[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3371 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 3371
To combat illegal deforestation by prohibiting the importation of
products made wholly or in part of certain commodities produced on land
undergoing illegal deforestation, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
November 30, 2023
Mr. Schatz (for himself and Mr. Braun) introduced the following bill;
which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To combat illegal deforestation by prohibiting the importation of
products made wholly or in part of certain commodities produced on land
undergoing illegal deforestation, 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.
This Act may be cited as the ``Fostering Overseas Rule of law and
Environmentally Sound Trade Act of 2023'' or the ``FOREST Act of
2023''.
SEC. 2. FINDINGS; SENSE OF CONGRESS.
(a) Findings.--Congress makes the following findings:
(1) According to the Food and Agriculture Organization of
the United Nations, 31 percent of land on earth is covered in
forests, but that area is rapidly decreasing. An estimated
1,600,000 square miles of forest has been converted to other
land uses since 1990, with 42,500 square miles converted
annually since 2010. Since the early 2000s, \2/3\ of global
forest cover loss has occurred in the tropics and subtropics.
(2) At least 69 percent of tropical forest conversion into
commercial agriculture uses between 2013 and 2019 was carried
out in contravention of the laws of the country in which the
conversion occurred.
(3) Such illegal forest conversion results in the emission
of more than 2.7 gigatons of carbon dioxide equivalent per
year, more than the entire annual fossil fuel emissions of
India in 2018.
(4) The global increase of average temperatures can be
mitigated by natural climate solutions like rapid and
significant reductions in deforestation globally. Cost-
effective greenhouse gas emission mitigation from forests and
land use can provide roughly \1/3\ of the mitigation required
by 2030 to hold the increase in the global average temperature
below 2 degrees Celsius above pre-industrial levels.
(5) Forests contain most of the world's terrestrial
biodiversity, providing habitats for 80 percent of amphibian
species, 75 percent of bird species, 68 percent of mammal
species, and 60,000 different species of trees.
(6) Forests are also an important source of livelihoods,
food, and fuel, with more than 1,600,000,000 people depending
directly on forests for their livelihoods.
(7) The Intergovernmental Science-Policy Platform on
Biodiversity and Ecosystem Services found in 2019 that the rate
of global species extinction is accelerating and is now tens to
hundreds of times higher than the average rate over the last
10,000,000 years, threatening the loss of 1,000,000 species,
and illegal land-use change has an overwhelming relative impact
on terrestrial ecosystems.
(8) Illegal deforestation in many countries is closely
associated with violations of the rights of indigenous peoples
and local communities and with the exploitation of workers,
including through the use of forced labor and child labor, and
in many cases is enabled by corruption, criminality, and
violence against individuals defending their land rights.
(9) Congress has taken a number of steps to address the
trade in illegal timber to protect legitimate forestry
businesses and reduce illegal logging globally, such as, in
section 8204 of the Food, Conservation, and Energy Act of 2008
(Public Law 110-246; 122 Stat. 2052), amending the Lacey Act
Amendments of 1981 (16 U.S.C. 3371 et seq.) to prohibit the
importation of illegal plant products, including such products
made from illegally logged wood.
(10) As with illegal timber, agricultural commodities
produced on illegally deforested land enter international
markets, including the United States, and compete with
commodities produced legally.
(11) The United States is a significant market for products
made wholly or in part of commodities such as palm oil, cattle,
cocoa, and rubber at risk of being produced on illegally
deforested land. For example, in 2022, the United States
imported--
(A) processed cowhides and beef products valued at
more than $1,100,000,000 from Brazil, where a recent
study estimated 95 percent of deforestation was not in
full compliance with applicable laws; and
(B) crude palm oil and palm kernel oil valued at
more than $2,600,000,000 and oleochemicals commonly
derived from palm oils valued at more than
$900,000,000, from Indonesia, where government audits
of the sector in recent years have indicated widespread
noncompliance with applicable laws regarding
deforestation.
(12) The lack of traceability in the supply chains for such
commodities and the absence of importer due diligence
requirements increases the risk that United States trade is
associated with illegal deforestation and human rights abuses,
preventing United States consumers from knowing where or how
the goods they purchase were produced and putting companies
that ensure legal sourcing at a competitive disadvantage.
(b) Sense of Congress.--It is the sense of Congress that the United
States must do more to address illegal deforestation, including--
(1) avoiding trade that incentivizes foreign governments to
allow illegal deforestation;
(2) assisting foreign governments in eliminating illegal
deforestation and limiting all deforestation to the extent
practicable;
(3) requiring that goods entering the United States market
be subject to requirements, including the necessary supply
chain traceability, to reduce the risk of association with
illegal deforestation;
(4) preventing the United States financial system from
being used to launder proceeds from illegal deforestation; and
(5) providing procurement preference incentives to
suppliers of the Federal Government to adopt and implement
policies to eliminate goods produced on deforested land from
their supply chains.
SEC. 3. PROHIBITION ON IMPORTATION OF COMMODITIES PRODUCED ON ILLEGALLY
DEFORESTED LAND AND PRODUCTS MADE FROM SUCH COMMODITIES.
(a) In General.--The Tariff Act of 1930 is amended by inserting
after section 527 (19 U.S.C. 1527) the following:
``SEC. 527A. PROHIBITION ON IMPORTATION OF PRODUCTS MADE WHOLLY OR IN
PART OF COMMODITIES PRODUCED ON ILLEGALLY DEFORESTED
LAND.
``(a) In General.--It shall be unlawful for any person to import
any product made wholly or in part of a covered commodity produced on
land that undergoes illegal deforestation on or after the date of the
enactment of the FOREST Act of 2023.
``(b) Import Declarations.--
``(1) In general.--On and after the date that is one year
after the date of the enactment of the FOREST Act of 2023, and
subject to paragraph (2), a person may not import a covered
product unless the person files electronically upon entry a
declaration stating that the person has exercised reasonable
care to assess and mitigate the risks that any covered
commodity used to make the covered product was produced on land
subject to illegal deforestation on or after such date of
enactment.
``(2) Covered commodities from countries under an action
plan.--On and after the date that is one year after an action
plan applicable to a foreign country is finalized under
subsection (d)(2), a person may not import a covered product
containing any covered commodity produced in the country and
identified in the action plan unless the person files upon
entry a declaration that includes sufficient information to
show--
``(A)(i) the supply chain and the point of origin
of the covered commodity; and
``(ii) steps taken to assess and mitigate the risks
that the point of origin was subject to illegal
deforestation on or after the date of the enactment of
the FOREST Act of 2023; or
``(B)(i) all possible points of origin that could
have contributed to the supply chain of the covered
commodity, if mixing or points of aggregation exist
within the supply chain; and
``(ii) steps taken to assess and mitigate the risks
that any possible points of origin were subject to
illegal deforestation on or after such date of
enactment.
``(3) Guidance.--Not later than 90 days after the date of
the enactment of the FOREST Act of 2023, and as appropriate
thereafter, the Secretary of Homeland Security--
``(A) shall publish guidance on what constitutes
reasonable care under paragraph (1) and sufficient
information under paragraph (2), which may include
guidance with respect to specific commodities, as
appropriate; and
``(B) may, as appropriate, issue guidance about the
potential role of third-party certifications assisting
importers with meeting the requirements of this
section.
``(4) Trusted trader program.--
``(A) In general.--Not later than one year after
the date of the enactment of the FOREST Act of 2023,
the Commissioner of U.S. Customs and Border Protection
(in this section referred to as the `Commissioner')
shall establish a program to streamline the
requirements of this section for importers that have
demonstrated--
``(i) a transparent and credible due
diligence system; and
``(ii) a track record of compliance, supply
chain traceability and transparency, and
sourcing of products not made wholly or in part
of a covered commodity produced on land that
undergoes illegal deforestation.
``(B) Audits.--The Commissioner shall carry out,
and publish the results of, regular, random audits of
participants in the program established under
subparagraph (A)--
``(i) to assess the compliance of
participants with the requirements of the
program; and
``(ii) to terminate the participation in
the program of participants found to be in
violation of those requirements.
``(C) Requirements for participants.--Each
participant in the program established under
subparagraph (A) shall make up-to-date information on
implementation of due diligence systems and supply
chains publicly available to facilitate third-party
monitoring.
``(D) Continued compliance.--Participation in the
program does not remove any obligation of a participant
to comply with the requirements of subsection (a) or
paragraph (1) or (2).
``(E) Consultations.--The Commissioner shall
establish the program under subparagraph (A) in
consultation with--
``(i) the interagency working group
established under subsection (f);
``(ii) the advisory committee established
under subsection (g); and
``(iii) the public.
``(c) Lists of Covered Commodities and Covered Products.--
``(1) Initial lists.--Not later than 30 days after the date
of the enactment of the FOREST Act of 2023, the United States
Trade Representative (in this section referred to as the `Trade
Representative') shall publish the following:
``(A) An initial list made up of the following
commodities (in this section referred to as `covered
commodities'):
``(i) Palm oil.
``(ii) Soybeans.
``(iii) Cocoa.
``(iv) Cattle.
``(v) Rubber.
``(B) An initial list made up of the following
products made wholly or in part of a covered commodity
(in this section referred to as `covered products'):
``(i) Palm oil or palm oil products
classifiable under any of the following
headings or subheadings of the HTS:
``1511................................ 2905.17.00................... 3823.11.00
1513.21.00............................ 2905.45.00................... 3823.12.00
1513.29.00............................ 2915.70.01................... 3823.19
2306.60.00............................ 2915.90...................... 3823.70.
``(ii) Soybeans or soybean products
classifiable under heading 1201 or 1507 or
subheading 2304.00.00 of the HTS.
``(iii) Cocoa or cocoa products
classifiable under heading 1803 or 1806 or
subheading 1801.00.00, 1802.00.00, 1804.00.00,
or 1805.00.00, of the HTS.
``(iv) Cattle or cattle products
classifiable under any of the following
headings or subheadings of the HTS:
``0201................................ 0206.21.00................... 1602.50
0202.................................. 0206.22.00................... 4104
0206.10.00............................ 0206.29.00................... 4107.
``(v) Rubber or rubber products
classifiable under heading 4001 or 4011 of the
HTS.
``(2) Reviews and updates.--
``(A) In general.--Not less frequently than
annually, the Trade Representative shall--
``(i) review the list of covered
commodities published under subparagraph (A) of
paragraph (1) and the list of covered products
published under subparagraph (B) of that
paragraph to assess whether covered commodities
or covered products, as the case may be, should
be added to or removed from the lists to ensure
that the scope of the lists is sufficient to
deter illegal deforestation and to ensure that
neither commodities produced in the United
States nor imported commodities that were not
produced on illegally deforested land are
displaced by imported commodities produced on
illegally deforested land;
``(ii) consult and solicit relevant
information from the interagency working group
established under subsection (f) and the
advisory committee established under subsection
(g) regarding the list of covered commodities
published under subparagraph (A) of paragraph
(1) and the list of covered products published
under subparagraph (B) of that paragraph; and
``(iii) publish updated lists based on the
review under clause (i) and the consultation
under clause (ii).
``(B) Exclusions from updates.--
``(i) Additions.--The Trade Representative
may not add under subparagraph (A) to the list
of covered commodities published under
paragraph (1)(A) a commodity for which an
import declaration is required under section
3(f) of the Lacey Act Amendments of 1981 (16
U.S.C. 3372(f)).
``(ii) Removals.--The Trade Representative
may not remove a commodity under subparagraph
(A) from the list of covered commodities
published under paragraph (1)(A) solely because
an import declaration is required under section
3(f) of the Lacey Act Amendments of 1981 (16
U.S.C. 3372(f)) with respect to the commodity.
``(C) Effect on import declarations.--Any addition
under subparagraph (A) to the list of covered products
under paragraph (1)(B) shall be subject to the
declaration requirement under subsection (b) on and
after the date that is one year after the updated list
including the addition is published.
``(d) Action Plans for Countries Without Adequate and Effective
Protection Against Illegal Deforestation.--
``(1) Identification of countries.--
``(A) In general.--Not later than 180 days after
the date of the enactment of the FOREST Act of 2023,
the Trade Representative shall--
``(i) identify foreign countries without
adequate and effective protection against
illegal deforestation for the production of
commodities likely to enter the United States;
and
``(ii) publish in the Federal Register--
``(I) a list of the countries
identified under clause (i); and
``(II) data and analysis related to
the considerations described in
subparagraph (B).
``(B) Considerations.--In identifying a foreign
country under subparagraph (A), the Trade
Representative shall consider--
``(i) trends in illegal deforestation in
that country;
``(ii) whether policies and practices of
the government of the country provide adequate
and effective enforcement against illegal
deforestation;
``(iii) trends in the capacity and
effectiveness of enforcement against illegal
deforestation by the country; and
``(iv) the incidence of violence against,
and other violations of the rights of,
indigenous peoples and local residents in the
country in connection with illegal
deforestation.
``(C) Reassessment.--Not less frequently than every
2 years, the Trade Representative shall assess whether
additional foreign countries should be identified under
subparagraph (A).
``(2) Action plans.--
``(A) In general.--The Trade Representative shall
publish in the Federal Register an action plan with
respect to each foreign country identified under
paragraph (1) not later than 2 years after the date on
which the country is identified under that paragraph.
``(B) Involvement of foreign country and public.--
The Trade Representative shall--
``(i) seek to involve each foreign country
for which the Trade Representative develops an
action plan under subparagraph (A) in the
development of the action plan for that foreign
country; and
``(ii) publish in the Federal Register a
draft of each action plan for public review and
comment before publishing the action plan under
subparagraph (A).
``(C) Goals of action plans.--The Trade
Representative shall design an action plan developed
under subparagraph (A) with respect to a foreign
country to achieve adequate and effective protection
against illegal deforestation, including by--
``(i) instituting policies and practices to
prevent illegal deforestation;
``(ii) ensuring sufficient capacity to
enforce relevant laws;
``(iii) establishing processes to
adjudicate and remedy previous illegal
deforestation activities;
``(iv) ensuring comprehensive monitoring,
transparency, and data sharing related to land
ownership and use, deforestation, and potential
impacts to other ecosystems; and
``(v) promoting traceability, transparency,
and data sharing for commodity supply chains.
``(D) Benchmarks.--The Trade Representative shall
include in each action plan developed under
subparagraph (A) intermediate and final benchmarks,
including such legislative, institutional, enforcement,
or other actions as the Trade Representative determines
to be necessary to demonstrate that the foreign country
has achieved the goals described in subparagraph (C).
``(E) Identification of covered commodities.--The
Trade Representative shall identify in the action plan
developed under subparagraph (A) with respect to a
foreign country the specific covered commodities at
risk of being produced on illegally deforested land in
that country that shall be subject to the declaration
requirement under subsection (b)(2).
``(3) Petitions for determination of compliance.--
``(A) In general.--A foreign country to which an
action plan developed under paragraph (2)(A) applies
may petition the Trade Representative to determine that
the country has achieved all benchmarks in the action
plan and therefore provides adequate and effective
protection against illegal deforestation.
``(B) Determination of adequacy and effectiveness
of protection.--
``(i) Countries that provide adequate and
effective protection against illegal
deforestation.--If the Trade Representative
determines under subparagraph (A) that a
foreign country to which an action plan
developed under paragraph (2)(A) applies has
achieved all benchmarks in the action plan to
provide adequate and effective protection
against illegal deforestation, the action plan
shall terminate.
``(ii) Countries that fail to provide
adequate and effective protection against
illegal deforestation.--If the Trade
Representative determines under subparagraph
(A) that a foreign country to which an action
plan developed under paragraph (2)(A) applies
has not achieved all benchmarks in the action
plan, the action plan shall remain in force.
``(e) Enforcement.--
``(1) Administration.--
``(A) In general.--The provisions of this section
and any regulations issued under this section shall be
enforced, as appropriate, by the Commissioner, the
Secretary of Agriculture, the Secretary of the
Interior, and the Attorney General.
``(B) Audits.--The Commissioner, in collaboration
with the heads of other Federal agencies, shall conduct
random audits of importers filing declarations under
subsection (b)(1) to ensure such importers are
retaining the supporting documentation demonstrating
reasonable care was exercised as required by that
subsection.
``(C) Agreements.--An official specified in
subparagraph (A) may enter into an agreement with any
other Federal agency or any State agency or Indian
Tribe under which that official may use, with or
without reimbursement (as determined by the head of the
relevant agency or Indian Tribe), the personnel,
services, and facilities of the agency or Indian Tribe
for the enforcement of this section and regulations
issued under this section.
``(D) Availability of information.--Not later than
one year after the date of the enactment of the FOREST
Act of 2023, the Commissioner shall develop a process
to make information filed with a declaration required
by subsection (b)(2) (other than information considered
to be confidential business information) available to
the public.
``(2) Coordination of enforcement.--The Commissioner shall
share declarations filed under subsection (b) and other
information received by U.S. Customs and Border Protection with
the Trade Representative, the Secretary of Agriculture, the
Secretary of the Interior, the Attorney General, and the heads
of other Federal agencies as needed to ensure effective
enforcement of this section.
``(3) Notice to importers.--Before taking any enforcement
action with respect to an importer suspected of violating
subsection (a) or (b), the Commissioner shall--
``(A) notify the importer of the suspected
violation; and
``(B) provide the importer with an opportunity to
provide additional information to demonstrate that the
importer is in compliance with subsections (a) and (b).
``(4) Information from outside sources.--Not later than 180
days after the date of the enactment of the FOREST Act of 2023,
the Commissioner shall establish a process for receiving
information from persons outside U.S. Customs and Border
Protection indicating that a covered commodity may be being
imported in violation of this section.
``(5) Report required.--Not later than 2 years after the
date of the enactment of the FOREST Act of 2023, and annually
thereafter, the Commissioner, with input from the heads of
relevant Federal agencies, shall submit to Congress a report on
the enforcement of this section that includes, for the year
preceding submission of the report--
``(A) the number of audits conducted by Federal
agencies of importers of record to detect potential
violations of this section;
``(B) the number of instances in which information
was submitted to the Commissioner under paragraph (4);
``(C) the number of investigations initiated into
possible violations of this section;
``(D) the number of notices to importers under
paragraph (3) with respect to such violations;
``(E) the number of such investigations initiated
based on information submitted to the Commissioner
under paragraph (4);
``(F) the results of cases adjudicated following
such an investigation;
``(G) the number of such investigations pending as
of the date of the report; and
``(H) an explanation of how information submitted
to the Commissioner under paragraph (4) was used to
prioritize audits and other checks.
``(f) Interagency Working Group.--
``(1) In general.--There is established an interagency
working group to provide advice and recommendations to the
Trade Representative, the Commissioner, and the heads of other
relevant Federal agencies on the implementation of this
section.
``(2) Membership.--The interagency working group
established under paragraph (1) shall be composed of
representatives of--
``(A) the Department of State;
``(B) the Department of Agriculture;
``(C) U.S. Customs and Border Protection;
``(D) the Office of the United States Trade
Representative;
``(E) the United States Agency for International
Development;
``(F) the Department of the Interior;
``(G) the Department of Justice; and
``(H) such other Federal agencies as the Trade
Representative considers appropriate.
``(3) Chairperson.--The representative of the Office of the
United States Trade Representative shall serve as the
chairperson of the interagency working group established under
paragraph (1).
``(g) Advisory Committee.--
``(1) In general.--The Trade Representative shall establish
an advisory committee to provide advice and recommendations to
the Trade Representative and the heads of other relevant
Federal agencies on the implementation of this section.
``(2) Membership.--The advisory committee established under
paragraph (1) shall be made up of 14 individuals--
``(A) 5 of whom shall be representatives of
institutions of higher education or nongovernmental
organizations with expertise relevant to international
deforestation, associated human rights abuses, or
trade;
``(B) 4 of whom shall be representatives of the
covered commodity industry;
``(C) 3 of whom shall be representatives of the
covered product industry; and
``(D) 2 of whom shall be representatives of labor
organizations.
``(h) Consistency With International Agreements.--This section
shall be applied in a manner consistent with the obligations of the
United States under international agreements.
``(i) Definitions.--In this section:
``(1) Deforestation.--The term `deforestation' means a loss
of natural forest resulting from the whole or partial
conversion of natural forest to--
``(A) agricultural use or another non-forest land
use; or
``(B) a tree plantation.
``(2) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States.
``(3) Illegal deforestation.--The term `illegal
deforestation' means deforestation conducted in violation of
the law (or any action that has the force and effect of law) of
the country in which the deforestation is occurring,
including--
``(A) anti-corruption laws;
``(B) laws relating to land tenure rights; and
``(C) laws relating to the free, prior, and
informed consent of indigenous peoples and local
communities.
``(4) Indian tribe.--The term `Indian Tribe' has the
meaning given the term `Indian tribe' in section 4 of the
Indian Self-Determination and Education Assistance Act (25
U.S.C. 5304).
``(5) Natural forest.--The term `natural forest' means a
natural arboreal ecosystem that--
``(A) has a species composition a significant
percentage of which is native species; and
``(B) includes--
``(i) a native tree canopy cover of more
than 10 percent over an area of not less 0.5
hectares; or
``(ii) other wooded land with a combined
cover of shrubs, bushes, and trees of more than
10 percent over an area of not less than 0.5
hectares.
``(6) Point of origin.--
``(A) In general.--The term `point of origin', with
respect to a covered commodity, means the geographical
location, identified by the smallest administrative
unit of land reasonably possible (such as a concession,
farm, ranch, property, or other type of public or
private land allocation), where the covered commodity
was produced.
``(B) Application to livestock.--In the case of
livestock, the term `point of origin' includes all
geographic locations where that animal existed from
birth to slaughter.
``(7) Produce.--
``(A) In general.--Except as provided by
subparagraph (B), the term `produce' means growing,
harvesting, rearing, collecting, extracting, or
otherwise producing a commodity.
``(B) Exclusion.--The term `produce' does not
include refining or manufacturing.
``(8) Supply chain.--The term `supply chain' means the end-
to-end process for getting commodities or products to the
United States, beginning at the point of origin and including
all points until entry into the United States, including
refiners, manufacturers, suppliers, distributors, or vendors.
``(9) Wholly or in part.--
``(A) In general.--The term `wholly or in part'
shall have the meaning given that term in regulations.
``(B) Regulations.--Regulations prescribed under
section 3(b) of the FOREST Act of 2023 shall define the
term `wholly or in part' in a manner designed to limit
the administrative burden on the importer of record
while deterring illegal deforestation. The definition
of the term may be commodity specific as needed.''.
(b) Regulations.--Not later than one year after the date of the
enactment of this Act, the Commissioner of U.S. Customs and Border
Protection and the United States Trade Representative shall publish
final regulations for implementing section 527A of the Tariff Act of
1930, as added by subsection (a).
SEC. 4. IMPLEMENTATION OF LACEY ACT IMPORT DECLARATIONS FOR PULP AND
PAPER PRODUCTS.
If the requirement for an import declaration under section 3(f)(1)
of the Lacey Act Amendments of 1981 (16 U.S.C. 3372(f)(1)) has not been
fully implemented with respect to products classified under chapters 47
and 48 of the Harmonized Tariff Schedule of the United States by the
date of the enactment of this Act, the Secretary of Agriculture shall--
(1) take such actions as are necessary to ensure that the
requirement is fully enforced with respect to those products on
and after the date that is 210 days after such date of
enactment; and
(2) not later than 30 days after such date of enactment,
publish a notice in the Federal Register that the requirement
will be fully enforced with respect to those products on and
after the date specified in paragraph (1).
SEC. 5. FOREIGN ASSISTANCE FOR COUNTRIES COMMITTED TO ELIMINATING
DEFORESTATION.
(a) Statement of Policy.--It is the policy of the United States to
assist foreign governments in eliminating illegal deforestation and to
limit all deforestation to the extent practicable.
(b) Establishment of Fund.--
(1) In general.--There is established in the Treasury of
the United States a fund, consisting of amounts authorized to
be appropriated or appropriated under paragraph (2).
(2) Deposits to the fund.--There are authorized to be
appropriated, and there are appropriated, to the fund
established under paragraph (1) for fiscal year 2023 and each
fiscal year thereafter an amount equivalent to the amount of
penalties estimated by the Secretary of the Treasury to be
collected under section 527A(e) of the Tariff Act of 1930, as
added by section 3, in that fiscal year.
(3) Availability of funds.--Amounts in the fund established
under paragraph (1) shall be available as follows:
(A) 40 percent shall be available to the Secretary
of State--
(i) to provide financial and technical
assistance and other resources to the
governments of countries and implementing
partners that are working to complete the
benchmarks in action plans developed under
section 527A(d) of the Tariff Act of 1930, as
added by section 3; and
(ii) to be transferred, notwithstanding
section 3302 of title 31, United States Code,
to the Administrator of the United States
Agency for International Development and the
heads of other appropriate Federal agencies to
provide assistance under clause (i).
(B) 50 percent shall be available to the
Commissioner of U.S. Customs and Border Protection--
(i) to carry out the duties of the
Commissioner under section 527A of the Tariff
Act of 1930, as added by section 3; and
(ii) to be transferred, notwithstanding
section 3302 of title 31, United States Code,
to the Secretary of Agriculture and the
Secretary of the Interior for monitoring,
audits, enforcement, and other duties assigned
under such section 527A.
(C) 10 percent shall be available to the United
States Trade Representative to carry out the duties of
the Trade Representative under such section 527A.
(c) Definitions.--In this section, the terms ``deforestation'' and
``illegal deforestation'' have the meanings given those terms in
section 527A(i) of the Tariff Act of 1930, as added by section 3.
SEC. 6. INCLUSION OF ILLEGAL DEFORESTATION AS SPECIFIED UNLAWFUL
ACTIVITY.
Section 1956(c)(7)(B) of title 18, United States Code, is amended--
(1) in clause (vi), by striking ``; or'' and inserting a
semicolon;
(2) in clause (vii), by striking the semicolon and
inserting ``; or''; and
(3) by adding at the end the following:
``(viii) any act, engaged in knowingly, to
carry out, enable, or encourage illegal
deforestation (as defined in section 527A(i) of
the Tariff Act of 1930).''.
SEC. 7. PROCUREMENT PREFERENCE FOR COMMODITIES NOT PRODUCED ON LAND
SUBJECT TO DEFORESTATION.
(a) In General.--Chapter 47 of title 41, United States Code, is
amended by adding at the end the following:
``Sec. 4715. Procurement preference for commodities not produced on
land subject to deforestation
``(a) In General.--In comparing proposals for the purpose of
awarding a contract involving any product made wholly or in part of a
covered commodity, the head of an executive agency shall reduce the bid
price by 10 percent if the contractor demonstrates to the satisfaction
of the head of the agency that--
``(1) the contractor has a policy described in subsection
(b) in effect; and
``(2) the policy and data on monitoring and enforcement of
that policy are publicly available and updated not less
frequently than annually.
``(b) Policy Described.--A policy described in this subsection is a
policy that includes, at a minimum, for each covered commodity included
in a product described in subsection (a), the following:
``(1) Measures to identify the point of origin of the
commodity and ensure compliance with the policy when supply
chain risks are present.
``(2) Data detailing the complete list of direct and
indirect suppliers and supply chain traceability information,
including refineries, processing plants, farms, and
plantations, and their respective owners, parent entities, and
farmers, maps, and geolocations, for the commodity.
``(3) Measures taken to ensure that the commodity does not
contribute to deforestation.
``(4) Measures taken to ensure compliance with the laws of
any country in which the commodity is produced.
``(c) Buy American Requirements.--Subsection (a) does not affect
the application of the requirements of chapter 83 of title 41, United
States Code.
``(d) Definitions.--In this section, the terms `covered commodity',
`deforestation', `point of origin', and `produce' have the meanings
given those terms in section 527A(i) of the Tariff Act of 1930.''.
(b) Clerical Amendment.--The table of sections for such chapter is
amended by inserting after the item relating to section 4714 the
following:
``4715. Procurement preference for commodities not produced on land
subject to deforestation.''.
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