[Congressional Record Volume 144, Number 35 (Wednesday, March 25, 1998)]
[Senate]
[Page S2573]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN:
  S. 1861. A bill to amend the Tariff Act of 1930 to permit duty-free 
sales enterprises to be located in certain areas; to the Committee on 
Finance.


       the duty free sales enterprises act amendment act of 1998

  Mrs. FEINSTEIN. Mr. President, in 1988, Congress passed the Duty Free 
Sales Enterprises Act which, among other things, gave Customs the 
authority to audit duty free stores to ensure compliance with laws and 
regulations governing import activities. The Act also permitted off-
airport sites, as long as they were in within 25 miles of the airport. 
What happens is: tourists visit the off-airport site, buy duty-free 
goods and those goods are shipped to meet them when they arrive home.
  When the bill was passed, audits were conducted in person by Customs 
inspectors. The 25-mile limit was imposed so as not to unduly burden 
inspectors who would otherwise have to travel great distances between 
stores. However, audits are no longer conducted in person; rather they 
are done by computer. Inspectors no longer have to travel between 
stores.
  This legislation adds new section to the law establishing the 25-mile 
limit to allow exceptions if Customs is reasonably assured the goods 
being sold are duty free items for people leaving through international 
airports. All of the other regulations controlling audits and 
inspections are still in effect; this simply allows stores outside of 
the 25-mile limit.
  I urge my colleagues to support this bill.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1861

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

     SECTION 1. DUTY-FREE SALES ENTERPRISES.

       Section 555(b)(2) of the Tariff Act of 1930 (19 U.S.C. 
     1555(b)(2)) is amended--
       (1) by striking ``or'' at the end of subparagraph (A),
       (2) by striking the period at the end of subparagraph (B) 
     and inserting ``; or'', and
       (3) by adding at the end the following new subparagraph:
       ``(C) the customs territory, if reasonable assurance can be 
     provided that the purchaser of the duty-free merchandise will 
     depart from an international airport located within the 
     customs territory.''.
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