transfer.--
                                    ``(I) In general.--Not later than 
                                90 days after the date of enactment of 
                                the Customs Trade Enforcement and 
                                Facilitation Act of 2012, the 
                                Commissioner shall transfer to the 
                                Office of International Trade 
                                established pursuant to paragraph (1) 
                                the assets, functions (other than 
                                administrative functions), and 
                                personnel described in subclause (II) 
                                of the Office of Field Operations.
                                    ``(II) Personnel described.--The 
                                personnel of the Office of Field 
                                Operations referred to in subclause (I) 
                                are the following:
                                            ``(aa) Personnel having the 
                                        statutory authority to classify 
                                        and appraise goods entering the 
                                        United States.
                                            ``(bb) Personnel having the 
                                        responsibility to act as 
                                        principal point of contact and 
                                        technical experts with respect 
                                        to goods entering the United 
                                        States, including 
                                        responsibilities relating to 
                                        collection and deposit of 
                                        duties, taxes, and fees.
                                            ``(cc) Such other personnel 
                                        as the Commissioner determines 
                                        to be necessary.
                            ``(ii) Assistant commissioner in the office 
                        of international trade.--The assets, functions, 
                        and personnel transferred to the Office of 
                        International Trade pursuant to clause (i) 
                        shall be under the authority of the Assistant 
                        Commissioner in the Office of International 
                        Trade.
                            ``(iii) Training.--Not later than 18 months 
                        after the date of the enactment of the Customs 
                        Trade Enforcement and Facilitation Act of 2012, 
                        the Commissioner shall ensure that sufficient 
                        training with respect to facilitating 
                        legitimate international trade and enforcing 
                        the customs and trade laws of the United States 
                        has been provided to personnel transferred to 
                        the Office of International Trade pursuant to 
                        clause (i).
                            ``(iv) Limitation on funds.--No funds 
                        appropriated to the U.S. Customs and Border 
                        Protection Agency may be used to transfer the 
                        assets, functions, or personnel of the Office 
                        of Field Operations to an office other than the 
                        Office of International Trade.''.
                    (C) by striking subparagraph (B);
                    (D) by redesignating subparagraphs (C) through (F) 
                as subparagraphs (B) through (E), respectively;
                    (E) in subparagraph (B), as redesignated by 
                subparagraph (D) of this paragraph, by striking 
                ``United States Customs and Border Protection'' and 
                inserting ``U.S. Customs and Border Protection 
                Agency''; and
                    (F) in subparagraph (E), as redesignated by 
                subparagraph (D) of this paragraph--
                            (i) by striking ``United States Customs and 
                        Border Protection'' and inserting ``U.S. 
                        Customs and Border Protection Agency''; and
                            (ii) by striking ``subparagraph (E)(ii)'' 
                        and inserting ``subparagraph (D)(ii)''.
    (e) Definitions.--Section 2(f) of the Act of March 3, 1927 (44 
Stat. 1381, chapter 348; 19 U.S.C. 2072) is amended to read as follows:
    ``(f) Definitions.--In this section--
            ``(1) the term `Commissioner' means the Commissioner of 
        U.S. Customs and Border Protection; and
            ``(2) the terms `Commercial Customs Operations Advisory 
        Committee', `commercial operations', `customs and trade laws of 
        the United States', and `Trade Support Network' have the 
        meaning given such terms in section 2 of the Customs Trade 
        Facilitation and Enforcement Act of 2012.''.
    (f) Establishment of Interagency Customs Review Board.--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. 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 co-chaired by the 
Commissioner and the Assistant Secretary for Tax Policy in the 
Department of the Treasury.
    ``(c) Referral.--The Commissioner of U.S. Customs and Border 
Protection shall notify and provide full documentation to the 
interagency Customs Review Board not less than 30 days prior to 
publically proposing any change to a regulation, interpretation, or 
practice of the Agency relating to commercial operations of the Agency 
that could reasonably be expected to affect compliance by the United 
States Government with its international trade obligations.
    ``(d) Duties.--The interagency Customs Review Board shall--
            ``(1) review any proposed change to a regulation, 
        interpretation, or practice of the Agency referred to the 
        interagency Customs Review Board by the Commissioner under 
        subsection (c) to determine if the change conforms to the 
        international trade obligations of the United States; and
            ``(2) advise the Commissioner of U.S. Customs and Border 
        Protection, not later than 30 days after receiving notification 
        of a proposed change under paragraph (1), as to whether or not 
        and the extent to which the change conforms to the 
        international trade obligations of the United States and other 
        cross-border initiatives.
    ``(e) Definition.--In this section, the term `commercial 
operations' has the meaning given the term in section 2 of the Customs 
Trade Facilitation and Enforcement Act of 2012.''.
    (g) Compensation.--Section 5315 of title 5, United States Code, is 
amended by adding at the end the following:
            ``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, a separate budget request for the commercial operations of the 
U.S. Customs and Border Protection Agency.
    (b) Repeal.--Section 414 of the Homeland Security Act of 2002 (6 
U.S.C. 214), and the item relating to that section in the table of 
contents of that Act, are repealed.

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 
``Bureau of Customs'' and inserting ``U.S. Customs and Border 
Protection Agency''.

SEC. 105. ADVANCES IN FOREIGN COUNTRIES.

    The matter under the heading ``bureau of customs'' in title I of 
the Treasury Department Appropriation Act 1940 (53 Stat. 660, chapter 
115; 19 U.S.C. 2076), is amended in the last proviso by striking 
``Bureau of Customs'' and inserting ``U.S. Customs and Border 
Protection Agency or U.S. Immigration and Customs Enforcement''.

SEC. 106. ADVANCES FOR ENFORCEMENT OF CUSTOMS PROVISIONS.

    Section 2 of the Act entitled ``An Act to provide for advances of 
funds by special disbursing agents in connection with the enforcement 
of Acts relating to narcotic drugs'', approved March 28, 1928 (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 Trade Facilitation and Enforcement 
Act of 2012).''.

SEC. 107. CERTIFICATION OF REASON FOR ADVANCE.

    Section 3 of the Act of March 28, 1928 (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 U.S. Immigration and 
Customs Enforcement 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 Trade 
Facilitation and Enforcement Act of 2012).''.

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 U.S. Immigration and Customs Enforcement among the 
        various operational functions of each Agency, including 
        merchandise processing and customs and trade law enforcement; 
        and
            ``(2) for fiscal year 2013 and each subsequent fiscal year, 
        develop and implement labor distribution surveys of major 
        workforce activities within the U.S. Customs and Border 
        Protection Agency and U.S. Immigration and Customs Enforcement 
        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 December 31, 2013, and December 31 of each 
subsequent calendar year, 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 surveys implemented 
under paragraph (2) of subsection (a) for the preceding fiscal year.''.

SEC. 110. DESIGNATION OF TRADE OVERSIGHT PERSONNEL.

    Subsection (c) of section 412 of the Homeland Security Act of 2002 
(6 U.S.C. 212(c)) is amended to read as follows:
    ``(c) Designation of Trade Oversight Personnel.--Not later than 90 
days after the date of the enactment of the Customs Trade Facilitation 
and Enforcement Act of 2012, 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. 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. 112. 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--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``October 1, 1979'' and 
                        inserting ``October 1, 2012''; and
                            (ii) by striking ``Department of the 
                        Treasury for the United States Customs 
                        Service'' and inserting ``Department of 
                        Homeland Security for the U.S. Customs and 
                        Border Protection Agency'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(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 2012 shall 
        specify the amount authorized for the fiscal year for the 
        salaries and expenses of the Agency in conducting commercial 
        operations.''; and
                    (C) by striking paragraph (3);
            (2) by striking subsections (b), (c), and (d) and inserting 
        the following:
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--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--
                    ``(A) not less than $1,800,000,000 for fiscal year 
                2013;
                    ``(B) not less than $1,817,000,000 for fiscal year 
                2014; and
                    ``(C) not less than $1,830,000,000 for fiscal year 
                2015.
            ``(2) Customs user fee account.--The monies authorized to 
        be appropriated pursuant to paragraph (1) 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.
    ``(c) Mandatory 10-Day Deferment.--No part of the funds 
appropriated under subsection (a) for any fiscal year may be used to 
provide less time for the collection of estimated duties than the 10-
day deferment procedure in effect on January 1, 1981.
    ``(d) Overtime Pay Limitations; Waiver.--No part of the funds 
appropriated pursuant to subsection (a) for any fiscal year may be used 
for administrative expenses to pay any customs officer overtime pay in 
an amount exceeding $35,000 unless the Secretary of Homeland Security 
determines on an individual basis that payment of overtime pay to such 
officer in an amount exceeding $35,000 is necessary for national 
security purposes, to prevent excessive costs, or to meet emergency 
requirements of the Agency.'';
            (3) in subsection (e)--
                    (A) by striking ``October 1, 1982'' and inserting 
                ``October 1, 2012'';
                    (B) by striking ``Department of the Treasury for 
                salaries of the United States Customs Service'' and 
                inserting ``Department of Homeland Security for 
                salaries of the U.S. Customs and Border Protection 
                Agency''; and
                    (C) by striking ``to reflect'' and all that follows 
                and inserting ``to reflect any adjustment in rates of 
                basic pay made in accordance with subchapter I of 
                chapter 53 of title 5, United States Code.'';
            (4) by striking subsections (f) and (g) and inserting the 
        following:
    ``(f) 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 such commercial operations.
    ``(g) 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.''; and
            (5) by adding at the end the following:
    ``(i) Definition.--In this section, the term `commercial 
operations' has the meaning given such term in section 2 of the Customs 
Trade Facilitation and Enforcement Act of 2012.''.
    (b) Resource Optimization Model.--Subsection (h) of section 301 of 
the Customs Procedural Reform and Simplification Act of 1978 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 Amendment.--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 a customs 
        officer may be paid in any fiscal year may not exceed $35,000 
        unless the Secretary of Homeland Security determines on an 
        individual basis that payment of overtime pay to such officer 
        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.--A customs 
        officer 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.''.

                  Subtitle B--Investigative Functions

SEC. 121. SEPARATE BUDGET FOR U.S. IMMIGRATION AND CUSTOMS ENFORCEMENT.

    The President shall include in each budget transmitted to Congress 
under section 1105 of title 31, United States Code, a separate budget 
request of U.S. Immigration and Customs Enforcement for the enforcement 
of the customs and trade laws of the United States.

SEC. 122. 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, 2012.--
        For the fiscal year beginning October 1, 2012, and each fiscal 
        year thereafter, there are authorized to be appropriated to the 
        U.S. Immigration and Customs Enforcement of the Department of 
        Homeland Security for the enforcement of the customs and trade 
        laws of the United States only such sums as may be authorized 
        by law.
            ``(2) Specification of amounts.--The authorization of the 
        appropriations for the U.S. Immigration and Customs Enforcement 
        for each fiscal year after fiscal year 2012 shall specify the 
        amount authorized for the fiscal year for the salaries and 
        expenses of U.S. Immigration and Customs Enforcement for the 
        enforcement of the customs and trade laws of the United States.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for the salaries and expenses of the U.S. Immigration and 
Customs Enforcement that are incurred in enforcement of the customs and 
trade laws of the United States--
            ``(1) not less than $86,000,000 for fiscal year 2013;
            ``(2) not less than $88,150,000 for fiscal year 2014; and
            ``(3) not less than $90,200,000 for fiscal year 2015.
    ``(c) Definition.--In this section, the term `customs and trade 
laws of the United States' has the meaning given such term in section 2 
of the Customs Trade Facilitation and Enforcement Act of 2012.''.

                    Subtitle C--Joint Strategic Plan

SEC. 131. JOINT STRATEGIC PLAN.

    (a) In General.--Not later than June 30, 2013, 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 multi-year plan for enforcing the 
customs and trade laws of the United States 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 U.S. Immigration and Customs 
        Enforcement 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 the priority trade issues 
        described in paragraph (3)(B)(ii) of section 2(d) of the Act of 
        March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), 
        as added by section 211(a) of this Act;
            (4) a description of efforts made to improve consultation 
        and coordination among Federal departments and agencies, and in 
        particular between the U.S. Customs and Border Protection 
        Agency and U.S. Immigration and Customs Enforcement, 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 U.S. 
        Immigration and Customs Enforcement to improve such enforcement 
        and facilitation, including training under section 217 of this 
        Act;
            (6) a specific identification of any domestic or 
        international best practices that may further improve such 
        enforcement and facilitation; and
            (7) any legislative recommendations to further improve such 
        enforcement of the customs and trade laws of the United States 
        or facilitation.
    (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 (established in section 202 of this Act).
            (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) interested parties in the private sector.

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

           Subtitle A--Customs Facilitation and Transparency

SEC. 201. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION AGREEMENTS.

    The Secretary of Homeland Security, with respect to any proposed 
Mutual Recognition Arrangement or similar agreement between the United 
States and a foreign government providing for mutual recognition of 
supply chain security programs and customs revenue functions, shall--
            (1) consult, not later than 30 days before initiating 
        negotiations to enter into any such agreement, with the 
        Committee on Finance of the Senate and the Committee on Ways 
        and Means of the House of Representatives; and
            (2) consult, not later than 30 days before entering into 
        any such agreement, with the Committee on Finance of the Senate 
        and the Committee on Ways and Means of the House of 
        Representatives.

SEC. 202. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 60 days after the date of 
enactment of this Act, 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.--
                    (A) In general.--The Secretary of the Treasury and 
                the Secretary of Homeland Security shall jointly 
                appoint 20 individuals from the private sector to the 
                Advisory Committee.
                    (B) Requirements.--In making appointments under 
                subparagraph (A), the Secretary of the Treasury and the 
                Secretary of Homeland Security shall appoint members--
                            (i) to ensure that the membership of the 
                        Advisory Committee is representative of the 
                        individuals and firms affected by the 
                        commercial operations of the U.S. Customs and 
                        Border Protection Agency; and
                            (ii) to ensure that a majority of the 
                        individuals are not members of the same 
                        political party.
    (c) Duties.--The Advisory Committee established under subsection 
(a) shall--
            (1) advise the Secretary of the Treasury and the Secretary 
        of Homeland Security on matters involving the commercial 
        operations of the U.S. Customs and Border Protection Agency and 
        U.S. Immigration and Customs Enforcement, 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 U.S. Immigration and Customs Enforcement; 
        and
            (3) perform such other functions relating to the commercial 
        operations of the U.S. Customs and Border Protection Agency and 
        U.S. Immigration and Customs Enforcement as prescribed by law 
        or as the Secretary of the Treasury and the Secretary of 
        Homeland Security jointly direct.
    (d) Meetings.--The Advisory Committee shall meet at the call of the 
Secretary of the Treasury and the Secretary of Homeland Security.
    (e) 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--
            (1) describes the activities of the Advisory Committee 
        during the preceding fiscal year; and
            (2) sets forth any recommendations of the Advisory 
        Committee regarding the commercial operations of the U.S. 
        Customs and Border Protection Agency and U.S. Immigration and 
        Customs Enforcement.
    (f) Termination.--Section 14(a)(2)(B) of the Federal Advisory 
Committee Act (5 U.S.C. App.; relating to the termination of advisory 
committees) shall not apply to the Advisory Committee.
    (g) Conforming Amendment.--
            (1) In general.--Effective on the date on which the 
        Advisory Committee is established under subsection (a), 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 the date on which the Advisory Committee is established 
        under subsection (a), shall be deemed a reference to the 
        Commercial Customs Operations Advisory Committee established 
        under subsection (a).

SEC. 203. 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 ``2013, 2014, and 2015''; and
                    (B) by striking ``$350,000,000'' and inserting 
                ``$700,242,000''; and
            (2) in subparagraph (B)--
                    (A) by striking ``2003 through 2005'' and inserting 
                ``2013 through 2015'';
                    (B) by striking ``such amounts as are available in 
                that Account'' and inserting ``not less than 
                $138,794,000''; and
                    (C) 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, 
                2012, 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, 
                        2015, 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, cargo financial 
                        data elements, and export 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, 2015.
                    ``(B) Update of reports.--Not later than December 
                31, 2014, and September 30, 2015, 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, 2015, 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;
            (2) assessing the extent to which any additional 
        functionality may be added into the Automated Commercial 
        Environment computer system at a reasonable cost; and
            (3) assessing the potential cost savings to the United 
        States Government and importers and exporters and the potential 
        benefits to enforcement of the customs and trade laws of the 
        United States if the elements identified in clauses (i) and 
        (ii) of section 311(b)(3)(A) of the Customs Border Security Act 
        of 2002, as amended by subsection (b) of this section, are 
        implemented.

SEC. 204. INTERNATIONAL TRADE DATA SYSTEM.

    Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is 
amended--
            (1) in paragraph (1), by adding at the end the following:
                    ``(F) Prohibition on other systems for cargo 
                clearance.--The Secretary shall ensure that each agency 
                that participates in the ITDS use the ITDS to collect 
                and distribute data and documentation for clearing or 
                licensing the importation or exportation of cargo, 
                including to authorize the release of cargo by the U.S. 
                Customs and Border Protection Agency, and does not use 
                any other system for such purposes.'';
            (2) by redesignating paragraphs (4) through (7) as 
        paragraphs (5) through (8), respectively;
            (3) by inserting after paragraph (3) the following:
            ``(4) Information technology infrastructure.--The head of 
        each Federal agency that requires documentation for clearing or 
        licensing the importation and exportation of cargo shall--
                    ``(A) develop and maintain the necessary 
                information technology infrastructure to support the 
                operation of the ITDS;
                    ``(B) not later than March 31, 2013, enter into a 
                memorandum of understanding, or take 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
                    ``(C) not later than March 31, 2013, identify and 
                transmit 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.'';
            (4) in paragraph (5), as redesignated, by striking ``each 
        fiscal year'' and inserting ``each of the fiscal years 2010 
        through 2013''; and
            (5) in paragraph (8), as redesignated, by striking 
        ``section 9503(c) of the Omnibus Budget Reconciliation Act of 
        1987 (19 U.S.C. 2071 note)'' and inserting ``section 202 of the 
        Customs Trade Facilitation and Enforcement Act of 2012''.

                     Subtitle B--Trade Enforcement

            CHAPTER 1--COMMERCIAL RISK ASSESSMENT TARGETING

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

    (a) In General.--Section 2(d) of the Act of March 3, 1927 (44 Stat. 
1381, chapter 348; 19 U.S.C. 2072(d)), as amended by section 102(d) of 
this Act, is further amended by adding at the end the following:
            ``(3) Commercial targeting division and national targeting 
        and analysis groups.--
                    ``(A) Establishment of commercial targeting 
                division.--
                            ``(i) In general.--The Secretary of 
                        Homeland Security shall establish and maintain 
                        within the Office of International Trade a 
                        Commercial Targeting Division.
                            ``(ii) Composition.--The Commercial 
                        Targeting Division shall be composed of--
                                    ``(I) headquarters personnel led by 
                                an Executive Director, who shall report 
                                to the Assistant Commissioner of the 
                                Office of International Trade; and
                                    ``(II) individual National 
                                Targeting and Analysis Groups, each led 
                                by a Director who shall report to the 
                                Executive Director of the Commercial 
                                Targeting Division.
                            ``(iii) Duties.--The Commercial Targeting 
                        Division shall be dedicated--
                                    ``(I) to the development and 
                                conduct of commercial risk assessment 
                                targeting with respect to cargo 
                                destined for the United States in 
                                accordance with subparagraph (C); and
                                    ``(II) to issuing Trade Alerts 
                                described in subparagraph (D).
                    ``(B) National targeting and analysis groups.--
                            ``(i) In general.--A National Targeting and 
                        Analysis Group referred to in subparagraph 
                        (A)(ii)(II) shall, at a minimum, be established 
                        for each priority trade issue described in 
                        clause (ii).
                            ``(ii) Priority trade issues.--
                                    ``(I) In general.--The priority 
                                trade issues described in this clause 
                                are the following:
                                            ``(aa) Agriculture 
                                        programs.
                                            ``(bb) Antidumping and 
                                        countervailing duties.
                                            ``(cc) Import safety.
                                            ``(dd) Intellectual 
                                        property rights.
                                            ``(ee) Penalties.
                                            ``(ff) Revenue.
                                            ``(gg) Textiles.
                                            ``(hh) Trade agreements.
                                    ``(II) Modification.--The 
                                Commissioner is authorized to establish 
                                new priority trade issues and 
                                eliminate, consolidate, or otherwise 
                                modify the priority trade issues 
                                described in this paragraph if the 
                                Commissioner--
                                            ``(aa) determines it 
                                        necessary and appropriate to do 
                                        so; and
                                            ``(bb) submits to the 
                                        Committee on Finance of the 
                                        Senate and the Committee on 
                                        Ways and Means of the House of 
                                        Representatives a summary of 
                                        the proposed changes to the 
                                        priority trade issues not later 
                                        than 60 days before such 
                                        changes are to take effect.
                            ``(iii) Duties.--The duties of each 
                        National Targeting and Analysis Group shall 
                        include--
                                    ``(I) directing the trade 
                                enforcement and compliance assessment 
                                activities of the U.S. Customs and 
                                Border Protection Agency that relate to 
                                the Group's priority trade issue;
                                    ``(II) facilitating, promoting, and 
                                coordinating cooperation and the 
                                exchange of information between the 
                                U.S. Customs and Border Protection 
                                Agency, U.S. Immigration and Customs 
                                Enforcement, and other relevant Federal 
                                departments and agencies regarding the 
                                Group's priority trade issue; and
                                    ``(III) serving as the primary 
                                liaison between the U.S. Customs and 
                                Border Protection Agency and the public 
                                regarding United States Government 
                                activities regarding the Group's 
                                priority trade issue, including--
                                            ``(aa) providing for 
                                        receipt and transmission to the 
                                        appropriate U.S. Customs and 
                                        Border Protection Agency office 
                                        of allegations from interested 
                                        parties in the private sector 
                                        of violations of customs and 
                                        trade laws of the United States 
                                        of merchandise relating to the 
                                        priority trade issue;
                                            ``(bb) obtaining 
                                        information from the 
                                        appropriate U.S. Customs and 
                                        Border Protection Agency office 
                                        on the status of any activities 
                                        resulting from the submission 
                                        of any such allegation, 
                                        including any decision not to 
                                        pursue the allegation, and 
                                        providing any such information 
                                        to each interested party in the 
                                        private sector that submitted 
                                        the allegation every 90 days 
                                        after the allegation was 
                                        received by the U.S. Customs 
                                        and Border Protection Agency; 
                                        and
                                            ``(cc) notifying on a 
                                        timely basis each interested 
                                        party in the private sector 
                                        that submitted such allegation 
                                        of any civil or criminal 
                                        actions taken by the U.S. 
                                        Customs and Border Protection 
                                        Agency or other Federal 
                                        department or agency resulting 
                                        from the allegation.
                    ``(C) Commercial risk assessment targeting.--In 
                carrying out its duties with respect to commercial risk 
                assessment targeting, the Commercial Targeting Division 
                shall--
                            ``(i) establish targeted risk assessment 
                        methodologies and standards--
                                    ``(I) for evaluating the risk that 
                                cargo destined for the United States 
                                may violate the customs and trade laws 
                                of the United States, particularly 
                                those laws applicable to merchandise 
                                subject to the priority trade issues 
                                described in subparagraph (B)(ii); and
                                    ``(II) for issuing, as appropriate, 
                                Trade Alerts described in subparagraph 
                                (D); and
                            ``(ii) 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 Export System, the International 
                        Trade Data System, and the Treasury Enforcement 
                        Communications System, and any successor 
                        systems, to administer the methodologies and 
                        standards established under clause (i).
                    ``(D) Trade alerts.--
                            ``(i) Issuance.--Based upon the application 
                        of the targeted risk assessment methodologies 
                        and standards established under subparagraph 
                        (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.
                            ``(ii) 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 
                        clause (i) if--
                                    ``(I) the director finds that such 
                                a determination is justified by port 
                                security interests; and
                                    ``(II) notifies the Assistant 
                                Commissioner of the Office of Field 
                                Operations of the U.S. Customs and 
                                Border Protection Agency of the 
                                determination and the reasons for the 
                                determination not later than 48 hours 
                                after making the determination.
                            ``(iii) Summary of determinations not to 
                        implement.--The Assistant Commissioner of the 
                        Office of Field Operations of the U.S. Customs 
                        and Border Protection Agency shall--
                                    ``(I) compile an annual public 
                                summary of all determinations by 
                                directors of United States ports of 
                                entry under clause (ii) and the reasons 
                                for those determinations; and
                                    ``(II) 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.
                            ``(iv) Inspection defined.--In this 
                        subparagraph, 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--
                                    ``(I) assessing duties;
                                    ``(II) identifying restricted or 
                                prohibited items; and
                                    ``(III) ensuring compliance with 
                                all applicable customs and trade laws 
                                and regulations administered by the 
                                Agency.''.
    (b) Use of Trade Data for Commercial Enforcement Purposes.--Section 
343(a) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended--
            (1) in the first sentence of paragraph (2), by inserting 
        ``and to carry out commercial risk assessment targeting (as 
        described in 2(d)(3)(C) of the Act of March 3, 1927 (44 Stat. 
        1381, chapter 348; 19 U.S.C. 2072(d)))'' after ``to ensure 
        cargo safety and security''; and
            (2) in paragraph (3)--
                    (A) by striking subparagraph (F); and
                    (B) by redesignating subparagraphs (G) through (L) 
                as subparagraphs (F) through (K).

SEC. 212. CENTERS OF EXCELLENCE AND EXPERTISE.

    Section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, chapter 
348; 19 U.S.C. 2072(d)), as amended by sections 102(d) and 211 of this 
Act, is further amended by adding at the end the following:
            ``(4) Centers of excellence and expertise.--
                    ``(A) Establishment.--The Secretary of Homeland 
                Security is authorized to establish and maintain within 
                the Office of International Trade Centers of Excellence 
                and Expertise.
                    ``(B) Composition.--Each Center of Excellence and 
                Expertise shall be composed of headquarters and field 
                personnel of the U.S. Customs and Border Protection 
                Agency led by an Executive Director, who shall report 
                to the Assistant Commissioner of the Office of 
                International Trade.
                    ``(C) Duties.--Each Center of Excellence and 
                Expertise shall be dedicated--
                            ``(i) to facilitating legitimate trade 
                        through increasing specific industry knowledge 
                        and uniformity of cargo clearance procedures;
                            ``(ii) to improving enforcement efforts of 
                        priority trade issues described in paragraph 
                        (3)(B)(ii) in specific industry sectors through 
                        application of targeting information from the 
                        Commercial Targeting Division established under 
                        paragraph (3)(A) and from other means of 
                        verifications;
                            ``(iii) to developing and implementing 
                        measurable benefits to the trade community;
                            ``(iv) to fostering partnerships through 
                        the expansion of trade programs such as 
                        Importer Self Assessment program and other 
                        trusted partner programs;
                            ``(v) to developing applicable performance 
                        measurements to meet internal efficiency and 
                        effectiveness goals; and
                            ``(vi) to increasing the accuracy and 
                        completeness of international trade data and 
                        facilitate a more efficient flow of information 
                        between Federal departments and agencies.''.

SEC. 213. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT 
              MEASURES.

    (a) Contents of Report.--The Inspector General of the Department of 
Homeland Security shall, at the times specified in subsection (b), 
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, with respect to the 2-fiscal-year period to which the report 
applies:
            (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.
    (b) Timing of Report.--The report under subsection (a) shall be 
submitted not later than March 31, 2014, and not later than March 31 of 
each second year thereafter, with respect to the 2-fiscal-year period 
ending on September 30 of the preceding calendar year.

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

    (a) In General.--Not later than December 31 of 2013, 2014, and 2015 
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 fiscal year 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 re-exported;
            (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. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, 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 on the effectiveness of 
trade enforcement activities of the U.S. Customs and Border Protection 
Agency.
    (b) Contents.--The report shall include--
            (1) a description of the use of resources, results of 
        audits and verifications, targeting, organization, and training 
        of the U.S. Customs and Border Protection Agency; and
            (2) a description of trade enforcement activities to 
        address undervaluation, transshipment, legitimacy of entities 
        making entry, protection of revenues, fraud prevention and 
        detection, and penalties, including intentional 
        misclassification, inadequate bonding, and other 
        misrepresentations.

SEC. 216. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS 
              MODERNIZATION, TRADE FACILITATION, AND TRADE ENFORCEMENT 
              FUNCTIONS AND PROGRAMS.

    (a) Priorities and Performance Standards.--
            (1) In general.--The Commissioner of U.S. Customs and 
        Border Protection, in consultation with the Committee on Ways 
        and Means of the House of Representatives and the Committee on 
        Finance of the Senate, shall establish priorities and 
        performance standards to measure the development and levels of 
        achievement of the Customs modernization, trade facilitation, 
        and trade enforcement functions and programs described in 
        subsection (b).
            (2) Minimum priorities and standards.--Such priorities and 
        performance standards shall, at a minimum, include priorities 
        and standards relating to efficiency, outcome, output, and 
        other types of applicable measures.
    (b) Functions and Programs Described.--The functions and programs 
referred to in subsection (a) are the following:
            (1) 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)).
            (2) Each of the priority trade issues described in 
        paragraph (3)(B)(ii) of section 2(d) of the Act of March 3, 
        1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2072(d)), as added 
        by section 211(a) of this Act.
            (3) The Centers of Excellence and Expertise described in 
        section 212(c) of this Act.
            (4) Drawback for exported merchandise under section 313 of 
        the Tariff Act of 1930 (19 U.S.C. 1313), as amended by section 
        404 of this Act.
            (5) Transactions relating to imported merchandise in bond.
            (6) Collection of countervailing duties assessed under 
        subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C. 
        1671 et seq.) and antidumping duties assessed under subtitle B 
        of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et 
        seq.).
            (7) The expedited clearance of cargo.
            (8) The issuance of regulations and rulings.
            (9) The issuance of Regulatory Audit Reports.
    (c) Submission to Congress.--
            (1) In general.--The Commissioner of U.S. Customs and 
        Border Protection shall submit to the Committee on Ways and 
        Means of the House of Representatives and the Committee on 
        Finance of the Senate a description of the priorities and 
        performance standards referred to in subsection (a) not later 
        than 180 days after the date of enactment of this Act.
            (2) Proposed changes.--The Commissioner of U.S. Customs and 
        Border Protection shall submit to the congressional committees 
        referred to in paragraph (1) a description of any changes to 
        the priorities and performance standards referred to in 
        subsection (a) not later than 30 days before such changes are 
        to take effect.
    (d) Report.--Not later than December 31, 2013, and December 31 of 
each year thereafter, the Commissioner of U.S. Customs and Border 
Protection shall submit to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the Senate a report 
on the implementation of this section for the previous fiscal year.

SEC. 217. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND 
              APPRAISE IMPORTED ARTICLES AND TO IMPROVE TRADE 
              ENFORCEMENT EFFORTS.

    (a) In General.--
            (1) Establishment.--The Commissioner of U.S. Customs and 
        Border Protection and the Director of U.S. Immigration and 
        Customs Enforcement shall establish and carry out on a fiscal 
        year basis educational seminars to--
                    (A) improve the ability of U.S. Customs and Border 
                Protection Agency personnel to classify and appraise 
                articles imported into the United States in accordance 
                with the customs and trade laws of the United States; 
                and
                    (B) improve the trade enforcement efforts of U.S. 
                Customs and Border Protection Agency personnel and U.S. 
                Immigration and Customs Enforcement personnel.
            (2) Location.--Each educational seminar under this section 
        shall be located at a United States port of entry or a Center 
        of Excellence and Expertise described in section 212(c) of this 
        Act.
    (b) Content.--
            (1) Classifying and appraising imported articles.--In 
        carrying out subsection (a)(1)(A), the Commissioner, the 
        Director, and interested parties in the private sector selected 
        under subsection (c) shall provide instruction and related 
        instructional materials at each educational seminar under this 
        section to U.S. Customs and Border Protection Agency personnel 
        and, as appropriate, to U.S. Immigration and Customs 
        Enforcement Agency personnel on the following:
                    (A) Conducting a physical inspection of an article 
                imported into the United States, including testing of 
                samples of the article, to determine if the article is 
                mislabeled in the manifest or other accompanying 
                documentation.
                    (B) Reviewing the manifest and other accompanying 
                documentation of an article imported into the United 
                States to determine if the country of origin of the 
                article listed in the manifest or other accompanying 
                documentation is accurate.
                    (C) Customs valuation.
                    (D) Industry supply chains and other related 
                matters as determined to be appropriate by the 
                Commissioner.
            (2) Trade enforcement efforts.--In carrying out subsection 
        (a)(1)(B), the Commissioner, the Director, and interested 
        parties in the private sector selected under subsection (c) 
        shall provide instruction and related instructional materials 
        at each educational seminar under this section to U.S. Customs 
        and Border Protection Agency personnel and, as appropriate, to 
        U.S. Immigration and Customs Enforcement Agency personnel to 
        identify opportunities to enhance enforcement of the following:
                    (A) Collection of countervailing duties assessed 
                under subtitle A of title VII of the Tariff Act of 1930 
                (19 U.S.C. 1671 et seq.) and antidumping duties 
                assessed under subtitle B of title VII of the Tariff 
                Act of 1930 (19 U.S.C. 1673 et seq.).
                    (B) Addressing evasion of duties on imports of 
                textiles.
                    (C) Protection of intellectual property rights.
                    (D) Enforcement of child labor laws.
            (3) Approval of commissioner and director.--The instruction 
        and related instructional materials at each educational seminar 
        under this section shall be subject to the approval of the 
        Commissioner and the Director.
    (c) Selection Process.--
            (1) In general.--The Commissioner shall establish a process 
        to solicit, evaluate, and select interested parties in the 
        private sector for purposes of assisting in providing 
        instruction and related instructional materials described in 
        subsection (b) at each educational seminar under this section.
            (2) Criteria.--The Commissioner shall evaluate and select 
        interested parties in the private sector under the process 
        established under paragraph (1) based on--
                    (A) availability and usefulness;
                    (B) the volume, value, and incidence of mislabeling 
                or misidentification of origin of imported articles; 
                and
                    (C) other appropriate criteria established by the 
                Commissioner.
            (3) Public availability.--The Commissioner shall publish in 
        the Federal Register a detailed description of the process 
        established under paragraph (1) and the criteria established 
        under paragraph (2).
    (d) Special Rule for Antidumping and Countervailing Orders.--
            (1) In general.--The Commissioner shall give due 
        consideration to carrying out an educational seminar under this 
        section in whole or in part to improve the ability of U.S. 
        Customs and Border Protection Agency personnel to enforce a 
        countervailing or antidumping duty order issued under section 
        706 or 736 of the Tariff Act of 1930 (19 U.S.C. 1671e or 1673e) 
        upon the request of a petitioner in an action underlying such 
        countervailing or antidumping duty order.
            (2) Interested party.--A petitioner described in paragraph 
        (1) shall be treated as an interested party in the private 
        sector for purposes of the requirements of this section.
    (e) Performance Standards.--The Commissioner and the Director shall 
establish performance standards to measure the development and level of 
achievement of educational seminars under this section.
    (f) Reporting.--Beginning September 30, 2013, the Commissioner and 
Director shall submit to the Committee on Ways and Means of the House 
of Representatives and the Committee on Finance of the Senate an annual 
report on the effectiveness of educational seminars under this section.
    (g) Definitions.--In this section:
            (1) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of U.S. Customs and Border Protection.
            (2) Director.--The term ``Director'' means the Director of 
        U.S. Immigration and Customs Enforcement.
            (3) United states.--The term ``United States'' means the 
        customs territory of the United States, as defined in General 
        Note 2 to the Harmonized Tariff Schedule of the United States.
            (4) U.S. customs and border protection agency personnel.--
        The term ``U.S. Customs and Border Protection Agency 
        personnel'' means import specialists, auditors, and other 
        appropriate employees of the U.S. Customs and Border Protection 
        Agency.
            (5) U.S. immigration and customs enforcement agency 
        personnel.--The term ``U.S. Immigrations and Customs 
        Enforcement Agency personnel'' means Homeland Security 
        Investigations Directorate personnel and other appropriate 
        employees of the U.S. Immigrations and Customs Enforcement 
        Agency.

                    CHAPTER 2--IMPORTER REQUIREMENTS

SEC. 221. 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, including--
                    (A) criteria to ensure sufficient information is 
                collected to allow the U.S. Customs and Border 
                Protection Agency to verify the existence of the 
                importer requesting the importer of record number;
                    (B) criteria to ensure sufficient information is 
                collected to allow the U.S. Customs and Border 
                Protection Agency to identify linkages or other 
                affiliations between importers that are requesting or 
                have been assigned importer of record numbers; and
                    (C) criteria to ensure sufficient information is 
                collected to allow the U.S. Customs and Border 
                Protection Agency to identify changes in address and 
                corporate structure of importers;
            (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, and the information described in 
        subparagraphs (A), (B), and (C) of paragraph (1);
            (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).

SEC. 222. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.

    (a) In General.--Section 641 of the Tariff Act of 1930 (19 U.S.C. 
1641) is amended by adding at the end the following:
    ``(i) Identification of Importers.--
            ``(1) In general.--The Secretary shall prescribe 
        regulations setting forth the minimum standards for customs 
        brokers and importers, including nonresident importers, 
        regarding the identity of the importer that shall apply in 
        connection with the importation of merchandise into the United 
        States.
            ``(2) Minimum requirements.--The regulations shall, at a 
        minimum, require customs brokers to implement, and importers 
        (after being given adequate notice) to comply with, reasonable 
        procedures for--
                    ``(A) collecting the identity of importers, 
                including nonresident importers, seeking to import 
                merchandise into the United States to the extent 
                reasonable and practicable; and
                    ``(B) maintaining records of the information used 
                to substantiate a person's identity, including name, 
                address, and other identifying information.
            ``(3) Penalties.--Any customs broker who fails to collect 
        information required under the regulations prescribed under 
        this subsection shall be liable to the United States, at the 
        discretion of the Secretary, for a monetary penalty not to 
        exceed $10,000 for each violation of those regulations and 
        subject to revocation or suspension of a license or permit of 
        the customs broker pursuant to the procedures set forth in 
        subsection (d).
            ``(4) Definitions.--In this subsection, the terms 
        `importer' and `nonresident importer' have the meaning given 
        such terms in section 2 of the Customs Trade Facilitation and 
        Enforcement Act of 2012.''.
    (b) Study and Report Required.--Not later than 180 days after the 
date of enactment of this Act, the Commissioner of U.S. Customs and 
Border Protection shall submit to Congress a report containing 
recommendations for--
            (1) determining the most timely and effective way to 
        require foreign nationals to provide customs brokers with 
        appropriate and accurate information, comparable to that which 
        is required of United States nationals, concerning the 
        identity, address, and other related information relating to 
        such foreign nationals necessary to enable customs brokers to 
        comply with the requirements of section 641(i) of the Tariff 
        Act of 1930 (as added by subsection (a)); and
            (2) establishing a system for customs brokers to review 
        information maintained by relevant Federal agencies for 
        purposes of verifying the identities of importers, including 
        nonresident importers, seeking to import merchandise into the 
        United States.

SEC. 223. ESTABLISHMENT OF ``NEW IMPORTER'' PROGRAM.

    (a) In General.--Not later than 180 days after the date of the 
enactment of this Act, the Commissioner of U.S. Customs and Border 
Protection shall establish a new importer program that directs the U.S. 
Customs and Border Protection Agency to adjust bond amounts for new 
importers based on the level of risk assessed by the U.S. Customs and 
Border Protection Agency for protection of revenue of the Federal 
Government.
    (b) Requirements.--The Commissioner shall ensure that, as part of 
the new importer program established under subsection (a), the U.S. 
Customs and Border Protection Agency--
            (1) develops risk assessment guidelines for new importers 
        to determine if and to what extent--
                    (A) to adjust bond amounts of imported products of 
                new importers; and
                    (B) to increase screening of imported products of 
                new importers;
            (2) develops procedures to ensure increased oversight of 
        imported products of new importers relating to the enforcement 
        of the priority trade issues described in paragraph (3)(B)(ii) 
        of section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 
        chapter 348; 19 U.S.C. 2072(d)), as added by section 211(a) of 
        this Act;
            (3) develops procedures to ensure increased oversight of 
        imported products of new importers by Centers of Excellence and 
        Expertise established under section 212; and
            (4) establishes a centralized database of new importers to 
        ensure accuracy of information that is required to be provided 
        by new importers to the U.S. Customs and Border Protection 
        Agency.

SEC. 224. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

    (a) In General.--Part III of title IV of the Tariff Act of 1930 (19 
U.S.C. 1481 et seq.) is amended by inserting after section 484b the 
following new section:

``SEC. 484C. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.

    ``(a) In General.--Except as provided in subsection (c), if an 
importer of record under section 484 of this Act is not a resident of 
the United States, the Commissioner of U.S. Customs and Border 
Protection shall require the non-resident importer to designate a 
resident agent in the United States subject to the requirements 
described in subsection (b).
    ``(b) Requirements.--The requirements described in this subsection 
are the following:
            ``(1) The resident agent shall be authorized to accept 
        service of process against the non-resident importer in 
        connection with the importation of merchandise.
            ``(2) The resident agent shall be liable to the United 
        States for payment of duties and penalties or other fines 
        issued by the Secretary of Homeland Security or the 
        Commissioner if the Secretary or Commissioner is unable to 
        collect such duties and penalties or other fines from such non-
        resident importer in connection with the importation of 
        merchandise.
            ``(3) The Secretary of the Treasury may require the 
        resident agent to secure a bond or other security in connection 
        with the importation of merchandise as the Secretary may deem 
        necessary for the protection of the revenue or to assure 
        compliance with any provision of law, regulation, or 
        instruction which the Secretary of the Commissioner may be 
        authorized to enforce.
            ``(4) The Commissioner of U.S. Customs and Border 
        Protection shall require the non-resident importer to establish 
        a power of attorney with the resident agent in connection with 
        the importation of merchandise.
    ``(c) Non-Applicability.--The requirements of this section shall 
not apply with respect to a non-resident importer who is a validated 
Tier 2 or Tier 3 participant in the Customs-Trade Partnership Against 
Terrorism program established under subtitle B of title II of the SAFE 
Port Act (6 U.S.C. 961 et seq.).
    ``(d) Penalties.--
            ``(1) In general.--It shall be unlawful for any person to 
        import into the United States any merchandise in violation of 
        this section.
            ``(2) Civil penalties.--Any person who violates paragraph 
        (1) shall be liable for a civil penalty of $50,000 for each 
        such violation.
            ``(3) Other penalties.--In addition to the penalties 
        specified in paragraph (2), any violation of this section that 
        violates any other customs and trade laws 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 or trade law or title 18, United States Code, with 
        respect to the importation of merchandise.
            ``(4) Definition.--In this subsection, the term `customs 
        and trade laws of the United States' has the meaning given such 
        term in section 2 of the Customs Trade Facilitation and 
        Enforcement Act of 2012.''.
    (b) Effective Date.--Section 484c of the Tariff Act of 1930, as 
added by subsection (a), takes effect on the date of the enactment of 
this Act and applies with respect to the importation of merchandise of 
an importer of record under section 484 of the Tariff Act of 1930 who 
is not a resident of the United States on or after the date that is 180 
days after such date of enactment.

SEC. 225. CERTIFIED IMPORTER PROGRAM.

    (a) Interagency Committee.--
            (1) Establishment and membership.--There is established an 
        interagency committee composed of representatives of each 
        covered Federal agency.
            (2) Chairperson.--The Commissioner of U.S. Customs and 
        Border Protection shall serve as the chairperson of the 
        interagency committee.
    (b) Duties.--The interagency committee shall--
            (1) not later than December 30, 2014, and in consultation 
        with interested parties in the private sector, establish a 
        certified importer program as described in subsection (c); and
            (2) assess and make recommendations with respect to other 
        trade facilitation benefits for certified importers.
    (c) Certified Importer Program.--
            (1) In general.--The certified importer program described 
        in this subsection is a program to authorize the release of 
        cargo imported by a certified importer on an expedited basis 
        that is subject to documentation for clearing or licensing the 
        importation or exportation of such cargo by one or more covered 
        Federal agencies.
            (2) Clearance.--Such release of cargo shall include 
        clearance through 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)), as amended by section 203 of this Act, or its 
        predecessor system upon transmission of data governing entry 
        and immediate delivery.
    (d) Definitions.--In this section:
            (1) Certified importer.--The term ``certified importer'' 
        means an importer that--
                    (A)(i) is a validated Tier 2 or Tier 3 participant 
                in the Customs-Trade Partnership Against Terrorism 
                program established under subtitle B of title II of the 
                SAFE Port Act (6 U.S.C. 961 et seq.); and
                    (ii) is a participant in good standing of the U.S. 
                Customs and Border Protection Agency's importer self-
                assessment program; and
                    (B) where applicable, participants in good standing 
                in one or more programs maintained by a covered Federal 
                agency to formally identify entities that are highly 
                compliant with the covered Federal agency's 
                requirements and which maintain a rigorous system of 
                internal controls and system of records to promote and 
                document such compliance.
            (2) Covered federal agency.--The term ``covered Federal 
        agency'' means a Federal department or agency that requires 
        documentation for clearing or licensing the importation or 
        exportation of cargo.
    (e) Report.--
            (1) In general.--Not later than March 31, 2014, 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 
        assessing the progress in establishing the certified importer 
        program as described in subsection (c) and coordination among 
        the Commissioner and the heads of each covered Federal agency 
        in facilitating the implementation of the certified importer 
        program.
            (2) Update.--Not later than December 31, 2015, 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 an update of the 
        report required under paragraph (1).

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

SEC. 231. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

    The Tariff Act of 1930 is amended by inserting after section 628 
(19 U.S.C. 1628) the following new section:

``SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.

    ``(a) Sharing of Information Relating to Copyrights and Registered 
Marks.--
            ``(1) Sharing of information and samples.--Notwithstanding 
        any other provision of law, the Secretary is authorized, at the 
        time that merchandise is presented for examination and 
        thereafter, to provide to the owner of a copyright or a 
        registered mark, with notification to the importer of record--
                    ``(A) any information appearing on the merchandise 
                or its retail packaging,
                    ``(B) a sample, or digital image, of the 
                merchandise and its retail packaging, or
                    ``(C) if a sample is provided under subparagraph 
                (B), any packing material accompanying the sample that 
                bears either a mark suspected of being a counterfeit 
                mark of the registered mark, or a work suspected of 
                infringing the copyright,
        as presented to the United States Customs and Border Protection 
        Agency, without redaction, whether imported into or exported 
        from, or attempted to be exported from, the United States, to 
        assist the Secretary in determining whether the merchandise, 
        packaging, or packing material infringes the copyright or bears 
        or consists of a counterfeit mark of the registered mark.
            ``(2) Nondisclosure.--
                    ``(A) In general.--Any owner of a copyright or a 
                registered mark to whom information, a sample, an 
                image, or material described in subparagraph (A), (B), 
                or (C) of paragraph (1) is provided under paragraph (1) 
                may not disclose it to any other person or use it for a 
                purpose other than the purpose described in paragraph 
                (1).
                    ``(B) Exception.--Subparagraph (A) does not apply 
                in the case of information, a sample, an image, or 
                material that is disclosed or used in a civil action 
                for infringement of a copyright under title 17, United 
                States Code, or infringement of a registered mark under 
                the Lanham Act.
                    ``(C) Use in judicial proceedings barred.--
                Information, samples, images, or material described in 
                subparagraph (A), (B), or (C) of paragraph (1), or 
                information obtained from the provision of information, 
                samples, images, or material under any such 
                subparagraph, may not be used by the owner of a 
                copyright or registered mark in any judicial 
                proceeding, other than a proceeding described in 
                subparagraph (B).
            ``(3) Bonding requirements.--The Secretary may impose 
        bonding requirements on the owner of the copyright or 
        registered mark as a condition of disclosure of information and 
        the provision of samples under this subsection.
            ``(4) Implementation.--
                    ``(A) Regulations.--Not later than the 90th day 
                after the date of the enactment of this section, the 
                Secretary shall promulgate revised regulations to carry 
                out this subsection. Until such time as the Secretary 
                promulgates the revised regulations, and 
                notwithstanding section 818(g)(2) of the National 
                Defense Authorization Act of 2012 (10 U.S.C. 2302 note; 
                Public Law 112-81), those regulations in effect on the 
                date of the enactment of this section implementing 
                section 818(g)(1) of the National Defense Authorization 
                Act of 2012 shall be in effect, except to the extent 
                such regulations limit the application of this 
                subsection.
                    ``(B) Information sharing processes.--
                            ``(i) For importers.--
                                    ``(I) In general.--The Secretary is 
                                authorized to establish a clearance 
                                process for those importers of record 
                                who wish to participate in the process 
                                to allow for or accelerate the release 
                                of merchandise from the custody of the 
                                United States Customs and Border 
                                Protection Agency without the provision 
                                under paragraph (1), prior to seizure 
                                of the merchandise, of information, 
                                samples, images, or material with 
                                respect to the merchandise.
                                    ``(II) Limitation on sharing of 
                                information.--In the case of an 
                                importer of record that participates in 
                                the process under subclause (I), no 
                                information, samples, images, or 
                                material described in subparagraph (A), 
                                (B), or (C) of paragraph (1) of 
                                merchandise of that importer may be 
                                provided, without redaction, to the 
                                owner of a copyright or registered mark 
                                prior to seizure of the merchandise.
                            ``(ii) For owners of copyrights and 
                        registered marks.--
                                    ``(I) In general.--
                                            ``(aa) Establishment.--The 
                                        Secretary shall establish a 
                                        process or processes for those 
                                        owners of copyrights and owners 
                                        of registered marks that wish 
                                        to participate in the process 
                                        or processes, through which any 
                                        sharing of information, 
                                        samples, images, and material 
                                        under paragraph (1) will be 
                                        carried out before the 
                                        notification to the importer of 
                                        record referred to in paragraph 
                                        (1) is made, subject to the 
                                        limitation under subclause (II) 
                                        of clause (i).
                                            ``(bb) Ineligibility.--An 
                                        owner of a copyright or a 
                                        registered mark shall not be 
                                        eligible to participate in a 
                                        process described in item (aa) 
                                        if that owner of a copyright or 
                                        a registered mark has violated 
                                        the prohibitions on disclosure 
                                        under paragraph (2).
                                    ``(II) Provision of samples and 
                                information to cbp.--The Secretary is 
                                authorized to establish a process for 
                                those owners of copyrights and owners 
                                of registered marks that wish to 
                                provide to the United States Customs 
                                and Border Protection Agency samples 
                                of, or information regarding, their 
                                copyrighted merchandise or merchandise 
                                that bears their registered marks (as 
                                the case may be), to assist the 
                                Secretary in determining whether 
                                merchandise presented for examination 
                                infringes the copyright or bears or 
                                consists of a counterfeit mark of the 
                                registered mark.
    ``(b) Merchandise in Violation of Anticircumvention Measures.--
            ``(1) Notification upon seizure.--
                    ``(A) Notification of copyright owner.--Upon the 
                seizure of merchandise by the Secretary for a violation 
                of subsection (a) or (b) of section 1201 of title 17, 
                United States Code, the Secretary shall notify the 
                owner of a copyright who is included on the list 
                established under paragraph (4) of the seizure of the 
                merchandise that is capable of circumventing a 
                technological measure of the copyright owner under 
                either such subsection. The Secretary shall also 
                provide to any such person additional information upon 
                request, which shall be equivalent to information 
                provided pursuant to section 602(b) of title 17, United 
                States Code, and the regulations issued under that 
                section.
                    ``(B) Notification of trademark owner.--Upon the 
                seizure of merchandise by the Secretary for a violation 
                of subsection (a) or (b) of section 1201 of title 17, 
                United States Code, the Secretary shall notify the 
                owner of a registered mark--
                            ``(i) on hardware that contains a 
                        technological measure that the seized 
                        merchandise is capable of circumventing, or
                            ``(ii) on hardware on which the use of the 
                        seized merchandise is capable of circumventing 
                        a technological measure of a copyright owner,
                in either case in a manner that would result in injury 
                to the owner of a copyright under either such 
                subsection, if the owner of the registered mark is 
                included on the list established under paragraph (4). 
                The Secretary shall also provide to any such person 
                additional information upon request, which shall be 
                equivalent to information provided pursuant to section 
                602(b) of title 17, United States Code, and the 
                regulations issued under that section.
            ``(2) Pre-seizure provision of samples.--
                    ``(A) In general.--In the case of merchandise that 
                the Secretary reasonably suspects may be subject to 
                seizure by the Secretary for a violation of subsection 
                (a) or (b) of section 1201 of title 17, United States 
                Code, the Secretary is authorized to provide a sample 
                of the merchandise to any person described in 
                subparagraph (B) in the case of merchandise that is 
                suspected of such a violation, when necessary in the 
                view of the Secretary to assist the Secretary in 
                determining whether such a violation has occurred.
                    ``(B) Recipients of samples.--Persons to whom 
                provision of samples is authorized under subparagraph 
                (A) are--
                            ``(i) the owner of a copyright whose 
                        technological measure the merchandise is 
                        capable of circumventing under subsection (a) 
                        or (b) of section 1201 of title 17, United 
                        States Code; and
                            ``(ii) the owner of a registered mark--
                                    ``(I) on hardware that contains a 
                                technological measure that the seized 
                                merchandise is capable of 
                                circumventing, or
                                    ``(II) on hardware on which the use 
                                of the seized merchandise is capable of 
                                circumventing a technological measure 
                                of a copyright owner,
                        in either case in a manner that would result in 
                        injury to the owner of a copyright under either 
                        such subsection.
                    ``(C) Nondisclosure.--
                            ``(i) In general.--Any owner of a copyright 
                        or a registered mark to whom a sample is 
                        provided under subparagraph (A) before the 
                        merchandise is seized may not disclose it to 
                        any other person or use it for a purpose other 
                        than the purpose described in subparagraph (A) 
                        for such provision of samples.
                            ``(ii) Exception.--Clause (i) does not 
                        apply in the case of a sample that is disclosed 
                        or used in a civil action for infringement of a 
                        copyright under title 17, United States Code, 
                        or infringement of a registered mark under the 
                        Lanham Act.
                            ``(iii) Use in judicial proceedings 
                        barred.--A sample provided under subparagraph 
                        (A), or information obtained from the provision 
                        of such a sample, may not be used by the owner 
                        of a copyright or registered mark in any 
                        judicial proceeding, other than a proceeding 
                        described in clause (ii).
                    ``(D) Bonding requirements.--The Secretary may 
                impose bonding requirements on the owner of the 
                copyright or trademark as a condition of the provision 
                of samples under this paragraph.
            ``(3) Post-seizure provision of samples.--
                    ``(A) In general.--In the case of merchandise 
                subject to seizure by the Secretary for a violation of 
                subsection (a) or (b) of section 1201 of title 17, 
                United States Code, the Secretary is authorized to 
                provide a sample of the merchandise to any person 
                described in subparagraph (B) if the merchandise has 
                been seized for such a violation.
                    ``(B) Recipients of samples.--Persons to whom 
                provision of samples is authorized under subparagraph 
                (A) are--
                            ``(i) the owner of a copyright whose 
                        technological measure the merchandise is 
                        capable of circumventing under subsection (a) 
                        or (b) of section 1201 of title 17, United 
                        States Code, and who is included on the list 
                        established under paragraph (4); and
                            ``(ii) the owner of a registered mark--
                                    ``(I) on hardware that contains a 
                                technological measure that the seized 
                                merchandise is capable of 
                                circumventing, or
                                    ``(II) on hardware on which the use 
                                of the seized merchandise is capable of 
                                circumventing a technological measure 
                                of a copyright owner,
                        in either case in a manner that would result in 
                        injury to the owner of a copyright under either 
                        such subsection, if the owner of the registered 
                        mark is included on the list established under 
                        paragraph (4). The Secretary shall also provide 
                        to any such person additional information upon 
                        request, which shall be equivalent to 
                        information provided pursuant to section 602(b) 
                        of title 17, United States Code, and the 
                        regulations issued under that section.
                    ``(C) Bonding requirements.--The Secretary may 
                impose bonding requirements on the owner of the 
                copyright or trademark as a condition of the provision 
                of samples under this paragraph.
            ``(4) Eligible owners of copyrights and registered marks.--
        An owner of a copyright or a registered mark is eligible to 
        receive notification under paragraph (1) or samples under 
        paragraph (3) if such owner is included on a list that the 
        Secretary is authorized to maintain and periodically revise, 
        through a process of notice and comment, for purposes of 
        paragraphs (1) and (3) of this subsection.
            ``(5) Regulations.--Not later than the 90th day after the 
        date of the enactment of this section, the Secretary shall 
        promulgate regulations establishing procedures that implement 
        this subsection.
    ``(c) Notification of Parties Responsible for Initiation of Section 
337 Investigations.--The Secretary is authorized to notify the party or 
parties responsible for initiating an investigation under section 337 
of this Act when merchandise is excluded under subsection (d) of that 
section, or merchandise is seized under subsection (i) of that section, 
pursuant to that investigation.
    ``(d) Definitions.--In this section:
            ``(1) The term `counterfeit mark' has the meaning given 
        that term in section 2320(e) of title 18, United States Code.
            ``(2) The term `Lanham Act' means the Act entitled `An Act 
        to provide for the registration and protection of trademarks 
        used in commerce, to carry out the provisions of certain 
        international conventions, and for other purposes', approved 
        July 5, 1946 (15 U.S.C. 1051 et seq.).
            ``(3) The term `mark' has the meaning given that term in 
        section 45 of the Lanham Act (15 U.S.C. 1127).
            ``(4) The term `registered mark' has the meaning given that 
        term in section 45 of the Lanham Act (15 U.S.C. 1127).
            ``(5) The term `Secretary' means the Secretary of Homeland 
        Security, acting through the Commissioner of U.S. Customs and 
        Border Protection.
            ``(6) The term `work' means a work within the meaning of 
        title 17, United States Code.
            ``(7) The term `without redaction' means without 
        modification, deletion or omission.''.

TITLE III--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY 
                                 ORDERS

SEC. 301. SHORT TITLE.

    This title may be cited as the ``Preventing Recurring Trade Evasion 
and Circumvention Act'' or ``PROTECT Act''.

SEC. 302. DEFINITIONS.

    In this title:
            (1) Appropriate congressional committees.--The term 
        ``appropriate congressional committees'' means--
                    (A) the Committee on Finance and the Committee on 
                Appropriations of the Senate; and
                    (B) the Committee on Ways and Means and the 
                Committee on Appropriations of the House of 
                Representatives.
            (2) Commissioner.--The term ``Commissioner'' means the 
        Commissioner of U.S. Customs and Border Protection.
            (3) Covered merchandise.--The term ``covered merchandise'' 
        means merchandise that is subject to--
                    (A) a countervailing duty order issued under 
                section 706 of the Tariff Act of 1930; or
                    (B) an antidumping duty order issued under section 
                736 of the Tariff Act of 1930.
            (4) Eligible small business.--
                    (A) In general.--The term ``eligible small 
                business'' means any business concern which, in the 
                Commissioner's judgment, due to its small size, has 
                neither adequate internal resources nor financial 
                ability to obtain qualified outside assistance in 
                preparing and submitting for consideration allegations 
                of evasion.
                    (B) Non-reviewability.--Any agency decision 
                regarding whether a business concern is an eligible 
                small business for purposes of section 311(b)(3) is not 
                reviewable by any other agency or by any court.
            (5) 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.
            (6) Evade; evasion.--The terms ``evade'' and ``evasion'' 
        refer to entering covered merchandise into the customs 
        territory of the United States by means of any document or 
        electronically transmitted data or information, written or oral 
        statement, or act that is material and false, or any omission 
        that is material, and that results in any cash deposit or other 
        security or any amount of applicable antidumping or 
        countervailing duties being reduced or not being applied with 
        respect to the merchandise.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of the Treasury.
            (8) Trade remedy laws.--The term ``trade remedy laws'' 
        means title VII of the Tariff Act of 1930.

SEC. 303. APPLICATION TO CANADA AND MEXICO.

    Pursuant to article 1902 of the North American Free Trade Agreement 
and section 408 of the North American Free Trade Agreement 
Implementation Act (19 U.S.C. 3438), this title and the amendments made 
by this title shall apply with respect to goods from Canada and Mexico.

    Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws

SEC. 311. TRADE REMEDY LAW ENFORCEMENT DIVISION.

    (a) Establishment.--
            (1) In general.--The Secretary of Homeland Security shall 
        establish and maintain within the Office of International Trade 
        of U.S. Customs and Border Protection, established under 
        section 2(d) of the Act of March 3, 1927 (44 Stat. 1381, 
        chapter 348; 19 U.S.C. 2072(d)), a Trade Remedy Law Enforcement 
        Division.
            (2) Composition.--The Trade Law Remedy Enforcement Division 
        shall be composed of--
                    (A) headquarters personnel led by a Director, who 
                shall report to the Assistant Commissioner of the 
                Office of International Trade; and
                    (B) a National Targeting and Analysis Group 
                dedicated to preventing and countering evasion.
            (3) Duties.--The Trade Remedy Law Enforcement Division 
        shall be dedicated--
                    (A) to the development and administration of 
                policies to prevent and counter evasion;
                    (B) to direct enforcement and compliance assessment 
                activities concerning evasion;
                    (C) to the development and conduct of commercial 
                risk assessment targeting with respect to cargo 
                destined for the United States in accordance with 
                subsection (c);
                    (D) to issuing Trade Alerts described in subsection 
                (d); and
                    (E) to the development of policies for the 
                application of single entry and continuous bonds for 
                entries of covered merchandise to sufficiently protect 
                the collection of antidumping and countervailing duties 
                commensurate with the level of risk of noncollection.
    (b) Duties of Director.--The duties of the Director of the Trade 
Remedy Law Enforcement Division shall include--
            (1) directing the trade enforcement and compliance 
        assessment activities of the U.S. Customs and Border Protection 
        Agency that concern evasion;
            (2) facilitating, promoting, and coordinating cooperation 
        and the exchange of information between the U.S. Customs and 
        Border Protection Agency, U.S. Immigration and Customs 
        Enforcement, and other relevant agencies regarding evasion;
            (3) notifying on a timely basis the administering authority 
        (as defined in section 771(1) of the Tariff Act of 1930 (19 
        U.S.C. 1677(1))) and the Commission (as defined in section 
        771(2) of the Tariff Act of 1930 (19 U.S.C. 1677(2))) of any 
        finding, determination, civil action, or criminal action taken 
        by the U.S. Customs and Border Protection Agency or other 
        Federal agency regarding evasion;
            (4) serving as the primary liaison between the U.S. Customs 
        and Border Protection Agency and the public regarding United 
        States Government activities concerning evasion, including--
                    (A) receive and transmit to the appropriate U.S. 
                Customs and Border Protection Agency office allegations 
                from parties of evasion;
                    (B) upon request by the party or parties that 
                submitted an allegation of evasion, provide information 
                to such party or parties on the status of the U.S. 
                Customs and Border Protection Agency's consideration of 
                the allegation and decision to pursue or not pursue any 
                investigations or other actions, such as changes in 
                policies, procedures, or resource allocation as a 
                result of the allegation;
                    (C) as needed, request from the party or parties 
                that submitted an allegation of evasion any additional 
                information that may be relevant for the U.S. Customs 
                and Border Protection Agency determining whether to 
                initiate an investigation or take any other action 
                regarding the allegation;
                    (D) notify on a timely basis the party or parties 
                that submitted such an allegation of the results of any 
                civil or criminal actions taken by the U.S. Customs and 
                Border Protection Agency or other Federal agency 
                regarding evasion as a direct or indirect result of the 
                allegation;
                    (E) upon request, provide technical assistance and 
                advice to eligible small businesses to enable such 
                businesses to prepare and submit allegations of 
                evasion, except that the Director may deny assistance 
                if the Director concludes that the allegation, if 
                submitted, would not lead to the initiation of an 
                investigation or any other action to address the 
                allegation;
                    (F) in cooperation with the public, the Commercial 
                Customs Operations Advisory Committee, the Trade 
                Support Network, and any other relevant parties and 
                organizations, develop guidelines on the types and 
                nature of information that may be provided in 
                allegations of evasion; and
                    (G) regularly consult with the public, the 
                Commercial Customs Operations Advisory Committee, the 
                Trade Support Network, and any other relevant parties 
                and organizations regarding the development and 
                implementation of regulations, interpretations, and 
                policies related to countering evasion.
    (c) Preventing and Countering Evasion of the Trade Remedy Laws.--In 
carrying out its duties with respect to preventing and countering 
evasion, the National Targeting and Analysis Group dedicated to 
preventing and countering evasion shall--
            (1) establish targeted risk assessment methodologies and 
        standards--
                    (A) for evaluating the risk that cargo destined for 
                the United States may constitute evading covered 
                merchandise; 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 Export 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.--Based upon the application of the targeted risk 
assessment methodologies and standards established under subsection 
(c), the Director of the Trade Remedy Law Enforcement Division shall 
issue Trade Alerts or other such means of notification to directors of 
United States ports of entry directing further inspection, or physical 
examination or testing, of specific merchandise to ensure compliance 
with the trade remedy laws.

SEC. 312. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS.

    (a) Authority To Collect Information.--To determine whether covered 
merchandise is being entered into the customs territory of the United 
States through evasion, the Secretary, acting through the 
Commissioner--
            (1) shall exercise all existing authorities to collect 
        information needed to make the determination; and
            (2) may collect such additional information as is necessary 
        to make the determination through such methods as the 
        Commissioner considers appropriate, including by issuing 
        questionnaires with respect to the entry or entries at issue 
        to--
                    (A) a person who filed an allegation with respect 
                to the covered merchandise;
                    (B) a person who is alleged to have entered the 
                covered merchandise into the customs territory of the 
                United States through evasion; or
                    (C) any other person who is determined to have 
                information relevant to the allegation of entry of 
                covered merchandise into the customs territory of the 
                United States through evasion.
    (b) Adverse Inference.--
            (1) In general.--If the Secretary finds that a person who 
        filed an allegation, a person alleged to have entered covered 
        merchandise into the customs territory of the United States 
        through evasion, or a foreign producer or exporter of covered 
        merchandise that is alleged to have entered into the customs 
        territory of the United States through evasion, has failed to 
        cooperate by not acting to the best of the person's ability to 
        comply with a request for information, the Secretary may, in 
        making a determination whether an entry or entries of covered 
        merchandise may constitute merchandise that is entered into the 
        customs territory of the United States through evasion, use an 
        inference that is adverse to the interests of that person in 
        selecting from among the facts otherwise available to determine 
        whether evasion has occurred.
            (2) Adverse inference described.--An adverse inference used 
        under paragraph (1) may include reliance on information derived 
        from--
                    (A) the allegation of evasion of the trade remedy 
                laws, if any, submitted to the U.S. Customs and Border 
                Protection Agency;
                    (B) a determination by the Commissioner in another 
                investigation, proceeding, or other action regarding 
                evasion of the unfair trade laws; or
                    (C) any other available information.

SEC. 313. ACCESS TO INFORMATION.

    (a) In General.--Section 777(b)(1)(A)(ii) of the Trade Act of 1930 
(19 U.S.C. 1677f(b)(1)(A)(ii)) is amended by inserting ``negligence, 
gross negligence, or'' after ``regarding''.
    (b) Additional Information.--Notwithstanding any other provision of 
law, the Secretary is authorized to provide to the Secretary of 
Commerce or the U.S. International Trade Commission any information 
that is necessary to enable the Secretary of Commerce or the U.S. 
International Trade Commission to assist the Secretary to identify, 
through risk assessment targeting or otherwise, covered merchandise 
that is entered into the customs territory of the United States through 
evasion.

SEC. 314. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION OF 
              TRADE REMEDY LAWS.

    (a) Bilateral Agreements.--
            (1) In general.--The Secretary shall seek to negotiate and 
        enter into bilateral agreements with the customs authorities or 
        other appropriate authorities of foreign countries for purposes 
        of cooperation on preventing evasion of the trade remedy laws 
        of the United States and the trade remedy laws of the other 
        country.
            (2) Provisions and authorities.--The Secretary shall seek 
        to include in each such bilateral agreement the following 
        provisions and authorities:
                    (A) On the request of the importing party, the 
                exporting party shall provide, consistent with its 
                laws, regulations, and procedures, production, trade, 
                and transit documents and other information necessary 
                to determine whether an entry or entries exported from 
                the exporting party are subject to the importing 
                party's trade remedy laws.
                    (B) On the written request of the importing party, 
                the exporting party shall conduct a verification for 
                purposes of enabling the importing party to make a 
                determination described in subparagraph (A).
                    (C) The exporting party may allow the importing 
                party to participate in a verification described in 
                subparagraph (B), including through a site visit.
                    (D) If the exporting party does not allow 
                participation of the importing party in a verification 
                described in subparagraph (B), the importing party may 
                take this fact into consideration in its trade 
                enforcement and compliance assessment activities 
                regarding the compliance of the exporting countries' 
                exports with the importing countries' trade remedy 
                laws.
    (b) Consideration.--The Commissioner is authorized to take into 
consideration whether a country is a signatory to a bilateral agreement 
described in subsection (a) and the extent to which the country is 
cooperating under the bilateral agreement for purposes of trade 
enforcement and compliance assessment activities of U.S. Customs and 
Border Protection that concern evasion by such country's exports.
    (c) Report.--Not later than December 31 of each year beginning 
after the date of the enactment of this Act, the Secretary shall submit 
to the appropriate congressional committees a report summarizing--
            (1) the status of any ongoing negotiations of bilateral 
        agreements described in subsection (a), including the 
        identities of the countries involved in such negotiations;
            (2) the terms of any completed bilateral agreements 
        described in subsection (a); and
            (3) bilateral cooperation and other activities conducted 
        pursuant to or enabled by any completed bilateral agreements 
        described in subsection (a).

SEC. 315. TRADE NEGOTIATING OBJECTIVES.

    The principal negotiating objectives of the United States shall 
include obtaining the objectives of the bilateral agreements described 
under section 314(a) for any trade agreements under negotiation as of 
the date of the enactment of this Act or future trade agreement 
negotiations.

                       Subtitle B--Other Matters

SEC. 321. ALLOCATION AND TRAINING OF PERSONNEL.

    The Commissioner shall, to the maximum extent possible, ensure that 
the U.S. Customs and Border Protection Agency--
            (1) employs sufficient personnel who have expertise in, and 
        responsibility for, preventing and investigating the entry of 
        covered merchandise into the customs territory of the United 
        States through evasion;
            (2) on the basis of risk assessment metrics, assigns 
        sufficient personnel with primary responsibility for preventing 
        the entry of covered merchandise into the customs territory of 
        the United States through evasion to the ports of entry in the 
        United States at which the Commissioner determines potential 
        evasion presents the most substantial threats to the revenue of 
        the United States; and
            (3) provides adequate training to relevant personnel to 
        increase expertise and effectiveness in the prevention and 
        investigation of entries of covered merchandise into the 
        customs territory of the United States through evasion.

SEC. 322. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND 
              COUNTERVAILING DUTY ORDERS.

    (a) In General.--Not later than February 28 of each year, beginning 
in 2013, the Commissioner, in consultation with the Secretary of 
Commerce and the Assistant Secretary for U.S. Immigration and Customs 
Enforcement, shall submit to the appropriate congressional committees a 
report on the efforts being taken to prevent and investigate evasion.
    (b) Contents.--Each report required under subsection (a) shall 
include--
            (1) for the calendar year preceding the submission of the 
        report--
                    (A) a summary of the efforts of the U.S. Customs 
                and Border Protection Agency to prevent and investigate 
                evasion;
                    (B) the number of allegations of evasion received 
                and the number of allegations of evasion resulting in 
                investigations by the U.S. Customs and Border 
                Protection Agency or any other agency;
                    (C) a summary of the completed investigations of 
                evasion, including the number and nature of the 
                investigations initiated, conducted, or completed, as 
                well as their resolution;
                    (D) with respect to investigations that lead to the 
                issuance of a penalty notice, the penalty amounts;
                    (E) the amounts of antidumping and countervailing 
                duties collected as a result of any investigations or 
                other actions by the U.S. Customs and Border Protection 
                Agency or any other agency;
                    (F) a description of the allocation of personnel 
                and other resources of the U.S. Customs and Border 
                Protection Agency and U.S. Immigration and Customs 
                Enforcement to prevent and investigate evasion, 
                including any assessments conducted regarding the 
                allocation of such personnel and resources; and
                    (G) a description of training conducted to increase 
                expertise and effectiveness in the prevention and 
                investigation of evasion; and
            (2) a description of the U.S. Customs and Border Protection 
        Agency processes and procedures to prevent and investigate 
        evasion, including--
                    (A) the specific guidelines, policies, and 
                practices used by the U.S. Customs and Border 
                Protection Agency to ensure that allegations of evasion 
                are promptly evaluated and acted upon in a timely 
                manner;
                    (B) an evaluation of the efficacy of such existing 
                guidelines, policies, and practices;
                    (C) identification of any changes since the last 
                report that have materially improved or reduced the 
                effectiveness of the U.S. Customs and Border Protection 
                Agency to prevent and investigate evasion;
                    (D) a description of the development and 
                implementation of policies for the application of 
                single entry and continuous bonds for entries of 
                covered merchandise to sufficiently protect the 
                collection of antidumping and countervailing duties 
                commensurate with the level of risk on noncollection;
                    (E) the processes and procedures for increased 
                cooperation and information sharing with the Department 
                of Commerce, U.S. Immigration and Customs Enforcement, 
                and any other relevant Federal agencies to prevent and 
                investigate evasion; and
                    (F) identification of any recommended policy 
                changes of other Federal agencies or legislative 
                changes to improve the effectiveness of the U.S. 
                Customs and Border Protection Agency to prevent and 
                investigate evasion.

SEC. 323. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.

    Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
1675(a)(2)(B)) is amended--
            (1) by striking clause (iii);
            (2) by redesignating clause (iv) as clause (iii); and
            (3) inserting after clause (iii), as redesignated by 
        paragraph (2) of this section, the following:
                            ``(iv) Any weighted average dumping margin 
                        or individual countervailing duty rate 
                        determined for an exporter or producer in a 
                        review conducted under clause (i) shall be 
                        based solely on the bona fide United States 
                        sales of an exporter or producer, as the case 
                        may be, made during the period covered by the 
                        review. In determining whether the United 
                        States sales of an exporter or producer made 
                        during the period covered by the review were 
                        bona fide, the administering authority shall 
                        consider, depending on the circumstances 
                        surrounding such sales--
                                    ``(I) the prices of such sales;
                                    ``(II) whether such sales were made 
                                in commercial quantities;
                                    ``(III) the timing of such sales;
                                    ``(IV) the expenses arising from 
                                such sales;
                                    ``(V) whether the subject 
                                merchandise involved in such sales were 
                                resold in the United States at a 
                                profit;
                                    ``(VI) whether such sales were made 
                                on an arms-length basis; and
                                    ``(VII) any other factor the 
                                administering authority determines to 
                                be relevant as to whether such sales 
                                are, or are not, likely to be typical 
                                of those the exporter or producer will 
                                make after completion of the review.''.

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. 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. 402. DE MINIMIS VALUE AND ENTRY UNDER REGULATIONS.

    (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 ``$800''.
    (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.--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.''.
    (c) Effective Date.--The amendments made by this section apply to 
articles entered, or withdrawn from warehouse for consumption, on or 
after the 90th day after the date of the enactment of this Act.

SEC. 403. COLLECTION AND REMITTANCE OF CERTAIN CUSTOMS USER FEES.

    (a) In General.--Section 13031(d) of the Consolidated Omnibus 
Budget Reconciliation Act of 1985 (19 U.S.C. 58c(d)) is amended--
            (1) in the subsection heading, by inserting ``and 
        Remittance'' after ``Collection'';
            (2) in paragraph (3)--
                    (A) by inserting ``required to be collected under 
                such paragraph'' after ``shall remit those fees''; and
                    (B) by striking ``31 days after the close of the 
                calendar quarter in which the fees are collected'' and 
                inserting ``30 days after the end of the month in which 
                the fees are required to be collected''; and
            (3) by adding at the end the following:
            ``(5) The refund of any fee collected under subsection 
        (a)(5) shall not be payable from the Customs User Fee Account.
            ``(6)(A) A person who collects fees under paragraph (1) or 
        (2) and does not remit those fees to the Secretary of the 
        Treasury as required by paragraph (3) shall be subject to a 
        penalty in accordance with the requirements of this paragraph.
            ``(B) The amount of such penalty shall be equal to 2 times 
        the amount of the fee that was required to be remitted to the 
        Secretary of the Treasury. The Secretary of the Treasury may 
        establish and impose additional penalties through rulemaking 
        for failure to comply with any provision of this subsection.
            ``(C) Any penalty collected under this paragraph shall be 
        used to directly reimburse each appropriation for the amount 
        paid out of that appropriation for the costs described in 
        subsection (f)(3)(A).''.
    (b) Effective Date.--The amendments made by subsection (a) take 
effect on the date of enactment of this Act and apply with respect to 
fees that are required to be collected and remitted to the Secretary of 
the Treasury under section 13031(d) of the Consolidated Omnibus Budget 
Reconciliation Act of 1985, as amended by subsection (a), on or after 
such date of enactment.

SEC. 404. DRAWBACK AND REFUNDS.

    (a) Articles Made From Imported Merchandise.--Section 313(a) of the 
Tariff Act of 1930 (19 U.S.C. 1313(a)) is amended--
            (1) by striking ``under customs supervision''; and
            (2) by inserting ``as calculated under subsection 
        (r)(4)(A),'' after ``less 1 per centum of such duties,''.
    (b) Substitution for Drawback Purposes.--Section 313(b) of the 
Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended--
            (1) by striking ``If imported'' and inserting the 
        following:
            ``(1) In general.--If imported'';
            (2) by striking ``and any other merchandise (whether 
        imported or domestic) of the same kind and quality'' and 
        inserting ``and substitute merchandise'';
            (3) by striking ``three years'' and inserting ``5 years'';
            (4) by striking ``the receipt of such imported merchandise 
        by the manufacturer or producer of such articles'' and 
        inserting ``the date of importation of such imported 
        merchandise by the importer'';
            (5) by striking ``under customs supervision'' each place it 
        appears;
            (6) by inserting after ``merchandise used therein been 
        imported,'' the following: ``as calculated under subsection 
        (r)(4)(A),'';
            (7) by striking the period at the end and inserting ``, as 
        calculated under subsection (r)(4)(A).''; and
            (8) by adding at the end the following:
            ``(2) Requirements relating to transfer of merchandise.--
                    ``(A) Manufacturers and producers.--Drawback may be 
                allowed under paragraph (1) in the amount referred to 
                under paragraph (1) only if the manufacturer or 
                producer of articles has received the imported, duty-
                paid merchandise or substitute merchandise, directly or 
                indirectly, of imported duty-paid merchandise or 
                substitute merchandise.
                    ``(B) Exporters and destroyers.--Drawback may be 
                allowed under paragraph (1) in the amount referred to 
                under paragraph (1) only if the exporter or destroyer 
                of articles has received the manufactured or produced 
                article or substitute article, directly or indirectly, 
                of a substitute article.
                    ``(C) Evidence of transfer.--Transfers of 
                merchandise under subparagraph (A) and transfers of 
                articles under subparagraph (B) may be evidenced by 
                business records kept in the normal course of business 
                and no additional certificates of transfer or 
                manufacture shall be required.''.
    (c) Merchandise Not Conforming to Sample or Specifications.--
Section 313(c) of the Tariff Act of 1930 (19 U.S.C. 1313(c)) is 
amended--
            (1) in paragraph (1)--
                    (A) in the matter preceding subparagraph (A), by 
                striking ``under the supervision of the Customs 
                Service'';
                    (B) in subparagraph (D)--
                            (i) by striking ``3'' and inserting ``5''; 
                        and
                            (ii) by striking ``under the supervision of 
                        the Customs Service''; and
                    (C) in the text immediately following subparagraph 
                (D), by inserting ``as calculated under subsection 
                (r)(4)(A),'' after ``merchandise,''; and
            (2) in paragraph (2)--
                    (A) by striking ``under the supervision of the 
                Customs Service'';
                    (B) by striking the last sentence and inserting the 
                following: ``Transfers of merchandise may be evidenced 
                by business records kept in the normal course of 
                business and no additional certificates of transfer 
                shall be required.''.
    (d) Proof of Exportation.--Section 313(i) of the Tariff Act of 1930 
(19 U.S.C. 1313(i)) is amended to read as follows:
    ``(i) Proof of Exportation.--A person claiming drawback under this 
section shall, as proof of exportation, maintain the record of 
exportation entered in the automated export system of the United States 
Government or, if the exporter is unable to use that system, records 
kept in the normal course of business similar to the information 
contained in such record of exportation.''.
    (e) Unused Merchandise Drawback.--Section 313(j) of the Tariff Act 
of 1930 (19 U.S.C. 1313(j)) is amended--
            (1) in paragraph (1)(A)--
                    (A) by striking ``3-year'' and inserting ``5-
                year''; and
                    (B) by inserting ``and before filing the drawback 
                claim'' after ``the date of importation''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (B)--
                            (i) by striking ``3-year'' and inserting 
                        ``5-year'';
                            (ii) by inserting ``and before filing the 
                        drawback claim'' after ``the imported 
                        merchandise''; and
                            (iii) by striking ``under customs 
                        supervision'';
                    (B) in subparagraph (C)(ii)(II)--
                            (i) by inserting ``, directly or 
                        indirectly,'' after ``received''; and
                            (ii) by inserting ``, tax, or fee'' after 
                        ``duty''; and
                    (C) in the text immediately following subparagraph 
                (C)--
                            (i) by inserting ``, as calculated under 
                        subsection (r)(4),'' after ``under this 
                        subsection''; and
                            (ii) by adding at the end the following: 
                        ``Merchandise shall be considered to be 
                        received directly or indirectly from a person 
                        who imported and paid any duty, tax, or fee due 
                        on the imported merchandise if the recipient 
                        received any imported merchandise, any other 
                        merchandise (whether imported or domestic), or 
                        any combination of imported merchandise and 
                        such other merchandise, from the importer 
                        through a transfer directly to the recipient, 
                        or a transfer from the importer through one or 
                        more intermediate transfers involving one or 
                        more parties of any combination of imported 
                        merchandise or such other merchandise. 
                        Transfers of merchandise may be evidenced by 
                        business records kept in the normal course of 
                        business and no additional certificates of 
                        transfer shall be required.''.
    (f) Certificate of Delivery.--Section 313 of the Tariff Act of 1930 
(19 U.S.C. 1313) is amended by striking subsection (k).
    (g) Regulations.--Section 313(l) of the Tariff Act of 1930 (19 
U.S.C. 1313(l)) is amended by striking ``and the designation of the 
person to whom any refund or payment of drawback shall be made'' and 
inserting ``and the authority to require that all drawback entries be 
filed electronically''.
    (h) Substitution of Finished Petroleum Derivatives.--Section 313(p) 
of the Tariff Act of 1930 (19 U.S.C. 1313(p)) is amended--
            (1) by striking ``Harmonized Tariff Schedule of the United 
        States'' each place it appears and inserting ``HTS''; and
            (2) the text immediately following paragraph (3)(A)(ii), by 
        striking ``Commissioner of Customs'' and inserting 
        ``Commissioner of U.S. Customs and Border Protection''.
    (i) Packaging Material.--Section 313(q)(3) of the Tariff Act of 
1930 (19 U.S.C. 1313(q)(3)) is amended by striking ``they contain'' and 
inserting ``it contains''.
    (j) Filing and Calculation of Drawback Claims.--Section 313(r) of 
the Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended--
            (1) in the heading, by inserting ``and Calculation of'' 
        after ``Filing'';
            (2) in paragraph (1)--
                    (A) by striking the first sentence and inserting 
                the following: ``A drawback entry shall be filed or 
                applied for, as applicable, not later than 5 years 
                after the date on which merchandise on which drawback 
                is claimed was imported. If merchandise summarized on 
                an entry summary line item with respect to which 
                drawback is claimed was imported on more than one date, 
                the earliest date of importation of the merchandise 
                contained on that entry summary line item shall be used 
                for purposes of this paragraph.'';
                    (B) in the second sentence, by striking ``3-year'' 
                and inserting ``5-year''; and
                    (C) in the third sentence, by striking ``the 
                Customs Service'' and inserting ``U.S. Customs and 
                Border Protection'';
            (3) in paragraph (3)(A)--
                    (A) in the matter preceding clause (i), by striking 
                ``The Customs Service'' and inserting ``U.S. Customs 
                and Border Protection''; and
                    (B) in clauses (i) and (ii), by striking ``the 
                Customs Service'' each place it appears and inserting 
                ``U.S. Customs and Border Protection''; and
            (4) by adding at the end the following:
    ``(4) The amount used for purposes of determining a drawback entry 
for refund filed under subsection (a), (b), or (c) shall equal the 
amount determined by multiplying--
            ``(A) the amount determined by dividing--
                    ``(i) the total amount of duties, taxes, and fees 
                on the entry summary line item under which imported 
                merchandise is reported; by
                    ``(ii) the number of units of imported merchandise; 
                and
            ``(B) the number of units of imported merchandise claimed 
        for drawback.''.
    (k) Drawbacks for Recovered Materials.--Section 313(x) of the 
Tariff Act of 1930 (19 U.S.C. 1313(x)) is amended by striking ``and 
(c)'' and inserting ``(c), and (j)''.
    (l) Definitions.--Section 313 of the Tariff Act of 1930 (19 U.S.C. 
1313) is amended by adding at the end the following:
    ``(z) Definitions.--In this section:
            ``(1) Directly.--The term `directly' means a transfer of 
        merchandise or an article from 1 person to another person 
        without any intermediate transfer.
            ``(2) HTS.--The term `HTS' means the Harmonized Tariff 
        Schedule of the United States.
            ``(3) Indirectly.--The term `indirectly' means a transfer 
        of merchandise or an article from 1 person to another person 
        with 1 or more intermediate transfers.
            ``(4) 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.
            ``(5) Substitute merchandise; substitute article.--The 
        terms `substitute merchandise' and `substitute article' mean--
                    ``(A) a good that is classifiable within the same 
                8-digit HTS subheading number as another good (the 
                Schedule B number may be used to demonstrate this fact) 
                whether imported or domestic; or
                    ``(B) a good demonstrated to have been classifiable 
                within the same 8-digit HTS subheading number as 
                another good at some point during the 5-year period 
                beginning on the date of importation of the designated 
                imported merchandise (the Schedule B number may be used 
                to demonstrate this fact) whether imported or 
                domestic.''.
    (m) Effective Date.--
            (1) In general.--The amendments made by this section 
        shall--
                    (A) take effect on the date of the enactment of 
                this Act; 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 of 
                enactment.
            (2) Transition rule.--During the 2-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).
    (n) Government Accountability Office Report.--Not later than one 
year after the date of enactment of this Act, the Comptroller General 
of the United States shall submit to the Committee on Ways and Means of 
the House of Representatives and the Committee on Finance of the Senate 
a report that contains--
            (1) a description of the implementation of section 313 of 
        the Tariff Act of 1930 (19 U.S.C. 1313), as amended by this 
        section;
            (2) an evaluation of the modernization of drawback and 
        refunds under subsection (b) of section 313 of such Act 
        (relating to substitution for drawback purposes), as amended by 
        this section;
            (3) an evaluation of extending the modernization of 
        drawback and refunds to subjection (j) of section 313 of such 
        Act (relating to unused merchandise drawback), as amended by 
        this section; and
            (4) recommendations for the processing of drawback claims 
        under 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)).

SEC. 405. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE OF 
              THE UNITED STATES.

    (a) Articles Exported and Returned, Advanced or Improved Abroad.--
            (1) In general.--U.S. Note 3 to subchapter II of chapter 98 
        of the Harmonized Tariff Schedule of the United States is 
        amended by adding at the end the following:
            ``(f)(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 paragraph with respect to fungible goods, the 
        person shall use the same inventory management method for any 
        other goods with respect to which the person claims fungibility 
        under this paragraph.
            ``(iii) For the purposes of this paragraph--
                    ``(A) the term `fungible good' means any good that 
                is commercially interchangeable with another good and 
                that has properties that are essentially identical to 
                the properties of another good; and
                    ``(B) the term `inventory management method' means 
                any method for managing inventory that is based on 
                generally accepted accounting principles.''.
            (2) Effective date.--The amendment made by this subsection 
        applies to articles classifiable under subheading 9802.00.40 or 
        9802.00.50 of the Harmonized Tariff Schedule of the United 
        States that are entered, or withdrawn from warehouse for 
        consumption, on or after the date that is 60 days after the 
        date of the enactment of this Act.
    (b) Modification of Provisions Relating to Returned Property.--
            (1) In general.--The article description for heading 
        9801.00.10 of the Harmonized Tariff Schedule of the United 
        States is amended by inserting after ``exported'' the 
        following: ``, or any other products when returned within 3 
        years after having been exported''.
            (2) Effective date.--The amendment made by paragraph (1) 
        applies to goods entered, or withdrawn from warehouse for 
        consumption, on or after the 15th day after the date of the 
        enactment of this Act.
    (c) Duty Free Treatment for Certain United States Government 
Property Returned to the United States.--
            (1) In general.--Subchapter I of chapter 98 of the 
        Harmonized Tariff Schedule of the United States is amended by 
        inserting in numerical sequence the following new heading:


``      9801.00.11       United States       Free         ...............  ...............  ...............  ''.
                          Government
                          property,
                          returned to the
                          United States
                          without having
                          been advanced in
                          value or improved
                          in condition by
                          any means while
                          abroad, entered
                          by the United
                          States Government
                          or a contractor
                          to the United
                          States
                          Government, and
                          certified by the
                          importer as
                          United States
                          Government
                          property.........

            (2) Effective date.--The amendment made by paragraph (1) 
        applies to goods entered, or withdrawn from warehouse for 
        consumption, on or after the 15th day after the date of the 
        enactment of this Act.

                     TITLE V--OTHER TRADE AGENCIES

SEC. 501. UNITED STATES INTERNATIONAL TRADE COMMISSION.

    (a) Fiscal Year 2013.--There are authorized to be appropriated for 
the salaries and expenses of the United States International Trade 
Commission not to exceed $82,800,000 for fiscal year 2013.
    (b) Fiscal Years 2014 and 2015.--Section 330(e)(2)(A) of the Tariff 
Act of 1930 (19 U.S.C. 1330(e)(2)(A)) is amended by striking clauses 
(i) and (ii) and inserting the following:
                            ``(i) $86,800,000 for fiscal year 2014.
                            ``(ii) $88,900,000 for fiscal year 2015.''.

SEC. 502. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.

    (a) Fiscal Year 2013.--There are authorized to be appropriated for 
the salaries and expenses of the Office of the United States Trade 
Representative not to exceed $51,300,000 for fiscal year 2013.
    (b) Annual Report on Trade Agreements Program and National Trade 
Policy Agenda.--Section 163(a) of the Trade Act of 1974 (19 U.S.C. 
2213(a)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and'' at the 
                end;
                    (B) in subparagraph (B), by striking the period at 
                the end and inserting a semicolon; and
                    (C) by adding at the end the following:
                    ``(C) the operation of all United States Trade 
                Representative-led interagency programs during the 
                preceding year and for the year in which the report is 
                submitted.''; and
            (2) by adding at the end the following:
            ``(4) The report shall include, with respect to the matters 
        referred to in paragraph (1)(C), information regarding--
                    ``(A) the objectives and priorities of all United 
                States Trade Representative-led interagency programs 
                for the year, and the reasons therefor;
                    ``(B) the actions proposed, or anticipated, to be 
                undertaken during the year to achieve such objectives 
                and priorities, including actions authorized under the 
                trade laws and negotiations with foreign countries;
                    ``(C) the role of each Federal agency participating 
                in the interagency program in achieving such objectives 
                and priorities and activities of each agency with 
                respect to their participation in the program;
                    ``(D) the United States Trade Representative's 
                coordination of each participating Federal agency to 
                more effectively achieve such objectives and 
                priorities;
                    ``(E) any proposed legislation necessary or 
                appropriate to achieve any of such objectives or 
                priorities; and
                    ``(F) the progress that was made during the 
                preceding year in achieving such objectives and 
                priorities and coordination activities included in the 
                statement provided for such year under this 
                paragraph.''.
    (c) Resource Management and Staffing Plans.--
            (1) Annual plan.--
                    (A) In general.--The United States Trade 
                Representative shall on an annual basis develop a 
                plan--
                            (i) to match available resources of the 
                        Office of the United States Trade 
                        Representative to projected workload and 
                        provide a detailed analysis of how the funds 
                        allocated from the prior fiscal year to date 
                        have been spent;
                            (ii) to identify existing staff of the 
                        Office and new staff that will be necessary to 
                        support the trade negotiation and enforcement 
                        functions and powers of the Office (including 
                        those of the Trade Policy Staff Committee) as 
                        described in section 141 of the Trade Act of 
                        1974 (19 U.S.C. 2171) and section 301 of the 
                        Trade Act of 1974 (19 U.S.C. 2411);
                            (iii) to identify existing staff of the 
                        Office and staff of other Federal agencies who 
                        will be required to be detailed to support 
                        United States Trade Representative-led 
                        interagency programs, including any associated 
                        expenses; and
                            (iv) to provide a detailed analysis of the 
                        budgetary requirements of United States Trade 
                        Representative-led interagency programs for the 
                        next fiscal year and provide a detailed 
                        analysis of how the funds allocated from the 
                        prior fiscal year to date have been spent.
                    (B) Report.--The United States Trade Representative 
                shall submit to the Committee on Ways and Means and the 
                Committee on Appropriations of the House of 
                Representatives and the Committee on Finance and the 
                Committee on Appropriations of the Senate a report that 
                contains the plan required under subparagraph (A). The 
                report required under this subparagraph shall be 
                submitted in conjunction with the annual budget of the 
                United States Government required to be submitted to 
                Congress under section 1105 of title 31, United States 
                Code.
            (2) Quadrennial plan.--
                    (A) In general.--Pursuant to the goals and 
                objectives of the strategic plan of the Office of the 
                United States Trade Representative as required under 
                section 306 of title 5, United States Code, the United 
                States Trade Representative shall every 4 years develop 
                a plan--
                            (i) to analyze internal quality controls 
                        and record management of the Office;
                            (ii) to identify existing staff of the 
                        Office and new staff that will be necessary to 
                        support the trade negotiation and enforcement 
                        functions and powers of the Office (including 
                        those of the Trade Policy Staff Committee) as 
                        described in section 141 of the Trade Act of 
                        1974 (19 U.S.C. 2171) and section 301 of the 
                        Trade Act of 1974 (19 U.S.C. 2411);
                            (iii) to identify existing staff of the 
                        Office and staff in other Federal agencies who 
                        will be required to be detailed to support 
                        United States Trade Representative-led 
                        interagency programs, including any associated 
                        expenses;
                            (iv) to provide an outline of budget 
                        justifications, including salaries and expenses 
                        as well as non-personnel administrative 
                        expenses, for the fiscal years required under 
                        the strategic plan; and
                            (v) to provide an outline of budget 
                        justifications, including salaries and expenses 
                        as well as non-personnel administrative 
                        expenses, for United States Trade 
                        Representative-led interagency programs for the 
                        fiscal years required under the strategic plan.
                    (B) Report.--
                            (i) In general.--The United States Trade 
                        Representative shall submit to the Committee on 
                        Ways and Means and the Committee on 
                        Appropriations of the House of Representatives 
                        and the Committee on Finance and the Committee 
                        on Appropriations of the Senate a report that 
                        contains the plan required under subparagraph 
                        (A). Except as provided in clause (ii), the 
                        report required under this clause shall be 
                        submitted in conjunction with the strategic 
                        plan of the Office as required under section 
                        306 of title 5, United States Code.
                            (ii) Exception.--The United States Trade 
                        Representative shall submit to the 
                        congressional committees specified in clause 
                        (i) an initial report that contains the plan 
                        required under subparagraph (A) not later than 
                        February 1, 2013.
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