Requirements and civil penalties for PRC vessels facilitating the fentanyl trade

(a)

In general

Not later than 180 days after the date of enactment of this Act, the Attorney General, in coordination with the Administrator of the Drug Enforcement Administration and other executive agencies as appropriate, shall establish minimum acceptable standards for PRC entities involved in the production, sale, or shipment of fentanyl precursors, other chemicals, or materials used or intended for use in the production of synthetic opioids or other controlled substances.(b)

Requirements

The standards required by subsection (a) shall, at a minimum, require—(1)PRC ports and vessels to properly manifest fentanyl precursors or other chemicals used or intended for use in the production of synthetic opioids in customs forms;(2)PRC exporters of fentanyl precursors or other chemicals used for the production of synthetic opioids utilizing any medium of transport to follow formal entry requirements regardless of the size or value of shipment; and(3)information gathered pursuant to paragraphs (1) and (2) to be provided to the Attorney General, and other executive agencies as appropriate, with respect to any shipment to the United States or another jurisdiction which has not objected to the sharing of such information with the Attorney General.(c)

Civil penalties for non-Compliance

Not later than 180 days after the date on which the standards required by subsection (a) have been established, the Attorney General shall impose a civil penalty of .025 percent of the total value of goods present on a vessel or $250,000, whichever is greater, on all vessels owned, operated, or leased by a PRC entity that—(1)owns, operates, or leases a vessel offloading cargo at a United States port of entry; and(2)is determined by the Attorney General to not be in compliance with the standards required under subsection (a), following not less than 90 days notice to the PRC entity of the proposed determination and a proposed course of action to remedy such noncompliance.(d)

Escalating civil penalties

The Attorney General shall increase the civil penalty described in subsection (c) by 0.025 percent of the total value of goods present on the vessel, or $250,000, whichever is greater, for each 90-day period in which the entity remains in non-compliance with the standards required under subsection (a).(e)

Increased penalties for falsification of records

(1)

In general

Any civil penalty imposed under this section shall be doubled in cases where an entity falsifies material records to demonstrate compliance with subsection (a).(2)

Calculation

Such increased penalties shall be in addition to any other remedies available under United States law.(f)

Allocation of penalties

All penalties collected under this section shall be deposited into a special fund to be used exclusively by the Attorney General and the Administrator of the Drug Enforcement Administration to enforce laws related to drug trafficking, trade fraud, and forced labor affiliated with the PRC.(g)

Report required

Not later than 180 days after the date on which the standards required by subsection (a) are published, the President shall report to Congress on not less than a bi-annual basis the status of implementation and enforcement of this Act. The report shall include—(1)the number of vessels penalized under this Act;(2)the penalties collected under this Act; and(3)the status of PRC entity compliance with the standards required.(h)

Delay of imposition

If the President determines it is in the national interest of the United States, the President may delay the imposition of the prohibitions under this Act for a period not to exceed 180 days following the date of implementation as required in subsection (a).(i)

Waiver

The Attorney General may waive civil penalties under this section for any entity that voluntarily discloses violations and cooperates with law enforcement or demonstrates good faith efforts to comply with the standards required under subsection (a).(j)

Definitions

In this section:(1)

PRC Entity

The term PRC Entity means any foreign person that is—(A)domiciled in, headquartered in, has its principal place of business in, or is organized under the laws of the People’s Republic of China;(B)an entity with respect to which foreign person or combination of foreign persons described in subparagraph (A) directly or indirectly own at least 20 percent stake; or(C)a person subject to the direction or control of a foreign person or entity described in subparagraph (A) or (B).(2)

Fentanyl precursor or other chemicals

The term fentanyl precursor or other chemicals means fentanyl precursors or other chemicals used or intended for use in the production of synthetic opioids.

Authority to impose civil penalties

(a)

Grant of authority

The Attorney General is authorized to impose and collect civil penalties as described in this Act for the purposes of enforcing compliance with the standards established under subsection (a) of section 2 and preventing the trafficking of fentanyl, fentanyl precursors, and other chemicals used or intended for use in the production of synthetic opioids.(b)

Enforcement and appeals

(1)

In general

The Attorney General shall have the authority to determine non-compliance and impose civil penalties pursuant to this Act.(2)

Judicial review

Any entity subject to a civil penalty under this section may seek judicial review of such penalty in a United States district court within 60 days of receiving written notice of the penalty.(c)

Rulemaking

The Attorney General may promulgate such rules and regulations as are necessary to implement this section, including procedures for imposing penalties and adjudicating appeals.