[Congressional Record Volume 161, Number 94 (Friday, June 12, 2015)]
[House]
[Pages H4271-H4333]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
{time} 1145
AMERICA GIVES MORE ACT OF 2015
Mr. TIBERI. Mr. Speaker, pursuant to House Resolution 305, I call up
the bill (H.R. 644) to amend the Internal Revenue Code of 1986 to
permanently extend and expand the charitable deduction for
contributions of food inventory, with the Senate amendments thereto,
and ask for its immediate consideration.
The Clerk read the title of the bill.
The SPEAKER pro tempore. The Clerk will designate the Senate
amendments.
Senate amendments:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Trade
Facilitation and Trade Enforcement Act of 2015''.
(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--TRADE FACILITATION AND TRADE ENFORCEMENT
Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs
modernization, trade facilitation, and trade enforcement
functions and programs.
Sec. 104. Educational seminars to improve efforts to classify and
appraise imported articles, to improve trade enforcement
efforts, and to otherwise facilitate legitimate
international trade.
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Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition
arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial Targeting Division and National Targeting and
Analysis Groups.
Sec. 112. Report on oversight of revenue protection and enforcement
measures.
Sec. 113. Report on security and revenue measures with respect to
merchandise transported in bond.
Sec. 114. Importer of record program.
Sec. 115. Establishment of new importer program.
TITLE II--IMPORT HEALTH AND SAFETY
Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works
for which copyright registration is pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual
property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual
property rights.
Sec. 308. Training with respect to the enforcement of intellectual
property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of
intellectual property rights.
TITLE IV--EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS
Sec. 401. Short title.
Sec. 402. Procedures for investigating claims of evasion of antidumping
and countervailing duty orders.
Sec. 403. Annual report on prevention and investigation of evasion of
antidumping and countervailing duty orders.
TITLE V--AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS
Sec. 501. Consequences of failure to cooperate with a request for
information in a proceeding.
Sec. 502. Definition of material injury.
Sec. 503. Particular market situation.
Sec. 504. Distortion of prices or costs.
Sec. 505. Reduction in burden on Department of Commerce by reducing the
number of voluntary respondents.
Sec. 506. Application to Canada and Mexico.
TITLE VI--ADDITIONAL TRADE ENFORCEMENT AND INTELLECTUAL PROPERTY RIGHTS
PROTECTION
Subtitle A--Trade Enforcement
Sec. 601. Trade enforcement priorities.
Sec. 602. Exercise of WTO authorization to suspend concessions or other
obligations under trade agreements.
Sec. 603. Trade monitoring.
Sec. 604. Establishment of Interagency Trade Enforcement Center.
Sec. 605. Establishment of Chief Manufacturing Negotiator.
Sec. 606. Enforcement under title III of the Trade Act of 1974 with
respect to certain acts, policies, and practices relating
to the environment.
Sec. 607. Trade Enforcement Trust Fund.
Sec. 608. Honey transshipment.
Sec. 609. Inclusion of interest in certain distributions of antidumping
duties and countervailing duties.
Sec. 610. Illicitly imported, exported, or trafficked cultural
property, archaeological or ethnological materials, and
fish, wildlife, and plants.
Subtitle B--Intellectual Property Rights Protection
Sec. 611. Establishment of Chief Innovation and Intellectual Property
Negotiator.
Sec. 612. Measures relating to countries that deny adequate protection
for intellectual property rights.
TITLE VII--CURRENCY MANIPULATION
Subtitle A--Investigation of Currency Undervaluation
Sec. 701. Short title.
Sec. 702. Investigation or review of currency undervaluation under
countervailing duty law.
Sec. 703. Benefit calculation methodology with respect to currency
undervaluation.
Sec. 704. Modification of definition of specificity with respect to
export subsidy.
Sec. 705. Application to Canada and Mexico.
Sec. 706. Effective date.
Subtitle B--Engagement on Currency Exchange Rate and Economic Policies
Sec. 711. Enhancement of engagement on currency exchange rate and
economic policies with certain major trading partners of
the United States.
Sec. 712. Advisory Committee on International Exchange Rate Policy.
TITLE VIII--PROCESS FOR CONSIDERATION OF TEMPORARY DUTY SUSPENSIONS AND
REDUCTIONS
Sec. 801. Short title.
Sec. 802. Sense of Congress on the need for a miscellaneous tariff
bill.
Sec. 803. Process for consideration of duty suspensions and reductions.
Sec. 804. Report on effects of duty suspensions and reductions on
United States economy.
Sec. 805. Judicial review precluded.
Sec. 806. Definitions.
TITLE IX--MISCELLANEOUS PROVISIONS
Sec. 901. De minimis value.
Sec. 902. Consultation on trade and customs revenue functions.
Sec. 903. Penalties for customs brokers.
Sec. 904. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
Sec. 905. Exemption from duty of residue of bulk cargo contained in
instruments of international traffic previously exported
from the United States.
Sec. 906. Drawback and refunds.
Sec. 907. Inclusion of certain information in submission of nomination
for appointment as Deputy United States Trade
Representative.
Sec. 908. Biennial reports regarding competitiveness issues facing the
United States economy and competitive conditions for
certain key United States industries.
Sec. 909. Report on certain U.S. Customs and Border Protection
agreements.
Sec. 910. Charter flights.
Sec. 911. Amendment to Tariff Act of 1930 to require country of origin
marking of certain castings.
Sec. 912. Elimination of consumptive demand exception to prohibition on
importation of goods made with convict labor, forced
labor, or indentured labor; report.
Sec. 913. Improved collection and use of labor market information.
Sec. 914. Statements of policy with respect to Israel.
TITLE X--OFFSETS
Sec. 1001. Revocation or denial of passport in case of certain unpaid
taxes.
Sec. 1002. Customs user fees.
SEC. 2. DEFINITIONS.
In this Act:
(1) Automated commercial environment.--The term ``Automated
Commercial Environment'' means the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(f)(4)).
(2) Commissioner.--The term ``Commissioner'' means the
Commissioner responsible for U.S. Customs and Border
Protection.
(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 (19 U.S.C. 1202 et seq.).
(B) Section 249 of the Revised Statutes (19 U.S.C. 3).
(C) Section 2 of the Act of March 4, 1923 (42 Stat. 1453,
chapter 251; 19 U.S.C. 6).
(D) The Act of March 3, 1927 (44 Stat. 1381, chapter 348;
19 U.S.C. 2071 et seq.).
(E) Section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c).
(F) Section 251 of the Revised Statutes (19 U.S.C. 66).
(G) Section 1 of the Act of June 26, 1930 (46 Stat. 817,
chapter 617; 19 U.S.C. 68).
(H) The Foreign Trade Zones Act (19 U.S.C. 81a et seq.).
(I) Section 1 of the Act of March 2, 1911 (36 Stat. 965,
chapter 191; 19 U.S.C. 198).
(J) The Trade Act of 1974 (19 U.S.C. 2102 et seq.).
(K) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et
seq.).
(L) The North American Free Trade Agreement Implementation
Act (19 U.S.C. 3301 et seq.).
(M) The Uruguay Round Agreements Act (19 U.S.C. 3501 et
seq.).
(N) The Caribbean Basin Economic Recovery Act (19 U.S.C.
2701 et seq.).
(O) The Andean Trade Preference Act (19 U.S.C. 3201 et
seq.).
(P) The African Growth and Opportunity Act (19 U.S.C. 3701
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 March 28, 1928 (45 Stat. 374, chapter 266;
19 U.S.C. 2077 et seq.).
(W) The Act of August 7, 1939 (53 Stat. 1263, chapter 566).
(X) Any other provision of law implementing a trade
agreement.
(Y) Any other provision of law vesting customs revenue
functions in the Secretary of the Treasury.
(Z) Any other provision of law relating to trade
facilitation or trade enforcement that is
[[Page H4273]]
administered by U.S. Customs and Border Protection on behalf
of any Federal agency that is required to participate in the
International Trade Data System.
(AA) Any other provision of customs or trade law
administered by U.S. Customs and Border Protection or U.S.
Immigration and Customs Enforcement.
(4) Private sector entity.--The term ``private sector
entity'' means--
(A) an importer;
(B) an exporter;
(C) a forwarder;
(D) an air, sea, or land carrier or shipper;
(E) a contract logistics provider;
(F) a customs broker; or
(G) any other person (other than an employee of a
government) affected by the implementation of the customs and
trade laws of the United States.
(5) Trade enforcement.--The term ``trade enforcement''
means the enforcement of the customs and trade laws of the
United States.
(6) Trade facilitation.--The term ``trade facilitation''
refers to policies and activities of U.S. Customs and Border
Protection with respect to facilitating the movement of
merchandise into and out of the United States in a manner
that complies with the customs and trade laws of the United
States.
TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT
SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.
(a) In General.--In order to advance the security, trade
enforcement, and trade facilitation missions of U.S. Customs
and Border Protection, the Commissioner shall ensure that
partnership programs of U.S. Customs and Border Protection
established before the date of the enactment of this Act,
such as the Customs-Trade Partnership Against Terrorism
established under subtitle B of title II of the Security and
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et
seq.), and partnership programs of U.S. Customs and Border
Protection established after such date of enactment, provide
trade benefits to private sector entities that meet the
requirements for participation in those programs established
by the Commissioner under this section.
(b) Elements.--In developing and operating partnership
programs under subsection (a), the Commissioner shall--
(1) consult with private sector entities, the public, and
other Federal agencies when appropriate, to ensure that
participants in those programs receive commercially
significant and measurable trade benefits, including
providing preclearance of merchandise for qualified persons
that demonstrate the highest levels of compliance with the
customs and trade laws of the United States, regulations of
U.S. Customs and Border Protection, and other requirements
the Commissioner determines to be necessary;
(2) ensure an integrated and transparent system of trade
benefits and compliance requirements for all partnership
programs of U.S. Customs and Border Protection;
(3) consider consolidating partnership programs in
situations in which doing so would support the objectives of
such programs, increase participation in such programs,
enhance the trade benefits provided to participants in such
programs, and enhance the allocation of the resources of U.S.
Customs and Border Protection;
(4) coordinate with the Director of U.S. Immigration and
Customs Enforcement, and other Federal agencies with
authority to detain and release merchandise entering the
United States--
(A) to ensure coordination in the release of such
merchandise through the Automated Commercial Environment, or
its predecessor, and the International Trade Data System;
(B) to ensure that the partnership programs of those
agencies are compatible with the partnership programs of U.S.
Customs and Border Protection;
(C) to develop criteria for authorizing the release, on an
expedited basis, of merchandise for which documentation is
required from one or more of those agencies to clear or
license the merchandise for entry into the United States; and
(D) to create pathways, within and among the appropriate
Federal agencies, for qualified persons that demonstrate the
highest levels of compliance to receive immediate clearance
absent information that a transaction may pose a national
security or compliance threat; and
(5) ensure that trade benefits are provided to participants
in partnership programs.
(c) Report Required.--Not later than the date that is 180
days after the date of the enactment of this Act, and
December 31 of each year thereafter, the Commissioner 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) identifies each partnership program referred to in
subsection (a);
(2) for each such program, identifies--
(A) the requirements for participants in the program;
(B) the commercially significant and measurable trade
benefits provided to participants in the program;
(C) the number of participants in the program; and
(D) in the case of a program that provides for
participation at multiple tiers, the number of participants
at each such tier;
(3) identifies the number of participants enrolled in more
than one such partnership program;
(4) assesses the effectiveness of each such partnership
program in advancing the security, trade enforcement, and
trade facilitation missions of U.S. Customs and Border
Protection, based on historical developments, the level of
participation in the program, and the evolution of benefits
provided to participants in the program;
(5) summarizes the efforts of U.S. Customs and Border
Protection to work with other Federal agencies with authority
to detain and release merchandise entering the United States
to ensure that partnership programs of those agencies are
compatible with partnership programs of U.S. Customs and
Border Protection;
(6) summarizes criteria developed with those agencies for
authorizing the release, on an expedited basis, of
merchandise for which documentation is required from one or
more of those agencies to clear or license the merchandise
for entry into the United States;
(7) summarizes the efforts of U.S. Customs and Border
Protection to work with private sector entities and the
public to develop and improve partnership programs referred
to in subsection (a);
(8) describes measures taken by U.S. Customs and Border
Protection to make private sector entities aware of the trade
benefits available to participants in such programs; and
(9) summarizes the plans, targets, and goals of U.S.
Customs and Border Protection with respect to such programs
for the 2 years following the submission of the report.
SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT
ACTIVITIES.
(a) In General.--Not later than one year after the date of
the 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 U.S. Customs and Border Protection.
(b) Contents.--The report required by subsection (a) shall
include--
(1) a description of the use of resources, results of
audits and verifications, targeting, organization, and
training of personnel of U.S. Customs and Border Protection;
(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; and
(3) a description of trade enforcement activities with
respect to 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 111(a) of this Act, including--
(A) methodologies used in such enforcement activities, such
as targeting;
(B) recommendations for improving such enforcement
activities; and
(C) a description of the implementation of previous
recommendations for improving such enforcement activities.
(c) Form of Report.--The report required by subsection (a)
shall be submitted in unclassified form, but may include a
classified annex.
SEC. 103. 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, in consultation with the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives, 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.
(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 111(a) of this Act.
(3) The Centers of Excellence and Expertise described in
section 110 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 906 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) Consultations and Notification.--
(1) Consultations.--The consultations required by
subsection (a)(1) shall occur, at a minimum, on an annual
basis.
(2) Notification.--The Commissioner shall notify the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives of any changes to
the priorities referred to in subsection (a) not later than
30 days before such changes are to take effect.
SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY
AND APPRAISE IMPORTED ARTICLES, TO IMPROVE
TRADE ENFORCEMENT EFFORTS, AND TO OTHERWISE
FACILITATE LEGITIMATE INTERNATIONAL TRADE.
(a) In General.--
(1) Establishment.--The Commissioner and the Director shall
establish and carry out on a fiscal year basis educational
seminars to--
[[Page H4274]]
(A) improve the ability of U.S. Customs and Border
Protection personnel to classify and appraise articles
imported into the United States in accordance with the
customs and trade laws of the United States;
(B) improve the trade enforcement efforts of U.S. Customs
and Border Protection personnel and U.S. Immigration and
Customs Enforcement personnel; and
(C) otherwise improve the ability and effectiveness of U.S.
Customs and Border Protection personnel and U.S. Immigration
and Customs Enforcement personnel to facilitate legitimate
international trade.
(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
personnel and, as appropriate, to U.S. Immigration and
Customs Enforcement 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 personnel and, as appropriate,
to U.S. Immigration and Customs Enforcement 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 and the Director
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 Duty
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 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, 2016, the
Commissioner and the Director shall submit to the Committee
of Finance of the Senate and the Committee of Ways and Means
of the House of Representatives an annual report on the
effectiveness of educational seminars under this section.
(g) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
U.S. Immigration and Customs Enforcement.
(2) 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.
(3) U.S. customs and border protection personnel.--The term
``U.S. Customs and Border Protection personnel'' means import
specialists, auditors, and other appropriate employees of
U.S. Customs and Border Protection.
(4) U.S. immigration and customs enforcement personnel.--
The term ``U.S. Immigration and Customs Enforcement
personnel'' means Homeland Security Investigations
Directorate personnel and other appropriate employees of U.S.
Immigration and Customs Enforcement.
SEC. 105. JOINT STRATEGIC PLAN.
(a) In General.--Not later than one year after the date of
the enactment of this Act, and every 2 years thereafter, the
Commissioner 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 trade enforcement and trade facilitation, and shall
include--
(1) a summary of actions taken during the 2-year period
preceding the submission of the plan to improve trade
enforcement and trade facilitation, including a description
and analysis of specific performance measures to evaluate the
progress of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement in meeting each such
responsibility;
(2) a statement of objectives and plans for further
improving trade enforcement and trade facilitation;
(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 111(a) of this Act, that can be
addressed in order to enhance trade enforcement and trade
facilitation, and a description of strategies and plans for
addressing each such issue, including--
(A) a description of the targeting methodologies used for
enforcement activities with respect to each such issue;
(B) recommendations for improving such enforcement
activities; and
(C) a description of the implementation of previous
recommendations for improving such enforcement activities;
(4) a description of efforts made to improve consultation
and coordination among and within Federal agencies, and in
particular between U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement, regarding trade
enforcement and trade facilitation;
(5) a description of the training that has occurred to date
within U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement to improve trade
enforcement and trade facilitation, including training under
section 104 of this Act;
(6) a description of efforts to work with the World Customs
Organization and other international organizations, in
consultation with other Federal agencies as appropriate, with
respect to enhancing trade enforcement and trade
facilitation;
(7) a description of U.S. Customs and Border Protection
organizational benchmarks for optimizing staffing and wait
times at ports of entry;
(8) a specific identification of any domestic or
international best practices that may further improve trade
enforcement and trade facilitation;
(9) any legislative recommendations to further improve
trade enforcement and trade facilitation; and
(10) a description of efforts made to improve consultation
and coordination with the private sector to enhance trade
enforcement and trade 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
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 by section 109 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.
(d) Form of Plan.--The plan required by subsection (a)
shall be submitted in unclassified form, but may include a
classified annex.
SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.
(a) Funding.--Section 13031(f)(4)(B) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(f)(4)(B)) is amended--
(1) by striking ``2003 through 2005'' and inserting ``2016
through 2018'';
(2) by striking ``such amounts as are available in that
Account'' and inserting ``not less than $153,736,000''; and
(3) by striking ``for the development'' and inserting ``to
complete the development and implementation''.
(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, 2016, the
Commissioner responsible for 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 detailing--
[[Page H4275]]
``(i) U.S. Customs and Border Protection's incorporation of
all core trade processing capabilities, including cargo
release, entry summary, cargo manifest, cargo financial data,
and export data elements into the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget and
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)) not later
than September 30, 2016, 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) U.S. Customs and Border Protection's remaining
priorities for processing entry summary data elements, cargo
manifest data elements, cargo financial data elements, and
export elements in the Automated Commercial Environment
computer system, and the objectives and plans for
implementing these remaining priorities;
``(iii) the components of the National Customs Automation
Program specified in subsection (a)(2) of section 411 of the
Tariff Act of 1930 that have not been implemented; and
``(iv) any additional components of the National Customs
Automation Program initiated by the Commissioner to complete
the development, establishment, and implementation of the
Automated Commercial Environment computer system.
``(B) Update of reports.--Not later than September 30,
2017, 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), and--
``(i) evaluating the effectiveness of the implementation of
the Automated Commercial Environment computer system; and
``(ii) detailing the percentage of trade processed in the
Automated Commercial Environment every month since September
30, 2016.''.
(c) Government Accountability Office Report.--Not later
than December 31, 2017, 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) assessing the progress of other Federal agencies in
accessing and utilizing the Automated Commercial Environment;
and
(2) 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) through (iv) 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. 107. INTERNATIONAL TRADE DATA SYSTEM.
(a) Information Technology Infrastructure.--Section 411(d)
of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is amended--
(1) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(2) by inserting after paragraph (3) the following:
``(4) Information technology infrastructure.--
``(A) In general.--The Secretary shall work with the head
of each agency participating in the ITDS and the Interagency
Steering Committee to ensure that each agency--
``(i) develops and maintains the necessary information
technology infrastructure to support the operation of the
ITDS and to submit all data to the ITDS electronically;
``(ii) enters into a memorandum of understanding, or takes
such other action as is necessary, to provide for the
information sharing between the agency and U.S. Customs and
Border Protection necessary for the operation and maintenance
of the ITDS;
``(iii) not later than June 30, 2016, identifies and
transmits to the Commissioner responsible for U.S. Customs
and Border Protection the admissibility criteria and data
elements required by the agency to authorize the release of
cargo by U.S. Customs and Border Protection for incorporation
into the operational functionality of the Automated
Commercial Environment computer system authorized under
section 13031(f)(4) of the Consolidated Omnibus Budget and
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)); and
``(iv) not later than December 31, 2016, utilizes the ITDS
as the primary means of receiving from users the standard set
of data and other relevant documentation, exclusive of
applications for permits, licenses, or certifications
required for the release of imported cargo and clearance of
cargo for export.
``(B) Rule of construction.--Nothing in this paragraph
shall be construed to require any action to be taken that
would compromise an ongoing law enforcement investigation or
national security.''; and
(3) 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 109 of
the Trade Facilitation and Trade Enforcement Act of 2015''.
SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION
ARRANGEMENTS.
(a) Consultations.--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
consult--
(1) not later than 30 days before initiating negotiations
to enter into any such arrangement or similar agreement, with
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives; and
(2) not later than 30 days before entering into any such
arrangement or similar agreement, with the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives.
(b) Negotiating Objective.--It shall be a negotiating
objective of the United States in any negotiation for a
mutual recognition arrangement with a foreign country on
partnership programs, such as the Customs-Trade Partnership
Against Terrorism established under subtitle B of title II of
the Security and Accountability for Every Port Act of 2006 (6
U.S.C. 961 et seq.), to seek to ensure the compatibility of
the partnership programs of that country with the partnership
programs of U.S. Customs and Border Protection to enhance
trade facilitation and trade enforcement.
SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.
(a) Establishment.--Not later than the date that is 60 days
after the date of the 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 Commissioner, who shall
jointly co-chair meetings of the Advisory Committee; and
(C) the Assistant Secretary for Policy and the Director of
U.S. Immigration and Customs Enforcement of the Department of
Homeland Security, 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 U.S. Customs and Border
Protection; and
(ii) without regard to political affiliation.
(C) Terms.--Each individual appointed to the Advisory
Committee under this paragraph shall be appointed for a term
of not more than 3 years, and may be reappointed to
subsequent terms, but may not serve more than 2 terms
sequentially.
(3) Transfer of membership.--The Secretary of the Treasury
and the Secretary of Homeland Security may transfer members
serving on 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) on the day before the date of the enactment
of this Act to the Advisory Committee established under
subsection (a).
(c) Duties.--The Advisory Committee established under
subsection (a) shall--
(1) advise the Secretary of the Treasury and the Secretary
of Homeland Security on all matters involving the commercial
operations of U.S. Customs and Border Protection, including
advising with respect to significant changes that are
proposed with respect to regulations, policies, or practices
of U.S. Customs and Border Protection;
(2) provide recommendations to the Secretary of the
Treasury and the Secretary of Homeland Security on
improvements to the commercial operations of U.S. Customs and
Border Protection;
(3) collaborate in developing the agenda for Advisory
Committee meetings; and
(4) perform such other functions relating to the commercial
operations of U.S. Customs and Border Protection as
prescribed by law or as the Secretary of the Treasury and the
Secretary of Homeland Security jointly direct.
(d) Meetings.--
(1) In general.--The Advisory Committee shall meet at the
call of the Secretary of the Treasury and the Secretary of
Homeland Security, or at the call of not less than two-thirds
of the membership of the Advisory Committee. The Advisory
Committee shall meet at least 4 times each calendar year.
(2) Open meetings.--Notwithstanding section 10(a) of the
Federal Advisory Committee Act (5 U.S.C. App.), the Advisory
Committee meetings shall be open to the public unless the
Secretary of the Treasury or the Secretary of Homeland
Security determines that the meeting will include matters the
disclosure of which would compromise the development of
policies, priorities, or negotiating objectives or positions
that could impact the commercial operations of U.S. Customs
and Border Protection or the operations or investigations of
U.S. Immigration and Customs Enforcement.
(e) Annual Report.--Not later than December 31, 2016, and
annually thereafter, 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 U.S. Customs
and Border Protection.
(f) Termination.--Section 14(a)(2) 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.--
[[Page H4276]]
(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. 110. CENTERS OF EXCELLENCE AND EXPERTISE.
(a) In General.--The Commissioner shall, in consultation
with the Committee on Finance of the Senate, the Committee on
Ways and Means of the House of Representatives, and the
Commercial Customs Operations Advisory Committee established
by section 109 of this Act, develop and implement Centers of
Excellence and Expertise throughout U.S. Customs and Border
Protection that--
(1) enhance the economic competitiveness of the United
States by consistently enforcing the laws and regulations of
the United States at all ports of entry of the United States
and by facilitating the flow of legitimate trade through
increasing industry-based knowledge;
(2) improve enforcement efforts, including enforcement of
priority trade issues described in subparagraph (B)(ii) of
section 2(d)(3) of the Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2072(d)), as added by section 111(a)
of this Act, in specific industry sectors through the
application of targeting information from the Commercial
Targeting Division established under subparagraph (A) of such
section 2(d)(3) and from other means of verification;
(3) build upon the expertise of U.S. Customs and Border
Protection in particular industry operations, supply chains,
and compliance requirements;
(4) promote the uniform implementation at each port of
entry of the United States of policies and regulations
relating to imports;
(5) centralize the trade enforcement and trade facilitation
efforts of U.S. Customs and Border Protection;
(6) formalize an account-based approach to apply, as the
Commissioner determines appropriate, to the importation of
merchandise into the United States;
(7) foster partnerships though the expansion of trade
programs and other trusted partner programs;
(8) develop applicable performance measurements to meet
internal efficiency and effectiveness goals; and
(9) whenever feasible, facilitate a more efficient flow of
information between Federal agencies.
(b) Report.--Not later than December 31, 2016, the
Commissioner shall submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report describing--
(1) the scope, functions, and structure of each Center of
Excellence and Expertise developed and implemented under
subsection (a);
(2) the effectiveness of each such Center of Excellence and
Expertise in improving enforcement efforts, including
enforcement of priority trade issues, and facilitating
legitimate trade;
(3) the quantitative and qualitative benefits of each such
Center of Excellence and Expertise to the trade community,
including through fostering partnerships through the
expansion of trade programs such as the Importer Self
Assessment program and other trusted partner programs;
(4) all applicable performance measurements with respect to
each such Center of Excellence and Expertise, including
performance measures with respect to meeting internal
efficiency and effectiveness goals;
(5) the performance of each such Center of Excellence and
Expertise in increasing the accuracy and completeness of data
with respect to international trade and facilitating a more
efficient flow of information between Federal agencies; and
(6) any planned changes in the number, scope, functions or
any other aspect of the Centers of Excellence and Expertise
developed and implemented under subsection (a).
SEC. 111. 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)) is 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 for 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) Revenue.
``(ff) Textiles and wearing apparel.
``(gg) Trade agreements and preference programs.
``(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;
``(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 proposals to consolidate,
eliminate, or otherwise modify existing priority trade issues
not later than 60 days before such changes are to take
effect; and
``(cc) submits to the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of
Representatives a summary of proposals to establish new
priority trade issues not later than 30 days after 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 U.S. Customs and Border Protection
that relate to the Group's priority trade issue;
``(II) facilitating, promoting, and coordinating
cooperation and the exchange of information between U.S.
Customs and Border Protection, 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 U.S. Customs
and Border Protection 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 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 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
U.S. Customs and Border Protection unless providing such
information would compromise an ongoing law enforcement
investigation; 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 U.S. Customs and Border
Protection 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, to administer the methodologies and standards
established under clause (i)--
``(I) publicly available information;
``(II) 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, the TECS (formerly known
as the `Treasury Enforcement Communications System'), the
case management system of U.S. Immigration and Customs
Enforcement, and any successor systems; and
``(III) information made available to the Commercial
Targeting Division, including information provided by private
sector entities.
``(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 U.S. Customs
and Border Protection.
``(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
the director--
``(I) finds that such a determination is justified by
security interests; and
``(II) notifies the Assistant Commissioner of the Office of
Field Operations and the Assistant
[[Page H4277]]
Commissioner of International Trade of U.S. Customs and
Border Protection 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
U.S. Customs and Border Protection 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;
``(II) conduct an evaluation of the utilization of Trade
Alerts issued under clause (i); and
``(III) 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 U.S. Customs and Border Protection, 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 U.S. Customs and
Border Protection.''.
(b) Use of Trade Data for Commercial Enforcement
Purposes.--Section 343(a)(3)(F) of the Trade Act of 2002 (19
U.S.C. 2071 note) is amended to read as follows:
``(F) The information collected pursuant to the regulations
shall be used exclusively for ensuring cargo safety and
security, preventing smuggling, and commercial risk
assessment targeting, and shall not be used for any
commercial enforcement purposes, including for determining
merchandise entry. Notwithstanding the preceding sentence,
nothing in this section shall be treated as amending,
repealing, or otherwise modifying title IV of the Tariff Act
of 1930 or regulations prescribed thereunder.''.
SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND
ENFORCEMENT MEASURES.
(a) In General.--Not later than March 31, 2016, and not
later than March 31 of each second year thereafter, the
Inspector General of the Department of the Treasury 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, with respect to the period covered by the
report, as specified in subsection (b), the following:
(1) The effectiveness of the measures taken by U.S. Customs
and Border Protection with respect to protection of revenue,
including--
(A) the 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) the assessment, collection, and mitigation of
commercial fines and penalties;
(C) the use of bonds, including continuous and single
transaction bonds, to secure that revenue; and
(D) the adequacy of the policies of U.S. Customs and Border
Protection with respect to the monitoring and tracking of
merchandise transported in bond and collecting duties, as
appropriate.
(2) The effectiveness of actions taken by U.S. Customs and
Border Protection to measure accountability and performance
with respect to protection of revenue.
(3) The number and outcome of investigations instituted by
U.S. Customs and Border Protection with respect to the
underpayment of duties.
(4) The effectiveness of training with respect to the
collection of duties provided for personnel of U.S. Customs
and Border Protection.
(b) Period Covered by Report.--Each report required by
subsection (a) shall cover the period of 2 fiscal years
ending on September 30 of the calendar year preceding the
submission of the report.
SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH
RESPECT TO MERCHANDISE TRANSPORTED IN BOND.
(a) In General.--Not later than December 31 of 2016, 2017,
and 2018, 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 U.S. Customs and Border Protection 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) Elements.--Each report required by subsection (a) shall
include, for the fiscal year preceding the submission of the
report, information 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 reexported;
(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. 114. IMPORTER OF RECORD PROGRAM.
(a) Establishment.--Not later than the date that is 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 shall ensure that, as part
of the importer of record program, U.S. Customs and Border
Protection--
(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 U.S. Customs and Border Protection to verify the
existence of the importer requesting the importer of record
number;
(B) criteria to ensure sufficient information is collected
to allow U.S. Customs and Border Protection 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 U.S. Customs and Border Protection 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 and maintains the accuracy of the database if
such information changes; and
(5) takes measures to ensure that duplicate importer of
record numbers are not issued.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary 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 (or any corresponding
similar regulation) that fully supports the requirements of
subsection (b) with respect to the collection and maintenance
of information.
SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM.
(a) In General.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Commissioner
shall establish a new importer program that directs U.S.
Customs and Border Protection to adjust bond amounts for new
importers based on the level of risk assessed by U.S. Customs
and Border Protection 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), U.S. Customs and Border Protection--
(1) develops risk-based criteria for determining which
importers are considered to be new importers for the purposes
of this subsection;
(2) 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;
(3) 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 111(a) of this Act;
(4) develops procedures to ensure increased oversight of
imported products of new importers by Centers of Excellence
and Expertise established under section 110 of this Act; and
(5) establishes a centralized database of new importers to
ensure accuracy of information that is required to be
provided by new importers to U.S. Customs and Border
Protection.
TITLE II--IMPORT HEALTH AND SAFETY
SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.
(a) Establishment.--There is established an interagency
Import Safety Working Group.
(b) Membership.--The interagency Import Safety Working
Group shall consist of the following officials or their
designees:
(1) The Secretary of Homeland Security, who shall serve as
the Chair.
(2) The Secretary of Health and Human Services, who shall
serve as the Vice Chair.
(3) The Secretary of the Treasury.
(4) The Secretary of Commerce.
(5) The Secretary of Agriculture.
(6) The United States Trade Representative.
(7) The Director of the Office of Management and Budget.
(8) The Commissioner of Food and Drugs.
(9) The Commissioner responsible for U.S. Customs and
Border Protection.
(10) The Chairman of the Consumer Product Safety
Commission.
(11) The Director of U.S. Immigration and Customs
Enforcement.
(12) The head of any other Federal agency designated by the
President to participate in the interagency Import Safety
Working Group, as appropriate.
(c) Duties.--The duties of the interagency Import Safety
Working Group shall include--
(1) consulting on the development of the joint import
safety rapid response plan required by section 202 of this
Act;
[[Page H4278]]
(2) periodically evaluating the adequacy of the plans,
practices, and resources of the Federal Government dedicated
to ensuring the safety of merchandise imported in the United
States and the expeditious entry of such merchandise,
including--
(A) minimizing the duplication of efforts among agencies
the heads of which are members of the interagency Import
Safety Working Group and ensuring the compatibility of the
policies and regulations of those agencies; and
(B) recommending additional administrative actions, as
appropriate, designed to ensure the safety of merchandise
imported into the United States and the expeditious entry of
such merchandise and considering the impact of those actions
on private sector entities;
(3) reviewing the engagement and cooperation of foreign
governments and foreign manufacturers in facilitating the
inspection and certification, as appropriate, of such
merchandise to be imported into the United States and the
facilities producing such merchandise to ensure the safety of
the merchandise and the expeditious entry of the merchandise
into the United States;
(4) identifying best practices, in consultation with
private sector entities as appropriate, to assist United
States importers in taking all appropriate steps to ensure
the safety of merchandise imported into the United States,
including with respect to--
(A) the inspection of manufacturing facilities in foreign
countries;
(B) the inspection of merchandise destined for the United
States before exportation from a foreign country or before
distribution in the United States; and
(C) the protection of the international supply chain (as
defined in section 2 of the Security and Accountability For
Every Port Act of 2006 (6 U.S.C. 901));
(5) identifying best practices to assist Federal, State,
and local governments and agencies, and port authorities, to
improve communication and coordination among such agencies
and authorities with respect to ensuring the safety of
merchandise imported into the United States and the
expeditious entry of such merchandise; and
(6) otherwise identifying appropriate steps to increase the
accountability of United States importers and the engagement
of foreign government agencies with respect to ensuring the
safety of merchandise imported into the United States and the
expeditious entry of such merchandise.
SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.
(a) In General.--Not later than December 31, 2016, the
Secretary of Homeland Security, in consultation with the
interagency Import Safety Working Group, shall develop a plan
(to be known as the ``joint import safety rapid response
plan'') that sets forth protocols and defines practices for
U.S. Customs and Border Protection to use--
(1) in taking action in response to, and coordinating
Federal responses to, an incident in which cargo destined for
or merchandise entering the United States has been identified
as posing a threat to the health or safety of consumers in
the United States; and
(2) in recovering from or mitigating the effects of actions
and responses to an incident described in paragraph (1).
(b) Contents.--The joint import safety rapid response plan
shall address--
(1) the statutory and regulatory authorities and
responsibilities of U.S. Customs and Border Protection and
other Federal agencies in responding to an incident described
in subsection (a)(1);
(2) the protocols and practices to be used by U.S. Customs
and Border Protection when taking action in response to, and
coordinating Federal responses to, such an incident;
(3) the measures to be taken by U.S. Customs and Border
Protection and other Federal agencies in recovering from or
mitigating the effects of actions taken in response to such
an incident after the incident to ensure the resumption of
the entry of merchandise into the United States; and
(4) exercises that U.S. Customs and Border Protection may
conduct in conjunction with Federal, State, and local
agencies, and private sector entities, to simulate responses
to such an incident.
(c) Updates of Plan.--The Secretary of Homeland Security
shall review and update the joint import safety rapid
response plan, as appropriate, after conducting exercises
under subsection (d).
(d) Import Health and Safety Exercises.--
(1) In general.--The Secretary of Homeland Security and the
Commissioner shall periodically engage in the exercises
referred to in subsection (b)(4), in conjunction with
Federal, State, and local agencies and private sector
entities, as appropriate, to test and evaluate the protocols
and practices identified in the joint import safety rapid
response plan at United States ports of entry.
(2) Requirements for exercises.--In conducting exercises
under paragraph (1), the Secretary and the Commissioner
shall--
(A) make allowance for the resources, needs, and
constraints of United States ports of entry of different
sizes in representative geographic locations across the
United States;
(B) base evaluations on current risk assessments of
merchandise entering the United States at representative
United States ports of entry located across the United
States;
(C) ensure that such exercises are conducted in a manner
consistent with the National Incident Management System, the
National Response Plan, the National Infrastructure
Protection Plan, the National Preparedness Guidelines, the
Maritime Transportation System Security Plan, and other such
national initiatives of the Department of Homeland Security,
as appropriate; and
(D) develop metrics with respect to the resumption of the
entry of merchandise into the United States after an incident
described in subsection (a)(1).
(3) Requirements for testing and evaluation.--The Secretary
and the Commissioner shall ensure that the testing and
evaluation carried out in conducting exercises under
paragraph (1)--
(A) are performed using clear and objective performance
measures; and
(B) result in the identification of specific
recommendations or best practices for responding to an
incident described in subsection (a)(1).
(4) Dissemination of recommendations and best practices.--
The Secretary and the Commissioner shall--
(A) share the recommendations or best practices identified
under paragraph (3)(B) among the members of the interagency
Import Safety Working Group and with, as appropriate--
(i) State, local, and tribal governments;
(ii) foreign governments; and
(iii) private sector entities; and
(B) use such recommendations and best practices to update
the joint import safety rapid response plan.
SEC. 203. TRAINING.
The Commissioner shall ensure that personnel of U.S.
Customs and Border Protection assigned to United States ports
of entry are trained to effectively administer the provisions
of this title and to otherwise assist in ensuring the safety
of merchandise imported into the United States and the
expeditious entry of such merchandise.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.
In this title, the term ``intellectual property rights''
refers to copyrights, trademarks, and other forms of
intellectual property rights that are enforced by U.S.
Customs and Border Protection or U.S. Immigration and Customs
Enforcement.
SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE
ENFORCEMENT.
(a) In General.--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) In General.--Subject to subsections (c) and (d), if
the Commissioner responsible for U.S. Customs and Border
Protection suspects that merchandise is being imported into
the United States in violation of section 526 of this Act or
section 602, 1201(a)(2), or 1201(b)(1) of title 17, United
States Code, and determines that the examination or testing
of the merchandise by a person described in subsection (b)
would assist the Commissioner in determining if the
merchandise is being imported in violation of that section,
the Commissioner, to permit the person to conduct the
examination and testing--
``(1) shall provide to the person information that appears
on the merchandise and its packaging and labels, including
unredacted images of the merchandise and its packaging and
labels; and
``(2) may, subject to any applicable bonding requirements,
provide to the person unredacted samples of the merchandise.
``(b) Person Described.--A person described in this
subsection is--
``(1) in the case of merchandise suspected of being
imported in violation of section 526, the owner of the
trademark suspected of being copied or simulated by the
merchandise;
``(2) in the case of merchandise suspected of being
imported in violation of section 602 of title 17, United
States Code, the owner of the copyright suspected of being
infringed by the merchandise;
``(3) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing a technological measure that effectively
controls access to a work protected under that title, and
being imported in violation of section 1201(a)(2) of that
title, the owner of a copyright in the work; and
``(4) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing protection afforded by a technological measure
that effectively protects a right of an owner of a copyright
in a work or a portion of a work, and being imported in
violation of section 1201(b)(1) of that title, the owner of
the copyright.
``(c) Limitation.--Subsection (a) applies only with respect
to merchandise suspected of infringing a trademark or
copyright that is recorded with U.S. Customs and Border
Protection.
``(d) Exception.--The Commissioner may not provide under
subsection (a) information, photographs, or samples to a
person described in subsection (b) if providing such
information, photographs, or samples would compromise an
ongoing law enforcement investigation or national
security.''.
(b) Termination of Previous Authority.--Notwithstanding
paragraph (2) of section 818(g) of Public Law 112-81 (125
Stat. 1496), paragraph (1) of that section shall have no
force or effect on or after the date of the enactment of this
Act.
SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.
(a) In General.--Section 596(c)(2) of the Tariff Act of
1930 (19 U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'';
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) U.S. Customs and Border Protection determines it is a
technology, product, service, device, component, or part
thereof the importation of which is prohibited under
subsection (a)(2) or (b)(1) of section 1201 of title 17,
United States Code.''.
[[Page H4279]]
(b) Notification of Persons Injured.--
(1) In general.--Not later than the date that is 30
business days after seizing merchandise pursuant to
subparagraph (G) of section 596(c)(2) of the Tariff Act of
1930, as added by subsection (a), the Commissioner shall
provide to any person identified under paragraph (2)
information regarding the merchandise seized that is
equivalent to information provided to copyright owners under
regulations of U.S. Customs and Border Protection for
merchandise seized for violation of the copyright laws.
(2) Persons to be provided information.--Any person injured
by the violation of (a)(2) or (b)(1) of section 1201 of title
17, United States Code, that resulted in the seizure of the
merchandise shall be provided information under paragraph
(1), if that person is included on a list maintained by the
Commissioner that is revised annually through publication in
the Federal Register.
(3) Regulations.--Not later than one year after the date of
the enactment of this Act, the Secretary of the Treasury
shall prescribe regulations establishing procedures that
implement this subsection.
SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION
OF WORKS FOR WHICH COPYRIGHT REGISTRATION IS
PENDING.
Not later than the date that is 180 days after the date of
the enactment of this Act, the Secretary of Homeland Security
shall authorize a process pursuant to which the Commissioner
shall enforce a copyright for which the owner has submitted
an application for registration under title 17, United States
Code, with the United States Copyright Office, to the same
extent and in the same manner as if the copyright were
registered with the Copyright Office, including by sharing
information, images, and samples of merchandise suspected of
infringing the copyright under section 628A of the Tariff Act
of 1930, as added by section 302.
SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION
CENTER.
(a) Establishment.--The Secretary of Homeland Security
shall--
(1) establish within U.S. Immigration and Customs
Enforcement a National Intellectual Property Rights
Coordination Center; and
(2) appoint an Assistant Director to head the National
Intellectual Property Rights Coordination Center.
(b) Duties.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall--
(1) coordinate the investigation of sources of merchandise
that infringe intellectual property rights to identify
organizations and individuals that produce, smuggle, or
distribute such merchandise;
(2) conduct and coordinate training with other domestic and
international law enforcement agencies on investigative best
practices--
(A) to develop and expand the capability of such agencies
to enforce intellectual property rights; and
(B) to develop metrics to assess whether the training
improved enforcement of intellectual property rights;
(3) coordinate, with U.S. Customs and Border Protection,
activities conducted by the United States to prevent the
importation or exportation of merchandise that infringes
intellectual property rights;
(4) support the international interdiction of merchandise
destined for the United States that infringes intellectual
property rights;
(5) collect and integrate information regarding
infringement of intellectual property rights from domestic
and international law enforcement agencies and other non-
Federal sources;
(6) develop a means to receive and organize information
regarding infringement of intellectual property rights from
such agencies and other sources;
(7) disseminate information regarding infringement of
intellectual property rights to other Federal agencies, as
appropriate;
(8) develop and implement risk-based alert systems, in
coordination with U.S. Customs and Border Protection, to
improve the targeting of persons that repeatedly infringe
intellectual property rights;
(9) coordinate with the offices of United States attorneys
in order to develop expertise in, and assist with the
investigation and prosecution of, crimes relating to the
infringement of intellectual property rights; and
(10) carry out such other duties as the Secretary of
Homeland Security may assign.
(c) Coordination With Other Agencies.--In carrying out the
duties described in subsection (b), the Assistant Director of
the National Intellectual Property Rights Coordination Center
shall coordinate with--
(1) U.S. Customs and Border Protection;
(2) the Food and Drug Administration;
(3) the Department of Justice;
(4) the Department of Commerce, including the United States
Patent and Trademark Office;
(5) the United States Postal Inspection Service;
(6) the Office of the United States Trade Representative;
(7) any Federal, State, local, or international law
enforcement agencies that the Director of U.S. Immigration
and Customs Enforcement considers appropriate; and
(8) any other entities that the Director considers
appropriate.
(d) Private Sector Outreach.--
(1) In general.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall work
with U.S. Customs and Border Protection and other Federal
agencies to conduct outreach to private sector entities in
order to determine trends in and methods of infringing
intellectual property rights.
(2) Information sharing.--The Assistant Director shall
share information and best practices with respect to the
enforcement of intellectual property rights with private
sector entities, as appropriate, in order to coordinate
public and private sector efforts to combat the infringement
of intellectual property rights.
SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF
INTELLECTUAL PROPERTY RIGHTS.
The Commissioner and the Director of U.S. Immigration and
Customs Enforcement shall include in the joint strategic plan
required by section 105 of this Act--
(1) a description of the efforts of the Department of
Homeland Security to enforce intellectual property rights;
(2) a list of the 10 United States ports of entry at which
U.S. Customs and Border Protection has seized the most
merchandise, both by volume and by value, that infringes
intellectual property rights during the most recent 2-year
period for which data are available; and
(3) a recommendation for the optimal allocation of
personnel, resources, and technology to ensure that U.S.
Customs and Border Protection and U.S. Immigration and
Customs Enforcement are adequately enforcing intellectual
property rights.
SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF
INTELLECTUAL PROPERTY RIGHTS.
(a) Personnel of U.S. Customs and Border Protection.--The
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall ensure that sufficient personnel are
assigned throughout U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement, respectively, who
have responsibility for preventing the importation into the
United States of merchandise that infringes intellectual
property rights.
(b) Staffing of National Intellectual Property Rights
Coordination Center.--The Commissioner shall--
(1) assign not fewer than 3 full-time employees of U.S.
Customs and Border Protection to the National Intellectual
Property Rights Coordination Center established under section
305 of this Act; and
(2) ensure that sufficient personnel are assigned to United
States ports of entry to carry out the directives of the
Center.
SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF
INTELLECTUAL PROPERTY RIGHTS.
(a) Training.--The Commissioner shall ensure that officers
of U.S. Customs and Border Protection are trained to
effectively detect and identify merchandise destined for the
United States that infringes intellectual property rights,
including through the use of technologies identified under
subsection (c).
(b) Consultation With Private Sector.--The Commissioner
shall consult with private sector entities to better identify
opportunities for collaboration between U.S. Customs and
Border Protection and such entities with respect to training
for officers of U.S. Customs and Border Protection in
enforcing intellectual property rights.
(c) Identification of New Technologies.--In consultation
with private sector entities, the Commissioner shall
identify--
(1) technologies with the cost-effective capability to
detect and identify merchandise at United States ports of
entry that infringes intellectual property rights; and
(2) cost-effective programs for training officers of U.S.
Customs and Border Protection to use such technologies.
(d) Donations of Technology.--Not later than the date that
is 180 days after the date of the enactment of this Act, the
Commissioner shall prescribe regulations to enable U.S.
Customs and Border Protection to receive donations of
hardware, software, equipment, and similar technologies, and
to accept training and other support services, from private
sector entities, for the purpose of enforcing intellectual
property rights.
SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.
(a) Cooperation.--The Secretary of Homeland Security shall
coordinate with the competent law enforcement and customs
authorities of foreign countries, including by sharing
information relevant to enforcement actions, to enhance the
efforts of the United States and such authorities to enforce
intellectual property rights.
(b) Technical Assistance.--The Secretary of Homeland
Security shall provide technical assistance to competent law
enforcement and customs authorities of foreign countries to
enhance the ability of such authorities to enforce
intellectual property rights.
(c) Interagency Collaboration.--The Commissioner and the
Director of U.S. Immigration and Customs Enforcement shall
lead interagency efforts to collaborate with law enforcement
and customs authorities of foreign countries to enforce
intellectual property rights.
SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.
Not later than June 30, 2016, and annually thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement 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 that contains the
following:
(1) With respect to the enforcement of intellectual
property rights, the following:
(A) The number of referrals from U.S. Customs and Border
Protection to U.S. Immigration and Customs Enforcement
relating to infringement of intellectual property rights
during the preceding year.
(B) The number of investigations relating to the
infringement of intellectual property rights referred by U.S.
Immigration and Customs Enforcement to a United States
attorney for prosecution and the United States attorneys to
which those investigations were referred.
[[Page H4280]]
(C) The number of such investigations accepted by each such
United States attorney and the status or outcome of each such
investigation.
(D) The number of such investigations that resulted in the
imposition of civil or criminal penalties.
(E) A description of the efforts of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement to
improve the success rates of investigations and prosecutions
relating to the infringement of intellectual property rights.
(2) An estimate of the average time required by the Office
of International Trade of U.S. Customs and Border Protection
to respond to a request from port personnel for advice with
respect to whether merchandise detained by U.S. Customs and
Border Protection infringed intellectual property rights,
distinguished by types of intellectual property rights
infringed.
(3) A summary of the outreach efforts of U.S. Customs and
Border Protection and U.S. Immigration and Customs
Enforcement with respect to--
(A) the interdiction and investigation of, and the sharing
of information between those agencies and other Federal
agencies to prevent the infringement of intellectual property
rights;
(B) collaboration with private sector entities--
(i) to identify trends in the infringement of, and
technologies that infringe, intellectual property rights;
(ii) to identify opportunities for enhanced training of
officers of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement; and
(iii) to develop best practices to enforce intellectual
property rights; and
(C) coordination with foreign governments and international
organizations with respect to the enforcement of intellectual
property rights.
(4) A summary of the efforts of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement to
address the challenges with respect to the enforcement of
intellectual property rights presented by Internet commerce
and the transit of small packages and an identification of
the volume, value, and type of merchandise seized for
infringing intellectual property rights as a result of such
efforts.
(5) A summary of training relating to the enforcement of
intellectual property rights conducted under section 308 of
this Act and expenditures for such training.
SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF
INTELLECTUAL PROPERTY RIGHTS.
(a) In General.--The Secretary of Homeland Security shall
develop and carry out an educational campaign to inform
travelers entering or leaving the United States about the
legal, economic, and public health and safety implications of
acquiring merchandise that infringes intellectual property
rights outside the United States and importing such
merchandise into the United States in violation of United
States law.
(b) Declaration Forms.--The Commissioner shall ensure that
all versions of Declaration Form 6059B of U.S. Customs and
Border Protection, or a successor form, including any
electronic equivalent of Declaration Form 6059B or a
successor form, printed or displayed on or after the date
that is 30 days after the date of the enactment of this Act
include a written warning to inform travelers arriving in the
United States that importation of merchandise into the United
States that infringes intellectual property rights may
subject travelers to civil or criminal penalties and may pose
serious risks to safety or health.
TITLE IV--EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY ORDERS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Enforcing Orders and
Reducing Customs Evasion Act of 2015''.
SEC. 402. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
(a) In General.--The Tariff Act of 1930 is amended by
inserting after section 516A (19 U.S.C. 1516a) the following:
``SEC. 517. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
``(a) Definitions.--In this section:
``(1) Administering authority.--The term `administering
authority' has the meaning given that term in section 771(1).
``(2) Commissioner.--The term `Commissioner' means the
Commissioner responsible for U.S. Customs and Border
Protection, acting pursuant to the delegation by the
Secretary of the Treasury of the authority of the Secretary
with respect to customs revenue functions (as defined in
section 415 of the Homeland Security Act of 2002 (6 U.S.C.
215)).
``(3) Covered merchandise.--The term `covered merchandise'
means merchandise that is subject to--
``(A) an antidumping duty order issued under section 736;
``(B) a finding issued under the Antidumping Act, 1921; or
``(C) a countervailing duty order issued under section 706.
``(4) Enter; entry.--The terms `enter' and `entry' refer to
the entry, or withdrawal from warehouse for consumption, of
merchandise in the customs territory of the United States.
``(5) Evasion.--
``(A) In general.--Except as provided in subparagraph (B),
the term `evasion' refers 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.
``(B) Exception for clerical error.--
``(i) In general.--Except as provided in clause (ii), the
term `evasion' does not include entering covered merchandise
into the customs territory of the United States by means of--
``(I) a document or electronically transmitted data or
information, written or oral statement, or act that is false
as a result of a clerical error; or
``(II) an omission that results from a clerical error.
``(ii) Patterns of negligent conduct.--If the Commissioner
determines that a person has entered covered merchandise into
the customs territory of the United States by means of a
clerical error referred to in subclause (I) or (II) of clause
(i) and that the clerical error is part of a pattern of
negligent conduct on the part of that person, the
Commissioner may determine, notwithstanding clause (i), that
the person has entered such covered merchandise into the
customs territory of the United States through evasion.
``(iii) Electronic repetition of errors.--For purposes of
clause (ii), the mere nonintentional repetition by an
electronic system of an initial clerical error does not
constitute a pattern of negligent conduct.
``(iv) Rule of construction.--A determination by the
Commissioner that a person has entered covered merchandise
into the customs territory of the United States by means of a
clerical error referred to in subclause (I) or (II) of clause
(i) rather than through evasion shall not be construed to
excuse that person from the payment of any duties applicable
to the merchandise.
``(6) Interested party.--
``(A) In general.--The term `interested party' means--
``(i) a manufacturer, producer, or wholesaler in the United
States of a domestic like product;
``(ii) a certified union or recognized union or group of
workers that is representative of an industry engaged in the
manufacture, production, or wholesale in the United States of
a domestic like product;
``(iii) a trade or business association a majority of whose
members manufacture, produce, or wholesale a domestic like
product in the United States;
``(iv) an association, a majority of whose members is
composed of interested parties described in clause (i), (ii),
or (iii) with respect to a domestic like product; and
``(v) if the covered merchandise is a processed
agricultural product, as defined in section 771(4)(E), a
coalition or trade association that is representative of
either--
``(I) processors;
``(II) processors and producers; or
``(III) processors and growers,
but this clause shall cease to have effect if the United
States Trade Representative notifies the administering
authority and the Commission that the application of this
clause is inconsistent with the international obligations of
the United States.
``(B) Domestic like product.--For purposes of subparagraph
(A), the term `domestic like product' means a product that is
like, or in the absence of like, most similar in
characteristics and uses with, covered merchandise.
``(b) Investigations.--
``(1) In general.--Not later than 10 business days after
receiving an allegation described in paragraph (2) or a
referral described in paragraph (3), the Commissioner shall
initiate an investigation if the Commissioner determines that
the information provided in the allegation or the referral,
as the case may be, reasonably suggests that covered
merchandise has been entered into the customs territory of
the United States through evasion.
``(2) Allegation described.--An allegation described in
this paragraph is an allegation that a person has entered
covered merchandise into the customs territory of the United
States through evasion that is--
``(A) filed with the Commissioner by an interested party;
and
``(B) accompanied by information reasonably available to
the party that filed the allegation.
``(3) Referral described.--A referral described in this
paragraph is information submitted to the Commissioner by any
other Federal agency, including the Department of Commerce or
the United States International Trade Commission, that
reasonably suggests that a person has entered covered
merchandise into the customs territory of the United States
through evasion.
``(4) Consolidation of allegations and referrals.--
``(A) In general.--The Commissioner may consolidate
multiple allegations described in paragraph (2) and referrals
described in paragraph (3) into a single investigation if the
Commissioner determines it is appropriate to do so.
``(B) Effect on timing requirements.--If the Commissioner
consolidates multiple allegations or referrals into a single
investigation under subparagraph (A), the date on which the
Commissioner receives the first such allegation or referral
shall be used for purposes of the requirement under paragraph
(1) with respect to the timing of the initiation of the
investigation.
``(5) Information-sharing to protect health and safety.--
If, during the course of conducting an investigation under
paragraph (1) with respect to covered merchandise, the
Commissioner has reason to suspect that such covered
merchandise may pose a health or safety risk to consumers,
the Commissioner shall provide, as appropriate, information
to the appropriate Federal agencies for purposes of
mitigating the risk.
``(6) Technical assistance and advice.--
[[Page H4281]]
``(A) In general.--Upon request, the Commissioner shall
provide technical assistance and advice to eligible small
businesses to enable such businesses to prepare and submit
allegations described in paragraph (2), except that the
Commissioner may deny assistance if the Commissioner
concludes that the allegation, if submitted, would not lead
to the initiation of an investigation under this subsection
or any other action to address the allegation.
``(B) Eligible small business defined.--
``(i) In general.--In this paragraph, the term `eligible
small business' means any business concern that the
Commissioner determines, due to its small size, has neither
adequate internal resources nor the financial ability to
obtain qualified outside assistance in preparing and filing
allegations described in paragraph (2).
``(ii) Non-reviewability.--The determination of the
Commissioner regarding whether a business concern is an
eligible small business for purposes of this paragraph is not
reviewable by any other agency or by any court.
``(c) Determinations.--
``(1) In general.--Not later than 270 calendar days after
the date on which the Commissioner initiates an investigation
under subsection (b) with respect to covered merchandise, the
Commissioner shall make a determination, based on substantial
evidence, with respect to whether such covered merchandise
was entered into the customs territory of the United States
through evasion.
``(2) Authority to collect and verify additional
information.--In making a determination under paragraph (1)
with respect to covered merchandise, the Commissioner may
collect such additional information as is necessary to make
the determination through such methods as the Commissioner
considers appropriate, including by--
``(A) issuing a questionnaire with respect to such covered
merchandise to--
``(i) an interested party that filed an allegation under
paragraph (2) of subsection (b) that resulted in the
initiation of an investigation under paragraph (1) of that
subsection with respect to such covered merchandise;
``(ii) a person alleged to have entered such covered
merchandise into the customs territory of the United States
through evasion;
``(iii) a person that is a foreign producer or exporter of
such covered merchandise; or
``(iv) the government of a country from which such covered
merchandise was exported; and
``(B) conducting verifications, including on-site
verifications, of any relevant information.
``(3) Adverse inference.--If the Commissioner finds that a
party or person described in clause (i), (ii), or (iii) of
paragraph (2)(A) has failed to cooperate by not acting to the
best of the party or person's ability to comply with a
request for information, the Commissioner may, in making a
determination under paragraph (1), use an inference that is
adverse to the interests of that party or person in selecting
from among the facts otherwise available to make the
determination.
``(4) Notification.--Not later than 5 business days after
making a determination under paragraph (1) with respect to
covered merchandise, the Commissioner--
``(A) shall provide to each interested party that filed an
allegation under paragraph (2) of subsection (b) that
resulted in the initiation of an investigation under
paragraph (1) of that subsection with respect to such covered
merchandise a notification of the determination and may, in
addition, include an explanation of the basis for the
determination; and
``(B) may provide to importers, in such manner as the
Commissioner determines appropriate, information discovered
in the investigation that the Commissioner determines will
help educate importers with respect to importing merchandise
into the customs territory of the United States in accordance
with all applicable laws and regulations.
``(d) Effect of Determinations.--
``(1) In general.--If the Commissioner makes a
determination under subsection (c) that covered merchandise
was entered into the customs territory of the United States
through evasion, the Commissioner shall--
``(A)(i) suspend the liquidation of unliquidated entries of
such covered merchandise that are subject to the
determination and that enter on or after the date of the
initiation of the investigation under subsection (b) with
respect to such covered merchandise and on or before the date
of the determination; or
``(ii) if the Commissioner has already suspended the
liquidation of such entries pursuant to subsection (e)(1),
continue to suspend the liquidation of such entries;
``(B) pursuant to the Commissioner's authority under
section 504(b)--
``(i) extend the period for liquidating unliquidated
entries of such covered merchandise that are subject to the
determination and that entered before the date of the
initiation of the investigation; or
``(ii) if the Commissioner has already extended the period
for liquidating such entries pursuant to subsection (e)(1),
continue to extend the period for liquidating such entries;
``(C) notify the administering authority of the
determination and request that the administering authority--
``(i) identify the applicable antidumping or countervailing
duty assessment rates for entries described in subparagraphs
(A) and (B); or
``(ii) if no such assessment rate for such an entry is
available at the time, identify the applicable cash deposit
rate to be applied to the entry, with the applicable
antidumping or countervailing duty assessment rate to be
provided as soon as that rate becomes available;
``(D) require the posting of cash deposits and assess
duties on entries described in subparagraphs (A) and (B) in
accordance with the instructions received from the
administering authority under paragraph (2); and
``(E) take such additional enforcement measures as the
Commissioner determines appropriate, such as--
``(i) initiating proceedings under section 592 or 596;
``(ii) implementing, in consultation with the relevant
Federal agencies, rule sets or modifications to rules sets
for identifying, particularly through the Automated Targeting
System and the Automated Commercial Environment authorized
under section 13031(f) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(f)), importers,
other parties, and merchandise that may be associated with
evasion;
``(iii) requiring, with respect to merchandise for which
the importer has repeatedly provided incomplete or erroneous
entry summary information in connection with determinations
of evasion, the importer to deposit estimated duties at the
time of entry; and
``(iv) referring the record in whole or in part to U.S.
Immigration and Customs Enforcement for civil or criminal
investigation.
``(2) Cooperation of administering authority.--
``(A) In general.--Upon receiving a notification from the
Commissioner under paragraph (1)(C), the administering
authority shall promptly provide to the Commissioner the
applicable cash deposit rates and antidumping or
countervailing duty assessment rates and any necessary
liquidation instructions.
``(B) Special rule for cases in which the producer or
exporter is unknown.--If the Commissioner and the
administering authority are unable to determine the producer
or exporter of the merchandise with respect to which a
notification is made under paragraph (1)(C), the
administering authority shall identify, as the applicable
cash deposit rate or antidumping or countervailing duty
assessment rate, the cash deposit or duty (as the case may
be) in the highest amount applicable to any producer or
exporter, including the `all-others' rate of the merchandise
subject to an antidumping order or countervailing duty order
under section 736 or 706, respectively, or a finding issued
under the Antidumping Act, 1921, or any administrative review
conducted under section 751.
``(e) Interim Measures.--Not later than 90 calendar days
after initiating an investigation under subsection (b) with
respect to covered merchandise, the Commissioner shall decide
based on the investigation if there is a reasonable suspicion
that such covered merchandise was entered into the customs
territory of the United States through evasion and, if the
Commissioner decides there is such a reasonable suspicion,
the Commissioner shall--
``(1) suspend the liquidation of each unliquidated entry of
such covered merchandise that entered on or after the date of
the initiation of the investigation;
``(2) pursuant to the Commissioner's authority under
section 504(b), extend the period for liquidating each
unliquidated entry of such covered merchandise that entered
before the date of the initiation of the investigation; and
``(3) pursuant to the Commissioner's authority under
section 623, take such additional measures as the
Commissioner determines necessary to protect the revenue of
the United States, including requiring a single transaction
bond or additional security or the posting of a cash deposit
with respect to such covered merchandise.
``(f) Administrative Review.--
``(1) In general.--Not later than 30 business days after
the Commissioner makes a determination under subsection (c)
with respect to whether covered merchandise was entered into
the customs territory of the United States through evasion, a
person determined to have entered such covered merchandise
through evasion or an interested party that filed an
allegation under paragraph (2) of subsection (b) that
resulted in the initiation of an investigation under
paragraph (1) of that subsection with respect to such covered
merchandise may file an appeal with the Commissioner for de
novo review of the determination.
``(2) Timeline for review.--Not later than 60 business days
after an appeal of a determination is filed under paragraph
(1), the Commissioner shall complete the review of the
determination.
``(g) Judicial Review.--
``(1) In general.--Not later than 30 business days after
the Commissioner completes a review under subsection (f) of a
determination under subsection (c) with respect to whether
covered merchandise was entered into the customs territory of
the United States through evasion, a person determined to
have entered such covered merchandise through evasion or an
interested party that filed an allegation under paragraph (2)
of subsection (b) that resulted in the initiation of an
investigation under paragraph (1) of that subsection with
respect to such covered merchandise may commence a civil
action in the United States Court of International Trade by
filing concurrently a summons and complaint contesting any
factual findings or legal conclusions upon which the
determination is based.
``(2) Standard of review.--In a civil action under this
subsection, the court shall hold unlawful any determination,
finding, or conclusion found to be arbitrary, capricious, an
abuse of discretion, or otherwise not in accordance with law.
``(h) Rule of Construction With Respect to Other Civil and
Criminal Proceedings and Investigations.--No determination
under subsection (c) or action taken by the Commissioner
pursuant to this section shall be construed to limit the
authority to carry out, or the scope of, any other proceeding
or investigation pursuant to any other provision of Federal
or State law, including sections 592 and 596.''.
(b) Conforming Amendment.--Section 1581(c) of title 28,
United States Code, is amended by inserting ``or 517'' after
``516A''.
[[Page H4282]]
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 180 days after the date
of the enactment of this Act.
(d) Regulations.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Secretary of
the Treasury shall prescribe such regulations as may be
necessary to implement the amendments made by this section.
(e) 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), the amendments made by this section
shall apply with respect to goods from Canada and Mexico.
SEC. 403. ANNUAL REPORT ON PREVENTION AND INVESTIGATION OF
EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS.
(a) In General.--Not later than January 15 of each calendar
year that begins on or after the date that is 270 days after
the date of the enactment of this Act, the Commissioner, in
consultation with the Secretary of Commerce and the Director
of U.S. Immigration and Customs Enforcement, 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 efforts being taken to prevent and investigate the entry
of covered merchandise into the customs territory of the
United States through 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 U.S. Customs and Border
Protection to prevent and investigate the entry of covered
merchandise into the customs territory of the United States
through evasion;
(B) the number of allegations of evasion received under
subsection (b) of section 517 of the Tariff Act of 1930, as
added by section 402 of this Act, and the number of such
allegations resulting in investigations by U.S. Customs and
Border Protection or any other agency;
(C) a summary of investigations initiated under subsection
(b) of such section 517, including--
(i) the number and nature of the investigations initiated,
conducted, and completed; and
(ii) the resolution of each completed investigation;
(D) the number of investigations initiated under that
subsection not completed during the time provided for making
determinations under subsection (c) of such section 517 and
an explanation for why the investigations could not be
completed on time;
(E) the amount of additional duties that were determined to
be owed as a result of such investigations, the amount of
such duties that were collected, and, for any such duties not
collected, a description of the reasons those duties were not
collected;
(F) with respect to each such investigation that led to the
imposition of a penalty, the amount of the penalty;
(G) an identification of the countries of origin of covered
merchandise determined under subsection (c) of such section
517 to be entered into the customs territory of the United
States through evasion;
(H) the amount of antidumping and countervailing duties
collected as a result of any investigations or other actions
by U.S. Customs and Border Protection or any other agency;
(I) a description of the allocation of personnel and other
resources of U.S. Customs and Border Protection 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
(J) a description of training conducted to increase
expertise and effectiveness in the prevention and
investigation of evasion; and
(2) a description of processes and procedures of U.S.
Customs and Border Protection to prevent and investigate
evasion, including--
(A) the specific guidelines, policies, and practices used
by U.S. Customs and Border Protection to ensure that
allegations of evasion are promptly evaluated and acted upon
in a timely manner;
(B) an evaluation of the efficacy of those guidelines,
policies, and practices;
(C) an identification of any changes since the last report
required by this section, if any, that have materially
improved or reduced the effectiveness of U.S. Customs and
Border Protection in preventing and investigating 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 of not collecting
those duties;
(E) a description of 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) an identification of any recommended policy changes for
other Federal agencies or legislative changes to improve the
effectiveness of U.S. Customs and Border Protection in
preventing and investigating evasion.
(c) Public Summary.--The Commissioner shall make available
to the public a summary of the report required by subsection
(a) that includes, at a minimum--
(1) a description of the type of merchandise with respect
to which investigations were initiated under subsection (b)
of section 517 of the Tariff Act of 1930, as added by section
402 of this Act;
(2) the amount of additional duties determined to be owed
as a result of such investigations and the amount of such
duties that were collected;
(3) an identification of the countries of origin of covered
merchandise determined under subsection (c) of such section
517 to be entered into the customs territory of the United
States through evasion; and
(4) a description of the types of measures used by U.S.
Customs and Border Protection to prevent and investigate
evasion.
(d) Definitions.--In this section, the terms ``covered
merchandise'' and ``evasion'' have the meanings given those
terms in section 517(a) of the Tariff Act of 1930, as added
by section 402 of this Act.
TITLE V--AMENDMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS
SEC. 501. CONSEQUENCES OF FAILURE TO COOPERATE WITH A REQUEST
FOR INFORMATION IN A PROCEEDING.
Section 776 of the Tariff Act of 1930 (19 U.S.C. 1677e) is
amended--
(1) in subsection (b)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and by moving
such subparagraphs, as so redesignated, 2 ems to the right;
(B) by striking ``Adverse Inferences.--If'' and inserting
the following: ``Adverse Inferences.--
``(1) In general.--If'';
(C) by striking ``under this title, may use'' and inserting
the following: ``under this title--
``(A) may use''; and
(D) by striking ``facts otherwise available. Such adverse
inference may include'' and inserting the following: ``facts
otherwise available; and
``(B) is not required to determine, or make any adjustments
to, a countervailable subsidy rate or weighted average
dumping margin based on any assumptions about information the
interested party would have provided if the interested party
had complied with the request for information.
``(2) Potential sources of information for adverse
inferences.--An adverse inference under paragraph (1)(A) may
include'';
(2) in subsection (c)--
(A) by striking ``Corroboration of Secondary Information.--
When the'' and inserting the following: ``Corroboration of
Secondary Information.--
``(1) In general.--Except as provided in paragraph (2),
when the''; and
(B) by adding at the end the following:
``(2) Exception.--The administrative authority and the
Commission shall not be required to corroborate any dumping
margin or countervailing duty applied in a separate segment
of the same proceeding.''; and
(3) by adding at the end the following:
``(d) Subsidy Rates and Dumping Margins in Adverse
Inference Determinations.--
``(1) In general.--If the administering authority uses an
inference that is adverse to the interests of a party under
subsection (b)(1)(A) in selecting among the facts otherwise
available, the administering authority may--
``(A) in the case of a countervailing duty proceeding--
``(i) use a countervailable subsidy rate applied for the
same or similar program in a countervailing duty proceeding
involving the same country, or
``(ii) if there is no same or similar program, use a
countervailable subsidy rate for a subsidy program from a
proceeding that the administering authority considers
reasonable to use, and
``(B) in the case of an antidumping duty proceeding, use
any dumping margin from any segment of the proceeding under
the applicable antidumping order.
``(2) Discretion to apply highest rate.--In carrying out
paragraph (1), the administering authority may apply any of
the countervailable subsidy rates or dumping margins
specified under that paragraph, including the highest such
rate or margin, based on the evaluation by the administering
authority of the situation that resulted in the administering
authority using an adverse inference in selecting among the
facts otherwise available.
``(3) No obligation to make certain estimates or address
certain claims.--If the administering authority uses an
adverse inference under subsection (b)(1)(A) in selecting
among the facts otherwise available, the administering
authority is not required, for purposes of subsection (c) or
for any other purpose--
``(A) to estimate what the countervailable subsidy rate or
dumping margin would have been if the interested party found
to have failed to cooperate under subsection (b)(1) had
cooperated, or
``(B) to demonstrate that the countervailable subsidy rate
or dumping margin used by the administering authority
reflects an alleged commercial reality of the interested
party.''.
SEC. 502. DEFINITION OF MATERIAL INJURY.
(a) Effect of Profitability of Domestic Industries.--
Section 771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7))
is amended by adding at the end the following:
``(J) Effect of profitability.--The Commission shall not
determine that there is no material injury or threat of
material injury to an industry in the United States merely
because that industry is profitable or because the
performance of that industry has recently improved.''.
(b) Evaluation of Impact on Domestic Industry in
Determination of Material Injury.--Subclause (I) of section
771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C.
1677(7)(C)(iii)) is amended to read as follows:
``(I) actual and potential decline in output, sales, market
share, gross profits, operating profits, net profits, ability
to service debt, productivity, return on investments, return
on assets, and utilization of capacity,''.
(c) Captive Production.--Section 771(7)(C)(iv) of the
Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is amended--
[[Page H4283]]
(1) in subclause (I), by striking the comma and inserting
``, and'';
(2) in subclause (II), by striking ``, and'' and inserting
a comma; and
(3) by striking subclause (III).
SEC. 503. PARTICULAR MARKET SITUATION.
(a) Definition of Ordinary Course of Trade.--Section
771(15) of the Tariff Act of 1930 (19 U.S.C. 1677(15)) is
amended by adding at the end the following:
``(C) Situations in which the administering authority
determines that the particular market situation prevents a
proper comparison with the export price or constructed export
price.''.
(b) Definition of Normal Value.--Section
773(a)(1)(B)(ii)(III) of the Tariff Act of 1930 (19 U.S.C.
1677b(a)(1)(B)(ii)(III)) is amended by striking ``in such
other country.''.
(c) Definition of Constructed Value.--Section 773(e) of the
Tariff Act of 1930 (19 U.S.C. 1677b(e)) is amended--
(1) in paragraph (1), by striking ``business'' and
inserting ``trade''; and
(2) By striking the flush text at the end and inserting the
following:
``For purposes of paragraph (1), if a particular market
situation exists such that the cost of materials and
fabrication or other processing of any kind does not
accurately reflect the cost of production in the ordinary
course of trade, the administering authority may use another
calculation methodology under this subtitle or any other
calculation methodology. For purposes of paragraph (1), the
cost of materials shall be determined without regard to any
internal tax in the exporting country imposed on such
materials or their disposition that is remitted or refunded
upon exportation of the subject merchandise produced from
such materials.''.
SEC. 504. DISTORTION OF PRICES OR COSTS.
(a) Investigation of Below-cost Sales.--Section 773(b)(2)
of the Tariff Act of 1930 (19 U.S.C. 1677b(b)(2)) is amended
by striking subparagraph (A) and inserting the following:
``(A) Reasonable grounds to believe or suspect.--
``(i) Review.--In a review conducted under section 751
involving a specific exporter, there are reasonable grounds
to believe or suspect that sales of the foreign like product
have been made at prices that are less than the cost of
production of the product if the administering authority
disregarded some or all of the exporter's sales pursuant to
paragraph (1) in the investigation or, if a review has been
completed, in the most recently completed review.
``(ii) Requests for information.--In an investigation
initiated under section 732 or a review conducted under
section 751, the administering authority shall request
information necessary to calculate the constructed value and
cost of production under subsections (e) and (f) to determine
whether there are reasonable grounds to believe or suspect
that sales of the foreign like product have been made at
prices that represent less than the cost of production of the
product.''.
(b) Prices and Costs in Nonmarket Economies.--Section
773(c) of the Tariff Act of 1930 (19 U.S.C. 1677b(c)) is
amended by adding at the end the following:
``(5) Discretion to disregard certain price or cost
values.--In valuing the factors of production under paragraph
(1) for the subject merchandise, the administering authority
may disregard price or cost values without further
investigation if the administering authority has determined
that broadly available export subsidies existed or particular
instances of subsidization occurred with respect to those
price or cost values or if those price or cost values were
subject to an antidumping order.''.
SEC. 505. REDUCTION IN BURDEN ON DEPARTMENT OF COMMERCE BY
REDUCING THE NUMBER OF VOLUNTARY RESPONDENTS.
Section 782(a) of the Tariff Act of 1930 (19 U.S.C.
1677m(a)) is amended--
(1) in paragraph (1), by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively, and by moving
such clauses, as so redesignated, 2 ems to the right;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and by moving such
subparagraphs, as so redesignated, 2 ems to the right;
(3) by striking ``Investigations and Reviews.--In'' and
inserting the following: ``Investigations and Reviews.--
``(1) In general.--In'';
(4) in paragraph (1), as designated by paragraph (3), by
amending subparagraph (B), as redesignated by paragraph (2),
to read as follows:
``(B) the number of exporters or producers subject to the
investigation or review is not so large that any additional
individual examination of such exporters or producers would
be unduly burdensome to the administering authority and
inhibit the timely completion of the investigation or
review.''; and
(5) by adding at the end the following:
``(2) Determination of unduly burdensome.--In determining
if an individual examination under paragraph (1)(B) would be
unduly burdensome, the administering authority may consider
the following:
``(A) The complexity of the issues or information presented
in the proceeding, including questionnaires and any responses
thereto.
``(B) Any prior experience of the administering authority
in the same or similar proceeding.
``(C) The total number of investigations under subtitle A
or B and reviews under section 751 being conducted by the
administering authority as of the date of the determination.
``(D) Such other factors relating to the timely completion
of each such investigation and review as the administering
authority considers appropriate.''.
SEC. 506. 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), the amendments
made by this title shall apply with respect to goods from
Canada and Mexico.
TITLE VI--ADDITIONAL TRADE ENFORCEMENT AND INTELLECTUAL PROPERTY RIGHTS
PROTECTION
Subtitle A--Trade Enforcement
SEC. 601. TRADE ENFORCEMENT PRIORITIES.
(a) In General.--Section 310 of the Trade Act of 1974 (19
U.S.C. 2420) is amended to read as follows:
``SEC. 310. TRADE ENFORCEMENT PRIORITIES.
``(a) Trade Enforcement Priorities, Consultations, and
Report.--
``(1) Trade enforcement priorities consultations.--Not
later than May 31 of each calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the United States Trade
Representative (in this section referred to as the `Trade
Representative') shall consult with the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives with respect to the prioritization
of acts, policies, or practices of foreign governments that
raise concerns with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, or otherwise create or maintain barriers
to United States goods, services, or investment.
``(2) Identification of trade enforcement priorities.--In
identifying acts, policies, or practices of foreign
governments as trade enforcement priorities under this
subsection, the United States Trade Representative shall
focus on those acts, policies, and practices the elimination
of which is likely to have the most significant potential to
increase United States economic growth, and take into account
all relevant factors, including--
``(A) the economic significance of any potential
inconsistency between an obligation assumed by a foreign
government pursuant to a trade agreement to which both the
foreign government and the United States are parties and the
acts, policies, or practices of that government;
``(B) the impact of the acts, policies, or practices of a
foreign government on maintaining and creating United States
jobs and productive capacity;
``(C) the major barriers and trade distorting practices
described in the most recent National Trade Estimate required
under section 181(b);
``(D) the major barriers and trade distorting practices
described in other relevant reports addressing international
trade and investment barriers prepared by a Federal agency or
congressional commission during the 12 months preceding the
date of the most recent report under paragraph (3);
``(E) a foreign government's compliance with its
obligations under any trade agreements to which both the
foreign government and the United States are parties;
``(F) the implications of a foreign government's
procurement plans and policies; and
``(G) the international competitive position and export
potential of United States products and services.
``(3) Report on trade enforcement priorities and actions
taken to address.--
``(A) In general.--Not later than July 31 of each calendar
year that begins after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, the Trade
Representative shall report to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives on acts, policies, or practices of foreign
governments identified as trade enforcement priorities based
on the consultations under paragraph (1) and the criteria set
forth in paragraph (2).
``(B) Report in subsequent years.--The Trade Representative
shall include, when reporting under subparagraph (A) in any
calendar year after the calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, a description of actions taken to
address any acts, policies, or practices of foreign
governments identified as trade enforcement priorities under
this subsection in the calendar year preceding that report
and, as relevant, any year before that calendar year.
``(b) Semiannual Enforcement Consultations.--
``(1) In general.--At the same time as the reporting under
subsection (a)(3), and not later than January 31 of each
following year, the Trade Representative shall consult with
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives with respect
to the identification, prioritization, investigation, and
resolution of acts, policies, or practices of foreign
governments of concern with respect to obligations under the
WTO Agreements or any other trade agreement to which the
United States is a party, or that otherwise create or
maintain trade barriers.
``(2) Acts, policies, or practices of concern.--The
semiannual enforcement consultations required by paragraph
(1) shall address acts, policies, or practices of foreign
governments that raise concerns with respect to obligations
under the WTO Agreements or any other trade agreement to
which the United States is a party, or otherwise create or
maintain trade barriers, including--
``(A) engagement with relevant trading partners;
``(B) strategies for addressing such concerns;
``(C) availability and deployment of resources to be used
in the investigation or resolution of such concerns;
``(D) the merits of any potential dispute resolution
proceeding under the WTO Agreements or
[[Page H4284]]
any other trade agreement to which the United States is a
party relating to such concerns; and
``(E) any other aspects of such concerns.
``(3) Active investigations.--The semiannual enforcement
consultations required by paragraph (1) shall address acts,
policies, or practices that the Trade Representative is
actively investigating with respect to obligations under the
WTO Agreements or any other trade agreement to which the
United States is a party, including--
``(A) strategies for addressing concerns raised by such
acts, policies, or practices;
``(B) any relevant timeline with respect to investigation
of such acts, policies, or practices;
``(C) the merits of any potential dispute resolution
proceeding under the WTO Agreements or any other trade
agreement to which the United States is a party with respect
to such acts, policies, or practices;
``(D) barriers to the advancement of the investigation of
such acts, policies, or practices; and
``(E) any other matters relating to the investigation of
such acts, policies, or practices.
``(4) Ongoing enforcement actions.--The semiannual
enforcement consultations required by paragraph (1) shall
address all ongoing enforcement actions taken by or against
the United States with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, including--
``(A) any relevant timeline with respect to such actions;
``(B) the merits of such actions;
``(C) any prospective implementation actions;
``(D) potential implications for any law or regulation of
the United States;
``(E) potential implications for United States
stakeholders, domestic competitors, and exporters; and
``(F) other issues relating to such actions.
``(5) Enforcement resources.--The semiannual enforcement
consultations required by paragraph (1) shall address the
availability and deployment of enforcement resources,
resource constraints on monitoring and enforcement
activities, and strategies to address those constraints,
including the use of available resources of other Federal
agencies to enhance monitoring and enforcement capabilities.
``(c) Investigation and Resolution.--In the case of any
acts, policies, or practices of a foreign government
identified as a trade enforcement priority under subsection
(a), the Trade Representative shall, not later than the date
of the first semiannual enforcement consultations held under
subsection (b) after the identification of the priority, take
appropriate action to address that priority, including--
``(1) engagement with the foreign government to resolve
concerns raised by such acts, policies, or practices;
``(2) initiation of an investigation under section
302(b)(1) with respect to such acts, policies, or practices;
``(3) initiation of negotiations for a bilateral agreement
that provides for resolution of concerns raised by such acts,
policies, or practices; or
``(4) initiation of dispute settlement proceedings under
the WTO Agreements or any other trade agreement to which the
United States is a party with respect to such acts, policies,
or practices.
``(d) Enforcement Notifications and Consultation.--
``(1) Initiation of enforcement action.--The Trade
Representative shall notify and consult with the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives in advance of initiation of any
formal trade dispute by or against the United States taken in
regard to an obligation under the WTO Agreements or any other
trade agreement to which the United States is a party. With
respect to a formal trade dispute against the United States,
if advance notification and consultation are not possible,
the Trade Representative shall notify and consult at the
earliest practicable opportunity after initiation of the
dispute.
``(2) Circulation of reports.--The Trade Representative
shall notify and consult with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives in advance of the announced or anticipated
circulation of any report of a dispute settlement panel or
the Appellate Body of the World Trade Organization or of a
dispute settlement panel under any other trade agreement to
which the United States is a party with respect to a formal
trade dispute by or against the United States.
``(e) Definitions.--In this section:
``(1) WTO.--The term `WTO' means the World Trade
Organization.
``(2) WTO agreement.--The term `WTO Agreement' has the
meaning given that term in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
``(3) WTO agreements.--The term `WTO Agreements' means the
WTO Agreement and agreements annexed to that Agreement.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 is amended by striking the item relating to
section 310 and inserting the following:
``Sec. 310. Trade enforcement priorities.''.
SEC. 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND
CONCESSIONS OR OTHER OBLIGATIONS UNDER TRADE
AGREEMENTS.
(a) In General.--Section 306 of the Trade Act of 1974 (19
U.S.C. 2416) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Exercise of WTO Authorization To Suspend Concessions
or Other Obligations.--If--
``(1) action has terminated pursuant to section 307(c),
``(2) the petitioner or any representative of the domestic
industry that would benefit from reinstatement of action has
submitted to the Trade Representative a written request for
reinstatement of action, and
``(3) the Trade Representative has completed the
requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take
action under section 301(c) to exercise an authorization to
suspend concessions or other obligations under Article 22 of
the Understanding on Rules and Procedures Governing the
Settlement of Disputes (referred to in section 101(d)(16) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(16))).''.
(b) Conforming Amendments.--Chapter 1 of title III of the
Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended--
(1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in the
matter preceding subparagraph (A), by inserting ``or section
306(c)'' after ``subsection (a) or (b)'';
(2) in section 306(b) (19 U.S.C. 2416(b)), in the
subsection heading, by striking ``Further Action'' and
inserting ``Action on the Basis of Monitoring'';
(3) in section 306(d) (19 U.S.C. 2416(d)), as redesignated
by subsection (a)(1), by inserting ``or (c)'' after
``subsection (b)''; and
(4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by
inserting ``or if a request is submitted to the Trade
Representative under 306(c)(2) to reinstate action,'' after
``under section 301,''.
SEC. 603. TRADE MONITORING.
(a) In General.--Chapter 1 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.) is amended by adding at the end
the following:
``SEC. 205. TRADE MONITORING.
``(a) Monitoring Tool for Imports.--
``(1) In general.--Not later than 180 days after the date
of the enactment of this section, the United States
International Trade Commission shall make available on a
website of the Commission an import monitoring tool to allow
the public access to data on the volume and value of goods
imported into the United States for the purpose of assessing
whether such data has changed with respect to such goods over
a period of time.
``(2) Data described.--For purposes of the monitoring tool
under paragraph (1), the Commission shall use data compiled
by the Department of Commerce and such other government data
as the Commission considers appropriate.
``(3) Periods of time.--The Commission shall ensure that
data accessed through the monitoring tool under paragraph (1)
includes data for the most recent quarter for which such data
are available and previous quarters as the Commission
considers practicable.
``(b) Monitoring Reports.--
``(1) In general.--Not later than 270 days after the date
of the enactment of this section, and not less frequently
than quarterly thereafter, the Secretary of Commerce shall
publish on a website of the Department of Commerce, and
notify the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives
of the availability of, a monitoring report on changes in the
volume and value of trade with respect to imports and exports
of goods categorized based on the 6-digit subheading number
of the goods under the Harmonized Tariff Schedule of the
United States during the most recent quarter for which such
data are available and previous quarters as the Secretary
considers practicable.
``(2) Requests for comment.--Not later than one year after
the date of the enactment of this section, the Secretary of
Commerce shall solicit through the Federal Register public
comment on the monitoring reports described in paragraph (1).
``(c) Sunset.--The requirements under this section
terminate on the date that is 7 years after the date of the
enactment of this section.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended by
inserting after the item relating to section 204 the
following:
``Sec. 205. Trade monitoring.''.
SEC. 604. ESTABLISHMENT OF INTERAGENCY TRADE ENFORCEMENT
CENTER.
(a) In General.--Chapter 4 of title I of the Trade Act of
1974 (19 U.S.C. 2171) is amended by adding at the end the
following:
``SEC. 142. INTERAGENCY TRADE ENFORCEMENT CENTER.
``(a) Establishment of Center.--There is established in the
Office of the United States Trade Representative an
Interagency Trade Enforcement Center (in this section
referred to as the `Center').
``(b) Functions of Center.--
``(1) In general.--The Center shall--
``(A) serve as the primary forum within the Federal
Government for the Office of the United States Trade
Representative and other agencies to coordinate the
enforcement of United States trade rights under international
trade agreements and the enforcement of United States trade
remedy laws;
``(B) coordinate among the Office of the United States
Trade Representative and other agencies with responsibilities
relating to trade the exchange of information related to
potential violations of international trade agreements by
foreign trading partners of the United States; and
``(C) conduct outreach to United States workers,
businesses, and other interested persons to foster greater
participation in the identification and reduction or
elimination of foreign trade barriers and unfair foreign
trade practices.
``(2) Coordination of trade enforcement.--
``(A) In general.--The Center shall coordinate matters
relating to the enforcement of United States trade rights
under international
[[Page H4285]]
trade agreements and the enforcement of United States trade
remedy laws among the Office of the United States Trade
Representative and the following agencies:
``(i) The Department of State.
``(ii) The Department of the Treasury.
``(iii) The Department of Justice.
``(iv) The Department of Agriculture.
``(v) The Department of Commerce.
``(vi) The Department of Homeland Security.
``(vii) Such other agencies as the President, or the United
States Trade Representative, may designate.
``(B) Consultations on intellectual property rights.--In
matters relating to the enforcement of United States trade
rights involving intellectual property rights, the Center
shall consult with the Intellectual Property Enforcement
Coordinator appointed pursuant to section 301 of the
Prioritizing Resources and Organization for Intellectual
Property Act of 2008 (15 U.S.C. 8111).
``(c) Personnel.--
``(1) Director.--The head of the Center shall be the
Director, who shall--
``(A) be appointed by the United States Trade
Representative from among full-time senior-level officials of
the Office of the United States Trade Representative; and
``(B) report to the Trade Representative.
``(2) Deputy director.--There shall be in the Center a
Deputy Director, who shall--
``(A) be appointed by the Secretary of Commerce from among
full-time senior-level officials of the Department of
Commerce and detailed to the Center; and
``(B) report directly to the Director.
``(3) Additional employees.--The agencies specified in
subsection (b)(2)(A) may, in consultation with the Director,
detail or assign their employees to the Center without
reimbursement to support the functions of the Center.
``(d) Administration.--Funding and administrative support
for the Center shall be provided by the Office of the United
States Trade Representative.
``(e) Annual Report.--Not later than one year after the
date of the enactment of this section, and not less
frequently than annually thereafter, the Director 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 actions taken by the Center in the preceding
year with respect to the enforcement of United States trade
rights under international trade agreements and the
enforcement of United States trade remedy laws.
``(f) Definitions.--In this section:
``(1) United states trade remedy laws.--The term `United
States trade remedy laws' means the following:
``(A) Chapter 1 of title II of the Trade Act of 1974 (19
U.S.C. 2251 et seq.).
``(B) Chapter 1 of title III of that Act (19 U.S.C. 2411 et
seq.).
``(C) Sections 406 and 421 of that Act (19 U.S.C. 2436 and
2451).
``(D) Sections 332 and 337 of the Tariff Act of 1930 (19
U.S.C. 1332 and 1337).
``(E) Investigations initiated by the administering
authority (as defined in section 771 of that Act (19 U.S.C.
1677)) under title VII of that Act (19 U.S.C. 1671 et seq.).
``(F) Section 281 of the Uruguay Round Agreements Act (19
U.S.C. 3571).
``(2) United states trade rights.--The term `United States
trade rights' means any right, benefit, or advantage to which
the United States is entitled under an international trade
agreement and that could be effectuated through the use of a
dispute settlement proceeding.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 is amended by inserting after the item
relating to section 141 the following:
``Sec. 142. Interagency Trade Enforcement Center.''.
SEC. 605. ESTABLISHMENT OF CHIEF MANUFACTURING NEGOTIATOR.
(a) Establishment of Position.--Section 141(b)(2) of the
Trade Act of 1974 (19 U.S.C. 2171(b)(2)) is amended to read
as follows:
``(2) There shall be in the Office 3 Deputy United States
Trade Representatives, one Chief Agricultural Negotiator, and
one Chief Manufacturing Negotiator, who shall all be
appointed by the President, by and with the advice and
consent of the Senate. As an exercise of the rulemaking power
of the Senate, any nomination of a Deputy United States Trade
Representative, the Chief Agricultural Negotiator, or the
Chief Manufacturing Negotiator submitted to the Senate for
its advice and consent, and referred to a committee, shall be
referred to the Committee on Finance. Each Deputy United
States Trade Representative, the Chief Agricultural
Negotiator, and the Chief Manufacturing Negotiator shall hold
office at the pleasure of the President and shall have the
rank of Ambassador.''.
(b) Functions of Position.--Section 141(c) of the Trade Act
of 1974 (19 U.S.C. 2171(c)) is amended--
(1) by moving paragraph (5) 2 ems to the left; and
(2) by adding at the end the following:
``(6)(A) The principal function of the Chief Manufacturing
Negotiator shall be to conduct trade negotiations and to
enforce trade agreements relating to United States
manufacturing products and services. The Chief Manufacturing
Negotiator shall be a vigorous advocate on behalf of United
States manufacturing interests and shall perform such other
functions as the United States Trade Representative may
direct.
``(B) Not later than one year after the date of the
enactment of the Trade Facilitation and Trade Enforcement Act
of 2015, and annually thereafter, the Chief Manufacturing
Negotiator 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 actions taken by the Chief
Manufacturing Negotiator in the preceding year.''.
(c) Compensation.--Section 5314 of title 5, United States
Code, is amended by striking ``Chief Agricultural
Negotiator.'' and inserting the following:
``Chief Agricultural Negotiator, Office of the United
States Trade Representative.
``Chief Manufacturing Negotiator, Office of the United
States Trade Representative.''.
(d) Technical Amendments.--Section 141(e) of the Trade Act
of 1974 (19 U.S.C. 2171(e)) is amended--
(1) in paragraph (1), by striking ``5314'' and inserting
``5315''; and
(2) in paragraph (2), by striking ``the maximum rate of pay
for grade GS-18, as provided in section 5332'' and inserting
``the maximum rate of pay for level IV of the Executive
Schedule in section 5315''.
SEC. 606. ENFORCEMENT UNDER TITLE III OF THE TRADE ACT OF
1974 WITH RESPECT TO CERTAIN ACTS, POLICIES,
AND PRACTICES RELATING TO THE ENVIRONMENT.
Section 301(d)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2411(d)(3)(B)) is amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) in clause (iii)(V), by striking the period at the end
and inserting ``, or''; and
(3) by adding at the end the following:
``(iv) constitutes a persistent pattern of conduct by the
government of the foreign country under which that
government--
``(I) fails to effectively enforce the environmental laws
of the foreign country,
``(II) waives or otherwise derogates from the environmental
laws of the foreign country or weakens the protections
afforded by such laws,
``(III) fails to provide for judicial or administrative
proceedings giving access to remedies for violations of the
environmental laws of the foreign country,
``(IV) fails to provide appropriate and effective sanctions
or remedies for violations of the environmental laws of the
foreign country, or
``(V) fails to effectively enforce environmental
commitments under agreements to which the foreign country and
the United States are a party.''.
SEC. 607. TRADE ENFORCEMENT TRUST FUND.
(a) Establishment.--There is established in the Treasury of
the United States a trust fund to be known as the Trade
Enforcement Trust Fund (in this section referred to as the
``Trust Fund''), consisting of amounts transferred to the
Trust Fund under subsection (b) and any amounts that may be
credited to the Trust Fund under subsection (c).
(b) Transfer of Amounts.--
(1) In general.--The Secretary of the Treasury shall
transfer to the Trust Fund, from the general fund of the
Treasury, for each fiscal year that begins on or after the
date of the enactment of this Act, an amount equal to
$15,000,000 (or a lesser amount as required pursuant to
paragraph (2)) of the antidumping duties and countervailing
duties received in the Treasury for such fiscal year.
(2) Limitation.--The total amount in the Trust Fund at any
time may not exceed $30,000,000.
(3) Frequency of transfers; adjustments.--
(A) Frequency of transfers.--The Secretary shall transfer
amounts required to be transferred to the Trust Fund under
paragraph (1) not less frequently than quarterly from the
general fund of the Treasury to the Trust Fund on the basis
of estimates made by the Secretary.
(B) Adjustments.--The Secretary shall make proper
adjustments in amounts subsequently transferred to the Trust
Fund to the extent prior estimates were in excess of or less
than the amounts required to be transferred to the Trust
Fund.
(c) Investment of Amounts.--
(1) Investment of amounts.--The Secretary shall invest such
portion of the Trust Fund as is not required to meet current
withdrawals in interest-bearing obligations of the United
States or in obligations guaranteed as to both principal and
interest by the United States.
(2) Interest and proceeds.--The interest on, and the
proceeds from the sale or redemption of, any obligations held
in Trust Fund shall be credited to and form a part of the
Trust Fund.
(d) Availability of Amounts From Trust Fund.--
(1) Enforcement.--The United States Trade Representative
may use the amounts in the Trust fund to carry out any of the
following:
(A) To seek to enforce the provisions of and commitments
and obligations under the WTO Agreements and free trade
agreements to which the United States is a party and resolve
any actions by foreign countries that are inconsistent with
those provisions, commitments, and obligations.
(B) To monitor the implementation by foreign countries of
the provisions of and commitments and obligations under free
trade agreements to which the United States is a party for
purposes of systematically assessing, identifying,
investigating, or initiating steps to address inconsistencies
with those provisions, commitments, and obligations.
(C) To thoroughly investigate and respond to petitions
under section 302 of the Trade Act of 1974 (19 U.S.C. 2412)
requesting that action be taken under section 301 of such Act
(19 U.S.C. 2411).
(2) Implementation assistance and capacity building.--The
United States Trade Representative, the Secretary of State,
the Administrator of the United States Agency for
International Development, the Secretary of Labor, and such
heads of other Federal agencies as the President considers
appropriate may use the amounts in the Trust Fund to carry
out any of the following:
[[Page H4286]]
(A) To ensure capacity-building efforts undertaken by the
United States pursuant to any free trade agreement to which
the United States is a party prioritize and give special
attention to the timely, consistent, and robust
implementation of the intellectual property, labor, and
environmental commitments and obligations of any party to
that free trade agreement.
(B) To ensure capacity-building efforts undertaken by the
United States pursuant to any such free trade agreement are
self-sustaining and promote local ownership.
(C) To ensure capacity-building efforts undertaken by the
United States pursuant to any such free trade agreement
include performance indicators against which the progress and
obstacles for the implementation of commitments and
obligations described in subparagraph (A) can be identified
and assessed within a meaningful time frame.
(D) To monitor and evaluate the capacity-building efforts
of the United States under subparagraphs (A), (B), and (C).
(3) Limitation.--Amounts made available in the Trust Fund
may not be used for negotiations for any free trade agreement
to be entered into on or after the date of the enactment of
this Act.
(e) Report.--Not later than 18 months after the entry into
force of any free trade agreement entered into after the date
of the enactment of this Act, the United States Trade
Representative, the Secretary of State, the Administrator of
the United States Agency for International Development, the
Secretary of Labor, and any other head of a Federal agency
who has used amounts in the Trust Fund in connection with
that agreement, shall each submit to Congress a report on the
actions taken by that official under subsection (d) in
connection with that agreement.
(f) Comptroller General Study.--
(1) In general.--The Comptroller General of the United
States shall conduct a study that includes the following:
(A) A comprehensive analysis of the trade enforcement
expenditures of each Federal agency with responsibilities
relating to trade that specifies, with respect to each such
Federal agency--
(i) the amounts appropriated for trade enforcement; and
(ii) the number of full-time employees carrying out
activities relating to trade enforcement.
(B) Recommendations on the additional employees and
resources that each such Federal agency may need to
effectively enforce the free trade agreements to which the
United States is a party.
(2) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General shall submit
to Congress a report on the results of the study conducted
under paragraph (1).
(g) Definitions.--In this section:
(1) Antidumping duty.--The term ``antidumping duty'' means
an antidumping duty imposed under section 731 of the Tariff
Act of 1930 (19 U.S.C. 1673).
(2) Countervailing duty.--The term ``countervailing duty''
means a countervailing duty imposed under section 701 of the
Tariff Act of 1930 (19 U.S.C. 1671).
(3) WTO.--The term ``WTO'' means the World Trade
Organization.
(4) WTO agreement.--The term ``WTO Agreement'' has the
meaning given that term in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
(5) WTO agreements.--The term ``WTO Agreements'' means the
WTO Agreement and agreements annexed to that Agreement.
SEC. 608. HONEY TRANSSHIPMENT.
(a) In General.--The Commissioner shall direct appropriate
personnel and resources of U.S. Customs and Border Protection
to address concerns that honey is being imported into the
United States in violation of the customs and trade laws of
the United States.
(b) Country of Origin.--
(1) In general.--The Commissioner shall compile a database
of the individual characteristics of honey produced in
foreign countries to facilitate the verification of country
of origin markings of imported honey.
(2) Engagement with foreign governments.--The Commissioner
shall seek to engage the customs agencies of foreign
governments for assistance in compiling the database
described in paragraph (1).
(3) Consultation with industry.--In compiling the database
described in paragraph (1), the Commissioner shall consult
with entities in the honey industry regarding the development
of industry standards for honey identification.
(4) Consultation with food and drug administration.--In
compiling the database described in paragraph (1), the
Commissioner shall consult with the Commissioner of Food and
Drugs.
(c) Report Required.--Not later than 180 days after the
date of the enactment of this Act, the Commissioner shall
submit to Congress a report that--
(1) describes and assesses the limitations in the existing
analysis capabilities of laboratories with respect to
determining the country of origin of honey samples or the
percentage of honey contained in a sample; and
(2) includes any recommendations of the Commissioner for
improving such capabilities.
(d) Sense of Congress.--It is the sense of Congress that
the Commissioner of Food and Drugs should promptly establish
a national standard of identity for honey for the
Commissioner responsible for U.S. Customs and Border
Protection to use to ensure that imports of honey are--
(1) classified accurately for purposes of assessing duties;
and
(2) denied entry into the United States if such imports
pose a threat to the health or safety of consumers in the
United States.
SEC. 609. INCLUSION OF INTEREST IN CERTAIN DISTRIBUTIONS OF
ANTIDUMPING DUTIES AND COUNTERVAILING DUTIES.
(a) In General.--The Secretary of Homeland Security shall
deposit all interest described in subsection (c) into the
special account established under section 754(e) of the
Tariff Act of 1930 (19 U.S.C. 1675c(e)) (repealed by subtitle
F of title VII of the Deficit Reduction Act of 2005 (Public
Law 109-171; 120 Stat. 154)) for inclusion in distributions
described in subsection (b) made on or after the date of the
enactment of this Act.
(b) Distributions Described.--Distributions described in
this subsection are distributions of antidumping duties and
countervailing duties assessed on or after October 1, 2000,
that are made under section 754 of the Tariff Act of 1930 (19
U.S.C. 1675c) (repealed by subtitle F of title VII of the
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat.
154)), with respect to entries of merchandise--
(1) made on or before September 30, 2007; and
(2) that were, in accordance with section 822 of the Claims
Resolution Act of 2010 (19 U.S.C. 1675c note), unliquidated,
not in litigation, and not under an order of liquidation from
the Department of Commerce on December 8, 2010.
(c) Interest Described.--
(1) Interest realized.--Interest described in this
subsection is interest earned on antidumping duties or
countervailing duties distributed as described in subsection
(b) that is realized through application of a payment
received on or after October 1, 2014, by U.S. Customs and
Border Protection under, or in connection with--
(A) a customs bond pursuant to a court order or judgment
entered as a result of a civil action filed by the Federal
Government against the surety from which the payment was
obtained for the purpose of collecting duties or interest
owed with respect to an entry; or
(B) a settlement for any such bond if the settlement was
executed after the Federal Government filed a civil action
described in subparagraph (A).
(2) Types of interest.--Interest described in paragraph (1)
includes the following:
(A) Interest accrued under section 778 of the Tariff Act of
1930 (19 U.S.C. 1677g).
(B) Interest accrued under section 505(d) of the Tariff Act
of 1930 (19 U.S.C. 1505(d)).
(C) Equitable interest under common law or interest under
section 963 of the Revised Statutes (19 U.S.C. 580) awarded
by a court against a surety under its bond for late payment
of antidumping duties, countervailing duties, or interest
described in subparagraph (A) or (B).
(d) Definitions.--In this section:
(1) Antidumping duties.--The term ``antidumping duties''
means antidumping duties imposed under section 731 of the
Tariff Act of 1930 (19 U.S.C. 1673) or under the Antidumping
Act, 1921 (title II of the Act of May 27, 1921; 42 Stat. 11,
chapter 14).
(2) Countervailing duties.--The term ``countervailing
duties'' means countervailing duties imposed under section
701 of the Tariff Act of 1930 (19 U.S.C. 1671).
SEC. 610. ILLICITLY IMPORTED, EXPORTED, OR TRAFFICKED
CULTURAL PROPERTY, ARCHAEOLOGICAL OR
ETHNOLOGICAL MATERIALS, AND FISH, WILDLIFE, AND
PLANTS.
(a) In General.--The Commissioner and the Director of U.S.
Immigration and Customs Enforcement shall ensure that
appropriate personnel of U.S. Customs and Border Protection
and U.S. Immigration and Customs Enforcement, as the case may
be, are trained in the detection, identification, detention,
seizure, and forfeiture of cultural property, archaeological
or ethnological materials, and fish, wildlife, and plants,
the importation, exportation, or trafficking of which
violates the laws of the United States.
(b) Training.--The Commissioner and the Director are
authorized to accept training and other support services from
experts outside of the Federal Government with respect to the
detection, identification, detention, seizure, and forfeiture
of cultural property, archaeological or ethnological
materials, or fish, wildlife, and plants described in
subsection (a).
Subtitle B--Intellectual Property Rights Protection
SEC. 611. ESTABLISHMENT OF CHIEF INNOVATION AND INTELLECTUAL
PROPERTY NEGOTIATOR.
(a) In General.--Section 141 of the Trade Act of 1974 (19
U.S.C. 2171) is amended--
(1) in subsection (b)(2), as amended by section 605(a) of
this Act--
(A) by striking ``and one Chief Manufacturing Negotiator''
and inserting ``one Chief Manufacturing Negotiator, and one
Chief Innovation and Intellectual Property Negotiator'';
(B) by striking ``or the Chief Manufacturing Negotiator''
and inserting ``the Chief Manufacturing Negotiator, or the
Chief Innovation and Intellectual Property Negotiator''; and
(C) by striking ``and the Chief Manufacturing Negotiator''
and inserting ``the Chief Manufacturing Negotiator, and the
Chief Innovation and Intellectual Property Negotiator''; and
(2) in subsection (c), as amended by section 605(b) of this
Act, by adding at the end the following:
``(7) The principal functions of the Chief Innovation and
Intellectual Property Negotiator shall be to conduct trade
negotiations and to enforce trade agreements relating to
United States intellectual property and to take appropriate
actions to address acts, policies, and practices of foreign
governments that have a significant adverse impact on the
value of United States innovation. The Chief Innovation and
Intellectual Property Negotiator shall be a vigorous advocate
on behalf of United States innovation and intellectual
property interests. The Chief Innovation and Intellectual
Property Negotiator shall perform such other functions as the
United States Trade Representative may direct.''.
[[Page H4287]]
(b) Compensation.--Section 5314 of title 5, United States
Code, as amended by section 605(c) of this Act, is further
amended by inserting after ``Chief Manufacturing Negotiator,
Office of the United States Trade Representative.'' the
following:
``Chief Innovation and Intellectual Property Negotiator,
Office of the United States Trade Representative.''.
(c) Report Required.--Not later than one year after the
appointment of the first Chief Innovation and Intellectual
Property Negotiator pursuant to paragraph (2) of section
141(b) of the Trade Act of 1974, as amended by subsection
(a), and annually thereafter, the United States Trade
Representative shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives a report describing in detail--
(1) enforcement actions taken by the Trade Representative
during the year preceding the submission of the report to
ensure the protection of United States innovation and
intellectual property interests; and
(2) other actions taken by the Trade Representative to
advance United States innovation and intellectual property
interests.
SEC. 612. MEASURES RELATING TO COUNTRIES THAT DENY ADEQUATE
PROTECTION FOR INTELLECTUAL PROPERTY RIGHTS.
(a) Inclusion of Countries That Deny Adequate Protection of
Trade Secrets.--Section 182(d)(2) of the Trade Act of 1974
(19 U.S.C. 2242(d)(2)) is amended by inserting ``, trade
secrets,'' after ``copyrights''.
(b) Special Rules for Countries on the Priority Watch List
of the United States Trade Representative.--
(1) In general.--Section 182 of the Trade Act of 1974 (19
U.S.C. 2242) is amended by striking subsection (g) and
inserting the following:
``(g) Special Rules for Foreign Countries on the Priority
Watch List.--
``(1) Action plans.--
``(A) In general.--Not later than 90 days after the date on
which the Trade Representative submits the National Trade
Estimate under section 181(b), the Trade Representative shall
develop an action plan described in subparagraph (C) with
respect to each foreign country described in subparagraph
(B).
``(B) Foreign country described.--The Trade Representative
shall develop an action plan pursuant to subparagraph (A)
with respect to each foreign country that--
``(i) the Trade Representative has identified for placement
on the priority watch list; and
``(ii) has remained on such list for at least 1 year.
``(C) Action plan described.--An action plan developed
pursuant to subparagraph (A) shall contain the benchmarks
described in subparagraph (D) and be designed to assist the
foreign country--
``(i) to achieve--
``(I) adequate and effective protection of intellectual
property rights; and
``(II) fair and equitable market access for United States
persons that rely upon intellectual property protection; or
``(ii) to make significant progress toward achieving the
goals described in clause (i).
``(D) Benchmarks described.--The benchmarks contained in an
action plan developed pursuant to subparagraph (A) are such
legislative, institutional, enforcement, or other actions as
the Trade Representative determines to be necessary for the
foreign country to achieve the goals described in clause (i)
or (ii) of subparagraph (C).
``(2) Failure to meet action plan benchmarks.--If, 1 year
after the date on which an action plan is developed under
paragraph (1)(A), the President, in consultation with the
Trade Representative, determines that the foreign country to
which the action plan applies has not substantially complied
with the benchmarks described in paragraph (1)(D), the
President may take appropriate action with respect to the
foreign country.
``(3) Priority watch list defined.--In this subsection, the
term `priority watch list' means the priority watch list
established by the Trade Representative.
``(h) Annual Report.--Not later than 30 days after the date
on which the Trade Representative submits the National Trade
Estimate under section 181(b), the Trade Representative shall
transmit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report on actions taken under this section during the 12
months preceding such report, and the reasons for such
actions, including--
``(1) any foreign countries identified under subsection
(a);
``(2) a description of progress made in achieving improved
intellectual property protection and market access for
persons relying on intellectual property rights; and
``(3) a description of the action plans developed under
subsection (g) and any actions taken by foreign countries
under such plans.''.
(2) Authorization of appropriations.--
(A) In general.--There are authorized to be appropriated to
the Office of the United States Trade Representative such
sums as may be necessary to provide assistance to any
developing country to which an action plan applies under
section 182(g) of the Trade Act of 1974, as amended by
paragraph (1), to facilitate the efforts of the developing
country to comply with the benchmarks contained in the action
plan. Such assistance may include capacity building,
activities designed to increase awareness of intellectual
property rights, and training for officials responsible for
enforcing intellectual property rights in the developing
country.
(B) Developing country defined.--In this paragraph, the
term ``developing country'' means a country classified by the
World Bank as having a low-income or lower-middle-income
economy.
(3) Rule of construction.--Nothing in this subsection shall
be construed as limiting the authority of the President or
the United States Trade Representative to develop action
plans other than action plans described in section 182(g) of
the Trade Act of 1974, as amended by paragraph (1), or to
take any action otherwise authorized by law in response to
the failure of a foreign country to provide adequate and
effective protection and enforcement of intellectual property
rights.
TITLE VII--CURRENCY MANIPULATION
Subtitle A--Investigation of Currency Undervaluation
SEC. 701. SHORT TITLE.
This subtitle may be cited as the ``Currency Undervaluation
Investigation Act''.
SEC. 702. INVESTIGATION OR REVIEW OF CURRENCY UNDERVALUATION
UNDER COUNTERVAILING DUTY LAW.
Subsection (c) of section 702 of the Tariff Act of 1930 (19
U.S.C. 1671a(c)) is amended by adding at the end the
following:
``(6) Currency undervaluation.--For purposes of a
countervailing duty investigation under this subtitle in
which the determinations under clauses (i) and (ii) of
paragraph (1)(A) are affirmative, or a review under subtitle
C with respect to a countervailing duty order, the
administering authority shall initiate an investigation to
determine whether currency undervaluation by the government
of a country or any public entity within the territory of a
country is providing, directly or indirectly, a
countervailable subsidy, if--
``(A) a petition filed by an interested party (described in
subparagraph (C), (D), (E), (F), or (G) of section 771(9))
alleges the elements necessary for the imposition of the duty
imposed by section 701(a); and
``(B) the petition is accompanied by information reasonably
available to the petitioner supporting those allegations.''.
SEC. 703. BENEFIT CALCULATION METHODOLOGY WITH RESPECT TO
CURRENCY UNDERVALUATION.
Section 771 of the Tariff Act of 1930 (19 U.S.C. 1677) is
amended by adding at the end the following:
``(37) Currency undervaluation benefit.--
``(A) Currency undervaluation benefit.--For purposes of a
countervailing duty investigation under subtitle A, or a
review under subtitle C with respect to a countervailing duty
order, the following shall apply:
``(i) In general.--If the administering authority
determines to investigate whether currency undervaluation
provides a countervailable subsidy, the administering
authority shall determine whether there is a benefit to the
recipient of that subsidy and measure such benefit by
comparing the simple average of the real exchange rates
derived from application of the macroeconomic-balance
approach and the equilibrium-real-exchange-rate approach to
the official daily exchange rate identified by the
administering authority.
``(ii) Reliance on data.--In making the determination under
clause (i), the administering authority shall rely upon data
that are publicly available, reliable, and compiled and
maintained by the International Monetary Fund or the World
Bank, or other international organizations or national
governments if data from the International Monetary Fund or
World Bank are not available.
``(B) Definitions.--In this paragraph:
``(i) Macroeconomic-balance approach.--The term
`macroeconomic-balance approach' means a methodology under
which the level of undervaluation of the real effective
exchange rate of the currency of the exporting country is
defined as the change in the real effective exchange rate
needed to achieve equilibrium in the balance of payments of
the exporting country, as such methodology is described in
the guidelines of the International Monetary Fund's
Consultative Group on Exchange Rate Issues, if available.
``(ii) Equilibrium-real-exchange-rate approach.--The term
`equilibrium-real-exchange-rate approach' means a methodology
under which the level of undervaluation of the real effective
exchange rate of the currency of the exporting country is
defined as the difference between the observed real effective
exchange rate and the real effective exchange rate, as such
methodology is described in the guidelines of the
International Monetary Fund's Consultative Group on Exchange
Rate Issues, if available.
``(iii) Real exchange rates.--The term `real exchange
rates' means the bilateral exchange rates derived from
converting the trade-weighted multilateral exchange rates
yielded by the macroeconomic-balance approach and the
equilibrium-real-exchange-rate approach into real bilateral
terms.''.
SEC. 704. MODIFICATION OF DEFINITION OF SPECIFICITY WITH
RESPECT TO EXPORT SUBSIDY.
Section 771(5A)(B) of the Tariff Act of 1930 (19 U.S.C.
1677(5A)(B)) is amended by adding at the end the following
new sentence: ``The fact that a subsidy may also be provided
in circumstances that do not involve export shall not, for
that reason alone, mean that the subsidy cannot be considered
contingent upon export performance.''.
SEC. 705. 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), the amendments
made by this subtitle shall apply with respect to goods from
Canada and Mexico.
SEC. 706. EFFECTIVE DATE.
The amendments made by this subtitle apply to
countervailing duty investigations initiated under subtitle A
of title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et
seq.) and reviews initiated under subtitle C of title VII of
such Act (19 U.S.C. 1675 et seq.)--
[[Page H4288]]
(1) before the date of the enactment of this Act, if the
investigation or review is pending a final determination as
of such date of enactment; and
(2) on or after such date of enactment.
Subtitle B--Engagement on Currency Exchange Rate and Economic Policies
SEC. 711. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE
AND ECONOMIC POLICIES WITH CERTAIN MAJOR
TRADING PARTNERS OF THE UNITED STATES.
(a) Major Trading Partner Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and not less frequently than once
every 180 days thereafter, the Secretary shall submit to the
appropriate committees of Congress a report on the
macroeconomic and currency exchange rate policies of each
country that is a major trading partner of the United States.
(2) Elements.--
(A) In general.--Each report submitted under paragraph (1)
shall contain--
(i) for each country that is a major trading partner of the
United States--
(I) that country's bilateral trade balance with the United
States;
(II) that country's current account balance as a percentage
of its gross domestic product;
(III) the change in that country's current account balance
as a percentage of its gross domestic product during the 3-
year period preceding the submission of the report;
(IV) that country's foreign exchange reserves as a
percentage of its short-term debt; and
(V) that country's foreign exchange reserves as a
percentage of its gross domestic product; and
(ii) an enhanced analysis of macroeconomic and exchange
rate policies for each country--
(I) that is a major trading partner of the United States;
(II) the currency of which is persistently and
substantially undervalued;
(III) that has--
(aa) a significant bilateral trade surplus with the United
States; and
(bb) a material global current account surplus; and
(IV) that has engaged in persistent one-sided intervention
in the foreign exchange market.
(B) Enhanced analysis.--Each enhanced analysis under
subparagraph (A)(ii) shall include, for each country with
respect to which an analysis is made under that
subparagraph--
(i) a description of developments in the currency markets
of that country, including, to the greatest extent feasible,
developments with respect to currency interventions;
(ii) a description of trends in the real effective exchange
rate of the currency of that country and in the degree of
undervaluation of that currency;
(iii) an analysis of changes in the capital controls and
trade restrictions of that country; and
(iv) patterns in the reserve accumulation of that country.
(b) Engagement on Exchange Rate and Economic Policies.--
(1) In general.--Except as provided in paragraph (2), the
President, through the Secretary, shall commence enhanced
bilateral engagement with each country for which an enhanced
analysis of macroeconomic and currency exchange rate policies
is included in the report submitted under subsection (a), in
order to--
(A) urge implementation of policies to address the causes
of the undervaluation of its currency, its bilateral trade
surplus with the United States, and its material global
current account surplus, including undervaluation and
surpluses relating to exchange rate management;
(B) express the concern of the United States with respect
to the adverse trade and economic effects of that
undervaluation and those surpluses;
(C) develop measurable objectives for addressing that
undervaluation and those surpluses; and
(D) advise that country of the ability of the President to
take action under subsection (c).
(2) Exception.--The Secretary may determine not to enhance
bilateral engagement with a country under paragraph (1) for
which an enhanced analysis of macroeconomic and exchange rate
policies is included in the report submitted under subsection
(a) if the Secretary submits to the appropriate committees of
Congress a report that describes how the currency and other
macroeconomic policies of that country are addressing the
undervaluation and surpluses specified in paragraph (1)(A)
with respect to that country, including undervaluation and
surpluses relating to exchange rate management.
(c) Remedial Action.--
(1) In general.--If, on the date that is one year after the
commencement of enhanced bilateral engagement by the
President with respect to a country under subsection (b)(1),
the country has failed to adopt appropriate policies to
correct the undervaluation and surpluses described in
subsection (b)(1)(A) with respect to that country, the
President may take one or more of the following actions:
(A) Prohibit the Overseas Private Investment Corporation
from approving any new financing (including any insurance,
reinsurance, or guarantee) with respect to a project located
in that country on and after such date.
(B) Except as provided in paragraph (2), and pursuant to
paragraph (3), prohibit the Federal Government from
procuring, or entering into any contract for the procurement
of, goods or services from that country on and after such
date.
(C) Instruct the United States Executive Director of the
International Monetary Fund to use the voice and vote of the
United States to call for additional rigorous surveillance of
the macroeconomic and exchange rate policies of that country
and, as appropriate, formal consultations on findings of
currency manipulation.
(D) Instruct the United States Trade Representative to take
into account, in consultation with the Secretary, in
assessing whether to enter into a bilateral or regional trade
agreement with that country or to initiate or participate in
negotiations with respect to a bilateral or regional trade
agreement with that country, the extent to which that country
has failed to adopt appropriate policies to correct the
undervaluation and surpluses described in subsection
(b)(1)(A).
(2) Exception.--The President may not apply a prohibition
under paragraph (1)(B) with respect to a country that is a
party to the Agreement on Government Procurement or a free
trade agreement to which the United States is a party.
(3) Consultations.--
(A) Office of management and budget.--Before applying a
prohibition under paragraph (1)(B), the President shall
consult with the Director of the Office of Management and
Budget to determine whether such prohibition would subject
the taxpayers of the United States to unreasonable cost.
(B) Congress.--The President shall consult with the
appropriate committees of Congress with respect to any action
the President takes under paragraph (1)(B), including whether
the President has consulted as required under subparagraph
(A).
(d) Definitions.--In this section:
(1) Agreement on government procurement.--The term
``Agreement on Government Procurement'' means the agreement
referred to in section 101(d)(17) of the Uruguay Round
Agreements Act (19 U.S.C. 3511(d)(17)).
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Finance of the Senate; and
(B) the Committee on Financial Services and the Committee
on Ways and Means of the House of Representatives.
(3) Country.--The term ``country'' means a foreign country,
dependent territory, or possession of a foreign country, and
may include an association of 2 or more foreign countries,
dependent territories, or possessions of countries into a
customs union outside the United States.
(4) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of
bilateral exchange rates, expressed in price-adjusted terms.
(5) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 712. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE
POLICY.
(a) Establishment.--
(1) In general.--There is established an Advisory Committee
on International Exchange Rate Policy (in this section
referred to as the ``Committee'').
(2) Duties.--The Committee shall be responsible for
advising the Secretary of the Treasury with respect to the
impact of international exchange rates and financial policies
on the economy of the United States.
(b) Membership.--
(1) In general.--The Committee shall be composed of 9
members as follows, none of whom shall be employees of the
Federal Government:
(A) Three members shall be appointed by the President pro
tempore of the Senate, upon the recommendation of the
chairmen and ranking members of the Committee on Banking,
Housing, and Urban Affairs and the Committee on Finance of
the Senate.
(B) Three members shall be appointed by the Speaker of the
House of Representatives upon the recommendation of the
chairmen and ranking members of the Committee on Financial
Services and the Committee on Ways and Means of the House of
Representatives.
(C) Three members shall be appointed by the President.
(2) Qualifications.--Members shall be selected under
paragraph (1) on the basis of their objectivity and
demonstrated expertise in finance, economics, or currency
exchange.
(3) Terms.--
(A) In general.--Members shall be appointed for a term of 2
years or until the Committee terminates.
(B) Reappointment.--A member may be reappointed to the
Committee for additional terms.
(4) Vacancies.--Any vacancy in the Committee shall not
affect its powers, but shall be filled in the same manner as
the original appointment.
(c) Duration of Committee.--
(1) In general.--The Committee shall terminate on the date
that is 2 years after the date of the enactment of this Act
unless renewed by the President for a subsequent 2-year
period.
(2) Continued renewal.--The President may continue to renew
the Committee for successive 2-year periods by taking
appropriate action to renew the Committee prior to the date
on which the Committee would otherwise terminate.
(d) Meetings.--The Committee shall hold not less than 2
meetings each calendar year.
(e) Chairperson.--
(1) In general.--The Committee shall elect from among its
members a chairperson for a term of 2 years or until the
Committee terminates.
(2) Reelection; subsequent terms.--A chairperson of the
Committee may be reelected chairperson but is ineligible to
serve consecutive terms as chairperson.
(f) Staff.--The Secretary of the Treasury shall make
available to the Committee such staff, information,
personnel, administrative services, and assistance as the
Committee may reasonably require to carry out the activities
of the Committee.
[[Page H4289]]
(g) Application of the Federal Advisory Committee Act.--
(1) In general.--Except as provided in paragraph (2), the
provisions of the Federal Advisory Committee Act (5 U.S.C.
App.) shall apply to the Committee.
(2) Exception.--Meetings of the Committee shall be exempt
from the requirements of subsections (a) and (b) of section
10 and section 11 of the Federal Advisory Committee Act
(relating to open meetings, public notice, public
participation, and public availability of documents),
whenever and to the extent it is determined by the President
or the Secretary of the Treasury that such meetings will be
concerned with matters the disclosure of which--
(A) would seriously compromise the development by the
Government of the United States of monetary or financial
policy; or
(B) is likely to--
(i) lead to significant financial speculation in
currencies, securities, or commodities; or
(ii) significantly endanger the stability of any financial
institution.
(h) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of the Treasury for each
fiscal year in which the Committee is in effect $1,000,000 to
carry out this section.
TITLE VIII--PROCESS FOR CONSIDERATION OF TEMPORARY DUTY SUSPENSIONS AND
REDUCTIONS
SEC. 801. SHORT TITLE.
This title may be cited as the ``American Manufacturing
Competitiveness Act of 2015''.
SEC. 802. SENSE OF CONGRESS ON THE NEED FOR A MISCELLANEOUS
TARIFF BILL.
(a) Findings.--Congress makes the following findings:
(1) As of the date of the enactment of this Act, the
Harmonized Tariff Schedule of the United States imposes
duties on imported goods for which there is no domestic
availability or insufficient domestic availability.
(2) The imposition of duties on such goods creates
artificial distortions in the economy of the United States
that negatively affect United States manufacturers and
consumers.
(3) It is in the interests of the United States to update
the Harmonized Tariff Schedule every 3 years to eliminate
such artificial distortions by suspending or reducing duties
on such goods.
(4) The manufacturing competitiveness of the United States
around the world will be enhanced if Congress regularly and
predictably updates the Harmonized Tariff Schedule to suspend
or reduce duties on such goods.
(b) Sense of Congress.--It is the sense of Congress that,
to remove the competitive disadvantage to United States
manufactures and consumers resulting from an outdated
Harmonized Tariff Schedule and to promote the competitiveness
of United States manufacturers, Congress should consider a
miscellaneous tariff bill not later than 180 days after the
United States International Trade Commission and the
Department of Commerce issue reports on proposed duty
suspensions and reductions under this title.
SEC. 803. PROCESS FOR CONSIDERATION OF DUTY SUSPENSIONS AND
REDUCTIONS.
(a) Purpose.--It is the purpose of this section to
establish a process by the appropriate congressional
committees, in conjunction with the Commission pursuant to
its authorities under section 332 of the Tariff Act of 1930
(19 U.S.C. 1332), for the submission and consideration of
proposed duty suspensions and reductions.
(b) Establishment.--Not later than October 15, 2015, and
October 15, 2018, the appropriate congressional committees
shall establish and, on the same day, publish on their
respective publicly available Internet websites a process--
(1) to provide for the submission and consideration of
legislation containing proposed duty suspensions and
reductions in a manner that, to the maximum extent
practicable, is consistent with the requirements described in
subsection (c); and
(2) to include in a miscellaneous tariff bill those duty
suspensions and reductions that meet the requirements of this
title.
(c) Requirements of Commission.--
(1) Initiation.--Not later than October 15, 2015, and
October 15, 2018, the Commission shall publish in the Federal
Register and on a publicly available Internet website of the
Commission a notice requesting members of the public to
submit to the Commission during the 60-day period beginning
on the date of such publication--
(A) proposed duty suspensions and reductions; and
(B) Commission disclosure forms with respect to such duty
suspensions and reductions.
(2) Review.--
(A) Commission submission to congress.--As soon as
practicable after the expiration of the 60-day period
specified in paragraph (1), but not later than 15 days after
the expiration of such 60-day period, the Commission shall
submit to the appropriate congressional committees the
proposed duty suspensions and reductions submitted under
paragraph (1)(A) and the Commission disclosure forms with
respect to such duty suspensions and reductions submitted
under paragraph (1)(B).
(B) Public availability of proposed duty suspensions and
reductions.--Not later than 15 days after the expiration of
the 60-day period specified in paragraph (1), the Commission
shall publish on a publicly available Internet website of the
Commission the proposed duty suspensions and reductions
submitted under paragraph (1)(A) and the Commission
disclosure forms with respect to such duty suspensions and
reductions submitted under paragraph (1)(B).
(C) Commission reports to congress.--Not later than the end
of the 90-day period beginning on the date of publication of
the proposed duty suspensions and reductions under
subparagraph (B), the Commission shall submit to the
appropriate congressional committees a report on each
proposed duty suspension or reduction submitted pursuant to
subsection (b)(1) or paragraph (1)(A) that contains the
following information:
(i) A determination of whether or not domestic production
of the article that is the subject of the proposed duty
suspension or reduction exists and, if such production
exists, whether or not a domestic producer of the article
objects to the proposed duty suspension or reduction.
(ii) Any technical changes to the article description that
are necessary for purposes of administration when articles
are presented for importation.
(iii) The amount of tariff revenue that would no longer be
collected if the proposed duty suspension or reduction takes
effect.
(iv) A determination of whether or not the proposed duty
suspension or reduction is available to any person that
imports the article that is the subject of the proposed duty
suspension or reduction.
(3) Procedures.--The Commission shall prescribe and publish
on a publicly available Internet website of the Commission
procedures for complying with the requirements of this
subsection.
(4) Authorities described.--The Commission shall carry out
this subsection pursuant to its authorities under section 332
of the Tariff Act of 1930 (19 U.S.C. 1332).
(d) Department of Commerce Report.--Not later than the end
of the 90-day period beginning on the date of publication of
the proposed duty suspensions and reductions under subsection
(c)(2)(B), the Secretary of Commerce, in consultation with
U.S. Customs and Border Protection and other relevant Federal
agencies, shall submit to the appropriate congressional
committees a report on each proposed duty suspension and
reduction submitted pursuant to subsection (b)(1) or
(c)(1)(A) that includes the following information:
(1) A determination of whether or not domestic production
of the article that is the subject of the proposed duty
suspension or reduction exists and, if such production
exists, whether or not a domestic producer of the article
objects to the proposed duty suspension or reduction.
(2) Any technical changes to the article description that
are necessary for purposes of administration when articles
are presented for importation.
(e) Rule of Construction.--A proposed duty suspension or
reduction submitted under this section by a Member of
Congress shall receive treatment no more favorable than the
treatment received by a proposed duty suspension or reduction
submitted under this section by a member of the public.
SEC. 804. REPORT ON EFFECTS OF DUTY SUSPENSIONS AND
REDUCTIONS ON UNITED STATES ECONOMY.
(a) In General.--Not later than May 1, 2018, and May 1,
2020, the Commission shall submit to the appropriate
congressional committees a report on the effects on the
United States economy of temporary duty suspensions and
reductions enacted pursuant to this title, including a broad
assessment of the economic effects of such duty suspensions
and reductions on producers, purchasers, and consumers in the
United States, using case studies describing such effects on
selected industries or by type of article as available data
permit.
(b) Recommendations.--The Commission shall also solicit and
append to the report required under subsection (a)
recommendations with respect to those domestic industry
sectors or specific domestic industries that might benefit
from permanent duty suspensions and reductions or elimination
of duties, either through a unilateral action of the United
States or though negotiations for reciprocal tariff
agreements, with a particular focus on inequities created by
tariff inversions.
(c) Form of Report.--Each report required by this section
shall be submitted in unclassified form, but may include a
classified annex.
SEC. 805. JUDICIAL REVIEW PRECLUDED.
The exercise of functions under this title shall not be
subject to judicial review.
SEC. 806. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means the Committee
on Ways and Means of the House of Representatives and the
Committee on Finance of the Senate.
(2) Commission.--The term ``Commission'' means the United
States International Trade Commission.
(3) Commission disclosure form.--The term ``Commission
disclosure form'' means, with respect to a proposed duty
suspension or reduction, a document submitted by a member of
the public to the Commission that contains the following:
(A) The contact information for any known importers of the
article to which the proposed duty suspension or reduction
would apply.
(B) A certification by the member of the public that the
proposed duty suspension or reduction is available to any
person importing the article to which the proposed duty
suspension or reduction would apply.
(4) Domestic producer.--The term ``domestic producer''
means a person that demonstrates production, or imminent
production, in the United States of an article that is
identical to, or like or directly competitive with, an
article to which a proposed duty suspension or reduction
would apply.
(5) Duty suspension or reduction.--
(A) In general.--The term ``duty suspension or reduction''
means an amendment to subchapter II of chapter 99 of the
Harmonized Tariff Schedule of the United States that--
[[Page H4290]]
(i)(I) extends an existing temporary duty suspension or
reduction of duty on an article under that subchapter; or
(II) provides for a new temporary duty suspension or
reduction of duty on an article under that subchapter; and
(ii) otherwise meets the requirements described in
subparagraph (B).
(B) Requirements.--A duty suspension or reduction meets the
requirements described in this subparagraph if--
(i) the duty suspension or reduction can be administered by
U.S. Customs and Border Protection;
(ii) the estimated loss in revenue to the United States
from the duty suspension or reduction does not exceed
$500,000 in a calendar year during which the duty suspension
or reduction would be in effect, as determined by the
Congressional Budget Office; and
(iii) the duty suspension or reduction is available to any
person importing the article that is the subject of the duty
suspension or reduction.
(6) Member of congress.--The term ``Member of Congress''
means a Senator or a Representative in, or Delegate or
Resident Commissioner to, Congress.
(7) Miscellaneous tariff bill.--The term ``miscellaneous
tariff bill'' means a bill of either House of Congress that
contains only--
(A) duty suspensions and reductions that--
(i) meet the applicable requirements for--
(I) consideration of duty suspensions and reductions
described in section 803; or
(II) any other process required under the Rules of the
House of Representatives or the Senate; and
(ii) are not the subject of an objection because such duty
suspensions and reductions do not comply with the
requirements of this title from--
(I) a Member of Congress; or
(II) a domestic producer, as contained in comments
submitted to the appropriate congressional committees, the
Commission, or the Department of Commerce under section 803;
and
(B) provisions included in bills introduced in the House of
Representatives or the Senate pursuant to a process described
in subparagraph (A)(i)(II) that correct an error in the text
or administration of a provision of the Harmonized Tariff
Schedule of the United States.
TITLE IX--MISCELLANEOUS PROVISIONS
SEC. 901. DE MINIMIS VALUE.
(a) Findings.--Congress makes the following findings:
(1) Modernizing international customs is critical for
United States businesses of all sizes, consumers in the
United States, and the economic growth of the United States.
(2) Higher thresholds for the value of articles that may be
entered informally and free of duty provide significant
economic benefits to businesses and consumers in the United
States and the economy of the United States through costs
savings and reductions in trade transaction costs.
(b) Sense of Congress.--It is the sense of Congress that
the United States Trade Representative should encourage other
countries, through bilateral, regional, and multilateral
fora, to establish commercially meaningful de minimis values
for express and postal shipments that are exempt from customs
duties and taxes and from certain entry documentation
requirements, as appropriate.
(c) 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''.
(d) Effective Date.--The amendment made by subsection (c)
shall apply with respect to articles entered, or withdrawn
from warehouse for consumption, on or after the 15th day
after the date of the enactment of this Act.
SEC. 902. 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. 903. 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) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border Protection'';
(2) in subsection (d)(2)(B), by striking ``The Customs
Service'' and inserting ``U.S. Customs and Border
Protection''; and
(3) in subsection (g)(2)(B), by striking ``Secretary's
notice'' and inserting ``notice under subparagraph (A)''.
SEC. 904. 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)(1) For purposes of subheadings 9802.00.40 and
9802.00.50, fungible articles 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
articles may be accounted for using an inventory management
method.
``(2) If a person chooses to use an inventory management
method under this paragraph with respect to fungible
articles, the person shall use the same inventory management
method for any other articles with respect to which the
person claims fungibility under this paragraph.
``(3) For the purposes of this paragraph--
``(A) the term `fungible articles' means merchandise or
articles that, for commercial purposes, are identical or
interchangeable in all situations; 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 articles 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.
(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 date that is 60 days after the
date of the enactment of this Act.
SEC. 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO
CONTAINED IN INSTRUMENTS OF INTERNATIONAL
TRAFFIC PREVIOUSLY EXPORTED FROM THE UNITED
STATES.
(a) In General.--General Note 3(e) of the Harmonized Tariff
Schedule of the United States is amended--
(1) in subparagraph (v), by striking ``and'' at the end;
(2) in subparagraph (vi), by adding ``and'' at the end;
(3) by inserting after subparagraph (vi) (as so amended)
the following new subparagraph:
``(vii) residue of bulk cargo contained in instruments of
international traffic previously exported from the United
States,''; and
(4) by adding at the end of the flush text following
subparagraph (vii) (as so added) the following: ``For
purposes of subparagraph (vii) of this paragraph: The term
`residue' means material of bulk cargo that remains in an
instrument of international traffic after the bulk cargo is
removed, with a quantity, by weight or volume, not exceeding
7 percent of the bulk cargo, and with no or de minimis value.
The term `bulk cargo' means cargo that is unpackaged and is
in either solid, liquid, or gaseous form. The term
`instruments of international traffic' means containers or
holders, capable of and suitable for repeated use, such as
lift vans, cargo vans, shipping tanks, skids, pallets, caul
boards, and cores for textile fabrics, arriving (whether
loaded or empty) in use or to be used in the shipment of
merchandise in international traffic, and any additional
articles or classes of articles that the Commissioner
responsible for U.S. Customs and Border Protection designates
as instruments of international traffic.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act and
apply with respect to residue of bulk cargo contained in
instruments of international traffic that are imported into
the customs territory of the United States on or after such
date of enactment and that previously have been exported from
the United States.
[[Page H4291]]
SEC. 906. 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 by striking ``the full amount of the duties paid upon
the merchandise so used shall be refunded as drawback, less 1
per centum of such duties, except that such'' and inserting
``an amount calculated pursuant to regulations prescribed by
the Secretary of the Treasury under subsection (l) shall be
refunded as drawback, except that''.
(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 are'' and
inserting ``or merchandise classifiable under the same 8-
digit HTS subheading number as such imported merchandise
is'';
(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'';
(5) by inserting ``or articles classifiable under the same
8-digit HTS subheading number as such articles,'' after ``any
such articles,'';
(6) by striking ``an amount of drawback equal to'' and all
that follows through the end period and inserting ``an amount
calculated pursuant to regulations prescribed by the
Secretary of the Treasury under subsection (l), but only if
those articles have not been used prior to such exportation
or destruction.''; and
(7) by adding at the end the following:
``(2) Requirements relating to transfer of merchandise.--
``(A) Manufacturers and producers.--Drawback shall be
allowed under paragraph (1) with respect to an article
manufactured or produced using imported merchandise or other
merchandise classifiable under the same 8-digit HTS
subheading number as such imported merchandise only if the
manufacturer or producer of the article received such
imported merchandise or such other merchandise, directly or
indirectly, from the importer.
``(B) Exporters and destroyers.--Drawback shall be allowed
under paragraph (1) with respect to a manufactured or
produced article that is exported or destroyed only if the
exporter or destroyer received that article or an article
classifiable under the same 8-digit HTS subheading number as
that article, directly or indirectly, from the manufacturer
or producer.
``(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.
``(3) Submission of bill of materials or formula.--
``(A) In general.--Drawback shall be allowed under
paragraph (1) with respect to an article manufactured or
produced using imported merchandise or other merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise only if the person making the
drawback claim submits with the claim a bill of materials or
formula identifying the merchandise and article by the 8-
digit HTS subheading number and the quantity of the
merchandise.
``(B) Bill of materials and formula defined.--In this
paragraph, the terms `bill of materials' and `formula' mean
records kept in the normal course of business that identify
each component incorporated into a manufactured or produced
article or that identify the quantity of each element,
material, chemical, mixture, or other substance incorporated
into a manufactured article.
``(4) Special rule for sought chemical elements.--
``(A) In general.--For purposes of paragraph (1), a sought
chemical element may be--
``(i) considered imported merchandise, or merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise, used in the manufacture or
production of an article as described in paragraph (1); and
``(ii) substituted for source material containing that
sought chemical element, without regard to whether the sought
chemical element and the source material are classifiable
under the same 8-digit HTS subheading number, and apportioned
quantitatively, as appropriate.
``(B) Sought chemical element defined.--In this paragraph,
the term `sought chemical element' means an element listed in
the Periodic Table of Elements that is imported into the
United States or a chemical compound consisting of those
elements, either separately in elemental form or contained in
source material.''.
(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 subparagraph (C)(ii), by striking ``under a
certificate of delivery'' each place it appears;
(B) in subparagraph (D)--
(i) by striking ``3'' and inserting ``5''; and
(ii) by striking ``the Customs Service'' and inserting
``U.S. Customs and Border Protection''; and
(C) in the flush text at the end, by striking ``the full
amount of the duties paid upon such merchandise, less 1
percent,'' and inserting ``an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury under
subsection (l)'';
(2) in paragraph (2), by striking ``the Customs Service''
and inserting ``U.S. Customs and Border Protection''; and
(3) by amending paragraph (3) to read as follows:
``(3) Evidence of transfers.--Transfers of merchandise
under paragraph (1) 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 based on the exportation of an article
shall provide proof of the exportation of the article. Such
proof of exportation--
``(1) shall establish fully the date and fact of
exportation and the identity of the exporter; and
``(2) may be established through the use of records kept in
the normal course of business or through an electronic export
system of the United States Government, as determined by the
Commissioner responsible for U.S. Customs and Border
Protection.''.
(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) in subparagraph (A), in the matter preceding clause
(i)--
(i) by striking ``3-year'' and inserting ``5-year''; and
(ii) by inserting ``and before the drawback claim is
filed'' after ``the date of importation''; and
(B) in the flush text at the end, by striking ``99 percent
of the amount of each duty, tax, or fee so paid'' and
inserting ``an amount calculated pursuant to regulations
prescribed by the Secretary of the Treasury under subsection
(l)'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``paragraph (4)'' and inserting ``paragraphs (4), (5), and
(6)'';
(B) in subparagraph (A), by striking ``commercially
interchangeable with'' and inserting ``classifiable under the
same 8-digit HTS subheading number as'';
(C) in subparagraph (B)--
(i) by striking ``3-year'' and inserting ``5-year''; and
(ii) by inserting ``and before the drawback claim is
filed'' after ``the imported merchandise'';
(D) in subparagraph (C)(ii), by striking subclause (II) and
inserting the following:
``(II) received the imported merchandise, other merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise, or any combination of such
imported merchandise and such other merchandise, directly or
indirectly from the person who imported and paid any duties,
taxes, and fees imposed under Federal law upon importation or
entry and due on the imported merchandise (and any such
transferred merchandise, regardless of its origin, will be
treated as the imported merchandise and any retained
merchandise will be treated as domestic merchandise);''; and
(E) in the flush text at the end--
(i) by striking ``the amount of each such duty, tax, and
fee'' and all that follows through ``99 percent of that duty,
tax, or fee'' and inserting ``an amount calculated pursuant
to regulations prescribed by the Secretary of the Treasury
under subsection (l) shall be refunded as drawback''; and
(ii) by striking the last sentence and inserting the
following: ``Notwithstanding subparagraph (A), drawback shall
be allowed under this paragraph with respect to wine if the
imported wine and the exported wine are of the same color and
the price variation between the imported wine and the
exported wine does not exceed 50 percent. 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.'';
(3) in paragraph (3)(B), by striking ``the commercially
interchangeable merchandise'' and inserting ``merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise''; and
(4) by adding at the end the following:
``(5)(A) For purposes of paragraph (2) and except as
provided in subparagraph (B), merchandise may not be
substituted for imported merchandise for drawback purposes
based on the 8-digit HTS subheading number if the article
description for the 8-digit HTS subheading number under which
the imported merchandise is classified begins with the term
`other'.
``(B) In cases described in subparagraph (A), merchandise
may be substituted for imported merchandise for drawback
purposes if--
``(i) the other merchandise and such imported merchandise
are classifiable under the same 10-digit HTS statistical
reporting number; and
``(ii) the article description for that 10-digit HTS
statistical reporting number does not begin with the term
`other'.
``(6)(A) For purposes of paragraph (2), a drawback claimant
may use the first 8 digits of the 10-digit Schedule B number
for merchandise or an article to determine if the merchandise
or article is classifiable under the same 8-digit HTS
subheading number as the imported merchandise, without regard
to whether the Schedule B number corresponds to more than one
8-digit HTS subheading number.
``(B) In this paragraph, the term `Schedule B' means the
Department of Commerce Schedule B, Statistical Classification
of Domestic and Foreign Commodities Exported from the United
States.''.
(f) Liability for Drawback Claims.--Section 313(k) of the
Tariff Act of 1930 (19 U.S.C. 1313(k)) is amended to read as
follows:
``(k) Liability for Drawback Claims.--
``(1) In general.--Any person making a claim for drawback
under this section shall be liable for the full amount of the
drawback claimed.
[[Page H4292]]
``(2) Liability of importers.--An importer shall be liable
for any drawback claim made by another person with respect to
merchandise imported by the importer in an amount equal to
the lesser of--
``(A) the amount of duties, taxes, and fees that the person
claimed with respect to the imported merchandise; or
``(B) the amount of duties, taxes, and fees that the
importer authorized the other person to claim with respect to
the imported merchandise.
``(3) Joint and several liability.--Persons described in
paragraphs (1) and (2) shall be jointly and severally liable
for the amount described in paragraph (2).''.
(g) Regulations.--Section 313(l) of the Tariff Act of 1930
(19 U.S.C. 1313(l)) is amended to read as follows:
``(l) Regulations.--
``(1) In general.--Allowance of the privileges provided for
in this section shall be subject to compliance with such
rules and regulations as the Secretary of the Treasury shall
prescribe.
``(2) Calculation of drawback.--
``(A) In general.--Not later than the date that is 2 years
after the date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015 (or, if later, the effective
date provided for in section 906(q)(2)(B) of that Act), the
Secretary shall prescribe regulations for determining the
calculation of amounts refunded as drawback under this
section.
``(B) Requirements.--The regulations required by
subparagraph (A) for determining the calculation of amounts
refunded as drawback under this section shall provide for a
refund of 99 percent of the duties, taxes, and fees paid with
respect to the imported merchandise, except that where there
is substitution of the merchandise or article, then--
``(i) in the case of an article that is exported, the
amount of the refund shall be equal to 99 percent of the
lesser of--
``(I) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; or
``(II) the amount of duties, taxes, and fees that would
apply to the exported article if the exported article were
imported; and
``(ii) in the case of an article that is destroyed, the
amount of the refund shall be an amount that is--
``(I) equal to 99 percent of the lesser of--
``(aa) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; and
``(bb) the amount of duties, taxes, and fees that would
apply to the destroyed article if the destroyed article were
imported; and
``(II) reduced by the value of materials recovered during
destruction as provided in subsection (x).
``(3) Status reports on regulations.--Not later than the
date that is one year after the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015, and
annually thereafter until the regulations required by
paragraph (2) are final, the Secretary shall submit to
Congress a report on the status of those regulations.''.
(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) in paragraph (3)(A)--
(A) in clause (ii)(III), by striking ``, as so certified in
a certificate of delivery or certificate of manufacture and
delivery''; and
(B) in the flush text at the end--
(i) by striking ``, as so designated on the certificate of
delivery or certificate of manufacture and delivery''; and
(ii) by striking the last sentence and inserting the
following: ``The party transferring the merchandise shall
maintain records kept in the normal course of business to
demonstrate the transfer.''.
(i) Packaging Material.--Section 313(q) of the Tariff Act
of 1930 (19 U.S.C. 1313(q)) is amended--
(1) in paragraph (1), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on such imported
material'' and inserting ``in an amount calculated pursuant
to regulations prescribed by the Secretary of the Treasury
under subsection (l)'';
(2) in paragraph (2), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on the imported
or substituted merchandise used to manufacture or produce
such material'' and inserting ``in an amount calculated
pursuant to regulations prescribed by the Secretary of the
Treasury under subsection (l)''; and
(3) in paragraph (3), by striking ``they contain'' and
inserting ``it contains''.
(j) Filing of Drawback Claims.--Section 313(r) of the
Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended--
(1) 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.'';
(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'';
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking ``The
Customs Service'' and inserting ``U.S. Customs and Border
Protection'';
(ii) in clauses (i) and (ii), by striking ``the Customs
Service'' each place it appears and inserting ``U.S. Customs
and Border Protection''; and
(iii) in clause (ii)(I), by striking ``3-year'' and
inserting ``5-year''; and
(B) in subparagraph (B), by striking ``the periods of time
for retaining records set forth in subsection (t) of this
section and'' and inserting ``the period of time for
retaining records set forth in''; and
(3) by adding at the end the following:
``(4) All drawback claims filed on and after the date that
is 2 years after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015 (or, if later,
the effective date provided for in section 906(q)(2)(B) of
that Act) shall be filed electronically.''.
(k) Designation of Merchandise by Successor.--Section
313(s) of the Tariff Act of 1930 (19 U.S.C. 1313(s)) is
amended--
(1) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) subject to paragraphs (5) and (6) of subsection (j),
imported merchandise, other merchandise classifiable under
the same 8-digit HTS subheading number as such imported
merchandise, or any combination of such imported merchandise
and such other merchandise, that the predecessor received,
before the date of succession, from the person who imported
and paid any duties, taxes, and fees due on the imported
merchandise;''; and
(2) in paragraph (4), by striking ``certifies that'' and
all that follows and inserting ``certifies that the
transferred merchandise was not and will not be claimed by
the predecessor.''.
(l) Drawback Certificates.--Section 313 of the Tariff Act
of 1930 (19 U.S.C. 1313) is amended by striking subsection
(t).
(m) Drawback 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)''.
(n) 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 one 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 one person to another
person with one or more intermediate transfers.''.
(o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of
1930 (19 U.S.C. 1508(c)(3)) is amended--
(1) by striking ``3rd'' and inserting ``5th''; and
(2) by striking ``payment'' and inserting ``liquidation''.
(p) Government Accountability Office Report.--
(1) In general.--Not later than one year after the issuance
of the regulations required by subsection (l)(2) of section
313 of the Tariff Act of 1930, as added by subsection (g),
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 modernization of drawback and refunds under section 313
of the Tariff Act of 1930, as amended by this section.
(2) Contents.--The report required by paragraph (1) include
the following:
(A) An assessment of the modernization of drawback and
refunds under section 313 of the Tariff Act of 1930, as
amended by this section.
(B) A description of drawback claims that were permissible
before the effective date provided for in subsection (q) that
are not permissible after that effective date and an
identification of industries most affected.
(C) A description of drawback claims that were not
permissible before the effective date provided for in
subsection (q) that are permissible after that effective date
and an identification of industries most affected.
(q) 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 paragraphs (2)(B) and (3), apply
to drawback claims filed on or after the date that is 2 years
after such date of enactment.
(2) Reporting of operability of automated commercial
environment computer system.--
(A) In general.--Not later than one year after the date of
the enactment of this Act, and not later than 2 years after
such date of enactment, the Secretary of the Treasury shall
submit to Congress a report on--
(i) the date on which the Automated Commercial Environment
will be ready to process drawback claims; and
(ii) the date on which the Automated Export System will be
ready to accept proof of exportation under subsection (i) of
section 313 of the Tariff Act of 1930, as amended by
subsection (d).
(B) Delay of effective date.--If the Secretary indicates in
the report required by subparagraph (A) that the Automated
Commercial Environment will not be ready to process drawback
claims by the date that is 2 years after the date of the
enactment of this Act, the amendments made by this section
shall apply to drawback claims filed on and after the date on
which the Secretary certifies that the Automated Commercial
Environment is ready to process drawback claims.
(3) Transition rule.--During the one-year period beginning
on the date that is 2 years after the date of the enactment
of this Act (or, if later, the effective date provided for in
paragraph (2)(B)), 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 of the enactment of this Act.
[[Page H4293]]
SEC. 907. INCLUSION OF CERTAIN INFORMATION IN SUBMISSION OF
NOMINATION FOR APPOINTMENT AS DEPUTY UNITED
STATES TRADE REPRESENTATIVE.
Section 141(b) of the Trade Act of 1974 (19 U.S.C. 2171(b))
is amended by adding at the end the following:
``(5) When the President submits to the Senate for its
advice and consent a nomination of an individual for
appointment as a Deputy United States Trade Representative
under paragraph (2), the President shall include in that
submission information on the country, regional offices, and
functions of the Office of the United States Trade
Representative with respect to which that individual will
have responsibility.''.
SEC. 908. BIENNIAL REPORTS REGARDING COMPETITIVENESS ISSUES
FACING THE UNITED STATES ECONOMY AND
COMPETITIVE CONDITIONS FOR CERTAIN KEY UNITED
STATES INDUSTRIES.
(a) In General.--The United States International Trade
Commission shall conduct a series of investigations, and
submit a report on each such investigation in accordance with
subsection (c), regarding competitiveness issues facing the
economy of the United States and competitive conditions for
certain key United States industries.
(b) Contents of Report.--
(1) In general.--Each report required by subsection (a)
shall include, to the extent practicable, the following:
(A) A detailed assessment of competitiveness issues facing
the economy of the United States, over the 10-year period
beginning on the date on which the report is submitted, that
includes--
(i) projections, over that 10-year period, of economic
measures, such as measures relating to production in the
United States and United States trade, for the economy of the
United States and for key United States industries, based on
ongoing trends in the economy of the United States and global
economies and incorporating estimates from prominent United
States, foreign, multinational, and private sector
organizations; and
(ii) a description of factors that drive economic growth,
such as domestic productivity, the United States workforce,
foreign demand for United States goods and services, and
industry-specific developments.
(B) A detailed assessment of a key United States industry
or key United States industries that, to the extent
practicable--
(i) identifies with respect to each such industry the
principal factors driving competitiveness as of the date on
which the report is submitted; and
(ii) describes, with respect to each such industry, the
structure of the global industry, its market characteristics,
current industry trends, relevant policies and programs of
foreign governments, and principal factors affecting future
competitiveness.
(2) Selection of key united states industries.--
(A) In general.--In conducting assessments required under
paragraph (1)(B), the Commission shall, to the extent
practicable, select a different key United States industry or
different key United States industries for purposes of each
report required by subsection (a).
(B) Consultations with congress.--The Commission shall
consult with the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives
before selecting the key United States industry or key United
States industries for purposes of each report required by
subsection (a).
(c) Submission of Reports.--
(1) In general.--Not later than May 15, 2017, and every 2
years thereafter through 2025, the Commission 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 most recent investigation conducted under subsection (a).
(2) Extension of deadline.--The Commission may, after
consultation with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives, submit a report under paragraph (1) later
than the date required by that paragraph.
(3) Confidential business information.--A report submitted
under paragraph (1) shall not include any confidential
business information unless--
(A) the party that submitted the confidential business
information to the Commission had notice, at the time of
submission, that the information would be released by the
Commission; or
(B) that party consents to the release of the information.
(d) Key United States Industry Defined.--In this section,
the term ``key United States industry'' means a goods or
services industry that--
(1) contributes significantly to United States economic
activity and trade; or
(2) is a potential growth area for the United States and
global markets.
SEC. 909. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER
PROTECTION AGREEMENTS.
(a) In General.--Not later than one year after entering
into an agreement under a program specified in subsection
(b), and annually thereafter until the termination of the
program, the Commissioner 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 includes the
following:
(1) A description of the development of the program.
(2) A description of the type of entity with which U.S.
Customs and Border Protection entered into the agreement and
the amount that entity reimbursed U.S. Customs and Border
Protection under the agreement.
(3) An identification of the type of port of entry to which
the agreement relates and an assessment of how the agreement
provides economic benefits at the port of entry.
(4) A description of the services provided by U.S. Customs
and Border Protection under the agreement during the year
preceding the submission of the report.
(5) The amount of fees collected under the agreement during
that year.
(6) A detailed accounting of how the fees collected under
the agreement have been spent during that year.
(7) A summary of any complaints or criticism received by
U.S. Customs and Border Protection during that year regarding
the agreement.
(8) An assessment of the compliance of the entity described
in paragraph (2) with the terms of the agreement.
(9) Recommendations with respect to how activities
conducted pursuant to the agreement could function more
effectively or better produce economic benefits.
(10) A summary of the benefits to and challenges faced by
U.S. Customs and Border Protection and the entity described
in paragraph (2) under the agreement.
(b) Program Specified.--A program specified in this
subsection is--
(1) the program for entering into reimbursable fee
agreements for the provision of U.S. Customs and Border
Protection services established by section 560 of the
Department of Homeland Security Appropriations Act, 2013
(division D of Public Law 113-6; 127 Stat. 378); or
(2) the pilot program authorizing U.S. Customs and Border
Protection to enter into partnerships with private sector and
government entities at ports of entry established by section
559 of the Department of Homeland Security Appropriations
Act, 2014 (division F of Public Law 113-76; 6 U.S.C. 211
note).
SEC. 910. CHARTER FLIGHTS.
Section 13031(e)(1) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended--
(1) by striking ``(1) Notwithstanding section 451 of the
Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of
law (other than paragraph (2))'' and inserting the following:
``(1)(A) Notwithstanding section 451 of the Tariff Act of
1930 (19 U.S.C. 1451) or any other provision of law (other
than subparagraph (B) and paragraph (2))''; and
(2) by adding at the end the following:
``(B)(i) An appropriate officer of U.S. Customs and Border
Protection may assign a sufficient number of employees of
U.S. Customs and Border Protection (if available) to perform
services described in clause (ii) for a charter air carrier
(as defined in section 40102 of title 49, United States Code)
for a charter flight arriving after normal operating hours at
an airport that is an established port of entry serviced by
U.S. Customs and Border Protection, notwithstanding that
overtime funds for those services are not available, if the
charter air carrier--
``(I) not later than 4 hours before the flight arrives,
specifically requests that such services be provided; and
``(II) pays any overtime fees incurred in connection with
such services.
``(ii) Services described in this clause are customs
services for passengers and their baggage or any other such
service that could lawfully be performed during regular hours
of operation.''.
SEC. 911. AMENDMENT TO TARIFF ACT OF 1930 TO REQUIRE COUNTRY
OF ORIGIN MARKING OF CERTAIN CASTINGS.
(a) In General.--Section 304(e) of the Tariff Act of 1930
(19 U.S.C. 1304(e)) is amended--
(1) in the subsection heading, by striking ``Manhole Rings
or Frames, Covers, and Assemblies Thereof'' and inserting
``Castings'';
(2) by inserting ``inlet frames, tree and trench grates,
lampposts, lamppost bases, cast utility poles, bollards,
hydrants, utility boxes,'' before ``manhole rings,''; and
(3) by adding at the end before the period the following:
``in a location such that it will remain visible after
installation''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act and
apply with respect to the importation of castings described
in such amendments on or after the date that is 180 days
after such date of enactment.
SEC. 912. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO
PROHIBITION ON IMPORTATION OF GOODS MADE WITH
CONVICT LABOR, FORCED LABOR, OR INDENTURED
LABOR; REPORT.
(a) Elimination of Consumptive Demand Exception.--
(1) In general.--Section 307 of the Tariff Act of 1930 (19
U.S.C. 1307) is amended by striking ``The provisions of this
section'' and all that follows through ``of the United
States.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 15 days after the date
of the enactment of this Act.
(b) Report Required.--Not later than 180 days after the
date of the enactment of this Act, and annually thereafter,
the Commissioner 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 compliance with section 307 of
the Tariff Act of 1930 (19 U.S.C. 1307) that includes the
following:
(1) The number of instances in which merchandise was denied
entry pursuant to that section during the 1-year period
preceding the submission of the report.
(2) A description of the merchandise denied entry pursuant
to that section.
(3) Such other information as the Commissioner considers
appropriate with respect to monitoring and enforcing
compliance with that section.
SEC. 913. IMPROVED COLLECTION AND USE OF LABOR MARKET
INFORMATION.
Section 1137 of the Social Security Act (42 U.S.C. 1320b-7)
is amended--
[[Page H4294]]
(1) in subsection (a)--
(A) in paragraph (2), by inserting ``(including the
occupational information under subsection (g))'' after
``paragraph (3) of this subsection''; and
(B) in paragraph (3), by striking ``employers (as defined''
and inserting ``subject to subsection (g), employers (as
defined''; and
(2) by adding at the end the following new subsection:
``(g)(1) Beginning January 1, 2017, each quarterly wage
report required to be submitted by an employer under
subsection (a)(3) shall include such occupational information
with respect to each employee of the employer that permits
the classification of such employees into occupational
categories as found in the Standard Occupational
Classification (SOC) system.
``(2) The State agency receiving the occupational
information described in paragraph (1) shall make such
information available to the Secretary of Labor pursuant to
procedures established by the Secretary of Labor.
``(3)(A) The Secretary of Labor shall make occupational
information submitted under paragraph (2) available to other
State and Federal agencies, including the United States
Census Bureau, the Bureau of Labor Statistics, and other
State and Federal research agencies.
``(B) Disclosure of occupational information under
subparagraph (A) shall be subject to the agency having
safeguards in place that meet the requirements under
paragraph (4).
``(4) The Secretary of Labor shall establish and implement
safeguards for the dissemination and, subject to paragraph
(5), the use of occupational information received under this
subsection.
``(5) Occupational information received under this
subsection shall only be used to classify employees into
occupational categories as found in the Standard Occupational
Classification (SOC) system and to analyze and evaluate
occupations in order to improve the labor market for workers
and industries.
``(6) The Secretary of Labor shall establish procedures to
verify the accuracy of information received under paragraph
(2).''.
SEC. 914. STATEMENTS OF POLICY WITH RESPECT TO ISRAEL.
Congress--
(1) supports the strengthening of United States-Israel
economic cooperation and recognizes the tremendous strategic,
economic, and technological value of cooperation with Israel;
(2) recognizes the benefit of cooperation with Israel to
United States companies, including by improving United States
competitiveness in global markets;
(3) recognizes the importance of trade and commercial
relations to the pursuit and sustainability of peace, and
supports efforts to bring together the United States, Israel,
the Palestinian territories, and others in enhanced commerce;
(4) opposes politically motivated actions that penalize or
otherwise limit commercial relations specifically with Israel
such as boycotts, divestment or sanctions;
(5) notes that the boycott, divestment, and sanctioning of
Israel by governments, governmental bodies, quasi-
governmental bodies, international organizations, and other
such entities is contrary to the General Agreement on Tariffs
and Trade (GATT) principle of nondiscrimination;
(6) encourages the inclusion of politically motivated
actions that penalize or otherwise limit commercial relations
specifically with Israel such as boycotts, divestment from,
or sanctions against Israel as a topic of discussion at the
U.S.-Israel Joint Economic Development Group (JEDG) and other
areas to support the strengthening of the United States-
Israel commercial relationship and combat any commercial
discrimination against Israel;
(7) supports efforts to prevent investigations or
prosecutions by governments or international organizations of
United States persons on the sole basis of such persons doing
business with Israel, with Israeli entities, or in
territories controlled by Israel; and
(8) supports States of the United States examining a
company's promotion or compliance with unsanctioned boycotts,
divestment from, or sanctions against Israel as part of its
consideration in awarding grants and contracts and supports
the divestment of State assets from companies that support or
promote actions to boycott, divest from, or sanction Israel.
TITLE X--OFFSETS
SEC. 1001. REVOCATION OR DENIAL OF PASSPORT IN CASE OF
CERTAIN UNPAID TAXES.
(a) In General.--Subchapter D of chapter 75 of the Internal
Revenue Code of 1986 is amended by adding at the end the
following new section:
``SEC. 7345. REVOCATION OR DENIAL OF PASSPORT IN CASE OF
CERTAIN TAX DELINQUENCIES.
``(a) In General.--If the Secretary receives certification
by the Commissioner of Internal Revenue that any individual
has a seriously delinquent tax debt in an amount in excess of
$50,000, the Secretary shall transmit such certification to
the Secretary of State for action with respect to denial,
revocation, or limitation of a passport pursuant to section
1001(d) of the Trade Facilitation and Trade Enforcement Act
of 2015.
``(b) Seriously Delinquent Tax Debt.--For purposes of this
section, the term `seriously delinquent tax debt' means an
outstanding debt under this title for which a notice of lien
has been filed in public records pursuant to section 6323 or
a notice of levy has been filed pursuant to section 6331,
except that such term does not include--
``(1) a debt that is being paid in a timely manner pursuant
to an agreement under section 6159 or 7122, and
``(2) a debt with respect to which collection is suspended
because a collection due process hearing under section 6330,
or relief under subsection (b), (c), or (f) of section 6015,
is requested or pending.
``(c) Adjustment for Inflation.--In the case of a calendar
year beginning after 2016, the dollar amount in subsection
(a) shall be increased by an amount equal to--
``(1) such dollar amount, multiplied by
``(2) the cost-of-living adjustment determined under
section 1(f)(3) for the calendar year, determined by
substituting `calendar year 2015' for `calendar year 1992' in
subparagraph (B) thereof.
If any amount as adjusted under the preceding sentence is not
a multiple of $1,000, such amount shall be rounded to the
next highest multiple of $1,000.''.
(b) Clerical Amendment.--The table of sections for
subchapter D of chapter 75 of the Internal Revenue Code of
1986 is amended by adding at the end the following new item:
``Sec. 7345. Revocation or denial of passport in case of certain tax
delinquencies.''.
(c) Authority for Information Sharing.--
(1) In general.--Subsection (l) of section 6103 of the
Internal Revenue Code of 1986 is amended by adding at the end
the following new paragraph:
``(23) Disclosure of return information to department of
state for purposes of passport revocation under section
7345.--
``(A) In general.--The Secretary shall, upon receiving a
certification described in section 7345, disclose to the
Secretary of State return information with respect to a
taxpayer who has a seriously delinquent tax debt described in
such section. Such return information shall be limited to--
``(i) the taxpayer identity information with respect to
such taxpayer, and
``(ii) the amount of such seriously delinquent tax debt.
``(B) Restriction on disclosure.--Return information
disclosed under subparagraph (A) may be used by officers and
employees of the Department of State for the purposes of, and
to the extent necessary in, carrying out the requirements of
section 1001(d) of the Trade Facilitation and Trade
Enforcement Act of 2015.''.
(2) Conforming amendment.--Paragraph (4) of section 6103(p)
of such Code is amended by striking ``or (22)'' each place it
appears in subparagraph (F)(ii) and in the matter preceding
subparagraph (A) and inserting ``(22), or (23)''.
(d) Authority To Deny or Revoke Passport.--
(1) Denial.--
(A) In general.--Except as provided under subparagraph (B),
upon receiving a certification described in section 7345 of
the Internal Revenue Code of 1986 from the Secretary of the
Treasury, the Secretary of State shall not issue a passport
to any individual who has a seriously delinquent tax debt
described in such section.
(B) Emergency and humanitarian situations.--Notwithstanding
subparagraph (A), the Secretary of State may issue a
passport, in emergency circumstances or for humanitarian
reasons, to an individual described in such subparagraph.
(2) Revocation.--
(A) In general.--The Secretary of State may revoke a
passport previously issued to any individual described in
paragraph (1)(A).
(B) Limitation for return to united states.--If the
Secretary of State decides to revoke a passport under
subparagraph (A), the Secretary of State, before revocation,
may--
(i) limit a previously issued passport only for return
travel to the United States; or
(ii) issue a limited passport that only permits return
travel to the United States.
(3) Hold harmless.--The Secretary of the Treasury and the
Secretary of State shall not be liable to an individual for
any action with respect to a certification by the
Commissioner of Internal Revenue under section 7345 of the
Internal Revenue Code of 1986.
(e) Revocation or Denial of Passport in Case of Individual
Without Social Security Account Number.--
(1) Denial.--
(A) In general.--Except as provided under subparagraph (B),
upon receiving an application for a passport from an
individual that either--
(i) does not include the social security account number
issued to that individual, or
(ii) includes an incorrect or invalid social security
number willfully, intentionally, negligently, or recklessly
provided by such individual,
the Secretary of State is authorized to deny such application
and is authorized to not issue a passport to the individual.
(B) Emergency and humanitarian situations.--Notwithstanding
subparagraph (A), the Secretary of State may issue a
passport, in emergency circumstances or for humanitarian
reasons, to an individual described in subparagraph (A).
(2) Revocation.--
(A) In general.--The Secretary of State may revoke a
passport previously issued to any individual described in
paragraph (1)(A).
(B) Limitation for return to united states.--If the
Secretary of State decides to revoke a passport under
subparagraph (A), the Secretary of State, before revocation,
may--
(i) limit a previously issued passport only for return
travel to the United States; or
(ii) issue a limited passport that only permits return
travel to the United States.
(f) Effective Date.--The provisions of, and amendments made
by, this section shall take effect on January 1, 2016.
SEC. 1002. CUSTOMS USER FEES.
(a) In General.--Section 13031(j)(3) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)) is amended by adding at the end the following:
[[Page H4295]]
``(C) Fees may be charged under paragraphs (9) and (10) of
subsection (a) during the period beginning on July 8, 2025,
and ending on July 28, 2025.''.
(b) Rate for Merchandise Processing Fees.--Section 503 of
the United States-Korea Free Trade Agreement Implementation
Act (Public Law 112-41; 125 Stat. 460) is amended--
(1) by striking ``For the period'' and inserting ``(a) In
General.--For the period''; and
(2) by adding at the end the following:
``(b) Additional Period.--For the period beginning on July
1, 2025, and ending on July 14, 2025, section 13031(a)(9) of
the Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(a)(9)) shall be applied and administered--
``(1) in subparagraph (A), by substituting `0.3464' for
`0.21'; and
``(2) in subparagraph (B)(i), by substituting `0.3464' for
`0.21'.''.
Amend the title so as to read: ``An Act to reauthorize
trade facilitation and trade enforcement functions and
activities, and for other purposes.''.
Motion Offered by Mr. Tiberi
Mr. TIBERI. Mr. Speaker, I have a motion at the desk.
The SPEAKER pro tempore. The Clerk will designate the motion.
The text of the motion is as follows:
Mr. Tiberi moves that the House concur in the Senate
amendment to the title of H.R. 644 and concur in the Senate
amendment to the text of H.R. 644 with the amendment printed
in part A of House Report 114-146 modified by the amendment
printed in part B of that report.
The text of the House amendment to the Senate amendments to the text
is as follows:
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the text of the bill, insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Trade
Facilitation and Trade Enforcement Act of 2015''.
(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--TRADE FACILITATION AND TRADE ENFORCEMENT
Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs
modernization, trade facilitation, and trade enforcement
functions and programs.
Sec. 104. Educational seminars to improve efforts to classify and
appraise imported articles, to improve trade enforcement
efforts, and to otherwise facilitate legitimate
international trade.
Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition
arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial risk assessment targeting and trade alerts.
Sec. 112. Report on oversight of revenue protection and enforcement
measures.
Sec. 113. Report on security and revenue measures with respect to
merchandise transported in bond.
Sec. 114. Importer of record program.
Sec. 115. Establishment of new importer program.
Sec. 116. Customs broker identification of importers.
Sec. 117. Requirements applicable to non-resident importers.
Sec. 118. Priority trade issues.
Sec. 119. Appropriate congressional committees defined.
TITLE II--IMPORT HEALTH AND SAFETY
Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works
for which copyright registration is pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual
property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual
property rights.
Sec. 308. Training with respect to the enforcement of intellectual
property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of
intellectual property rights.
TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Application to Canada and Mexico.
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
Sec. 411. Trade remedy law enforcement division.
Sec. 412. Collection of information on evasion of trade remedy laws.
Sec. 413. Access to information.
Sec. 414. Cooperation with foreign countries on preventing evasion of
trade remedy laws.
Sec. 415. Trade negotiating objectives.
Subtitle B--Investigation of Evasion of Trade Remedy Laws
Sec. 421. Procedures for investigation of evasion of antidumping and
countervailing duty orders.
Sec. 422. Government Accountability Office report.
Subtitle C--Other Matters
Sec. 431. Allocation and training of personnel.
Sec. 432. Annual report on prevention of evasion of antidumping and
countervailing duty orders.
Sec. 433. Addressing circumvention by new shippers.
TITLE V--IMPROVEMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS
Sec. 501. Short title.
Sec. 502. Consequences of failure to cooperate with a request for
information in a proceeding.
Sec. 503. Definition of material injury.
Sec. 504. Particular market situation.
Sec. 505. Distortion of prices or costs.
Sec. 506. Reduction in burden on Department of Commerce by reducing the
number of voluntary respondents.
Sec. 507. Application to Canada and Mexico.
TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS
Sec. 601. Trade enforcement priorities.
Sec. 602. Exercise of WTO authorization to suspend concessions or other
obligations under trade agreements.
Sec. 603. Trade monitoring.
TITLE VII--CURRENCY MANIPULATION
Sec. 701. Enhancement of engagement on currency exchange rate and
economic policies with certain major trading partners of
the United States.
Sec. 702. Advisory Committee on International Exchange Rate Policy.
TITLE VIII--ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION
Sec. 801. Short title.
Sec. 802. Establishment of U.S. Customs and Border Protection.
TITLE IX--MISCELLANEOUS PROVISIONS
Sec. 901. De minimis value.
Sec. 902. Consultation on trade and customs revenue functions.
Sec. 903. Penalties for customs brokers.
Sec. 904. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
Sec. 905. Exemption from duty of residue of bulk cargo contained in
instruments of international traffic previously exported
from the United States.
Sec. 906. Drawback and refunds.
Sec. 907. Office of the United States Trade Representative.
Sec. 908. United States-Israel Trade and Commercial Enhancement.
Sec. 909. Elimination of consumptive demand exception to prohibition on
importation of goods made with convict labor, forced
labor, or indentured labor; report.
Sec. 910. Customs user fees.
Sec. 911. Report on certain U.S. Customs and Border Protection
agreements.
Sec. 912. Amendments to Bipartisan Congressional Trade Priorities and
Accountability Act of 2015.
Sec. 913. Certain interest to be included in distributions under
Continued Dumping and Subsidy Offset Act of 2000.
Sec. 914. Report on competitiveness of U.S. recreational performance
outerwear industry.
Sec. 915. Increase in penalty for failure to file return of tax.
SEC. 2. DEFINITIONS.
In this Act:
(1) Automated commercial environment.--The term ``Automated
Commercial Environment'' means the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(f)(4)).
(2) Commissioner.--The term ``Commissioner'' means the
Commissioner of U.S. Customs and Border Protection, as
described in section 411(b) of the Homeland Security Act of
2002, as added by section 802(a) of this Act.
(3) Customs and trade laws of the united states.--The term
``customs and trade laws of the United States'' includes the
following:
[[Page H4296]]
(A) The Tariff Act of 1930 (19 U.S.C. 1202 et seq.).
(B) Section 249 of the Revised Statutes (19 U.S.C. 3).
(C) Section 2 of the Act of March 4, 1923 (42 Stat. 1453,
chapter 251; 19 U.S.C. 6).
(D) The Act of March 3, 1927 (44 Stat. 1381, chapter 348;
19 U.S.C. 2071 et seq.).
(E) Section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c).
(F) Section 251 of the Revised Statutes (19 U.S.C. 66).
(G) Section 1 of the Act of June 26, 1930 (46 Stat. 817,
chapter 617; 19 U.S.C. 68).
(H) The Foreign Trade Zones Act (19 U.S.C. 81a et seq.).
(I) Section 1 of the Act of March 2, 1911 (36 Stat. 965,
chapter 191; 19 U.S.C. 198).
(J) The Trade Act of 1974 (19 U.S.C. 2102 et seq.).
(K) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et
seq.).
(L) The North American Free Trade Agreement Implementation
Act (19 U.S.C. 3301 et seq.).
(M) The Uruguay Round Agreements Act (19 U.S.C. 3501 et
seq.).
(N) The Caribbean Basin Economic Recovery Act (19 U.S.C.
2701 et seq.).
(O) The Andean Trade Preference Act (19 U.S.C. 3201 et
seq.).
(P) The African Growth and Opportunity Act (19 U.S.C. 3701
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 March 28, 1928 (45 Stat. 374, chapter 266;
19 U.S.C. 2077 et seq.).
(W) The Act of August 7, 1939 (53 Stat. 1263, chapter 566).
(X) Any other provision of law implementing a trade
agreement.
(Y) Any other provision of law vesting customs revenue
functions in the Secretary of the Treasury.
(Z) Any other provision of law relating to trade
facilitation or trade enforcement that is administered by
U.S. Customs and Border Protection on behalf of any Federal
agency that is required to participate in the International
Trade Data System.
(AA) Any other provision of customs or trade law
administered by U.S. Customs and Border Protection or U.S.
Immigration and Customs Enforcement.
(4) Private sector entity.--The term ``private sector
entity'' means--
(A) an importer;
(B) an exporter;
(C) a forwarder;
(D) an air, sea, or land carrier or shipper;
(E) a contract logistics provider;
(F) a customs broker; or
(G) any other person (other than an employee of a
government) affected by the implementation of the customs and
trade laws of the United States.
(5) Trade enforcement.--The term ``trade enforcement''
means the enforcement of the customs and trade laws of the
United States.
(6) Trade facilitation.--The term ``trade facilitation''
refers to policies and activities of U.S. Customs and Border
Protection with respect to facilitating the movement of
merchandise into and out of the United States in a manner
that complies with the customs and trade laws of the United
States.
TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT
SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.
(a) In General.--In order to advance the security, trade
enforcement, and trade facilitation missions of U.S. Customs
and Border Protection, the Commissioner shall ensure that
partnership programs of U.S. Customs and Border Protection
established before the date of the enactment of this Act,
such as the Customs-Trade Partnership Against Terrorism
established under subtitle B of title II of the Security and
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et
seq.), and partnership programs of U.S. Customs and Border
Protection established on or after such date of enactment,
provide trade benefits to private sector entities that meet
the requirements for participation in those programs
established by the Commissioner under this section.
(b) Elements.--In developing and operating partnership
programs under subsection (a), the Commissioner shall--
(1) consult with private sector entities, the public, and
other Federal agencies when appropriate, to ensure that
participants in those programs receive commercially
significant and measurable trade benefits, including
providing pre-clearance of merchandise for qualified persons
that demonstrate the highest levels of compliance with the
customs and trade laws of the United States, regulations of
U.S. Customs and Border Protection, and other requirements
the Commissioner determines to be necessary;
(2) ensure an integrated and transparent system of trade
benefits and compliance requirements for all partnership
programs of U.S. Customs and Border Protection;
(3) consider consolidating partnership programs in
situations in which doing so would support the objectives of
such programs, increase participation in such programs,
enhance the trade benefits provided to participants in such
programs, and enhance the allocation of the resources of U.S.
Customs and Border Protection;
(4) coordinate with the Director of U.S. Immigration and
Customs Enforcement, and other Federal agencies with
authority to detain and release merchandise entering the
United States--
(A) to ensure coordination in the release of such
merchandise through the Automated Commercial Environment, or
its predecessor, and the International Trade Data System;
(B) to ensure that the partnership programs of those
agencies are compatible with the partnership programs of U.S.
Customs and Border Protection;
(C) to develop criteria for authorizing the release, on an
expedited basis, of merchandise for which documentation is
required from one or more of those agencies to clear or
license the merchandise for entry into the United States; and
(D) to create pathways, within and among the appropriate
Federal agencies, for qualified persons that demonstrate the
highest levels of compliance with the customs and trade laws
of the United States to receive immediate clearance absent
information that a transaction may pose a national security
or compliance threat; and
(5) ensure that trade benefits are provided to participants
in partnership programs.
(c) Report Required.--Not later than the date that is 180
days after the date of the enactment of this Act, and not
later than December 31 of each calendar year thereafter, the
Commissioner shall submit to the appropriate congressional
committees a report that--
(1) identifies each partnership program referred to in
subsection (a);
(2) for each such program, identifies--
(A) the requirements for participants in the program;
(B) the commercially significant and measurable trade
benefits provided to participants in the program;
(C) the number of participants in the program; and
(D) in the case of a program that provides for
participation at multiple tiers, the number of participants
at each such tier;
(3) identifies the number of participants enrolled in more
than one such partnership program;
(4) assesses the effectiveness of each such partnership
program in advancing the security, trade enforcement, and
trade facilitation missions of U.S. Customs and Border
Protection, based on historical developments, the level of
participation in the program, and the evolution of benefits
provided to participants in the program;
(5) summarizes the efforts of U.S. Customs and Border
Protection to work with other Federal agencies with authority
to detain and release merchandise entering the United States
to ensure that partnership programs of those agencies are
compatible with partnership programs of U.S. Customs and
Border Protection;
(6) summarizes criteria developed with those agencies for
authorizing the release, on an expedited basis, of
merchandise for which documentation is required from one or
more of those agencies to clear or license the merchandise
for entry into the United States;
(7) summarizes the efforts of U.S. Customs and Border
Protection to work with private sector entities and the
public to develop and improve partnership programs referred
to in subsection (a);
(8) describes measures taken by U.S. Customs and Border
Protection to make private sector entities aware of the trade
benefits available to participants in such programs; and
(9) summarizes the plans, targets, and goals of U.S.
Customs and Border Protection with respect to such programs
for the 2 years following the submission of the report.
SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT
ACTIVITIES.
(a) In General.--Not later than one year after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit to the appropriate congressional
committees a report on the effectiveness of trade enforcement
activities of U.S. Customs and Border Protection.
(b) Contents.--The report required by subsection (a) shall
include--
(1) a description of the use of resources, results of
audits and verifications, targeting, organization, and
training of personnel of U.S. Customs and Border Protection;
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. 103. 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, in consultation with the
appropriate congressional committees, 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
[[Page H4297]]
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.
(2) Each of the priority trade issues described in section
118.
(3) The Centers of Excellence and Expertise described in
section 110.
(4) Drawback for exported merchandise under section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313), as amended by
section 906 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) Consultations and Notification.--
(1) Consultations.--The consultations required by
subsection (a)(1) shall occur, at a minimum, on an annual
basis.
(2) Notification.--The Commissioner shall notify the
appropriate congressional committees of any changes to the
priorities referred to in subsection (a) not later than 30
days before such changes are to take effect.
SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY
AND APPRAISE IMPORTED ARTICLES, TO IMPROVE
TRADE ENFORCEMENT EFFORTS, AND TO OTHERWISE
FACILITATE LEGITIMATE INTERNATIONAL TRADE.
(a) In General.--
(1) Establishment.--The Commissioner and the Director shall
establish and carry out on a fiscal year basis educational
seminars to--
(A) improve the ability of U.S. Customs and Border
Protection personnel to classify and appraise articles
imported into the United States in accordance with the
customs and trade laws of the United States;
(B) improve the trade enforcement efforts of U.S. Customs
and Border Protection personnel and U.S. Immigration and
Customs Enforcement personnel; and
(C) otherwise improve the ability and effectiveness of U.S.
Customs and Border Protection personnel and U.S. Immigration
and Customs Enforcement personnel to facilitate legitimate
international trade.
(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
personnel and, as appropriate, to U.S. Immigration and
Customs Enforcement 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 personnel and, as appropriate,
to U.S. Immigration and Customs Enforcement 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 and the Director
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 Duty
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 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, 2016, the
Commissioner and the Director shall submit to the appropriate
congressional committees an annual report on the
effectiveness of educational seminars under this section.
(g) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
U.S. Immigration and Customs Enforcement.
(2) 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.
(3) U.S. customs and border protection personnel.--The term
``U.S. Customs and Border Protection personnel'' means import
specialists, auditors, and other appropriate employees of the
U.S. Customs and Border Protection.
(4) U.S. immigration and customs enforcement personnel.--
The term ``U.S. Immigration and Customs Enforcement
personnel'' means Homeland Security Investigations
Directorate personnel and other appropriate employees of U.S.
Immigration and Customs Enforcement.
SEC. 105. JOINT STRATEGIC PLAN.
(a) In General.--Not later than one year after the date of
the enactment of this Act, and every 2 years thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall jointly develop and submit to the
appropriate congressional committees a joint strategic plan.
(b) Contents.--The joint strategic plan required under this
section shall be comprised of a comprehensive multi-year plan
for trade enforcement and trade facilitation, and shall
include--
(1) a summary of actions taken during the 2-year period
preceding the submission of the plan to improve trade
enforcement and trade facilitation, including a description
and analysis of specific performance measures to evaluate the
progress of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement in meeting each such
responsibility;
(2) a statement of objectives and plans for further
improving trade enforcement and trade facilitation;
(3) a specific identification of the priority trade issues
described in section 118, that can be addressed in order to
enhance trade enforcement and trade facilitation, and a
description of strategies and plans for addressing each such
issue;
(4) a description of efforts made to improve consultation
and coordination among and within Federal agencies, and in
particular between U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement, regarding trade
enforcement and trade facilitation;
(5) a description of the training that has occurred to date
within U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement to improve trade
enforcement and trade facilitation, including training under
section 104;
(6) a description of efforts to work with the World Customs
Organization and other international organizations, in
consultation with other Federal agencies as appropriate, with
respect to enhancing trade enforcement and trade
facilitation;
(7) a description of U.S. Custom and Border Protection
organizational benchmarks for optimizing staffing and wait
times at ports of entry;
(8) a specific identification of any domestic or
international best practices that may further improve trade
enforcement and trade facilitation;
(9) any legislative recommendations to further improve
trade enforcement and trade facilitation; and
(10) a description of efforts made to improve consultation
and coordination with the private sector to enhance trade
enforcement and trade facilitation.
(c) Consultations.--
(1) In general.--In developing the joint strategic plan
required under this section, the Commissioner and the
Director of U.S.
[[Page H4298]]
Immigration and Customs Enforcement shall consult with--
(A) appropriate officials from the relevant Federal
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 by section 109.
(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.
SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.
(a) Funding.--Section 13031(f)(4)(B) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(f)(4)(B)) is amended--
(1) by striking ``2003 through 2005'' and inserting ``2016
through 2018'';
(2) by striking ``such amounts as are available in that
Account'' and inserting ``not less than $153,736,000''; and
(3) by striking ``for the development'' and inserting ``to
complete the development and implementation''.
(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, 2016, 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 detailing--
``(i) U.S. Customs and Border Protection's incorporation of
all core trade processing capabilities, including cargo
release, entry summary, cargo manifest, cargo financial data,
and export data elements into the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget and
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)) not later
than September 30, 2016, 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) U.S. Customs and Border Protection's remaining
priorities for processing entry summary data elements, cargo
manifest data elements, cargo financial data elements, and
export elements in the Automated Commercial Environment
computer system, and the objectives and plans for
implementing these remaining priorities;
``(iii) the components of the National Customs Automation
Program specified in subsection (a)(2) of section 411 of the
Tariff Act of 1930 that have not been implemented; and
``(iv) any additional components of the National Customs
Automation Program initiated by the Commissioner to complete
the development, establishment, and implementation of the
Automated Commercial Environment computer system.
``(B) Update of reports.--Not later than September 30,
2017, 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), and--
``(i) evaluating the effectiveness of the implementation of
the Automated Commercial Environment computer system; and
``(ii) detailing the percentage of trade processed in the
Automated Commercial Environment every month since September
30, 2016.''.
(c) Government Accountability Office Report.--Not later
than December 31, 2017, 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) assessing the progress of other Federal agencies in
accessing and utilizing the Automated Commercial Environment;
and
(2) 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) through (iv) 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. 107. INTERNATIONAL TRADE DATA SYSTEM.
Section 411(d) of the Tariff Act of 1930 (19 U.S.C.
1411(d)) is amended--
(1) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(2) by inserting after paragraph (3) the following:
``(4) Information technology infrastructure.--
``(A) In general.--The Secretary shall work with the head
of each agency participating in the ITDS and the Interagency
Steering Committee to ensure that each agency--
``(i) develops and maintains the necessary information
technology infrastructure to support the operation of the
ITDS and to submit all data to the ITDS electronically;
``(ii) enters into a memorandum of understanding, or takes
such other action as is necessary, to provide for the
information sharing between the agency and U.S. Customs and
Border Protection necessary for the operation and maintenance
of the ITDS;
``(iii) not later than June 30, 2016, identifies and
transmits 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
U.S. Customs and Border Protection for incorporation into the
operational functionality of the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget and
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)); and
``(iv) not later than December 31, 2016, utilizes the ITDS
as the primary means of receiving from users the standard set
of data and other relevant documentation, exclusive of
applications for permits, licenses, or certifications
required for the release of imported cargo and clearance of
cargo for export.
``(B) Rule of construction.--Nothing in this paragraph
shall be construed to require any action to be taken that
would compromise an ongoing law enforcement investigation or
national security.''; and
(3) 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 109 of
the Trade Facilitation and Trade Enforcement Act of 2015''.
SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION
ARRANGEMENTS.
(a) Consultations.--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
consult--
(1) not later than 30 days before initiating negotiations
to enter into any such arrangement or similar agreement, with
the appropriate congressional committees; and
(2) not later than 30 days before entering into any such
arrangement or similar agreement, with the appropriate
congressional committees.
(b) Negotiating Objective.--It shall be a negotiating
objective of the United States in any negotiation for a
mutual recognition arrangement with a foreign country on
partnership programs, such as the Customs-Trade Partnership
Against Terrorism established under subtitle B of title II of
the Security and Accountability for Every Port Act of 2006 (6
U.S.C. 961 et seq.), to seek to ensure the compatibility of
the partnership programs of that country with the partnership
programs of U.S. Customs and Border Protection to enhance
security, trade facilitation, and trade enforcement.
SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.
(a) Establishment.--Not later than the date that is 60 days
after the date of the 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 Commissioner, who shall
jointly co-chair meetings of the Advisory Committee; and
(C) the Assistant Secretary for Policy and the Director of
U.S. Immigration and Customs Enforcement of the Department of
Homeland Security, 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 U.S. Customs and Border
Protection; and
(ii) without regard to political affiliation.
(C) Terms.--Each individual appointed to the Advisory
Committee under this paragraph shall be appointed for a term
of not more than 3 years, and may be reappointed to
subsequent terms, but may not serve more than 2 terms
sequentially.
(3) Transfer of membership.--The Secretary of the Treasury
and the Secretary of Homeland Security may transfer members
[[Page H4299]]
serving on 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) on the day before the date of the enactment
of this Act to the Advisory Committee established under
subsection (a).
(c) Duties.--The Advisory Committee established under
subsection (a) shall--
(1) advise the Secretary of the Treasury and the Secretary
of Homeland Security on all matters involving the commercial
operations of U.S. Customs and Border Protection, including
advising with respect to significant changes that are
proposed with respect to regulations, policies, or practices
of U.S. Customs and Border Protection;
(2) provide recommendations to the Secretary of the
Treasury and the Secretary of Homeland Security on
improvements to the commercial operations of U.S. Customs and
Border Protection;
(3) collaborate in developing the agenda for Advisory
Committee meetings; and
(4) perform such other functions relating to the commercial
operations of U.S. Customs and Border Protection as
prescribed by law or as the Secretary of the Treasury and the
Secretary of Homeland Security jointly direct.
(d) Meetings.--
(1) In general.--The Advisory Committee shall meet at the
call of the Secretary of the Treasury and the Secretary of
Homeland Security, or at the call of not less than \2/3\ of
the membership of the Advisory Committee. The Advisory
Committee shall meet at least 4 times each calendar year.
(2) Open meetings.--Notwithstanding section 10(a) of the
Federal Advisory Committee Act (5 U.S.C. App.), the Advisory
Committee meetings shall be open to the public unless the
Secretary of the Treasury or the Secretary of Homeland
Security determines that the meeting will include matters the
disclosure of which would compromise the development of
policies, priorities, or negotiating objectives or positions
that could impact the commercial operations of U.S. Customs
and Border Protection or the operations or investigations of
U.S. Immigration and Customs Enforcement.
(e) Annual Report.--Not later than December 31, 2016, and
annually thereafter, 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 U.S. Customs
and Border Protection.
(f) Termination.--Section 14(a)(2) 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. 110. CENTERS OF EXCELLENCE AND EXPERTISE.
(a) In General.--The Commissioner shall, in consultation
with the appropriate congressional committees and the
Commercial Customs Operations Advisory Committee established
by section 109, develop and implement Centers of Excellence
and Expertise throughout U.S. Customs and Border Protection
that--
(1) enhance the economic competitiveness of the United
States by consistently enforcing the laws and regulations of
the United States at all ports of entry of the United States
and by facilitating the flow of legitimate trade through
increasing industry-based knowledge;
(2) improve enforcement efforts, including enforcement of
priority trade issues described in section 118, in specific
industry sectors through the application of targeting
information from the National Targeting Center under section
111 and from other means of verification;
(3) build upon the expertise of U.S. Customs and Border
Protection in particular industry operations, supply chains,
and compliance requirements;
(4) promote the uniform implementation at each port of
entry of the United States of policies and regulations
relating to imports;
(5) centralize the trade enforcement and trade facilitation
efforts of U.S. Customs and Border Protection;
(6) formalize an account-based approach to apply, as the
Commissioner determines appropriate, to the importation of
merchandise into the United States;
(7) foster partnerships though the expansion of trade
programs and other trusted partner programs;
(8) develop applicable performance measurements to meet
internal efficiency and effectiveness goals; and
(9) whenever feasible, facilitate a more efficient flow of
information between Federal agencies.
(b) Report.--Not later than December 31, 2016, the
Commissioner shall submit to the appropriate congressional
committees a report describing--
(1) the scope, functions, and structure of each Center of
Excellence and Expertise developed and implemented under
subsection (a);
(2) the effectiveness of each such Center of Excellence and
Expertise in improving enforcement efforts, including
enforcement of priority trade issues described in section
118, and facilitating legitimate trade;
(3) the quantitative and qualitative benefits of each such
Center of Excellence and Expertise to the trade community,
including through fostering partnerships through the
expansion of trade programs such as the Importer Self
Assessment program and other trusted partner programs;
(4) all applicable performance measurements with respect to
each such Center of Excellence and Expertise, including
performance measures with respect to meeting internal
efficiency and effectiveness goals;
(5) the performance of each such Center of Excellence and
Expertise in increasing the accuracy and completeness of data
with respect to international trade and facilitating a more
efficient flow of information between Federal agencies; and
(6) any planned changes in the number, scope, functions or
any other aspect of the Centers of Excellence and Expertise
developed and implemented under subsection (a).
SEC. 111. COMMERCIAL RISK ASSESSMENT TARGETING AND TRADE
ALERTS.
(a) Commercial Risk Assessment Targeting.--In carrying out
its duties under section 411(g)(4) of the Homeland Security
Act of 2002, as added by section 802(a) of this Act, the
National Targeting Center shall--
(1) establish targeted risk assessment methodologies and
standards--
(A) 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
section 118; and
(B) for issuing, as appropriate, Trade Alerts described in
subsection (b);
(2) to the extent practicable and otherwise authorized by
law, use, to administer the methodologies and standards
established under paragraph (1)--
(A) publicly available information;
(B) 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, the TECS (formerly known
as the ``Treasury Enforcement Communications System''), the
case management system of U.S. Immigration and Customs
Enforcement, and any successor systems; and
(C) information made available to the National Targeting
Center, including information provided by private sector
entities; and
(3) provide for the receipt and transmission to the
appropriate U.S. Customs and Border Protection offices 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 issues described
in section 118.
(b) Trade Alerts.--
(1) Issuance.--In carrying out its duties under section
411(g)(4) of the Homeland Security Act of 2002, as added by
section 802(a) of this Act, and based upon the application of
the targeted risk assessment methodologies and standards
established under subsection (a), the Executive Director of
the National Targeting Center 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 U.S. Customs
and Border Protection.
(2) 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 paragraph (1)
if--
(A) the director finds that such a determination is
justified by port security interests; and
(B) not later than 48 hours after making the determination,
notifies the Assistant Commissioner of the Office of Field
Operations of U.S. Customs and Border Protection of the
determination and the reasons for the determination.
(3) Summary of determinations not to implement.--The
Assistant Commissioner of the Office of Field Operations of
U.S. Customs and Border Protection shall--
(A) compile an annual public summary of all determinations
by directors of United States ports of entry under paragraph
(2) and the reasons for those determinations;
(B) conduct an evaluation of the utilization of Trade
Alerts issued under paragraph (1); and
(C) not later than December 31 of each year, submit the
summary to the appropriate congressional committees.
(4) Inspection defined.--In this subsection, the term
``inspection'' means the comprehensive evaluation process
used by U.S. Customs and Border Protection, other
[[Page H4300]]
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--
(A) assessing duties;
(B) identifying restricted or prohibited items; and
(C) ensuring compliance with all applicable customs and
trade laws and regulations administered by U.S. Customs and
Border Protection.
(c) Use of Trade Data for Commercial Enforcement
Purposes.--Section 343(a)(3)(F) of the Trade Act of 2002 (19
U.S.C. 2071 note) is amended to read as follows:
``(F) The information collected pursuant to the regulations
shall be used exclusively for ensuring cargo safety and
security, preventing smuggling, and commercial risk
assessment targeting, and shall not be used for any
commercial enforcement purposes, including for determining
merchandise entry. Notwithstanding the preceding sentence,
nothing in this section shall be treated as amending,
repealing, or otherwise modifying title IV of the Tariff Act
of 1930 or regulations promulgated thereunder.''.
SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND
ENFORCEMENT MEASURES.
(a) In General.--Not later the March 31, 2016, and not
later than March 31 of each second year thereafter, the
Inspector General of the Department of the Treasury 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, with respect to the period covered by the
report, as specified in subsection (b), the following:
(1) The effectiveness of the measures taken by U.S. Customs
and Border Protection with respect to protection of revenue,
including--
(A) the 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) the assessment, collection, and mitigation of
commercial fines and penalties;
(C) the use of bonds, including continuous and single
transaction bonds, to secure that revenue; and
(D) the adequacy of the policies of U.S. Customs and Border
Protection with respect to the monitoring and tracking of
merchandise transported in bond and collecting duties, as
appropriate.
(2) The effectiveness of actions taken by U.S. Customs and
Border Protection to measure accountability and performance
with respect to protection of revenue.
(3) The number and outcome of investigations instituted by
U.S. Customs and Border Protection with respect to the
underpayment of duties.
(4) The effectiveness of training with respect to the
collection of duties provided for personnel of U.S. Customs
and Border Protection.
(b) Period Covered by Report.--Each report required by
subsection (a) shall cover the period of 2 fiscal years
ending on September 30 of the calendar year preceding the
submission of the report.
SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH
RESPECT TO MERCHANDISE TRANSPORTED IN BOND.
(a) In General.--Not later than December 31 of 2016, 2017,
and 2018, 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 U.S. Customs and Border Protection 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) Elements.--Each report required by subsection (a) shall
include, for the fiscal year preceding the submission of the
report, information 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. 114. IMPORTER OF RECORD PROGRAM.
(a) Establishment.--Not later than the date that is 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 shall ensure that, as part
of the importer of record program, U.S. Customs and Border
Protection--
(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 U.S. Customs and Border Protection to verify the
existence of the importer requesting the importer of record
number;
(B) criteria to ensure sufficient information is collected
to allow U.S. Customs and Border Protection 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 U.S. Customs and Border Protection 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 and maintains the accuracy of the database if
such information changes; and
(5) takes measures to ensure that duplicate importer of
record numbers are not issued.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary 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 (or any corresponding
similar regulation) that fully supports the requirements of
subsection (b) with respect to the collection and maintenance
of information.
SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM.
(a) In General.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Commissioner
shall establish a new importer program that directs U.S.
Customs and Border Protection to adjust bond amounts for new
importers based on the level of risk assessed by U.S. Customs
and Border Protection 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), U.S. Customs and Border Protection--
(1) develops risk-based criteria for determining which
importers are considered to be new importers for the purposes
of this subsection;
(2) 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;
(3) develops procedures to ensure increased oversight of
imported products of new importers relating to the
enforcement of the priority trade issues described in section
118;
(4) develops procedures to ensure increased oversight of
imported products of new importers by Centers of Excellence
and Expertise established under section 110; and
(5) establishes a centralized database of new importers to
ensure accuracy of information that is required to be
provided by new importers to U.S. Customs and Border
Protection.
SEC. 116. 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--
``(A) the term `importer' means one of the parties
qualifying as an importer of record under section
484(a)(2)(B); and
``(B) the term `nonresident importer' means an importer who
is--
[[Page H4301]]
``(i) an individual who is not a citizen of the United
States or an alien lawfully admitted for permanent residence
in the United States; or
``(ii) 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.''.
(b) Study and Report Required.--Not later than 180 days
after the date of enactment of this Act, the Commissioner
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) of this section); 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. 117. 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 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 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 Trade Facilitation and Trade
Enforcement Act of 2015.''.
(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, on or after the date that is 180 days after such
date of enactment, 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.
SEC. 118. PRIORITY TRADE ISSUES.
(a) In General.--The Commissioner shall establish the
following as priority trade issues:
(1) Agriculture programs.
(2) Antidumping and countervailing duties.
(3) Import safety.
(4) Intellectual property rights.
(5) Revenue.
(6) Textiles and wearing apparel.
(7) Trade agreements and preference programs.
(b) Modification.--The Commissioner is authorized to
establish new priority trade issues and eliminate,
consolidate, or otherwise modify the priority trade issues
described in subsection (a) if the Commissioner--
(1) determines it necessary and appropriate to do so; and
(2) submits to the appropriate congressional committees a
summary of the proposed changes to the priority trade issues
not later than 60 days before such changes are to take
effect.
SEC. 119. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional
committees'' means--
(1) the Committee on Finance and the Committee on Homeland
Security and Government Affairs of the Senate; and
(2) the Committee on Ways and Means and the Committee on
Homeland Security of the House of Representatives.
TITLE II--IMPORT HEALTH AND SAFETY
SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.
(a) Establishment.--There is established an interagency
Import Safety Working Group.
(b) Membership.--The interagency Import Safety Working
Group shall consist of the following officials or their
designees:
(1) The Secretary of Homeland Security, who shall serve as
the Chair.
(2) The Secretary of Health and Human Services, who shall
serve as the Vice Chair.
(3) The Secretary of the Treasury.
(4) The Secretary of Commerce.
(5) The Secretary of Agriculture.
(6) The United States Trade Representative.
(7) The Director of the Office of Management and Budget.
(8) The Commissioner of Food and Drugs.
(9) The Commissioner of U.S. Customs and Border Protection.
(10) The Chairman of the Consumer Product Safety
Commission.
(11) The Director of U.S. Immigration and Customs
Enforcement.
(12) The head of any other Federal agency designated by the
President to participate in the interagency Import Safety
Working Group, as appropriate.
(c) Duties.--The duties of the interagency Import Safety
Working Group shall include--
(1) consulting on the development of the joint import
safety rapid response plan required by section 202;
(2) periodically evaluating the adequacy of the plans,
practices, and resources of the Federal Government dedicated
to ensuring the safety of merchandise imported in the United
States and the expeditious entry of such merchandise,
including--
(A) minimizing the duplication of efforts among agencies
the heads of which are members of the interagency Import
Safety Working Group and ensuring the compatibility of the
policies and regulations of those agencies; and
(B) recommending additional administrative actions, as
appropriate, designed to ensure the safety of merchandise
imported into the United States and the expeditious entry of
such merchandise and considering the impact of those actions
on private sector entities;
(3) reviewing the engagement and cooperation of foreign
governments and foreign manufacturers in facilitating the
inspection and certification, as appropriate, of such
merchandise to be imported into the United States and the
facilities producing such merchandise to ensure the safety of
the merchandise and the expeditious entry of the merchandise
into the United States;
(4) identifying best practices, in consultation with
private sector entities as appropriate, to assist United
States importers in taking all appropriate steps to ensure
the safety of merchandise imported into the United States,
including with respect to--
(A) the inspection of manufacturing facilities in foreign
countries;
(B) the inspection of merchandise destined for the United
States before exportation from a foreign country or before
distribution in the United States; and
(C) the protection of the international supply chain (as
defined in section 2 of the Security and Accountability For
Every Port Act of 2006 (6 U.S.C. 901));
(5) identifying best practices to assist Federal, State,
and local governments and agencies, and port authorities, to
improve communication and coordination among such agencies
and authorities with respect to ensuring the safety of
merchandise imported into the United States and the
expeditious entry of such merchandise; and
(6) otherwise identifying appropriate steps to increase the
accountability of United States importers and the engagement
of foreign government agencies with respect to ensuring the
safety of merchandise imported into the United States and the
expeditious entry of such merchandise.
SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.
(a) In General.--Not later than December 31, 2016, the
Secretary of Homeland Security, in consultation with the
interagency Import Safety Working Group established under
section 201, shall develop a plan (to be known as the ``joint
import safety rapid response plan'') that sets forth
protocols and defines practices for U.S. Customs and Border
Protection to use--
(1) in taking action in response to, and coordinating
Federal responses to, an incident in which cargo destined for
or merchandise entering the United States has been identified
as posing a threat to the health or safety of consumers in
the United States; and
(2) in recovering from or mitigating the effects of actions
and responses to an incident described in paragraph (1).
(b) Contents.--The joint import safety rapid response plan
shall address--
(1) the statutory and regulatory authorities and
responsibilities of U.S. Customs and Border Protection and
other Federal agencies in responding to an incident described
in subsection (a)(1);
(2) the protocols and practices to be used by U.S. Customs
and Border Protection when taking action in response to, and
coordinating Federal responses to, such an incident;
[[Page H4302]]
(3) the measures to be taken by U.S. Customs and Border
Protection and other Federal agencies in recovering from or
mitigating the effects of actions taken in response to such
an incident after the incident to ensure the resumption of
the entry of merchandise into the United States; and
(4) exercises that U.S. Customs and Border Protection may
conduct in conjunction with Federal, State, and local
agencies, and private sector entities, to simulate responses
to such an incident.
(c) Updates of Plan.--The Secretary of Homeland Security
shall review and update the joint import safety rapid
response plan, as appropriate, after conducting exercises
under subsection (d).
(d) Import Health and Safety Exercises.--
(1) In general.--The Secretary of Homeland Security and the
Commissioner shall periodically engage in the exercises
referred to in subsection (b)(4), in conjunction with
Federal, State, and local agencies and private sector
entities, as appropriate, to test and evaluate the protocols
and practices identified in the joint import safety rapid
response plan at United States ports of entry.
(2) Requirements for exercises.--In conducting exercises
under paragraph (1), the Secretary and the Commissioner
shall--
(A) make allowance for the resources, needs, and
constraints of United States ports of entry of different
sizes in representative geographic locations across the
United States;
(B) base evaluations on current risk assessments of
merchandise entering the United States at representative
United States ports of entry located across the United
States;
(C) ensure that such exercises are conducted in a manner
consistent with the National Incident Management System, the
National Response Plan, the National Infrastructure
Protection Plan, the National Preparedness Guidelines, the
Maritime Transportation System Security Plan, and other such
national initiatives of the Department of Homeland Security,
as appropriate; and
(D) develop metrics with respect to the resumption of the
entry of merchandise into the United States after an incident
described in subsection (a)(1).
(3) Requirements for testing and evaluation.--The Secretary
and the Commissioner shall ensure that the testing and
evaluation carried out in conducting exercises under
paragraph (1)--
(A) are performed using clear and objective performance
measures; and
(B) result in the identification of specific
recommendations or best practices for responding to an
incident described in subsection (a)(1).
(4) Dissemination of recommendations and best practices.--
The Secretary and the Commissioner shall--
(A) share the recommendations or best practices identified
under paragraph (3)(B) among the members of the interagency
Import Safety Working Group established under section 201 and
with, as appropriate--
(i) State, local, and tribal governments;
(ii) foreign governments; and
(iii) private sector entities; and
(B) use such recommendations and best practices to update
the joint import safety rapid response plan.
SEC. 203. TRAINING.
The Commissioner shall ensure that personnel of U.S.
Customs and Border Protection assigned to United States ports
of entry are trained to effectively administer the provisions
of this title and to otherwise assist in ensuring the safety
of merchandise imported into the United States and the
expeditious entry of such merchandise.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.
In this title, the term ``intellectual property rights''
refers to copyrights, trademarks, and other forms of
intellectual property rights that are enforced by U.S.
Customs and Border Protection or U.S. Immigration and Customs
Enforcement.
SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE
ENFORCEMENT.
(a) In General.--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) In General.--Subject to subsections (c) and (d), if
the Commissioner of U.S. Customs and Border Protection
suspects that merchandise is being imported into the United
States in violation of section 526 of this Act or section
602, 1201(a)(2), or 1201(b)(1) of title 17, United States
Code, and determines that the examination or testing of the
merchandise by a person described in subsection (b) would
assist the Commissioner in determining if the merchandise is
being imported in violation of that section, the
Commissioner, to permit the person to conduct the examination
and testing--
``(1) shall provide to the person information that appears
on the merchandise and its packaging and labels, including
unredacted images of the merchandise and its packaging and
labels; and
``(2) may, subject to any applicable bonding requirements,
provide to the person unredacted samples of the merchandise.
``(b) Person Described.--A person described in this
subsection is--
``(1) in the case of merchandise suspected of being
imported in violation of section 526, the owner of the
trademark suspected of being copied or simulated by the
merchandise;
``(2) in the case of merchandise suspected of being
imported in violation of section 602 of title 17, United
States Code, the owner of the copyright suspected of being
infringed by the merchandise;
``(3) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing a technological measure that effectively
controls access to a work protected under that title, and
being imported in violation of section 1201(a)(2) of that
title, the owner of a copyright in the work; and
``(4) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing protection afforded by a technological measure
that effectively protects a right of an owner of a copyright
in a work or a portion of a work, and being imported in
violation of section 1201(b)(1) of that title, the owner of
the copyright.
``(c) Limitation.--Subsection (a) applies only with respect
to merchandise suspected of infringing a trademark or
copyright that is recorded with U.S. Customs and Border
Protection.
``(d) Exception.--The Commissioner may not provide under
subsection (a) information, photographs, or samples to a
person described in subsection (b) if providing such
information, photographs, or samples would compromise an
ongoing law enforcement investigation or national
security.''.
(b) Termination of Previous Authority.--Notwithstanding
paragraph (2) of section 818(g) of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81;
125 Stat. 1496; 10 U.S.C. 2302 note), paragraph (1) of that
section shall have no force or effect on or after the date of
the enactment of this Act.
SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.
(a) In General.--Section 596(c)(2) of the Tariff Act of
1930 (19 U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'';
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) U.S. Customs and Border Protection determines it is a
technology, product, service, device, component, or part
thereof the importation of which is prohibited under
subsection (a)(2) or (b)(1) of section 1201 of title 17,
United States Code.''.
(b) Notification of Persons Injured.--
(1) In general.--Not later than the date that is 30
business days after seizing merchandise pursuant to
subparagraph (G) of section 596(c)(2) of the Tariff Act of
1930, as added by subsection (a), the Commissioner shall
provide to any person identified under paragraph (2)
information regarding the merchandise seized that is
equivalent to information provided to copyright owners under
regulations of U.S. Customs and Border Protection for
merchandise seized for violation of the copyright laws.
(2) Persons to be provided information.--Any person injured
by the violation of (a)(2) or (b)(1) of section 1201 of title
17, United States Code, that resulted in the seizure of the
merchandise shall be provided information under paragraph
(1), if that person is included on a list maintained by the
Commissioner that is revised annually through publication in
the Federal Register.
(3) Regulations.--Not later than one year after the date of
the enactment of this Act, the Secretary of the Treasury
shall prescribe regulations establishing procedures that
implement this subsection.
SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION
OF WORKS FOR WHICH COPYRIGHT REGISTRATION IS
PENDING.
Not later than the date that is 180 days after the date of
the enactment of this Act, the Secretary of Homeland Security
shall authorize a process pursuant to which the Commissioner
shall enforce a copyright for which the owner has submitted
an application for registration under title 17, United States
Code, with the United States Copyright Office, to the same
extent and in the same manner as if the copyright were
registered with the Copyright Office, including by sharing
information, images, and samples of merchandise suspected of
infringing the copyright under section 628A of the Tariff Act
of 1930, as added by section 302.
SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION
CENTER.
(a) Establishment.--The Secretary of Homeland Security
shall--
(1) establish within U.S. Immigration and Customs
Enforcement a National Intellectual Property Rights
Coordination Center; and
(2) appoint an Assistant Director to head the National
Intellectual Property Rights Coordination Center.
(b) Duties.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall--
(1) coordinate the investigation of sources of merchandise
that infringe intellectual property rights to identify
organizations and individuals that produce, smuggle, or
distribute such merchandise;
(2) conduct and coordinate training with other domestic and
international law enforcement agencies on investigative best
practices--
(A) to develop and expand the capability of such agencies
to enforce intellectual property rights; and
[[Page H4303]]
(B) to develop metrics to assess whether the training
improved enforcement of intellectual property rights;
(3) coordinate, with U.S. Customs and Border Protection,
activities conducted by the United States to prevent the
importation or exportation of merchandise that infringes
intellectual property rights;
(4) support the international interdiction of merchandise
destined for the United States that infringes intellectual
property rights;
(5) collect and integrate information regarding
infringement of intellectual property rights from domestic
and international law enforcement agencies and other non-
Federal sources;
(6) develop a means to receive and organize information
regarding infringement of intellectual property rights from
such agencies and other sources;
(7) disseminate information regarding infringement of
intellectual property rights to other Federal agencies, as
appropriate;
(8) develop and implement risk-based alert systems, in
coordination with U.S. Customs and Border Protection, to
improve the targeting of persons that repeatedly infringe
intellectual property rights;
(9) coordinate with the offices of United States attorneys
in order to develop expertise in, and assist with the
investigation and prosecution of, crimes relating to the
infringement of intellectual property rights; and
(10) carry out such other duties as the Secretary of
Homeland Security may assign.
(c) Coordination With Other Agencies.--In carrying out the
duties described in subsection (b), the Assistant Director of
the National Intellectual Property Rights Coordination Center
shall coordinate with--
(1) U.S. Customs and Border Protection;
(2) the Food and Drug Administration;
(3) the Department of Justice;
(4) the Department of Commerce, including the United States
Patent and Trademark Office;
(5) the United States Postal Inspection Service;
(6) the Office of the United States Trade Representative;
(7) any Federal, State, local, or international law
enforcement agencies that the Director of U.S. Immigration
and Customs Enforcement considers appropriate; and
(8) any other entities that the Director considers
appropriate.
(d) Private Sector Outreach.--
(1) In general.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall work
with U.S. Customs and Border Protection and other Federal
agencies to conduct outreach to private sector entities in
order to determine trends in and methods of infringing
intellectual property rights.
(2) Information sharing.--The Assistant Director shall
share information and best practices with respect to the
enforcement of intellectual property rights with private
sector entities, as appropriate, in order to coordinate
public and private sector efforts to combat the infringement
of intellectual property rights.
SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF
INTELLECTUAL PROPERTY RIGHTS.
The Commissioner and the Director of U.S. Immigration and
Customs Enforcement shall include in the joint strategic plan
required by section 105--
(1) a description of the efforts of the Department of
Homeland Security to enforce intellectual property rights;
(2) a list of the 10 United States ports of entry at which
U.S. Customs and Border Protection has seized the most
merchandise, both by volume and by value, that infringes
intellectual property rights during the most recent 2-year
period for which data are available; and
(3) a recommendation for the optimal allocation of
personnel, resources, and technology to ensure that U.S.
Customs and Border Protection and U.S. Immigration and
Customs Enforcement are adequately enforcing intellectual
property rights.
SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF
INTELLECTUAL PROPERTY RIGHTS.
(a) Personnel of U.S. Customs and Border Protection.--The
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall ensure that sufficient personnel are
assigned throughout U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement, respectively, who
have responsibility for preventing the importation into the
United States of merchandise that infringes intellectual
property rights.
(b) Staffing of National Intellectual Property Rights
Coordination Center.--The Commissioner shall--
(1) assign not fewer than 3 full-time employees of U.S.
Customs and Border Protection to the National Intellectual
Property Rights Coordination Center established under section
305; and
(2) ensure that sufficient personnel are assigned to United
States ports of entry to carry out the directives of the
Center.
SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF
INTELLECTUAL PROPERTY RIGHTS.
(a) Training.--The Commissioner shall ensure that officers
of U.S. Customs and Border Protection are trained to
effectively detect and identify merchandise destined for the
United States that infringes intellectual property rights,
including through the use of technologies identified under
subsection (c).
(b) Consultation With Private Sector.--The Commissioner
shall consult with private sector entities to better identify
opportunities for collaboration between U.S. Customs and
Border Protection and such entities with respect to training
for officers of U.S. Customs and Border Protection in
enforcing intellectual property rights.
(c) Identification of New Technologies.--In consultation
with private sector entities, the Commissioner shall
identify--
(1) technologies with the cost-effective capability to
detect and identify merchandise at United States ports of
entry that infringes intellectual property rights; and
(2) cost-effective programs for training officers of U.S.
Customs and Border Protection to use such technologies.
(d) Donations of Technology.--Not later than the date that
is 180 days after the date of the enactment of this Act, the
Commissioner shall prescribe regulations to enable U.S.
Customs and Border Protection to receive donations of
hardware, software, equipment, and similar technologies, and
to accept training and other support services, from private
sector entities, for the purpose of enforcing intellectual
property rights.
SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.
(a) Cooperation.--The Secretary of Homeland Security shall
coordinate with the competent law enforcement and customs
authorities of foreign countries, including by sharing
information relevant to enforcement actions, to enhance the
efforts of the United States and such authorities to enforce
intellectual property rights.
(b) Technical Assistance.--The Secretary of Homeland
Security shall provide technical assistance to competent law
enforcement and customs authorities of foreign countries to
enhance the ability of such authorities to enforce
intellectual property rights.
(c) Interagency Collaboration.--The Commissioner and the
Director of U.S. Immigration and Customs Enforcement shall
lead interagency efforts to collaborate with law enforcement
and customs authorities of foreign countries to enforce
intellectual property rights.
SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.
Not later than June 30, 2016, and annually thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall jointly submit to the Committee on Finance
of the Senate, the Committee on Ways and Means of the House
of Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Committee on
Homeland Security of the House of Representatives a report
that contains the following:
(1) With respect to the enforcement of intellectual
property rights, the following:
(A) The number of referrals, during the preceding year,
from U.S. Customs and Border Protection to U.S. Immigration
and Customs Enforcement relating to infringement of
intellectual property rights .
(B) The number of investigations relating to the
infringement of intellectual property rights referred by U.S.
Immigration and Customs Enforcement to a United States
attorney for prosecution and the United States attorneys to
which those investigations were referred.
(C) The number of such investigations accepted by each such
United States attorney and the status or outcome of each such
investigation.
(D) The number of such investigations that resulted in the
imposition of civil or criminal penalties.
(E) A description of the efforts of U.S. Custom and Border
Protection and U.S. Immigration and Customs Enforcement to
improve the success rates of investigations and prosecutions
relating to the infringement of intellectual property rights.
(2) An estimate of the average time required by the Office
of International Trade of U.S. Customs and Border Protection
to respond to a request from port personnel for advice with
respect to whether merchandise detained by U.S. Customs and
Border Protection infringed intellectual property rights,
distinguished by types of intellectual property rights
infringed.
(3) A summary of the outreach efforts of U.S. Customs and
Border Protection and U.S. Immigration and Customs
Enforcement with respect to--
(A) the interdiction and investigation of, and the sharing
of information between those agencies and other Federal
agencies to prevent, the infringement of intellectual
property rights;
(B) collaboration with private sector entities--
(i) to identify trends in the infringement of, and
technologies that infringe, intellectual property rights;
(ii) to identify opportunities for enhanced training of
officers of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement; and
(iii) to develop best practices to enforce intellectual
property rights; and
(C) coordination with foreign governments and international
organizations with respect to the enforcement of intellectual
property rights.
(4) A summary of the efforts of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement to
address the challenges with respect to the enforcement of
intellectual property rights presented by Internet commerce
and the transit of small packages and an identification of
the volume, value, and type of merchandise
[[Page H4304]]
seized for infringing intellectual property rights as a
result of such efforts.
(5) A summary of training relating to the enforcement of
intellectual property rights conducted under section 308 and
expenditures for such training.
SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF
INTELLECTUAL PROPERTY RIGHTS.
(a) In General.--The Secretary of Homeland Security shall
develop and carry out an educational campaign to inform
travelers entering or leaving the United States about the
legal, economic, and public health and safety implications of
acquiring merchandise that infringes intellectual property
rights outside the United States and importing such
merchandise into the United States in violation of United
States law.
(b) Declaration Forms.--The Commissioner shall ensure that
all versions of Declaration Form 6059B of U.S. Customs and
Border Protection, or a successor form, including any
electronic equivalent of Declaration Form 6059B or a
successor form, printed or displayed on or after the date
that is 30 days after the date of the enactment of this Act
include a written warning to inform travelers arriving in the
United States that importation of merchandise into the United
States that infringes intellectual property rights may
subject travelers to civil or criminal penalties and may pose
serious risks to safety or health.
TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Preventing Recurring Trade
Evasion and Circumvention Act'' or ``PROTECT Act''.
SEC. 402. 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) 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.
(3) 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) Nonreviewability.--Any agency decision regarding
whether a business concern is an eligible small business for
purposes of section 411(b)(4)(E) is not reviewable by any
other agency or by any court.
(4) 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.
(5) 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.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(7) Trade remedy laws.--The term ``trade remedy laws''
means title VII of the Tariff Act of 1930.
SEC. 403. 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. 411. 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 U.S. Customs and Border Protection
that concern evasion;
(2) facilitating, promoting, and coordinating cooperation
and the exchange of information between U.S. Customs and
Border Protection, 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 U.S. Customs and Border Protection or other Federal
agency regarding evasion;
(4) serving as the primary liaison between U.S. Customs and
Border Protection and the public regarding United States
Government activities concerning evasion, including--
(A) receive and transmit to the appropriate U.S. Customs
and Border Protection 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 U.S. Customs and Border Protection's
consideration of the allegation and decision to pursue or not
pursue any administrative inquiries 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 U.S. Customs and Border Protection
determining whether to initiate an administrative inquiry 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
administrative, civil or criminal actions taken by U.S.
Customs and Border Protection 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 administrative inquiry 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 TECS, and any
similar and 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, physical
examination, or testing of merchandise to ensure compliance
with the trade remedy laws and to require additional bonds,
cash deposits, or other security to ensure collection of any
duties, taxes and fees owed.
SEC. 412. 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--
[[Page H4305]]
(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 U.S. Customs and Border Protection;
(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. 413. ACCESS TO INFORMATION.
(a) In General.--Section 777(b)(1)(A)(ii) of the Tariff 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 United States International
Trade Commission any information that is necessary to enable
the Secretary of Commerce or the United States 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. 414. 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 country, the exporting
country 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 country are subject to
the importing country's trade remedy laws.
(B) On the written request of the importing country, the
exporting country shall conduct a verification for purposes
of enabling the importing country to make a determination
described in subparagraph (A).
(C) The exporting country may allow the importing country
to participate in a verification described in subparagraph
(B), including through a site visit.
(D) If the exporting country does not allow participation
of the importing country in a verification described in
subparagraph (B), the importing country may take this fact
into consideration in its trade enforcement and compliance
assessment activities regarding the compliance of the
exporting country's exports with the importing country's
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. 415. TRADE NEGOTIATING OBJECTIVES.
The principal negotiating objectives of the United States
shall include obtaining the objectives of the bilateral
agreements described under section 414(a) for any trade
agreements under negotiation as of the date of the enactment
of this Act or future trade agreement negotiations.
Subtitle B--Investigation of Evasion of Trade Remedy Laws
SEC. 421. PROCEDURES FOR INVESTIGATION OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
(a) In General.--Title VII of the Tariff Act of 1930 (19
U.S.C. 1671 et seq.) is amended by inserting after section
781 the following:
``SEC. 781A. PROCEDURES FOR PREVENTION OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.
``(a) Definitions.--In this section:
``(1) Administering authority.--The term `administering
authority' has the meaning given that term in section 771.
``(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;
or
``(B) an antidumping duty order issued under section 736.
``(4) Evasion.--
``(A) In general.--Except as provided in subparagraph (B),
the term `evasion' refers 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.
``(B) Exception for clerical error.--
``(i) In general.--Except as provided in clause (ii), the
term `evasion' does not include entering covered merchandise
into the customs territory of the United States by means of--
``(I) a document or electronically transmitted data or
information, written or oral statement, or act that is false
as a result of a clerical error; or
``(II) an omission that results from a clerical error.
``(ii) Patterns of negligent conduct.--If the administering
authority determines that a person has entered covered
merchandise into the customs territory of the United States
by means of a clerical error referred to in subclause (I) or
(II) of clause (i) and that the clerical error is part of a
pattern of negligent conduct on the part of that person, the
administering authority may determine, notwithstanding clause
(i), that the person has entered such covered merchandise
into the customs territory of the United States by means of
evasion.
``(iii) Electronic repetition of errors.--For purposes of
clause (ii), the mere unintentional repetition by an
electronic system of an initial clerical error does not
constitute a pattern of negligent conduct.
``(iv) Rule of construction.--A determination by the
administering authority that a person has entered covered
merchandise into the customs territory of the United States
by means of a clerical error referred to in subclause (I) or
(II) of clause (i) rather than by means of evasion shall not
be construed to excuse that person from the payment of any
duties applicable to the merchandise.
``(b) Investigation by Administering Authority.--
``(1) Procedures for initiating investigations.--
``(A) Initiation by administering authority.--An
investigation under this subsection shall be initiated with
respect to merchandise imported into the United States
whenever the administering authority determines, from
information available to the administering authority, that an
investigation is warranted with respect to whether the
merchandise is covered merchandise that has entered into the
customs territory of the United States by means of evasion.
``(B) Initiation by petition or referral.--
``(i) In general.--The administering authority shall
determine whether to initiate an investigation under this
subparagraph not later than 30 days after the date on which
the administering authority receives a petition described in
clause (ii) or a referral described in clause (iii).
``(ii) Petition described.--A petition described in this
clause is a petition that--
``(I) is filed with the administering authority by an
interested party specified in subparagraph (A), (C), (D),
(E), (F), or (G) of section 771(9);
``(II) alleges that merchandise imported into the United
States is covered merchandise that has entered into the
customs territory of the United States by means of evasion;
and
``(III) is accompanied by information reasonably available
to the petitioner supporting those allegations.
[[Page H4306]]
``(iii) Referral described.--A referral described in this
clause is a referral made by the Commissioner pursuant to
subsection (c)(1).
``(2) Time limits for determinations.--
``(A) Preliminary determination.--
``(i) In general.--Not later than 90 days after the
administering authority initiates an investigation under
paragraph (1) with respect to merchandise, the administering
authority shall issue a preliminary determination, based on
information available to the administering authority at the
time of the determination, with respect to whether there is a
reasonable basis to believe or suspect that the merchandise
is covered merchandise that has entered into the customs
territory of the United States by means of evasion.
``(ii) Expedited procedures.--If the administering
authority determines that expedited action is warranted with
respect to an investigation initiated under paragraph (1),
the administering authority may publish the notice of
initiation of the investigation and the notice of the
preliminary determination in the Federal Register at the same
time.
``(B) Final determination by the administering authority.--
Not later than 300 days after the date on which the
administering authority initiates an investigation under
paragraph (1) with respect to merchandise, the administering
authority shall issue a final determination with respect to
whether the merchandise is covered merchandise that has
entered into the customs territory of the United States by
means of evasion.
``(3) Access to information.--
``(A) Entry documents, records, and other information.--Not
later than 10 days after receiving a request from the
administering authority with respect to merchandise that is
the subject of an investigation under paragraph (1), the
Commissioner shall transmit to the administering authority
copies of the documentation and information required by
section 484(a)(1) with respect to the entry of the
merchandise, as well as any other documentation or
information requested by the administering authority.
``(B) Access of interested parties.--Not later than 10
business days after the date on which the administering
authority initiates an investigation under paragraph (1) with
respect to merchandise, the administering authority shall
provide to the authorized representative of each interested
party that filed a petition under paragraph (1) or otherwise
participates in a proceeding, pursuant to a protective order,
the copies of the entry documentation and any other
information received by the administering authority under
subparagraph (A).
``(C) Business proprietary information from prior
segments.--If an authorized representative of an interested
party participating in an investigation under paragraph (1)
has access to business proprietary information released
pursuant to an administrative protective order in a
proceeding under subtitle A, B, or C of title VII of the
Tariff Act of 1930 that is relevant to the investigation
conducted under paragraph (1), that authorized representative
may submit such information to the administering authority
for its consideration in the context of the investigation
conducted under paragraph (1).
``(4) Authority to collect and verify additional
information.--In making a determination under paragraph (2)
with respect to covered merchandise, the administering
authority may collect such additional information as is
necessary to make the determination through such methods as
the administering authority considers appropriate, including
by--
``(A) issuing a questionnaire with respect to such covered
merchandise to--
``(i) a person that filed an allegation under paragraph
(1)(B)(ii) that resulted in the initiation of an
investigation under paragraph (1)(A) with respect to such
covered merchandise;
``(ii) a person alleged to have entered such covered
merchandise into the customs territory of the United States
by means of evasion;
``(iii) a person that is a foreign producer or exporter of
such covered merchandise; or
``(iv) the government of a country from which such covered
merchandise was exported;
``(B) conducting verifications, including on-site
verifications, of any relevant information; and
``(C) requesting--
``(i) that the Commissioner provide any information and
data available to U.S. Customs and Border Protection, and
``(ii) that the Commissioner gather additional necessary
information from the importer of covered merchandise and
other relevant parties.
``(5) Adverse inference.--If the administering authority
finds that a person described in clause (i), (ii), or (iii)
of paragraph (4)(A) has failed to cooperate by not acting to
the best of the person's ability to comply with a request for
information, the administering authority may, in making a
determination under paragraph (2), use an inference that is
adverse to the interests of that person in selecting from
among the facts otherwise available to make the
determination.
``(6) Effect of affirmative preliminary determination.--If
the administering authority makes a preliminary determination
under paragraph (2)(A) that merchandise is covered
merchandise that has entered into the customs territory of
the United States by means of evasion, the administering
authority shall instruct U.S. Customs and Border Protection--
``(A) to suspend liquidation of each entry of the
merchandise that--
``(i) enters on or after the date of the preliminary
determination; or
``(ii) enters before that date, if the liquidation of the
entry is not final on that date; and
``(B) to require the posting of a cash deposit for each
entry of the merchandise in an amount determined pursuant to
the order, or administrative review conducted under section
751, that applies to the merchandise.
``(7) Effect of affirmative final determination.--
``(A) In general.--If the administering authority makes a
final determination under paragraph (2)(B) that merchandise
is covered merchandise that has entered into the customs
territory of the United States by means of evasion, the
administering authority shall instruct U.S. Customs and
Border Protection--
``(i) to assess duties on the merchandise in an amount
determined pursuant to the order, or administrative review
conducted under section 751, that applies to the merchandise;
``(ii) notwithstanding section 501, to reliquidate, in
accordance with such order or administrative review, each
entry of the merchandise that was liquidated and is
determined to include covered merchandise; and
``(iii) to review and reassess the amount of bond or other
security the importer is required to post for such
merchandise entered on or after the date of the final
determination to ensure the protection of revenue and
compliance with the law.
``(B) Additional authority.--If the administering authority
makes a final determination under paragraph (2)(B) that
merchandise is covered merchandise that has entered into the
customs territory of the United States by means of evasion,
the administering authority may instruct U.S. Customs and
Border Protection to require the importer of the merchandise
to post a cash deposit or bond on such merchandise entered on
or after the date of the final determination in an amount the
administering authority determines in the final determination
to be owed with respect to the merchandise.
``(8) Effect of negative final determination.--If the
administering authority makes a final determination under
paragraph (2)(B) that merchandise is not covered merchandise
that has entered into the customs territory of the United
States by means of evasion, the administering authority shall
terminate the suspension of liquidation and refund any cash
deposit imposed pursuant to paragraph (6) with respect to the
merchandise.
``(9) Notification.--Not later than 5 business days after
making a determination under paragraph (2) with respect to
covered merchandise, the administering authority may provide
to importers, in such manner as the administering authority
determines appropriate, information discovered in the
investigation that the administering authority determines
will help educate importers with respect to importing
merchandise into the customs territory of the United States
in accordance with all applicable laws and regulations.
``(10) Special rule for cases in which the producer or
exporter is unknown.--If the administering authority is
unable to determine the actual producer or exporter of the
merchandise with respect to which the administering authority
initiated an investigation under paragraph (1), the
administering authority shall, in requiring the posting of a
cash deposit under paragraph (6) or assessing duties pursuant
to paragraph (7)(A), impose the cash deposit or duties (as
the case may be) in the highest amount applicable to any
producer or exporter of the merchandise pursuant to any
order, or any administrative review conducted under section
751.
``(11) Publication of determinations.--The administering
authority shall publish in the Federal Register each notice
of initiation of an investigation made under paragraph
(1)(A), each preliminary determination made under paragraph
(2)(A), and each final determination made under paragraph
(2)(B).
``(12) Referrals to other agencies.--
``(A) After preliminary determination.--Notwithstanding
section 777 and subject to subparagraph (C), when the
administering authority makes an affirmative preliminary
determination under paragraph (2)(A), the administering
authority shall--
``(i) transmit the administrative record to the
Commissioner for such additional action as the Commissioner
determines appropriate, including proceedings under section
592; and
``(ii) at the request of the head of another agency,
transmit the administrative record to the head of that
agency.
``(B) After final determination.--Notwithstanding section
777 and subject to subparagraph (C), when the administering
authority makes an affirmative final determination under
paragraph (2)(B), the administering authority shall--
``(i) transmit the complete administrative record to the
Commissioner; and
``(ii) at the request of the head of another agency,
transmit the complete administrative record to the head of
that agency.
``(c) Referral by U.S. Customs and Border Protection.--In
the event the Commissioner receives information that a person
has entered covered merchandise into the customs territory of
the United States through
[[Page H4307]]
evasion, but is not able to determine whether the merchandise
is in fact covered merchandise, the Commissioner shall--
``(1) refer the matter to the administering authority for
additional proceedings under subsection (b); and
``(2) transmit to the administering authority--
``(A) copies of the entry documents and information
required by section 484(a)(1) relating to the merchandise;
and
``(B) any additional records or information that the
Commissioner considers appropriate.
``(d) Cooperation Between U.S. Customs and Border
Protection and the Department of Commerce.--
``(1) Notification of investigations.--Upon receiving a
petition and upon initiating an investigation under
subsection (b), the administering authority shall notify the
Commissioner.
``(2) Procedures for cooperation.--Not later than 180 days
after the date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015, the Commissioner and the
administering authority shall establish procedures to ensure
maximum cooperation and communication between U.S. Customs
and Border Protection and the administering authority in
order to quickly, efficiently, and accurately investigate
allegations of evasion of antidumping and countervailing duty
orders.
``(e) Annual Report on Preventing Evasion of Antidumping
and Countervailing Duty Orders.--
``(1) In general.--Not later than February 28 of each year
beginning in 2016, the Under Secretary for International
Trade of the Department of Commerce shall submit to the
Committee on Finance and the Committee on Appropriations of
the Senate and the Committee on Ways and Means and the
Committee on Appropriations of the House of Representatives a
report on the efforts being taken under subsection (b) to
prevent evasion of antidumping and countervailing duty
orders.
``(2) Contents.--Each report required by paragraph (1)
shall include, for the calendar year preceding the submission
of the report--
``(A)(i) the number of investigations initiated pursuant to
subsection (b); and
``(ii) a description of such investigations, including--
``(I) the results of such investigations; and
``(II) the amount of antidumping and countervailing duties
collected as a result of such investigations; and
``(B) the number of referrals made by the Commissioner
pursuant to subsection (c).''.
(b) Technical Amendment.--The table of contents for title
VII of the Tariff Act of 1930 is amended by inserting after
the item relating to section 781 the following:
``Sec. 781A. Procedures for prevention of evasion of antidumping and
countervailing duty orders.''.
(c) Judicial Review.--Section 516A(a)(2) of the Tariff Act
of 1930 (19 U.S.C. 1516a(a)(2)) is amended--
(1) in subparagraph (A)(i)(I), by striking ``or (viii)''
and inserting ``(viii), or (ix)''; and
(2) in subparagraph (B), by inserting at the end the
following:
``(ix) A determination by the administering authority under
section 781A.''.
(d) Regulations.--Not later than 180 days after the date of
the enactment of this Act--
(1) the Secretary of Commerce shall prescribe such
regulations as may be necessary to carry out subsection (b)
of section 781A of the Tariff Act of 1930 (as added by
subsection (a) of this section); and
(2) the Commissioner shall prescribe such regulations as
may be necessary to carry out subsection (c) of such section
781A.
(e) Effective Date.--The amendments made by this section
shall--
(1) take effect on the date that is 180 days after the date
of the enactment of this Act; and
(2) apply with respect to merchandise entered on or after
such date of enactment.
SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.
Not later than 2 years after the date of the enactment of
this Act, the Comptroller General of the United States shall
submit to the Committee on Finance and the Committee on
Appropriations of the Senate and the Committee on Ways and
Means and the Committee on Appropriations of the House of
Representatives a report assessing the effectiveness of--
(1) the provisions of, and amendments made by, this
subtitle; and
(2) the actions taken and procedures developed by the
Secretary of Commerce and the Commissioner pursuant to such
provisions and amendments to prevent evasion of antidumping
and countervailing duty orders under title VII of the Tariff
Act of 1930 (19 U.S.C. 1671 et seq.).
Subtitle C--Other Matters
SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL.
The Commissioner shall, to the maximum extent possible,
ensure that U.S. Customs and Border Protection--
(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
identification of entries of covered merchandise into the
customs territory of the United States through evasion.
SEC. 432. 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 2016, the Commissioner, in consultation with the
Secretary of Commerce and the Director of 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 U.S. Customs and Border
Protection to prevent and identify evasion;
(B) the number of allegations of evasion received and the
number of allegations of evasion resulting in any
administrative, civil, or criminal actions by U.S. Customs
and Border Protection or any other agency;
(C) a summary of the completed administrative inquiries of
evasion, including the number and nature of the inquiries
initiated, conducted, or completed, as well as their
resolution;
(D) with respect to inquiries that lead to issuance of a
penalty notice, the penalty amounts;
(E) the amounts of antidumping and countervailing duties
collected as a result of any actions by U.S. Customs and
Border Protection or any other agency;
(F) a description of the allocation of personnel and other
resources of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement to prevent, identify, 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,
identification, and investigation of evasion; and
(2) a description of U.S. Customs and Border Protection
processes and procedures to prevent and identify evasion,
including--
(A) the specific guidelines, policies, and practices used
by U.S. Customs and Border Protection 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
U.S. Customs and Border Protection to prevent and identify
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 identify evasion; and
(F) identification of any recommended policy changes of
other Federal agencies or legislative changes to improve the
effectiveness of U.S. Customs and Border Protection to
prevent and identify evasion.
SEC. 433. 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) Determinations based on bonafide sales.--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 was 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.''.
[[Page H4308]]
TITLE V--IMPROVEMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS
SEC. 501. SHORT TITLE.
This title may be cited as the ``American Trade Enforcement
Effectiveness Act''.
SEC. 502. CONSEQUENCES OF FAILURE TO COOPERATE WITH A REQUEST
FOR INFORMATION IN A PROCEEDING.
Section 776 of the Tariff Act of 1930 (19 U.S.C. 1677e) is
amended--
(1) in subsection (b)--
(A) by redesignating paragraphs (1) through (4) as
subparagraphs (A) through (D), respectively, and by moving
such subparagraphs, as so redesignated, 2 ems to the right;
(B) by striking ``Adverse Inferences.--If'' and inserting
the following: ``Adverse Inferences.--
``(1) In general.--If'';
(C) by striking ``under this title, may use'' and inserting
the following: ``under this title--
``(A) may use''; and
(D) by striking ``facts otherwise available. Such adverse
inference may include'' and inserting the following: ``facts
otherwise available; and
``(B) is not required to determine, or make any adjustments
to, a countervailable subsidy rate or weighted average
dumping margin based on any assumptions about information the
interested party would have provided if the interested party
had complied with the request for information.
``(2) Potential sources of information for adverse
inferences.--An adverse inference under paragraph (1)(A) may
include'';
(2) in subsection (c)--
(A) by striking ``Corroboration of Secondary Information.--
When the'' and inserting the following: ``Corroboration of
Secondary Information.--
``(1) In general.--Except as provided in paragraph (2),
when the''; and
(B) by adding at the end the following:
``(2) Exception.--The administrative authority and the
Commission shall not be required to corroborate any dumping
margin or countervailing duty applied in a separate segment
of the same proceeding.''; and
(3) by adding at the end the following:
``(d) Subsidy Rates and Dumping Margins in Adverse
Inference Determinations.--
``(1) In general.--If the administering authority uses an
inference that is adverse to the interests of a party under
subsection (b)(1)(A) in selecting among the facts otherwise
available, the administering authority may--
``(A) in the case of a countervailing duty proceeding--
``(i) use a countervailable subsidy rate applied for the
same or similar program in a countervailing duty proceeding
involving the same country, or
``(ii) if there is no same or similar program, use a
countervailable subsidy rate for a subsidy program from a
proceeding that the administering authority considers
reasonable to use, and
``(B) in the case of an antidumping duty proceeding, use
any dumping margin from any segment of the proceeding under
the applicable antidumping order.
``(2) Discretion to apply highest rate.--In carrying out
paragraph (1), the administering authority may apply any of
the countervailable subsidy rates or dumping margins
specified under that paragraph, including the highest such
rate or margin, based on the evaluation by the administering
authority of the situation that resulted in the administering
authority using an adverse inference in selecting among the
facts otherwise available.
``(3) No obligation to make certain estimates or address
certain claims.--If the administering authority uses an
adverse inference under subsection (b)(1)(A) in selecting
among the facts otherwise available, the administering
authority is not required, for purposes of subsection (c) or
for any other purpose--
``(A) to estimate what the countervailable subsidy rate or
dumping margin would have been if the interested party found
to have failed to cooperate under subsection (b)(1) had
cooperated, or
``(B) to demonstrate that the countervailable subsidy rate
or dumping margin used by the administering authority
reflects an alleged commercial reality of the interested
party.''.
SEC. 503. DEFINITION OF MATERIAL INJURY.
(a) Effect of Profitability of Domestic Industries.--
Section 771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7))
is amended by adding at the end the following:
``(J) Effect of profitability.--The Commission may not
determine that there is no material injury or threat of
material injury to an industry in the United States merely
because that industry is profitable or because the
performance of that industry has recently improved.''.
(b) Evaluation of Impact on Domestic Industry in
Determination of Material Injury.--Subclause (I) of section
771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C.
1677(7)(C)(iii)) is amended to read as follows:
``(I) actual and potential decline in output, sales, market
share, gross profits, operating profits, net profits, ability
to service debt, productivity, return on investments, return
on assets, and utilization of capacity,''.
(c) Captive Production.--Section 771(7)(C)(iv) of the
Tariff Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is amended--
(1) in subclause (I), by striking the comma and inserting
``, and'';
(2) in subclause (II), by striking ``, and'' and inserting
a comma; and
(3) by striking subclause (III).
SEC. 504. PARTICULAR MARKET SITUATION.
(a) Definition of Ordinary Course of Trade.--Section
771(15) of the Tariff Act of 1930 (19 U.S.C. 1677(15)) is
amended by adding at the end the following:
``(C) Situations in which the administering authority
determines that the particular market situation prevents a
proper comparison with the export price or constructed export
price.''.
(b) Definition of Normal Value.--Section
773(a)(1)(B)(ii)(III) of the Tariff Act of 1930 (19 U.S.C.
1677b(a)(1)(B)(ii)(III)) is amended by striking ``in such
other country.''.
(c) Definition of Constructed Value.--Section 773(e) of the
Tariff Act of 1930 (19 U.S.C. 1677b(e)) is amended--
(1) in paragraph (1), by striking ``business'' and
inserting ``trade''; and
(2) by striking the flush text at the end and inserting the
following:
``For purposes of paragraph (1), if a particular market
situation exists such that the cost of materials and
fabrication or other processing of any kind does not
accurately reflect the cost of production in the ordinary
course of trade, the administering authority may use another
calculation methodology under this subtitle or any other
calculation methodology. For purposes of paragraph (1), the
cost of materials shall be determined without regard to any
internal tax in the exporting country imposed on such
materials or their disposition that is remitted or refunded
upon exportation of the subject merchandise produced from
such materials.''.
SEC. 505. DISTORTION OF PRICES OR COSTS.
(a) Investigation of Below-cost Sales.--Section 773(b)(2)
of the Tariff Act of 1930 (19 U.S.C. 1677b(b)(2)) is amended
by striking subparagraph (A) and inserting the following:
``(A) Reasonable grounds to believe or suspect.--
``(i) Review.--In a review conducted under section 751
involving a specific exporter, there are reasonable grounds
to believe or suspect that sales of the foreign like product
have been made at prices that are less than the cost of
production of the product if the administering authority
disregarded some or all of the exporter's sales pursuant to
paragraph (1) in the investigation or, if a review has been
completed, in the most recently completed review.
``(ii) Requests for information.--In an investigation
initiated under section 732 or a review conducted under
section 751, the administering authority shall request
information necessary to calculate the constructed value and
cost of production under subsections (e) and (f) to determine
whether there are reasonable grounds to believe or suspect
that sales of the foreign like product have been made at
prices that represent less than the cost of production of the
product.''.
(b) Prices and Costs in Nonmarket Economies.--Section
773(c) of the Tariff Act of 1930 (19 U.S.C. 1677b(c)) is
amended by adding at the end the following:
``(5) Discretion to disregard certain price or cost
values.--In valuing the factors of production under paragraph
(1) for the subject merchandise, the administering authority
may disregard price or cost values without further
investigation if the administering authority has determined
that broadly available export subsidies existed or particular
instances of subsidization occurred with respect to those
price or cost values or if those price or cost values were
subject to an antidumping order.''.
SEC. 506. REDUCTION IN BURDEN ON DEPARTMENT OF COMMERCE BY
REDUCING THE NUMBER OF VOLUNTARY RESPONDENTS.
Section 782(a) of the Tariff Act of 1930 (19 U.S.C.
1677m(a)) is amended--
(1) in paragraph (1), by redesignating subparagraphs (A)
and (B) as clauses (i) and (ii), respectively, and by moving
such clauses, as so redesignated, 2 ems to the right;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and by moving such
subparagraphs, as so redesignated, 2 ems to the right;
(3) by striking ``Investigations and Reviews.--In'' and
inserting the following: ``Investigations and Reviews.--
``(1) In general.--In'';
(4) in paragraph (1), as designated by paragraph (3), by
amending subparagraph (B), as redesignated by paragraph (2),
to read as follows:
``(B) the number of exporters or producers subject to the
investigation or review is not so large that any additional
individual examination of such exporters or producers would
be unduly burdensome to the administering authority and
inhibit the timely completion of the investigation or
review.''; and
(5) by adding at the end the following:
``(2) Determination of unduly burdensome.--In determining
if an individual examination under paragraph (1)(B) would be
unduly burdensome, the administering authority may consider
the following:
``(A) The complexity of the issues or information presented
in the proceeding, including questionnaires and any responses
thereto.
``(B) Any prior experience of the administering authority
in the same or similar proceeding.
[[Page H4309]]
``(C) The total number of investigations under subtitle A
or B and reviews under section 751 being conducted by the
administering authority as of the date of the determination.
``(D) Such other factors relating to the timely completion
of each such investigation and review as the administering
authority considers appropriate.''.
SEC. 507. 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), the amendments
made by this title shall apply with respect to goods from
Canada and Mexico.
TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS
SEC. 601. TRADE ENFORCEMENT PRIORITIES.
(a) In General.--Section 310 of the Trade Act of 1974 (19
U.S.C. 2420) is amended to read as follows:
``SEC. 310. TRADE ENFORCEMENT PRIORITIES.
``(a) Trade Enforcement Priorities, Consultations, and
Report.--
``(1) Trade enforcement priorities consultations.--Not
later than May 31 of each calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the United States Trade
Representative (in this section referred to as the `Trade
Representative') shall consult with the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives with respect to the prioritization
of acts, policies, or practices of foreign governments that
raise concerns with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, or otherwise create or maintain barriers
to United States goods, services, or investment.
``(2) Identification of trade enforcement priorities.--In
identifying acts, policies, or practices of foreign
governments as trade enforcement priorities under this
subsection, the United States Trade Representative shall
focus on those acts, policies, and practices the elimination
of which is likely to have the most significant potential to
increase United States economic growth, and take into account
all relevant factors, including--
``(A) the economic significance of any potential
inconsistency between an obligation assumed by a foreign
government pursuant to a trade agreement to which both the
foreign government and the United States are parties and the
acts, policies, or practices of that government;
``(B) the impact of the acts, policies, or practices of a
foreign government on maintaining and creating United States
jobs and productive capacity;
``(C) the major barriers and trade distorting practices
described in the most recent National Trade Estimate required
under section 181(b);
``(D) the major barriers and trade distorting practices
described in other relevant reports addressing international
trade and investment barriers prepared by a Federal agency or
congressional commission during the 12 months preceding the
date of the most recent report under paragraph (3);
``(E) a foreign government's compliance with its
obligations under any trade agreements to which both the
foreign government and the United States are parties;
``(F) the implications of a foreign government's
procurement plans and policies; and
``(G) the international competitive position and export
potential of United States products and services.
``(3) Report on trade enforcement priorities and actions
taken to address.--
``(A) In general.--Not later than July 31 of each calendar
year that begins after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, the Trade
Representative 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 acts, policies, or practices
of foreign governments identified as trade enforcement
priorities based on the consultations under paragraph (1) and
the criteria set forth in paragraph (2).
``(B) Report in subsequent years.--The Trade Representative
shall include, when reporting under subparagraph (A) in any
calendar year after the calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, a description of actions taken to
address any acts, policies, or practices of foreign
governments identified as trade enforcement priorities under
this subsection in the calendar year preceding that report
and, as relevant, any year before that calendar year.
``(b) Semi-annual Enforcement Consultations.--
``(1) In general.--At the same time as the reporting under
subsection (a)(3), and not later than January 31 of each
following year, the Trade Representative shall consult with
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives with respect
to the identification, prioritization, investigation, and
resolution of acts, policies, or practices of foreign
governments of concern with respect to obligations under the
WTO Agreements or any other trade agreement to which the
United States is a party, or that otherwise create or
maintain trade barriers.
``(2) Acts, policies, or practices of concern.--The semi-
annual enforcement consultations required by paragraph (1)
shall address acts, policies, or practices of foreign
governments that raise concerns with respect to obligations
under the WTO Agreements or any other trade agreement to
which the United States is a party, or otherwise create or
maintain trade barriers, including--
``(A) engagement with relevant trading partners;
``(B) strategies for addressing such concerns;
``(C) availability and deployment of resources to be used
in the investigation or resolution of such concerns;
``(D) the merits of any potential dispute resolution
proceeding under the WTO Agreements or any other trade
agreement to which the United States is a party relating to
such concerns; and
``(E) any other aspects of such concerns.
``(3) Active investigations.--The semi-annual enforcement
consultations required by paragraph (1) shall address acts,
policies, or practices that the Trade Representative is
actively investigating with respect to obligations under the
WTO Agreements or any other trade agreement to which the
United States is a party, including--
``(A) strategies for addressing concerns raised by such
acts, policies, or practices;
``(B) any relevant timeline with respect to investigation
of such acts, policies, or practices;
``(C) the merits of any potential dispute resolution
proceeding under the WTO Agreements or any other trade
agreement to which the United States is a party with respect
to such acts, policies, or practices;
``(D) barriers to the advancement of the investigation of
such acts, policies, or practices; and
``(E) any other matters relating to the investigation of
such acts, policies, or practices.
``(4) Ongoing enforcement actions.--The semi-annual
enforcement consultations required by paragraph (1) shall
address all ongoing enforcement actions taken by or against
the United States with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, including--
``(A) any relevant timeline with respect to such actions;
``(B) the merits of such actions;
``(C) any prospective implementation actions;
``(D) potential implications for any law or regulation of
the United States;
``(E) potential implications for United States
stakeholders, domestic competitors, and exporters; and
``(F) other issues relating to such actions.
``(5) Enforcement resources.--The semi-annual enforcement
consultations required by paragraph (1) shall address the
availability and deployment of enforcement resources,
resource constraints on monitoring and enforcement
activities, and strategies to address those constraints,
including the use of available resources of other Federal
agencies to enhance monitoring and enforcement capabilities.
``(c) Investigation and Resolution.--In the case of any
acts, policies, or practices of a foreign government
identified as a trade enforcement priority under subsection
(a), the Trade Representative shall, not later than the date
of the first semi-annual enforcement consultations held under
subsection (b) after the identification of the priority, take
appropriate action to address that priority, including--
``(1) engagement with the foreign government to resolve
concerns raised by such acts, policies, or practices;
``(2) initiation of an investigation under section
302(b)(1) with respect to such acts, policies, or practices;
``(3) initiation of negotiations for a bilateral agreement
that provides for resolution of concerns raised by such acts,
policies, or practices; or
``(4) initiation of dispute settlement proceedings under
the WTO Agreements or any other trade agreement to which the
United States is a party with respect to such acts, policies,
or practices.
``(d) Enforcement Notifications and Consultation.--
``(1) Initiation of enforcement action.--The Trade
Representative shall notify and consult with the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives in advance of initiation of any
formal trade dispute by or against the United States taken in
regard to an obligation under the WTO Agreements or any other
trade agreement to which the United States is a party. With
respect to a formal trade dispute against the United States,
if advance notification and consultation are not possible,
the Trade Representative shall notify and consult at the
earliest practicable opportunity after initiation of the
dispute.
``(2) Circulation of reports.--The Trade Representative
shall notify and consult with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives in advance of the announced or anticipated
circulation of any report of a dispute settlement panel or
the Appellate Body of the World Trade Organization or of a
dispute settlement panel under any other trade agreement to
which the United States is a party with respect to a formal
trade dispute by or against the United States.
``(e) Definitions.--In this section:
``(1) WTO.--The term `WTO' means the World Trade
Organization.
[[Page H4310]]
``(2) WTO agreement.--The term `WTO Agreement' has the
meaning given that term in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
``(3) WTO agreements.--The term `WTO Agreements' means the
WTO Agreement and agreements annexed to that Agreement.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 is amended by striking the item relating to
section 310 and inserting the following:
``Sec. 310. Trade enforcement priorities.''.
SEC. 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND
CONCESSIONS OR OTHER OBLIGATIONS UNDER TRADE
AGREEMENTS.
(a) In General.--Section 306 of the Trade Act of 1974 (19
U.S.C. 2416) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Exercise of WTO Authorization to Suspend Concessions
or Other Obligations.--If--
``(1) action has terminated pursuant to section 307(c),
``(2) the petitioner or any representative of the domestic
industry that would benefit from reinstatement of action has
submitted to the Trade Representative a written request for
reinstatement of action, and
``(3) the Trade Representatives has completed the
requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take
action under section 301(c) to exercise an authorization to
suspend concessions or other obligations under Article 22 of
the Understanding on Rules and Procedures Governing the
Settlement of Disputes (referred to in section 101(d)(16) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(16))).''.
(b) Conforming Amendments.--Chapter 1 of title III of the
Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended--
(1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in the
matter preceding subparagraph (A), by inserting ``or section
306(c)'' after ``subsection (a) or (b)'';
(2) in section 306(b) (19 U.S.C. 2416(b)), in the
subsection heading, by striking ``Further Action'' and
inserting ``Action on the Basis of Monitoring'';
(3) in section 306(d) (19 U.S.C. 2416(d)), as redesignated
by subsection (a)(1), by inserting ``or (c)'' after
``subsection (b)''; and
(4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by
inserting ``or if a request is submitted to the Trade
Representative under section 306(c)(2) to reinstate action,''
after ``under section 301,''.
SEC. 603. TRADE MONITORING.
(a) In General.--Chapter 1 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.) is amended by adding at the end
the following:
``SEC. 205. TRADE MONITORING.
``(a) Monitoring Tool for Imports.--
``(1) In general.--Not later than 180 days after the date
of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the United States International
Trade Commission shall make available on a website of the
Commission an import monitoring tool to allow the public
access to data on the volume and value of goods imported to
the United States for the purpose of assessing whether such
data has changed with respect to such goods over a period of
time.
``(2) Data described.--For purposes of the monitoring tool
under paragraph (1), the Commission shall use data compiled
by the Department of Commerce and such other government data
as the Commission considers appropriate.
``(3) Periods of time.--The Commission shall ensure that
data accessed through the monitoring tool under paragraph (1)
includes data for the most recent quarter for which such data
are available and previous quarters as the Commission
considers practicable.
``(b) Monitoring Reports.--
``(1) In general.--Not later than 270 days after the date
of the enactment of this section, and not less frequently
than quarterly thereafter, the Secretary of Commerce shall
publish on a website of the Department of Commerce, and
notify the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives
of the availability of, a monitoring report on changes in the
volume and value of trade with respect to imports and exports
of goods categorized based on the 6-digit subheading number
of the goods under the Harmonized Tariff Schedule of the
United States during the most recent quarter for which such
data are available and previous quarters as the Secretary
considers practicable.
``(2) Requests for comment.--Not later than one year after
the date of the enactment of this section, the Secretary of
Commerce shall solicit through the Federal Register public
comment on the monitoring reports described in paragraph (1).
``(c) Sunset.--The requirements under this section
terminate on the date that is seven years after the date of
the enactment of this section.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended by
inserting after the item relating to section 204 the
following:
``Sec. 205. Trade monitoring.''.
TITLE VII--CURRENCY MANIPULATION
SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE
AND ECONOMIC POLICIES WITH CERTAIN MAJOR
TRADING PARTNERS OF THE UNITED STATES.
(a) Major Trading Partner Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and not less frequently than once
every 180 days thereafter, the Secretary shall submit to the
appropriate committees of Congress a report on the
macroeconomic and currency exchange rate policies of each
country that is a major trading partner of the United States.
(2) Elements.--
(A) In general.--Each report submitted under paragraph (1)
shall contain--
(i) for each country that is a major trading partner of the
United States--
(I) that country's bilateral trade balance with the United
States;
(II) that country's current account balance as a percentage
of its gross domestic product;
(III) the change in that country's current account balance
as a percentage of its gross domestic product during the 3-
year period preceding the submission of the report;
(IV) that country's foreign exchange reserves as a
percentage of its short-term debt; and
(V) that country's foreign exchange reserves as a
percentage of its gross domestic product; and
(ii) an enhanced analysis of macroeconomic and exchange
rate policies for each country that is a major trading
partner of the United States that has--
(I) a significant bilateral trade surplus with the United
States;
(II) a material current account surplus; and
(III) engaged in persistent one-sided intervention in the
foreign exchange market.
(B) Enhanced analysis.--Each enhanced analysis under
subparagraph (A)(ii) shall include, for each country with
respect to which an analysis is made under that
subparagraph--
(i) a description of developments in the currency markets
of that country, including, to the greatest extent feasible,
developments with respect to currency interventions;
(ii) a description of trends in the real effective exchange
rate of the currency of that country and in the degree of
undervaluation of that currency;
(iii) an analysis of changes in the capital controls and
trade restrictions of that country;
(iv) patterns in the reserve accumulation of that country;
and
(v) an analysis of the macroeconomic policy mix of that
country and its pattern of savings-investment imbalances.
(3) Guidance.--The Secretary shall publicly issue guidance
not later than 90 days after the date of enactment of the Act
that describes the factors used to assess under paragraph
(2)(A)(ii) whether a country has a significant bilateral
trade surplus with the United States, has a material current
account surplus, and has engaged in persistent one-sided
intervention in the foreign exchange market.
(b) Engagement on Exchange Rate and Economic Policies.--
(1) In general.--The President, through the Secretary,
shall commence enhanced bilateral engagement with each
country for which an enhanced analysis of macroeconomic and
currency exchange rate policies is included in the report
submitted under subsection (a), in order to, as appropriate--
(A) urge implementation of policies to address the causes
of the undervaluation of its currency, its bilateral trade
surplus with the United States, and its material current
account surplus, including undervaluation and surpluses
relating to exchange rate management;
(B) express the concern of the United States with respect
to the adverse trade and economic effects of that
undervaluation and those surpluses; and/or
(C) advise that country of the ability of the President to
take action under subsection (c).
(2) Waiver.--
(A) In general.--The Secretary may waive the requirement
under subsection (b)(1) to commence enhanced bilateral
engagement with a country if the Secretary determines that
commencing enhanced bilateral engagement with the country--
(i) would have an adverse impact on the United States
economy greater than the benefits of such action; or
(ii) would cause serious harm to the national security of
the United States.
(B) Certification.--The Secretary shall promptly certify to
Congress a determination under subparagraph (A).
(c) Remedial Action.--
(1) In general.--If, on or after the date that is one year
after the commencement of enhanced bilateral engagement by
the President, through the Secretary, with respect to a
country under subsection (b)(1), the Secretary determines
that the country has failed to adopt appropriate policies to
correct the undervaluation and surpluses described in
subsection (b)(1)(A) with respect to that country, the
President shall take one or more of the following actions:
(A) Prohibit the Overseas Private Investment Corporation
from approving any new financing (including any insurance,
reinsurance, or guarantee) with respect to a project located
in that country on and after such date.
(B) Except as provided in paragraph (2), and pursuant to
paragraph (3), prohibit the
[[Page H4311]]
Federal Government from procuring, or entering into any
contract for the procurement of, goods or services from that
country on and after such date.
(C) Instruct the United States Executive Director of the
International Monetary Fund to call for additional rigorous
surveillance of the macroeconomic and exchange rate policies
of that country and, as appropriate, formal consultations on
findings of currency manipulation.
(D) Instruct the United States Trade Representative to take
into account, in consultation with the Secretary, in
assessing whether to enter into a bilateral or regional trade
agreement with that country or to initiate or participate in
negotiations with respect to a bilateral or regional trade
agreement with that country, the extent to which that country
has failed to adopt appropriate policies to correct the
undervaluation and surpluses described in subsection
(b)(1)(A).
(2) Waiver.--
(A) In general.--The President may waive the requirement
under paragraph (1) to take remedial action if the President
determines that taking remedial action under paragraph (1)
would--
(i) have an adverse impact on the United States economy
greater than the benefits of taking remedial action; or
(ii) would cause serious harm to the national security of
the United States.
(B) Certification.--The President shall promptly certify to
Congress a determination under subparagraph (A).
(3) Exception.--The President may not apply a prohibition
under paragraph (1)(B) in a manner that is inconsistent with
United States obligations under international agreements.
(4) Consultations.--
(A) Office of management and budget.--Before applying a
prohibition under paragraph (1)(B), the President shall
consult with the Director of the Office of Management and
Budget to determine whether such prohibition would subject
the taxpayers of the United States to unreasonable cost.
(B) Congress.--The President shall consult with the
appropriate committees of Congress with respect to any action
the President takes under paragraph (1)(B), including whether
the President has consulted as required under subparagraph
(A).
(d) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Finance of the Senate; and
(B) the Committee on Financial Services and the Committee
on Ways and Means of the House of Representatives.
(2) Country.--The term ``country'' means a foreign country,
dependent territory, or possession of a foreign country, and
may include an association of 2 or more foreign countries,
dependent territories, or possessions of countries into a
customs union outside the United States.
(3) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of
bilateral exchange rates, expressed in price-adjusted terms.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
SEC. 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE
POLICY.
(a) Establishment.--
(1) In general.--There is established an Advisory Committee
on International Exchange Rate Policy (in this section
referred to as the ``Committee'').
(2) Duties.--The Committee shall be responsible for
advising the Secretary of the Treasury with respect to the
impact of international exchange rates and financial policies
on the economy of the United States.
(b) Membership.--
(1) In general.--The Committee shall be composed of 9
members as follows, none of whom shall be employees of the
Federal Government:
(A) Three members shall be appointed by the President pro
tempore of the Senate, upon the recommendation of the
chairmen and ranking members of the Committee on Banking,
Housing, and Urban Affairs and the Committee on Finance of
the Senate.
(B) Three members shall be appointed by the Speaker of the
House of Representatives upon the recommendation of the
chairmen and ranking members of the Committee on Financial
Services and the Committee on Ways and Means of the House of
Representatives.
(C) Three members shall be appointed by the President.
(2) Qualifications.--Members shall be selected under
paragraph (1) on the basis of their objectivity and
demonstrated expertise in finance, economics, or currency
exchange.
(3) Terms.--
(A) In general.--Members shall be appointed for a term of 2
years or until the Committee terminates.
(B) Reappointment.--A member may be reappointed to the
Committee for additional terms.
(4) Vacancies.--Any vacancy in the Committee shall not
affect its powers, but shall be filled in the same manner as
the original appointment.
(c) Duration of Committee.--
(1) In general.--The Committee shall terminate on the date
that is 2 years after the date of the enactment of this Act
unless renewed by the President for a subsequent 2-year
period.
(2) Continued renewal.--The President may continue to renew
the Committee for successive 2-year periods by taking
appropriate action to renew the Committee prior to the date
on which the Committee would otherwise terminate.
(d) Meetings.--The Committee shall hold not less than 2
meetings each calendar year.
(e) Chairperson.--
(1) In general.--The Committee shall elect from among its
members a chairperson for a term of 2 years or until the
Committee terminates.
(2) Reelection; subsequent terms.--A chairperson of the
Committee may be reelected chairperson but is ineligible to
serve consecutive terms as chairperson.
(f) Staff.--The Secretary of the Treasury shall make
available to the Committee such staff, information,
personnel, administrative services, and assistance as the
Committee may reasonably require to carry out the activities
of the Committee.
(g) Application of the Federal Advisory Committee Act.--
(1) In general.--Except as provided in paragraph (2), the
provisions of the Federal Advisory Committee Act (5 U.S.C.
App.) shall apply to the Committee.
(2) Exception.--Meetings of the Committee shall be exempt
from the requirements of subsections (a) and (b) of section
10 and section 11 of the Federal Advisory Committee Act
(relating to open meetings, public notice, public
participation, and public availability of documents),
whenever and to the extent it is determined by the President
or the Secretary of the Treasury that such meetings will be
concerned with matters the disclosure of which--
(A) would seriously compromise the development by the
Government of the United States of monetary or financial
policy; or
(B) is likely to--
(i) lead to significant financial specu1ation in
currencies, securities, or commodities; or
(ii) significantly endanger the stability of any financial
institution.
(h) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of the Treasury for each
fiscal year in which the Committee is in effect $1,000,000 to
carry out this section.
TITLE VIII--ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION
SEC. 801. SHORT TITLE.
This title may be cited as the ``U.S. Customs and Border
Protection Authorization Act''.
SEC. 802. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER
PROTECTION.
(a) In General.--Section 411 of the Homeland Security Act
of 2002 (6 U.S.C. 211) is amended to read as follows:
``SEC. 411. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER
PROTECTION; COMMISSIONER, DEPUTY COMMISSIONER,
AND OPERATIONAL OFFICES.
``(a) In General.--There is established in the Department
an agency to be known as U.S. Customs and Border Protection.
``(b) Commissioner of U.S. Customs and Border Protection.--
There shall be at the head of U.S. Customs and Border
Protection a Commissioner of U.S. Customs and Border
Protection (in this section referred to as the
`Commissioner'), who shall be appointed by the President, by
and with the advice and consent of the Senate.
``(c) Duties.--The Commissioner shall--
``(1) ensure the interdiction of persons and goods
illegally entering or exiting the United States;
``(2) facilitate and expedite the flow of legitimate
travelers and trade;
``(3) detect, respond to, and interdict terrorists, drug
smugglers and traffickers, human smugglers and traffickers,
and other persons who may undermine the security of the
United States, in cases in which such persons are entering,
or have recently entered, the United States;
``(4) safeguard the borders of the United States to protect
against the entry of dangerous goods;
``(5) oversee the functions of the Office of Trade
established under section 802(h) of the Trade Facilitation
and Trade Enforcement Act of 2015;
``(6) enforce and administer all customs laws of the United
States, including the Tariff Act of 1930;
``(7) enforce and administer all immigration laws, as such
term is defined in paragraph (17) of section 101(a) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)), as
necessary for the inspection, processing, and admission of
persons who seek to enter or depart the United States, and as
necessary to ensure the detection, interdiction, removal,
departure from the United States, short-term detention, and
transfer of persons unlawfully entering, or who have recently
unlawfully entered, the United States, in coordination with
U.S. Immigration and Customs Enforcement and United States
Citizenship and Immigration Services;
``(8) develop and implement screening and targeting
capabilities, including the screening, reviewing,
identifying, and prioritizing of passengers and cargo across
all international modes of transportation, both inbound and
outbound;
``(9) in coordination with the Secretary, deploy technology
to collect the data necessary for the Secretary to administer
the biometric entry and exit data system pursuant to section
7208 of the Intelligence Reform and Terrorism Prevention Act
of 2004 (8 U.S.C. 1365b);
[[Page H4312]]
``(10) enforce and administer the laws relating to
agricultural import and entry inspection referred to in
section 421;
``(11) in coordination with the Under Secretary for
Management of the Department, ensure U.S. Customs and Border
Protection complies with Federal law, the Federal Acquisition
Regulation, and the Department's acquisition management
directives for major acquisition programs of U.S. Customs and
Border Protection;
``(12) enforce and administer--
``(A) the Container Security Initiative program under
section 205 of the Security and Accountability for Every Port
Act of 2006 (6 U.S.C. 945; Public Law 109-347); and
``(B) the Customs-Trade Partnership Against Terrorism
program under sections 211 through 223 of such Act (6 U.S.C.
961-973);
``(13) conduct polygraph examinations in accordance with
section 3(1) of the Anti-Border Corruption Act of 2010
(Public Law 111-376);
``(14) establish the standard operating procedures
described in subsection (k);
``(15) carry out the training required under subsection
(l); and
``(16) carry out other duties and powers prescribed by law
or delegated by the Secretary.
``(d) Deputy Commissioner.--There shall be in U.S. Customs
and Border Protection a Deputy Commissioner who shall assist
the Commissioner in the management of U.S. Customs and Border
Protection.
``(e) U.S. Border Patrol.--
``(1) In general.--There is established in U.S. Customs and
Border Protection the U.S. Border Patrol.
``(2) Chief.--There shall be at the head of the U.S. Border
Patrol a Chief, who shall report to the Commissioner.
``(3) Duties.--The U.S. Border Patrol shall--
``(A) serve as the law enforcement office of U.S. Customs
and Border Protection with primary responsibility for
interdicting persons attempting to illegally enter or exit
the United States or goods being illegally imported into or
exported from the United States at a place other than a
designated port of entry;
``(B) deter and prevent illegal entry of terrorists,
terrorist weapons, persons, and contraband; and
``(C) carry out other duties and powers prescribed by the
Commissioner.
``(f) Office of Air and Marine Operations.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Air and Marine Operations.
``(2) Assistant commissioner.--There shall be at the head
of the Office of Air and Marine Operations an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of Air and Marine Operations
shall--
``(A) serve as the law enforcement office within U.S.
Customs and Border Protection with primary responsibility to
detect, interdict, and prevent acts of terrorism and the
unlawful movement of people, illicit drugs, and other
contraband across the borders of the United States in the air
and maritime environment;
``(B) conduct joint aviation and marine operations with
U.S. Immigration and Customs Enforcement;
``(C) conduct aviation and marine operations with
international, Federal, State, and local law enforcement
agencies, as appropriate;
``(D) administer the Air and Marine Operations Center
established under paragraph (4); and
``(E) carry out other duties and powers prescribed by the
Commissioner.
``(4) Air and marine operations center.--
``(A) In general.--There is established in the Office of
Air and Marine Operations an Air and Marine Operations
Center.
``(B) Executive director.--There shall be at the head of
the Air and Marine Operations Center an Executive Director,
who shall report to the Assistant Commissioner of the Office
of Air and Marine Operations.
``(C) Duties.--The Air and Marine Operations Center shall--
``(i) manage the air and maritime domain awareness of the
Department;
``(ii) monitor and coordinate the airspace for Unmanned
Aerial Systems operations of the Office of Air and Marine
Operations in U.S. Customs and Border Protection;
``(iii) detect, identify, and coordinate a response to
threats to national security in the air domain;
``(iv) provide aviation and marine support to other
Federal, State, tribal, and local agencies; and
``(v) carry out other duties and powers prescribed by the
Assistant Commissioner.
``(g) Office of Field Operations.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Field Operations.
``(2) Assistant commissioner.--There shall be at the head
of the Office of Field Operations an Assistant Commissioner,
who shall report to the Commissioner.
``(3) Duties.--The Office of Field Operations shall
coordinate the enforcement activities of U.S. Customs and
Border Protection at United States air, land, and sea ports
of entry to--
``(A) deter and prevent terrorists and terrorist weapons
from entering the United States at such ports of entry;
``(B) conduct inspections at such ports of entry to
safeguard the United States from terrorism and illegal entry
of persons;
``(C) prevent illicit drugs, agricultural pests, and
contraband from entering the United States;
``(D) in coordination with the Commissioner, facilitate and
expedite the flow of legitimate travelers and trade;
``(E) administer the National Targeting Center established
under paragraph (4); and
``(F) carry out other duties and powers prescribed by the
Commissioner.
``(4) National targeting center.--
``(A) In general.--There is established in the Office of
Field Operations a National Targeting Center.
``(B) Executive director.--There shall be at the head of
the National Targeting Center an Executive Director, who
shall report to the Assistant Commissioner of the Office of
Field Operations.
``(C) Duties.--The National Targeting Center shall--
``(i) serve as the primary forum for targeting operations
within U.S. Customs and Border Protection to collect and
analyze traveler and cargo information in advance of arrival
in the United States;
``(ii) identify, review, and target travelers and cargo for
examination;
``(iii) coordinate the examination of entry and exit of
travelers and cargo;
``(iv) develop and conduct commercial risk assessment
targeting with respect to cargo destined for the United
States;
``(v) issue Trade Alerts pursuant to section 111 of the
Trade Facilitation and Trade Enforcement Act of 2015; and
``(vi) carry out other duties and powers prescribed by the
Assistant Commissioner.
``(5) Annual report on staffing.--Not later than 30 days
after the date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015 and annually thereafter, the
Assistant Commissioner shall submit to the appropriate
congressional committees a report on the staffing model for
the Office of Field Operations, including information on how
many supervisors, front-line U.S. Customs and Border
Protection officers, and support personnel are assigned to
each Field Office and port of entry.
``(h) Office of Intelligence.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Intelligence.
``(2) Assistant commissioner.--There shall be at the head
of the Office of Intelligence an Assistant Commissioner, who
shall report to the Commissioner.
``(3) Duties.--The Office of Intelligence shall--
``(A) develop, provide, coordinate, and implement
intelligence capabilities into a cohesive intelligence
enterprise to support the execution of the duties and
responsibilities of U.S. Customs and Border Protection;
``(B) collect and analyze advance traveler and cargo
information;
``(C) establish, in coordination with the Chief
Intelligence Officer of the Department, as appropriate,
intelligence-sharing relationships with Federal, State,
local, and tribal agencies and intelligence agencies;
``(D) conduct risk-based covert testing of U.S. Customs and
Border Protection operations, including for nuclear and
radiological risks; and
``(E) carry out other duties and powers prescribed by the
Commissioner.
``(i) Office of International Affairs.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of International Affairs.
``(2) Assistant commissioner.--There shall be at the head
of the Office of International Affairs an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of International Affairs, in
collaboration with the Office of Policy of the Department,
shall--
``(A) coordinate and support U.S. Customs and Border
Protection's foreign initiatives, policies, programs, and
activities;
``(B) coordinate and support U.S. Customs and Border
Protection's personnel stationed abroad;
``(C) maintain partnerships and information sharing
agreements and arrangements with foreign governments,
international organizations, and United States agencies in
support of U.S. Customs and Border Protection duties and
responsibilities;
``(D) provide necessary capacity building, training, and
assistance to foreign border control agencies to strengthen
global supply chain and travel security, as appropriate;
``(E) coordinate mission support services to sustain U.S.
Customs and Border Protection's global activities;
``(F) coordinate U.S. Customs and Border Protection's
engagement in international negotiations; and
``(G) carry out other duties and powers prescribed by the
Commissioner.
``(j) Office of Internal Affairs.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Internal Affairs.
``(2) Assistant commissioner.--There shall be at the head
of the Office of Internal Affairs an Assistant Commissioner,
who shall report to the Commissioner.
``(3) Duties.--The Office of Internal Affairs shall--
``(A) investigate criminal and administrative matters and
misconduct by officers, agents, and other employees of U.S.
Customs and Border Protection;
``(B) perform investigations of applicants for employment
with U.S. Customs and Border Protection and periodic
reinvestigations (in accordance with section 3001 of the
Intelligence Reform and Terrorism Prevention
[[Page H4313]]
Act of 2004 (50 U.S.C. 3341; Public Law 108-458)) of
officers, agents, and other employees of United States Custom
and Border Protection, including investigations to determine
suitability for employment and eligibility for access to
classified information;
``(C) manage integrity of U.S. Customs and Border
Protection's counter-intelligence operations, including
conduct of counter-intelligence investigations;
``(D) conduct research and analysis regarding misconduct of
officers, agents, and other employees of U.S. Customs and
Border Protection; and
``(E) carry out other duties and powers prescribed by the
Commissioner.
``(k) Standard Operating Procedures.--
``(1) In general.--The Commissioner shall establish--
``(A) standard operating procedures for searching,
reviewing, retaining, and sharing information contained in
communication, electronic, or digital devices encountered by
U.S. Customs and Border Protection personnel at United States
ports of entry;
``(B) standard use of force procedures that officers and
agents of U.S. Customs and Border Protection may employ in
the execution of their duties, including the use of deadly
force;
``(C) a uniform, standardized, and publically-available
procedure for processing and investigating complaints against
officers, agents, and employees of U.S. Customs and Border
Protection for violations of professional conduct, including
the timely disposition of complaints and a written
notification to the complainant of the status or outcome, as
appropriate, of the related investigation, in accordance with
section 552a of title 5, United States Code (commonly
referred to as the `Privacy Act' or the `Privacy Act of
1974');
``(D) an internal, uniform reporting mechanism regarding
incidents involving the use of deadly force by an officer or
agent of U.S. Customs and Border Protection, including an
evaluation of the degree to which the procedures required
under subparagraph (B) were followed; and
``(E) standard operating procedures, acting through the
Assistant Commissioner for Air and Marine Operations and in
coordination with the Office for Civil Rights and Civil
Liberties and the Office of Privacy of the Department, to
provide command, control, communication, surveillance, and
reconnaissance assistance through the use of unmanned aerial
systems, including the establishment of--
``(i) a process for other Federal, State, and local law
enforcement agencies to submit mission requests;
``(ii) a formal procedure to determine whether to approve
or deny such a mission request;
``(iii) a formal procedure to determine how such mission
requests are prioritized and coordinated; and
``(iv) a process regarding the protection and privacy of
data and images collected by U.S. Customs and Border
Protection through the use of unmanned aerial systems.
``(2) Requirements regarding certain notifications.--The
standard operating procedures established pursuant to
subparagraph (A) of paragraph (1) shall require--
``(A) in the case of a search of information conducted on
an electronic device by U.S. Customs and Border Protection
personnel, the Commissioner to notify the individual subject
to such search of the purpose and authority for such search,
and how such individual may obtain information on reporting
concerns about such search; and
``(B) in the case of information collected by U.S. Customs
and Border Protection through a search of an electronic
device, if such information is transmitted to another Federal
agency for subject matter assistance, translation, or
decryption, the Commissioner to notify the individual subject
to such search of such transmission.
``(3) Exceptions.--
``(A) In general.--The Commissioner may withhold the
notifications required under paragraphs (1)(C) and (2) if the
Commissioner determines that such notifications would impair
national security, law enforcement, or other operational
interests.
``(B) Terrorist watch lists.--
``(i) Searches.--If the individual subject to search of an
electronic device pursuant to subparagraph (A) of paragraph
(1) is included on a Government-operated or Government-
maintained terrorist watch list, the notifications required
under paragraph (2) shall not apply.
``(ii) Complaints.--If the complainant using the process
established under subparagraph (C) of paragraph (1) is
included on a Government-operated or Government-maintained
terrorist watch list, the notification required under such
subparagraph shall not apply.
``(4) Update and review.--The Commissioner shall review and
update every three years the standard operating procedures
required under this subsection.
``(5) Audits.--The Inspector General of the Department of
Homeland Security shall develop and annually administer an
auditing mechanism to review whether searches of electronic
devices at or between United States ports of entry are being
conducted in conformity with the standard operating
procedures required under subparagraph (A) of paragraph (1).
Such audits shall be submitted to the appropriate
congressional committees and shall include the following:
``(A) A description of the activities of officers and
agents of U.S. Customs and Border Protection with respect to
such searches.
``(B) The number of such searches.
``(C) The number of instances in which information
contained in such devices that were subjected to such
searches was retained, copied, shared, or entered in an
electronic database.
``(D) The number of such devices detained as the result of
such searches.
``(E) The number of instances in which information
collected from such device was subjected to such searches was
transmitted to another Federal agency, including whether such
transmission resulted in a prosecution or conviction.
``(6) Requirements regarding other notifications.--The
standard operating procedures established pursuant to
subparagraph (B) of paragraph (1) shall require--
``(A) in the case of an incident of the use of deadly force
by U.S. Customs and Border Protection personnel, the
Commissioner to notify the appropriate congressional
committees; and
``(B) the Commissioner to provide to such committees a copy
of the evaluation pursuant to subparagraph (D) of such
paragraph not later than 30 days after completion of such
evaluation.
``(7) Report on unmanned aerial systems.--The Commissioner
shall submit to the appropriate congressional committees an
annual report that reviews whether the use of unmanned aerial
systems are being conducted in conformity with the standard
operating procedures required under subparagraph (E) of
paragraph (1). Such reports--
``(A) shall be submitted with the President's annual
budget;
``(B) may be submitted in classified form if the
Commissioner determines that such is appropriate, and
``(C) shall include--
``(i) a detailed description of how, where, and for how
long data and images collected through the use of unmanned
aerial systems by U.S. Customs and Border Protection is
collected and stored; and
``(ii) a list of Federal, State, and local law enforcement
agencies that submitted mission requests in the previous year
and the disposition of such requests.
``(l) Training.--The Commissioner shall require all
officers and agents of U.S. Customs and Border Protection to
participate in a specified amount of continuing education (to
be determined by the Commissioner) to maintain an
understanding of Federal legal rulings, court decisions, and
departmental policies, procedures, and guidelines.
``(m) Short Term Detention Standards.--
``(1) Access to food and water.--The Commissioner shall
make every effort to ensure that adequate access to food and
water is provided to an individual apprehended and detained
at or between a United States port of entry as soon as
practicable following the time of such apprehension or during
subsequent short term detention.
``(2) Access to information on detainee rights at border
patrol processing centers.--
``(A) In general.--The Commissioner shall ensure that an
individual apprehended by a U.S. Border Patrol agent or an
Office of Field Operations officer is provided with
information concerning such individual's rights, including
the right to contact a representative of such individual's
government for purposes of United States treaty obligations.
``(B) Form.--The information referred to in subparagraph
(A) may be provided either verbally or in writing, and shall
be posted in the detention holding cell in which such
individual is being held. The information shall be provided
in a language understandable to such individual.
``(3) Short term detention defined.--In this subsection,
the term `short term detention' means detention in a U.S.
Customs and Border Protection processing center for 72 hours
or less, before repatriation to a country of nationality or
last habitual residence.
``(4) Daytime repatriation.--When practicable,
repatriations shall be limited to daylight hours and avoid
locations that are determined to have high indices of crime
and violence.
``(5) Report on procurement process and standards.--Not
later than 180 days after the date of the enactment of this
section, the Comptroller General of the United States shall
submit to the appropriate congressional committees a report
on the procurement process and standards of entities with
which U.S. Customs and Border Protection has contracts for
the transportation and detention of individuals apprehended
by agents or officers of U.S. Customs and Border Protection.
Such report should also consider the operational efficiency
of contracting the transportation and detention of such
individuals.
``(6) Report on inspections of short-term custody
facilities.--The Commissioner shall--
``(A) annually inspect all facilities utilized for short
term detention; and
``(B) make publically available information collected
pursuant to such inspections, including information regarding
the requirements under paragraphs (1) and (2) and, where
appropriate, issue recommendations to improve the conditions
of such facilities.
``(n) Wait Times Transparency.--
``(1) In general.--The Commissioner shall--
[[Page H4314]]
``(A) publish live wait times at the 20 United States
airports that support the highest volume of international
travel (as determined by available Federal flight data);
``(B) make information about such wait times available to
the public in real time through the U.S. Customs and Border
Protection Web site;
``(C) submit to the appropriate congressional committees
quarterly reports that include compilations of all such wait
times and a ranking of such United States airports by wait
times; and
``(D) provide adequate staffing at the U.S. Customs and
Border Protection information center to ensure timely access
for travelers attempting to submit comments or speak with a
representative about their entry experiences.
``(2) Calculation.--The wait times referred to in paragraph
(1)(A) shall be determined by calculating the time elapsed
between an individual's entry into the U.S. Customs and
Border Protection inspection area and such individual's
clearance by a U.S. Customs and Border Protection officer.
``(o) Other Authorities.--
``(1) In general.--The Secretary may establish such other
offices or Assistant Commissioners (or other similar officers
or officials) as the Secretary determines necessary to carry
out the missions, duties, functions, and authorities of U.S.
Customs and Border Protection.
``(2) Notification.--If the Secretary exercises the
authority provided pursuant to paragraph (1), the Secretary
shall notify the appropriate congressional committees not
later than 30 days before exercising such authority.
``(p) Other Federal Agencies.--Nothing in this section may
be construed as affecting in any manner the authority,
existing on the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, of any other
Federal agency, including the Transportation Security
Administration, with respect to the duties of U.S. Customs
and Border Protection described in subsection (c).''.
(b) Special Rules.--
(1) Treatment.--Section 411 of the Homeland Security Act of
2002, as amended by subsection (a) of this section, shall be
treated as if included in such Act as of the date of the
enactment of such Act, and, in addition to the functions,
missions, duties, and authorities specified in such amended
section 411, U.S. Customs and Border Protection shall
continue to perform and carry out the functions, missions,
duties, and authorities under section 411 of such Act as in
existence on the day before such date of enactment, and
section 415 of such Act.
(2) Rules of construction.--
(A) Rules and regulations.--Notwithstanding paragraph (1),
nothing in this title or any amendment made by this title may
be construed as affecting in any manner any rule or
regulation issued or promulgated pursuant to any provision of
law, including section 411 of the Homeland Security Act of
2002 as in existence on the day before the date of the
enactment of this Act, and any such rule or regulation shall
continue to have full force and effect on and after such
date.
(B) Other actions.--Notwithstanding paragraph (1), nothing
in this Act may be construed as affecting in any manner any
action, determination, policy, or decision pursuant to
section 411 of the Homeland Security Act of 2002 as in
existence on the day before the date of the enactment of this
Act, and any such action, determination, policy, or decision
shall continue to have full force and effect on and after
such date.
(c) Continuation in Office.--
(1) Commissioner.--The individual serving as the
Commissioner of Customs on the day before the date of the
enactment of this Act may serve as the Commissioner of U.S.
Customs and Border Protection on and after such date of
enactment until a Commissioner of U.S. Customs and Border
Protection is appointed under section 411 of the Homeland
Security Act of 2002, as amended by subsection (a) of this
section.
(2) Other positions.--The individuals serving as Assistant
Commissioners and other officers and officials under section
411 of the Homeland Security Act of 2002 on the day before
the date of the enactment of this Act may serve as the
appropriate Assistant Commissioners and other officers and
officials under such section 411 as amended by subsection (a)
of this section unless the Commissioner of U.S. Customs and
Border Protection determines that another individual should
hold such position or positions.
(d) Reference.--
(1) Title 5.--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''.
(2) Other references.--On and after the date of the
enactment 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.
(e) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is amended by striking the item relating to section 411
and inserting the following new item:
``Sec. 411. Establishment of U.S. Customs and Border Protection;
Commissioner, Deputy Commissioner, and operational
offices.''.
(f) Repeals.--Sections 416 and 418 of the Homeland Security
Act of 2002 (6 U.S.C. 216 and 218), and the items relating to
such sections in the table of contents in section 1(b) of
such Act, are repealed.
(g) Clerical and Conforming Amendments.--
(1) In general.--The Homeland Security Act of 2002 (6
U.S.C. 101 et seq.) is amended--
(A) in title I--
(i) in section 102(f)(10) (6 U.S.C. 112(f)(10)), by
striking ``the Directorate of Border and Transportation
Security'' and inserting ``the Commissioner of U.S. Customs
and Border Protection''; and
(ii) in section 103(a)(1) (6 U.S.C. 113(a)(1))--
(I) in subparagraph (C), by striking ``An Under Secretary
for Border and Transportation Security.'' and inserting ``A
Commissioner of U.S. Customs and Border Protection.''; and
(II) in subparagraph (G), by striking ``A Director of the
Office of Counternarcotics Enforcement.'' and inserting ``A
Director of U.S. Immigration and Customs Enforcement.''; and
(B) in title IV--
(i) by striking the title heading and inserting ``BORDER,
MARITIME, AND TRANSPORTATION SECURITY'';
(ii) in subtitle A--
(I) by striking the subtitle heading and inserting
``Border, Maritime, and Transportation Security
Responsibilities and Functions''; and
(II) in section 402 (6 U.S.C. 202)--
(aa) in the section heading, by striking
``responsibilities'' and inserting ``border, maritime, and
transportation responsibilities''; and
(bb) by striking ``, acting through the Under Secretary for
Border and Transportation Security,'';
(iii) in subtitle B--
(I) by striking the subtitle heading and inserting ``U.S.
Customs and Border Protection'';
(II) in section 412(b) (6 U.S.C. 212), by striking ``the
United States Customs Service'' each place it appears and
inserting ``U.S. Customs and Border Protection'';
(III) in section 413 (6 U.S.C. 213), by striking
``available to the United States Customs Service or'';
(IV) in section 414 (6 U.S.C. 214), by striking ``the
United States Customs Service'' and inserting ``U.S. Customs
and Border Protection''; and
(V) in section 415 (6 U.S.C. 215)--
(aa) in paragraph (7), by inserting before the colon the
following: ``, and of U.S. Customs and Border Protection on
the day before the effective date of the U.S. Customs and
Border Protection Authorization Act''; and
(bb) in paragraph (8), by inserting before the colon the
following: ``, and of U.S. Customs and Border Protection on
the day before the effective date of the U.S. Customs and
Border Protection Authorization Act'';
(iv) in subtitle C--
(I) by striking section 424 (6 U.S.C. 234) and inserting
the following new section:
``SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY
ADMINISTRATION AS A DISTINCT ENTITY.
``Notwithstanding any other provision of this Act, the
Transportation Security Administration shall be maintained as
a distinct entity within the Department.''; and
(II) in section 430 (6 U.S.C. 238)--
(aa) by amending subsection (a) to read as follows:
``(a) Establishment.--There is established in the
Department an Office for Domestic Preparedness.'';
(bb) in subsection (b), by striking the second sentence;
and
(cc) in subsection (c)(7), by striking ``Directorate'' and
inserting ``Department''; and
(v) in subtitle D--
(I) in section 441 (6 U.S.C. 251)--
(aa) by striking the section heading and inserting
``transfer of functions''; and
(bb) by striking ``Under Secretary for Border and
Transportation Security'' and inserting ``Secretary'';
(II) in section 443 (6 U.S.C. 253)--
(aa) in the matter preceding paragraph (1), by striking
``Under Secretary for Border and Transportation Security''
and inserting ``Secretary''; and
(bb) by striking ``the Bureau of Border Security'' and
inserting ``U.S. Immigration and Customs Enforcement'' each
place it appears; and
(III) by amending section 444 (6 U.S.C. 254) to read as
follows:
``SEC. 444. EMPLOYEE DISCIPLINE.
``Notwithstanding any other provision of law, the Secretary
may impose disciplinary action on any employee of U.S.
Immigration and Customs Enforcement and U.S. Customs and
Border Protection who willfully deceives Congress or agency
leadership on any matter.''.
(2) Conforming amendments.--Section 401 of the Homeland
Security Act of 2002 (6 U.S.C. 201) is repealed.
(3) Clerical amendments.--The table of contents in section
1(b) of the Homeland Security Act of 2002 is amended--
(A) by striking the item relating to title IV and inserting
the following:
[[Page H4315]]
``TITLE IV--BORDER, MARITIME, AND TRANSPORTATION SECURITY'';
(B) by striking the item relating to subtitle A of title IV
and inserting the following:
``Subtitle A--Border, Maritime, and Transportation Security
Responsibilities and Functions'';
(C) by striking the item relating to section 401;
(D) by striking the item relating to subtitle B of title IV
and inserting the following:
``Subtitle B--U.S. Customs and Border Protection'';
(E) by striking the item relating to section 441 and
inserting the following:
``Sec. 441. Transfer of functions.'';
and
(F) by striking the item relating to section 442 and
inserting the following:
``Sec. 442. U.S. Immigration and Customs Enforcement.''.
(h) Office of Trade.--
(1) Trade offices and functions.--The Act of March 3, 1927
(44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), is
amended by adding at the end the following:
``SEC. 4. OFFICE OF TRADE.
``(a) In General.--There is established in U.S. Customs and
Border Protection an Office of Trade.
``(b) Assistant Commissioner.--
``(1) In general.--There shall be at the head of the Office
of Trade an Assistant Commissioner, who shall report to the
Commissioner of U.S. Customs and Border Protection.
``(2) Qualifications.--The Assistant Commissioner shall
have a minimum of 10 years of professional experience with
the customs and trade laws of the United States.
``(3) Senior executive service position.--The position of
Assistant Commissioner for Trade shall be a Senior Executive
Service position (as defined in section 3132(a) of title 5,
United States Code).
``(c) Duties.--The Office of Trade shall--
``(1) direct the development and implementation, pursuant
to the customs and trade laws of the United States, of
policies and regulations administered by U.S. Customs and
Border Protection;
``(2) advise the Commissioner with respect to the impact on
trade facilitation and trade enforcement of any policy or
regulation otherwise proposed or administered by U.S. Customs
and Border Protection;
``(3) coordinate and cooperate with the Assistant
Commissioner for the Office of Field Operations with respect
to the trade facilitation and trade enforcement activities of
U.S. Customs and Border Protection carried out at the land
borders and ports of entry of the United States;
``(4) direct the development and implementation of matters
relating to the priority trade issues identified by the
Commissioner of U.S. Customs and Border Protection in the
joint strategic plan on trade facilitation and trade
enforcement required under section 123A of the Customs and
Trade Act of 1990;
``(5) otherwise advise the Commissioner of U.S. Customs and
Border Protection with respect to the development and
implementation of the joint strategic plan;
``(6) direct the trade enforcement activities of U.S.
Customs and Border Protection;
``(7) oversee the trade modernization activities of U.S.
Customs and Border Protection, 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 Treasury pursuant to section 411(d) of the
Tariff Act of 1930 (19 U.S.C. 1411(d));
``(8) direct the administration of customs revenue
functions as otherwise provided by law or delegated by the
Commissioner of U.S. Customs and Border Protection; and
``(9) prepare an annual report to be submitted to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives not later than
March 1 of each calendar year that includes--
``(A) a summary of the changes to customs policies and
regulations adopted by U.S. Customs and Border Protection
during the preceding calendar year; and
``(B) a description of the public vetting and interagency
consultation that occurred with respect to each such change.
``(d) Transfer of Assets, Functions, and Personnel;
Elimination of Offices.--
``(1) Office of international trade.--
``(A) Transfer.--Not later than 30 days after the date of
the enactment of the Trade Facilitation and Trade Enforcement
Act of 2015, the Commissioner shall transfer the assets,
functions, personnel, and liabilities of the Office of
International Trade to the Office of Trade established under
subsection (b).
``(B) Elimination.--Not later than 30 days after the date
of enactment of the Trade Facilitation and Trade Enforcement
Act of 2015, the Office of International Trade shall be
abolished.
``(C) Limitation on funds.--No funds appropriated to U.S.
Customs and Border Protection or the Department of Homeland
Security may be used to transfer the assets, functions,
personnel, and liabilities of the Office of International
Trade to an office other than the Office of Trade established
under subsection (a).
``(D) Office of international trade defined.--In this
paragraph, the term `Office of International Trade' means the
Office of International Trade established by section 2 of the
Act of March 3, 1927 (44. Stat. 1381, chapter 348; 19 U.S.C.
2072), as added by section 402 of the Security and
Accountability for Every Port Act of 2006 (Public Law 109-
347; 120 Stat. 1924), and as in effect on the day before the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015.
``(2) Other transfers.--
``(A) In general.--The Commissioner is authorized to
transfer any other assets, functions, or personnel within
U.S. Customs and Border Protection to the Office of Trade
established under subsection (d).
``(B) Congressional notification.--Not less than 90 days
prior to the transfer of assets, functions, or personnel
under subparagraph (A)(i), the Commissioner shall notify the
Committee on Finance of the Senate, the Committee on Homeland
Security and Government Affairs of the Senate, the Committee
on Ways and Means of the House of Representatives, and the
Committee on Homeland Security of the House of
Representatives of the specific assets, functions, or
personnel to be transferred, and the reason for the transfer.
``(e) Definitions.--In this section, the terms `customs and
trade laws of the United States', `trade enforcement', and
`trade facilitation' have the meanings given such terms in
section 2 of the Trade Facilitation and Trade Enforcement Act
of 2015.''.
(2) Continuation in office.--The individual serving as the
Assistant Commissioner of the Office of International Trade
on the day before the date of the enactment of this Act may
serve as the Assistant Commissioner for Trade on or after
such date of enactment, at the discretion of the
Commissioner.
(3) Conforming amendments.--Section 2 of the Act of March
3, 1927 (44. Stat. 1381, chapter 348; 19 U.S.C. 2072), as
added by section 402 of the Security and Accountability for
Every Port Act of 2006 (Public Law 109-347; 120 Stat. 1924),
is amended--
(A) by striking subsection (d); and
(B) by redesignating subsections (e) and (f) as subsections
(d) and (e), respectively.
(i) Reports and Assessments.--
(1) Report on business transformation initiative.--Not
later than 90 days after the date of the enactment of this
Act, the Commissioner of U.S. Customs and Border Protection
shall submit to the Committee on Homeland Security and the
Committee on Ways and Means of the House of Representatives
and the Committee on Homeland Security and Governmental
Affairs and the Committee on Finance of the Senate a report
on U.S. Customs and Border Protection's Business
Transformation Initiative, including locations where the
Initiative is deployed, the types of equipment utilized, a
description of protocols and procedures, information on wait
times at such locations since deployment, and information
regarding the schedule for deployment at new locations.
(2) Port of entry infrastructure needs assessments.--Not
later 180 days after the date of the enactment of this Act,
the Commissioner of U.S. Customs and Border Protection shall
assess the physical infrastructure and technology needs at
the 20 busiest land ports of entry (as measured by U.S.
Customs and Border Protection) with a particular attention to
identify ways to--
(A) improve travel and trade facilitation;
(B) reduce wait times;
(C) improve physical infrastructure and conditions for
individuals accessing pedestrian ports of entry;
(D) enter into long-term leases with nongovernmental and
private sector entities;
(E) enter into lease-purchase agreements with
nongovernmental and private sector entities; and
(F) achieve cost savings through leases described in
subparagraphs (D) and (E).
(3) Personal searches.--Not later than 90 days after the
date of the enactment of this Act, the Commissioner of U.S.
Customs and Border Protection shall submit to the Committee
on Homeland Security of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs of
the Senate a report on supervisor-approved personal searches
conducted in the previous year by U.S. Customs and Border
Protection personnel. Such report shall include the number of
personal searches conducted in each sector and field office,
the number of invasive personal searches conducted in each
sector and field office, whether personal searches were
conducted by Office of Field Operations or U.S. Border Patrol
personnel, and how many personal searches resulted in the
discovery of contraband.
(j) Trusted Traveler Programs.--The Secretary of Homeland
Security may not enter into or renew an agreement with the
government of a foreign country for a trusted traveler
program administered by U.S. Customs and Border Protection
unless the Secretary certifies in writing that such
government--
(1) routinely submits to INTERPOL for inclusion in
INTERPOL's Stolen and Lost Travel Documents database
information about lost and stolen passports and travel
documents of the citizens and nationals of such country; or
[[Page H4316]]
(2) makes available to the United States Government the
information described in paragraph (1) through another means
of reporting.
(k) Sense of Congress Regarding the Foreign Language Award
Program.--
(1) Findings.--Congress finds the following:
(A) Congress established the Foreign Language Award Program
(FLAP) to incentivize employees at United States ports of
entry to utilize their foreign language skills on the job by
providing a financial incentive for the use of the foreign
language for at least ten percent of their duties after
passage of competency tests. FLAP incentivizes the use of
more than two dozen languages and has been instrumental in
identifying and utilizing U.S. Customs and Border Protection
officers and agents who are proficient in a foreign language.
(B) In 1993, Congress provided for dedicated funding for
this program by stipulating that certain fees collected by
U.S. Customs and Border Protection be used to fund FLAP.
(C) Through FLAP, foreign travelers are aided by having an
officer at a port of entry who speaks their language, and
U.S. Customs and Border Protection benefits by being able to
focus its border security efforts in a more effective manner.
(2) Sense of congress.--It is the sense of Congress that
FLAP incentivizes U.S. Customs and Border Protection officers
to attain and maintain competency in a foreign language,
thereby improving the efficiency of operations for the
functioning of U.S. Customs and Border Protection's security
mission, making the United States a more welcoming place when
foreign travelers find officers can communicate in their
language, and helping to expedite traveler processing to
reduce wait times.
TITLE IX--MISCELLANEOUS PROVISIONS
SEC. 901. DE MINIMIS VALUE.
(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) Effective Date.--The amendment made by subsection (a)
shall apply with respect to articles entered, or withdrawn
from warehouse for consumption, on or after the 15th day
after the date of the enactment of this Act.
SEC. 902. 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. 903. 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) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border Protection'';
(2) in subsection (d)(2)(B), by striking ``The Customs
Service'' and inserting ``U.S. Customs and Border
Protection''; and
(3) in subsection (g)(2)(B), by striking ``Secretary's
notice'' and inserting ``notice under subparagraph (A)''.
SEC. 904. 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)(1) For purposes of subheadings 9802.00.40 and
9802.00.50, fungible articles 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
articles may be accounted for using an inventory management
method.
``(2) If a person chooses to use an inventory management
method under this paragraph with respect to fungible
articles, the person shall use the same inventory management
method for any other articles with respect to which the
person claims fungibility under this paragraph.
``(3) For the purposes of this paragraph--
``(A) the term `fungible articles' means merchandise or
articles that, for commercial purposes, are identical or
interchangeable in all situations; 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 articles 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.
(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 date that is 60 days after the
date of the enactment of this Act.
SEC. 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO
CONTAINED IN INSTRUMENTS OF INTERNATIONAL
TRAFFIC PREVIOUSLY EXPORTED FROM THE UNITED
STATES.
(a) In General.--General Note 3(e) of the Harmonized Tariff
Schedule of the United States is amended--
(1) in subparagraph (v), by striking ``and'' at the end;
(2) in subparagraph (vi), by adding ``and'' at the end;
(3) by inserting after subparagraph (vi) (as so amended)
the following new subparagraph:
``(vii) residue of bulk cargo contained in instruments of
international traffic previously exported from the United
States,''; and
(4) by adding at the end of the flush text following
subparagraph (vii) (as so added) the following: ``For
purposes of subparagraph (vii) of this paragraph: The term
`residue' means material of bulk cargo that remains in an
instrument of international traffic after the bulk cargo is
removed, with a quantity, by weight or volume, not exceeding
7 percent of the bulk cargo, and with no or de minimis value.
The term `bulk cargo' means cargo that is unpackaged and is
in either solid, liquid, or gaseous form. The term
`instruments of international traffic' means containers or
holders, capable of and suitable for repeated use, such as
lift vans, cargo vans, shipping tanks, skids, pallets, caul
boards, and cores for textile fabrics, arriving (whether
loaded or empty) in use or to be used in the shipment of
merchandise in international traffic, and any additional
articles or classes of articles that the Commissioner of U.S.
Customs and Border Protection designates as instruments of
international traffic.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act and
apply with respect to residue of bulk cargo contained in
instruments of international traffic that are imported into
the customs territory of the United States on or after such
date of enactment and that previously have been exported from
the United States.
SEC. 906. 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 by striking ``the full amount of the duties paid upon
the merchandise so used shall be refunded as drawback, less 1
per centum of such duties, except that such'' and inserting
``an amount calculated pursuant to regulations prescribed by
the Secretary of the Treasury under subsection (l) shall be
refunded as drawback, except that''.
(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 are'' and
inserting ``or merchandise classifiable under the same 8-
digit HTS subheading number as such imported merchandise
is'';
(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
[[Page H4317]]
date of importation of such imported merchandise'';
(5) by striking ``an amount of drawback equal to'' and all
that follows through the end period and inserting ``an amount
calculated pursuant to regulations prescribed by the
Secretary of the Treasury under subsection (l), but only if
those articles have not been used prior to such exportation
or destruction.''; and
(6) by adding at the end the following:
``(2) Requirements relating to transfer of merchandise.--
``(A) Manufacturers and producers.--Drawback shall be
allowed under paragraph (1) with respect to an article
manufactured or produced using imported merchandise or other
merchandise classifiable under the same 8-digit HTS
subheading number as such imported merchandise only if the
manufacturer or producer of the article received such
imported merchandise or such other merchandise, directly or
indirectly, from the importer.
``(B) Exporters and destroyers.--Drawback shall be allowed
under paragraph (1) with respect to a manufactured or
produced article that is exported or destroyed only if the
exporter or destroyer received that article, directly or
indirectly, from the manufacturer or producer.
``(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.
``(3) Submission of bill of materials or formula.--
``(A) In general.--Drawback shall be allowed under
paragraph (1) with respect to an article manufactured or
produced using imported merchandise or other merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise only if the person making the
drawback claim submits with the claim a bill of materials or
formula identifying the merchandise and article by the 8-
digit HTS subheading number and the quantity of the
merchandise.
``(B) Bill of materials and formula defined.--In this
paragraph, the terms `bill of materials' and `formula' mean
records kept in the normal course of business that identify
each component incorporated into a manufactured or produced
article or that identify the quantity of each element,
material, chemical, mixture, or other substance incorporated
into a manufactured article.
``(4) Special rule for sought chemical elements.--
``(A) In general.--For purposes of paragraph (1), a sought
chemical element may be--
``(i) considered imported merchandise, or merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise, used in the manufacture or
production of an article as described in paragraph (1); and
``(ii) substituted for source material containing that
sought chemical element, without regard to whether the sought
chemical element and the source material are classifiable
under the same 8-digit HTS subheading number, and apportioned
quantitatively, as appropriate.
``(B) Sought chemical element defined.--In this paragraph,
the term `sought chemical element' means an element listed in
the Periodic Table of Elements that is imported into the
United States or a chemical compound consisting of those
elements, either separately in elemental form or contained in
source material.''.
(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 subparagraph (C)(ii), by striking ``under a
certificate of delivery'' each place it appears;
(B) in subparagraph (D)--
(i) by striking ``3'' and inserting ``5''; and
(ii) by striking ``the Customs Service'' and inserting
``U.S. Customs and Border Protection''; and
(C) in the flush text at the end, by striking ``the full
amount of the duties paid upon such merchandise, less 1
percent,'' and inserting ``an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury under
subsection (l)'';
(2) in paragraph (2), by striking ``the Customs Service''
and inserting ``U.S. Customs and Border Protection''; and
(3) by amending paragraph (3) to read as follows:
``(3) Evidence of transfers.--Transfers of merchandise
under paragraph (1) 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 based on the exportation of an article
shall provide proof of the exportation of the article. Such
proof of exportation--
``(1) shall establish fully the date and fact of
exportation and the identity of the exporter; and
``(2) may be established through the use of records kept in
the normal course of business or through an electronic export
system of the United States Government, as determined by the
Commissioner of U.S. Customs and Border Protection.''.
(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) in subparagraph (A), in the matter preceding clause
(i)--
(i) by striking ``3-year'' and inserting ``5-year''; and
(ii) by inserting ``and before the drawback claim is
filed'' after ``the date of importation''; and
(B) in the flush text at the end, by striking ``99 percent
of the amount of each duty, tax, or fee so paid'' and
inserting ``an amount calculated pursuant to regulations
prescribed by the Secretary of the Treasury under subsection
(l)'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``paragraph (4)'' and inserting ``paragraphs (4), (5), and
(6)'';
(B) in subparagraph (A), by striking ``commercially
interchangeable with'' and inserting ``classifiable under the
same 8-digit HTS subheading number as'';
(C) in subparagraph (B)--
(i) by striking ``3-year'' and inserting ``5-year''; and
(ii) by inserting ``and before the drawback claim is
filed'' after ``the imported merchandise''; and
(D) in subparagraph (C)(ii), by striking subclause (II) and
inserting the following:
``(II) received the imported merchandise, other merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise, or any combination of such
imported merchandise and such other merchandise, directly or
indirectly from the person who imported and paid any duties,
taxes, and fees imposed under Federal law upon importation or
entry and due on the imported merchandise (and any such
transferred merchandise, regardless of its origin, will be
treated as the imported merchandise and any retained
merchandise will be treated as domestic merchandise);'';
(E) in the flush text at the end--
(i) by striking ``the amount of each such duty, tax, and
fee'' and all that follows through ``99 percent of that duty,
tax, or fee'' and inserting ``an amount calculated pursuant
to regulations prescribed by the Secretary of the Treasury
under subsection (l) shall be refunded as drawback''; and
(ii) by striking the last sentence and inserting the
following: ``Notwithstanding subparagraph (A), drawback shall
be allowed under this paragraph with respect to wine if the
imported wine and the exported wine are of the same color and
the price variation between the imported wine and the
exported wine does not exceed 50 percent. 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.''; and
(3) in paragraph (3)(B), by striking ``the commercially
interchangeable merchandise'' and inserting ``merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise''; and
(4) by adding at the end the following:
``(5)(A) For purposes of paragraph (2) and except as
provided in subparagraph (B), merchandise may not be
substituted for imported merchandise for drawback purposes
based on the 8-digit HTS subheading number if the article
description for the 8-digit HTS subheading number under which
the imported merchandise is classified begins with the term
`other'.
``(B) In cases described in subparagraph (A), merchandise
may be substituted for imported merchandise for drawback
purposes if--
``(i) the other merchandise and such imported merchandise
are classifiable under the same 10-digit HTS statistical
reporting number; and
``(ii) the article description for that 10-digit HTS
statistical reporting number does not begin with the term
`other'.
``(6)(A) For purposes of paragraph (2), a drawback claimant
may use the first 8 digits of the 10-digit Schedule B number
for merchandise or an article to determine if the merchandise
or article is classifiable under the same 8-digit HTS
subheading number as the imported merchandise, without regard
to whether the Schedule B number corresponds to more than one
8-digit HTS subheading number.
``(B) In this paragraph, the term `Schedule B' means the
Department of Commerce Schedule B, Statistical Classification
of Domestic and Foreign Commodities Exported from the United
States.''.
(f) Liability for Drawback Claims.--Section 313(k) of the
Tariff Act of 1930 (19 U.S.C. 1313(k)) is amended to read as
follows:
``(k) Liability for Drawback Claims.--
``(1) In general.--Any person making a claim for drawback
under this section shall be liable for the full amount of the
drawback claimed.
``(2) Liability of importers.--An importer shall be liable
for any drawback claim made by another person with respect to
merchandise imported by the importer in an amount equal to
the lesser of--
``(A) the amount of duties, taxes, and fees that the person
claimed with respect to the imported merchandise; or
``(B) the amount of duties, taxes, and fees that the
importer authorized the other person to claim with respect to
the imported merchandise.
``(3) Joint and several liability.--Persons described in
paragraphs (1) and (2) shall be jointly and severally liable
for the amount described in paragraph (2).''.
[[Page H4318]]
(g) Regulations.--Section 313(l) of the Tariff Act of 1930
(19 U.S.C. 1313(l)) is amended to read as follows:
``(l) Regulations.--
``(1) In general.--Allowance of the privileges provided for
in this section shall be subject to compliance with such
rules and regulations as the Secretary of the Treasury shall
prescribe.
``(2) Calculation of drawback.--
``(A) In general.--Not later than the date that is 2 years
after the date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015 (or, if later, the effective
date provided for in section 906(q)(2)(B) of that Act), the
Secretary shall prescribe regulations for determining the
calculation of amounts refunded as drawback under this
section.
``(B) Claims with respect to unused merchandise.--The
regulations required by subparagraph (A) for determining the
calculation of amounts refunded as drawback under this
section shall provide for a refund of equal to 99 percent of
the duties, taxes, and fees paid with respect to the imported
merchandise, except that where there is substitution of the
merchandise or article, then--
``(i) in the case of an article that is exported, the
amount of the refund shall be equal to 99 percent of the
lesser of--
``(I) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; or
``(II) the amount of duties, taxes, and fees that would
apply to the exported article if the exported article were
imported; and
``(ii) in the case of an article that is destroyed, the
amount of the refund shall be an amount that is--
``(I) equal to 99 percent of the lesser of--
``(aa) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; and
``(bb) the amount of duties, taxes, and fees that would
apply to the destroyed article if the destroyed article were
imported; and
``(II) reduced by the value of materials recovered during
destruction as provided in subsection (x).
``(C) Claims with respect to articles into which substitute
merchandise is incorporated.--The regulations required by
subparagraph (A) for determining the calculation of amounts
refunded as drawback under this section shall provide for a
refund of 99 percent of the duties, taxes, and fees paid with
respect to the imported merchandise incorporated into an
article that is exported or destroyed, except that where
there is substitution of the imported merchandise, then--
``(i) in the case of an article that is exported, the
amount of the refund shall be equal to 99 percent of the
lesser of--
``(I) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; or
``(II) the amount of duties, taxes, and fees that would
apply to the substituted merchandise if the substituted
merchandise were imported; and
``(ii) in the case of an article that is destroyed, the
amount of the refund shall be an amount that is--
``(I) equal to 99 percent of the lesser of--
``(aa) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; and
``(bb) the amount of duties, taxes, and fees that would
apply to the substituted merchandise if the substituted
merchandise were imported; and
``(II) reduced by the value of materials recovered during
destruction as provided in subsection (x).
``(3) Status reports on regulations.--Not later than the
date that is one year after the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015, and
annually thereafter until the regulations required by
paragraph (2) are final, the Secretary shall submit to
Congress a report on the status of those regulations.''.
(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) in paragraph (3)(A)--
(A) in clause (ii)(III), by striking ``, as so certified in
a certificate of delivery or certificate of manufacture and
delivery''; and
(B) in the flush text at the end--
(i) by striking ``, so designated on the certificate of
delivery or certificate of manufacture and delivery''; and
(ii) by striking the last sentence and inserting the
following: ``The party transferring the merchandise shall
maintain records kept in the normal course of business to
demonstrate the transfer.''.
(i) Packaging Material.--Section 313(q) of the Tariff Act
of 1930 (19 U.S.C. 1313(q)) is amended--
(1) in paragraph (1), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on such imported
material'' and inserting ``in an amount calculated pursuant
to regulations prescribed by the Secretary of the Treasury
under subsection (l)'';
(2) in paragraph (2), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on the imported
or substituted merchandise used to manufacture or produce
such material'' and inserting ``in an amount calculated
pursuant to regulations prescribed by the Secretary of the
Treasury under subsection (l)''; and
(3) in paragraph (3), by striking ``they contain'' and
inserting ``it contains''.
(j) Filing of Drawback Claims.--Section 313(r) of the
Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended--
(1) 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.'';
(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'';
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking ``The
Customs Service'' and inserting ``U.S. Customs and Border
Protection'';
(ii) in clauses (i) and (ii), by striking ``the Customs
Service'' each place it appears and inserting ``U.S. Customs
and Border Protection''; and
(iii) in clause (ii)(I), by striking ``3-year'' and
inserting ``5-year''; and
(B) in subparagraph (B), by striking ``the periods of time
for retaining records set forth in subsection (t) of this
section and'' and inserting ``the period of time for
retaining records set forth in''; and
(3) by adding at the end the following:
``(4) All drawback claims filed on and after the date that
is 2 years after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015 (or, if later,
the effective date provided for in section 906(q)(2)(B) of
that Act) shall be filed electronically.''.
(k) Designation of Merchandise by Successor.--Section
313(s) of the Tariff Act of 1930 (19 U.S.C. 1313(s)) is
amended--
(1) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) subject to paragraphs (5) and (6) of subsection (j),
imported merchandise, other merchandise classifiable under
the same 8-digit HTS subheading number as such imported
merchandise, or any combination of such imported merchandise
and such other merchandise, that the predecessor received,
before the date of succession, from the person who imported
and paid any duties, taxes, and fees due on the imported
merchandise;''; and
(2) in paragraph (4), by striking ``certifies that'' and
all that follows and inserting ``certifies that the
transferred merchandise was not and will not be claimed by
the predecessor.''.
(l) Drawback Certificates.--Section 313 of the Tariff Act
of 1930 (19 U.S.C. 1313) is amended by striking subsection
(t).
(m) Drawback 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)''.
(n) 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 one 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 one person to another
person with one or more intermediate transfers.''.
(o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of
1930 (19 U.S.C. 1508(c)(3)) is amended--
(1) by striking ``3rd'' and inserting ``5th''; and
(2) by striking ``payment'' and inserting ``liquidation''.
(p) Government Accountability Office Report.--
(1) In general.--Not later than one year after the issuance
of the regulations required by subsection (l)(2) of section
313 of the Tariff Act of 1930, as added by subsection (g) of
this section, 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 modernization of drawback and
refunds under section 313 of the Tariff Act of 1930, as
amended by this section.
(2) Contents.--The report required by paragraph (1) include
the following:
(A) An assessment of the modernization of drawback and
refunds under section 313 of the Tariff Act of 1930, as
amended by this section.
(B) A description of drawback claims that were permissible
before the effective date provided for in subsection (q) that
are not permissible after that effective date and an
identification of industries most affected.
(C) A description of drawback claims that were not
permissible before the effective date provided for in
subsection (q) that are permissible after that effective date
and an identification of industries most affected.
(q) 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) apply to drawback claims filed on or after the date
that is 2 years after such date of enactment.
(2) Reporting of operability of automated commercial
environment computer system.--Not later than one year after
the date of the enactment of this Act, and not
[[Page H4319]]
later than 2 years after such date of enactment, the
Secretary of the Treasury shall submit to Congress a report
on--
(A) the date on which the Automated Commercial Environment
will be ready to process drawback claims; and
(B) the date on which the Automated Export System will be
ready to accept proof of exportation under subsection (i) of
section 313 of the Tariff Act of 1930, as amended by
subsection (d).
(3) Transition rule.--During the one-year period beginning
on the date that is 2 years after the date of the enactment
of this Act (or, if later, the effective date provided for in
paragraph (2)(B)), 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 of the enactment of this Act.
SEC. 907. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.
(a) 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 ``; and''; 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.''.
(b) 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, 2016.
SEC. 908. UNITED STATES-ISRAEL TRADE AND COMMERCIAL
ENHANCEMENT.
(a) Findings.--Congress finds the following:
(1) Israel is America's dependable, democratic ally in the
Middle East--an area of paramount strategic importance to the
United States.
(2) The United States-Israel Free Trade Agreement formed
the modern foundation of the bilateral commercial
relationship between the two countries and was the first such
agreement signed by the United States with a foreign country.
(3) The United States-Israel Free Trade Agreement has been
instrumental in expanding commerce and the strategic
relationship between the United States and Israel.
(4) More than $45 billion in goods and services is traded
annually between the two countries in addition to roughly $10
billion in United States foreign direct investment in Israel.
(5) The United States continues to look for and find new
opportunities to enhance cooperation with Israel, including
through the enactment of the United States-Israel Enhanced
Security Cooperation Act of 2012 (Public Law 112-150) and the
United States-Israel Strategic Partnership Act of 2014
(Public Law 113-296).
(6) It has been the policy of the United States Government
to combat all elements of the Arab League Boycott of Israel
by--
(A) public statements of Administration officials;
(B) enactment of relevant sections of the Export
Administration Act of 1979 (as continued in effect pursuant
to the International Emergency Economic Powers Act),
including sections to ensure foreign persons comply with
applicable reporting requirements relating to the boycott;
(C) enactment of the 1976 Tax Reform Act (Public Law 94-
455) that denies certain tax benefits to entities abiding by
the boycott;
(D) ensuring through free trade agreements with Bahrain and
Oman that such countries no longer participate in the
boycott; and
(E) ensuring as a condition of membership in the World
Trade Organization that Saudi Arabia no longer enforces the
secondary or tertiary elements of the boycott.
(b) Statements of Policy.--Congress--
(1) supports the strengthening of United States-Israel
economic cooperation and recognizes the tremendous strategic,
economic, and technological value of cooperation with Israel;
(2) recognizes the benefit of cooperation with Israel to
United States companies, including by improving American
competitiveness in global markets;
(3) recognizes the importance of trade and commercial
relations to the pursuit and sustainability of peace, and
supports efforts to bring together the United States, Israel,
the Palestinian territories, and others in enhanced commerce;
(4) opposes politically motivated actions that penalize or
otherwise limit commercial relations specifically with Israel
such as boycotts, divestment or sanctions;
(5) notes that the boycott, divestment, and sanctioning of
Israel by governments, governmental bodies, quasi-
governmental bodies, international organizations, and other
such entities is contrary to the General Agreement on Tariffs
and Trade (GATT) principle of non-discrimination;
(6) encourages the inclusion of politically motivated
actions that penalize or otherwise limit commercial relations
specifically with Israel such as boycotts, divestment from,
or sanctions against Israel as a topic of discussion at the
U.S.-Israel Joint Economic Development Group (JEDG) and other
areas to support the strengthening of the United States-
Israel commercial relationship and combat any commercial
discrimination against Israel;
(7) supports efforts to prevent investigations or
prosecutions by governments or international organizations of
United States persons on the sole basis of such persons
[[Page H4320]]
doing business with Israel, with Israeli entities, or in
Israeli-controlled territories; and
(8) supports American States examining a company's
promotion or compliance with unsanctioned boycotts,
divestment from, or sanctions against Israel as part of its
consideration in awarding grants and contracts and supports
the divestment of State assets from companies that support or
promote actions to boycott, divest from, or sanction Israel.
(c) Principal Trade Negotiating Objectives of the United
States.--
(1) Commercial partnerships.--Among the principal trade
negotiating objectives of the United States for proposed
trade agreements with foreign countries regarding commercial
partnerships are the following:
(A) To discourage actions by potential trading partners
that directly or indirectly prejudice or otherwise discourage
commercial activity solely between the United States and
Israel.
(B) To discourage politically motivated actions to boycott,
divest from, or sanction Israel and to seek the elimination
of politically motivated non-tariff barriers on Israeli
goods, services, or other commerce imposed on the State of
Israel.
(C) To seek the elimination of state-sponsored unsanctioned
foreign boycotts against Israel or compliance with the Arab
League Boycott of Israel by prospective trading partners.
(2) Effective date.--This subsection takes effect on the
date of the enactment of this Act and applies with respect to
negotiations commenced before, on, or after the date of the
enactment of this Act.
(d) Report on Politically Motivated Acts of Boycott,
Divestment From, and Sanctions Against Israel.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
President shall submit to Congress a report on politically
motivated acts of boycott, divestment from, and sanctions
against Israel.
(2) Matters to be included.--The report required by
paragraph (1) shall include the following:
(A) A description of the establishment of barriers to
trade, including non-tariff barriers, investment, or commerce
by foreign countries or international organizations against
United States persons operating or doing business in Israel,
with Israeli entities, or in Israeli-controlled territories.
(B) A description of specific steps being taken by the
United States to encourage foreign countries and
international organizations to cease creating such barriers
and to dismantle measures already in place and an assessment
of the effectiveness of such steps.
(C) A description of specific steps being taken by the
United States to prevent investigations or prosecutions by
governments or international organizations of United States
persons on the sole basis of such persons doing business with
Israel, with Israeli entities, or in Israeli-controlled
territories.
(D) Decisions by foreign persons, including corporate
entities and state-affiliated financial institutions, that
limit or prohibit economic relations with Israel or persons
doing business in Israel or in Israeli controlled
territories.
(e) Certain Foreign Judgments Against United States
Persons.--Notwithstanding any other provision of law, no
domestic court shall recognize or enforce any foreign
judgment entered against a United States person that conducts
business operations in Israel, or any territory controlled by
Israel, if the domestic court determines that the foreign
judgment is based, in whole or in part, on a determination by
a foreign court that the United States person's conducting
business operations therein or with Israeli entities
constitutes a violation of law.
(f) Definitions.--In this section:
(1) Boycott, divestment from, and sanctions against
israel.--The term ``boycott, divestment from, and sanctions
against Israel'' means actions by states, non-member states
of the United Nations, international organizations, or
affiliated agencies of international organizations that are
politically motivated and are intended to penalize or
otherwise limit commercial relations specifically with Israel
or persons doing business in Israel or in Israeli-controlled
territories.
(2) Domestic court.--The term ``domestic court'' means a
Federal court of the United States, or a court of any State
or territory of the United States or of the District of
Columbia.
(3) Foreign court.--The term ``foreign court'' means a
court, an administrative body, or other tribunal of a foreign
country.
(4) Foreign judgment.--The term ``foreign judgment'' means
a final civil judgment rendered by a foreign court.
(5) Foreign person.--The term ``foreign person'' means--
(A) any natural person who is not lawfully admitted for
permanent residence (as defined in section 101(a)(20) of the
Immigration and Nationality Act (8 U.S.C. 1101(a)(20)) or who
is not a protected individual (as defined in section
274B(a)(3) of such Act (8 U.S.C. 1324b(a)(3)); or
(B) any foreign corporation, business association,
partnership, trust, society or any other entity or group that
is not incorporated or organized to do business in the United
States, as well as any international organization, foreign
government and any agency or subdivision of foreign
government, including a diplomatic mission.
(6) Person.--
(A) In general.--The term ``person'' means--
(i) a natural person;
(ii) a corporation, business association, partnership,
society, trust, financial institution, insurer, underwriter,
guarantor, and any other business organization, any other
nongovernmental entity, organization, or group, and any
governmental entity operating as a business enterprise; and
(iii) any successor to any entity described in clause (ii).
(B) Application to governmental entities.--The term
``person'' does not include a government or governmental
entity that is not operating as a business enterprise.
(7) United states person.--The term ``United States
person'' means--
(A) a natural person who is a national of the United States
(as defined in section 101(a)(22) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(22))); or
(B) a corporation or other legal entity which is organized
under the laws of the United States, any State or territory
thereof, or the District of Columbia, if natural persons
described in subparagraph (A) own, directly or indirectly,
more than 50 percent of the outstanding capital stock or
other beneficial interest in such legal entity.
SEC. 909. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO
PROHIBITION ON IMPORTATION OF GOODS MADE WITH
CONVICT LABOR, FORCED LABOR, OR INDENTURED
LABOR; REPORT.
(a) Elimination of Consumptive Demand Exception.--
(1) In general.--Section 307 of the Tariff Act of 1930 (19
U.S.C. 1307) is amended by striking ``The provisions of this
section'' and all that follows through ``of the United
States.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 15 days after the date
of the enactment of this Act.
(b) Report Required.--Not later than 180 days after the
date of the enactment of this Act, and annually thereafter,
the Commissioner 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 compliance with section 307 of
the Tariff Act of 1930 (19 U.S.C. 1307) that includes the
following:
(1) The number of instances in which merchandise was denied
entry pursuant to that section during the 1-year period
preceding the submission of the report.
(2) A description of the merchandise denied entry pursuant
to that section.
(3) Such other information as the Commissioner considers
appropriate with respect to monitoring and enforcing
compliance with that section.
SEC. 910. CUSTOMS USER FEES.
(a) In General.--Section 13031(j)(3) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)) is amended by adding at the end the following:
``(C) Fees may be charged under paragraphs (9) and (10) of
subsection (a) during the period beginning on July 8, 2025,
and ending on July 28, 2025.''.
(b) Rate for Merchandise Processing Fees.--Section 503 of
the United States-Korea Free Trade Agreement Implementation
Act (Public Law 112-41; 125 Stat. 460) is amended--
(1) by striking ``For the period'' and inserting ``(a) In
General.--For the period''; and
(2) by adding at the end the following:
``(b) Additional Period.--For the period beginning on July
1, 2025, and ending on July 14, 2025, section 13031(a)(9) of
the Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(a)(9)) shall be applied and administered--
``(1) in subparagraph (A), by substituting `0.3464' for
`0.21'; and
``(2) in subparagraph (B)(i), by substituting `0.3464' for
`0.21'.''.
SEC. 911. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER
PROTECTION AGREEMENTS.
(a) In General.--Not later than one year after entering
into an agreement under a program specified in subsection
(b), and annually thereafter until the termination of the
program, the Commissioner shall submit to the Committee on
Finance of the Senate, the Committee on Ways and Means of the
House of Representatives, the Committee on Homeland Security
and Governmental Affairs of the Senate, and the Committee on
Homeland Security of the House of Representatives a report
that includes the following:
(1) A description of the development of the program.
(2) A description of the type of entity with which U.S.
Customs and Border Protection entered into the agreement and
the amount that entity reimbursed U.S. Customs and Border
Protection under the agreement.
(3) An identification of the type of port of entry to which
the agreement relates and an assessment of how the agreement
provides economic benefits at the port of entry.
(4) A description of the services provided by U.S. Customs
and Border Protection under the agreement during the year
preceding the submission of the report.
(5) The amount of fees collected under the agreement during
that year.
(6) A detailed accounting of how the fees collected under
the agreement have been spent during that year.
(7) A summary of any complaints or criticism received by
U.S. Customs and Border Protection during that year regarding
the agreement.
[[Page H4321]]
(8) An assessment of the compliance of the entity described
in paragraph (2) with the terms of the agreement.
(9) Recommendations with respect to how activities
conducted pursuant to the agreement could function more
effectively or better produce economic benefits.
(10) A summary of the benefits to and challenges faced by
U.S. Customs and Border Protection and the entity described
in paragraph (2) under the agreement.
(b) Program Specified.--A program specified in this
subsection is--
(1) the program for entering into reimbursable fee
agreements for the provision of U.S. Customs and Border
Protection services established by section 560 of the
Department of Homeland Security Appropriations Act, 2013
(division D of Public Law 113-6; 127 Stat. 378); or
(2) the pilot program authorizing U.S. Customs and Border
Protection to enter into partnerships with private sector and
government entities at ports of entry established by section
559 of the Department of Homeland Security Appropriations
Act, 2014 (division F of Public Law 113-76; 6 U.S.C. 211
note).
SEC. 912. AMENDMENTS TO BIPARTISAN CONGRESSIONAL TRADE
PRIORITIES AND ACCOUNTABILITY ACT OF 2015.
(a) Immigration Laws of the United States.--Section 102(a)
of the Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 is amended--
(1) in paragraph (12), by striking ``and'' at the end;
(2) in paragraph (13), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(14) to ensure that trade agreements do not require
changes to the immigration laws of the United States or
obligate the United States to grant access or expand access
to visas issued under section 101(a)(15) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(15)).''.
(b) Global Warming.--Section 102(a) of the Bipartisan
Congressional Trade Priorities and Accountability Act of
2015, as amended by subsection (a) of this section, is
amended--
(1) in paragraph (13), by striking ``and'' at the end;
(2) in paragraph (14), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(15) to ensure that trade agreements do not require
changes to U.S. law or obligate the United States with
respect to global warming or climate change.''.
(c) Fisheries Negotiations.--Section 102(b) of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015 is amended by adding at the end the following:
``(22) Fisheries negotiations.--The principal negotiating
objectives of the United States with respect to trade in
fish, seafood, and shellfish products are to obtain
competitive opportunities for United States exports of fish,
seafood, and shellfish products in foreign markets
substantially equivalent to the competitive opportunities
afforded foreign exports of fish, seafood, and shellfish
products in United States markets and to achieve fairer and
more open conditions of trade in fish, seafood, and shellfish
products, including by reducing or eliminating tariff and
non-tariff barriers and eliminating subsidies that distort
trade.''.
(d) Accreditation.--Section 104(c)(2)(C) of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
is amended by inserting after the first sentence the
following: ``In addition, the chairman and ranking members
described in subparagraphs (A)(i) and (B)(i) shall each be
permitted to designate up to 3 personnel with proper security
clearances to serve as delegates to such negotiations.''.
(e) Trafficking in Persons.--Section 106(b)(6) of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015 is amended--
(1) by redesignating subparagraph (B) as subparagraph (C);
and
(2) by inserting after subparagraph (A) the following:
``(B) Exception.--
``(i) Invoking exception.--If the President submits to the
appropriate congressional committees a letter stating that a
country to which subparagraph (A) applies has taken concrete
actions to implement the principal recommendations with
respect to that country in the most recent annual report on
trafficking in persons, this paragraph shall not apply with
respect to agreements with that country.
``(ii) Content of letter; public availability.--A letter
submitted under clause (i) with respect to a country shall--
``(I) include a description of the concrete actions that
the country has taken to implement the principal
recommendations described in clause (i); and
``(II) be made available to the public.
``(iii) Appropriate congressional committees defined.--In
this subparagraph, the term `appropriate congressional
committees' means--
``(I) the Committee on Ways and Means and the Committee on
Foreign Affairs of the House of Representatives; and
``(II) the Committee on Finance and the Committee on
Foreign Relations of the Senate.'';
(f) Technical Amendments.--The Bipartisan Congressional
Trade Priorities and Accountability Act of 2015 is amended--
(1) in section 105(b)(3)--
(A) in subparagraph (A)(ii), by striking ``section
102(b)(16)'' and inserting ``section 102(b)(17)''; and
(B) in subparagraph (B)(ii), by striking ``section
102(b)(16)'' and inserting ``section 102(b)(17)''; and
(2) in section 106(b)(5), by striking ``section
102(b)(15)(C)'' and inserting ``section 102(b)(16)(C)''.
(g) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015.
SEC. 913. CERTAIN INTEREST TO BE INCLUDED IN DISTRIBUTIONS
UNDER CONTINUED DUMPING AND SUBSIDY OFFSET ACT
OF 2000.
(a) In General.--Notwithstanding any other provision of
law, the Commissioner shall include in all distributions of
collected antidumping and countervailing duties described in
subsection (b) all interest earned on such duties,
including--
(1) interest accrued under section 778 of the Tariff Act of
1930 (19 U.S.C. 1677g),
(2) interest accrued under section 505(d) of the Tariff Act
of 1930 (19 U.S.C. 1505(d)), and
(3) common-law equitable interest, and all interest under
section 963 of the Revised Statutes of the United States (19
U.S.C. 580), awarded by a court against a surety's late
payment of antidumping or countervailing duties and interest
described in paragraph (1) or (2), under its bond,
which is, or was, realized through application of any payment
received on or after October 1, 2014, by U.S. Customs and
Border Protection under, or in connection with, any customs
bond pursuant to a court order or judgment, or any settlement
for any such bond.
(b) Distributions Described.--The distributions described
in subsection (a) are all distributions made on or after the
date of the enactment of this Act pursuant to section 754 of
the Tariff Act of 1930 (19 U.S.C. 1675c) (as such section was
in effect on February 7, 2006) of collected antidumping and
countervailing duties assessed on or after October 1, 2000,
on entries made through September 30, 2007.
SEC. 914. REPORT ON COMPETITIVENESS OF U.S. RECREATIONAL
PERFORMANCE OUTERWEAR INDUSTRY.
Not later than June 1, 2016, the United States
International Trade Commission 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
competitiveness of the United States recreational performance
outwear industry and its effects on the United States
economy, including an assessment of duty structures on inputs
as well as finished products and global supply chains.
SEC. 915. INCREASE IN PENALTY FOR FAILURE TO FILE RETURN OF
TAX.
(a) In General.--Section 6651(a) of the Internal Revenue
Code of 1986 is amended by striking ``$135'' in the last
sentence and inserting ``$205''.
(b) Conforming Amendment.--Section 6651(i) of such Code is
amended by striking ``$135'' and inserting ``$205''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed in calendar years
after 2015.
The SPEAKER pro tempore. Pursuant to House Resolution 305, the motion
shall be debatable for 1 hour equally divided and controlled by the
chair and ranking minority member of the Committee on Ways and Means.
The gentleman from Ohio (Mr. Tiberi) and the gentleman from Michigan
(Mr. Levin) each will control 30 minutes.
The Chair recognizes the gentleman from Ohio.
General Leave
Mr. TIBERI. Mr. Speaker, I ask unanimous consent that all Members may
have 5 legislative days within which to revise and extend their remarks
and include extraneous material on H.R. 644, the Trade Facilitation and
Trade Enforcement Act of 2015, currently under consideration.
The SPEAKER pro tempore. Is there objection to the request of the
gentleman from Ohio?
There was no objection.
Mr. TIBERI. Mr. Speaker, I include an exchange of letters between the
committees of jurisdiction in the Record at this point.
House of Representatives,
Committee on Homeland Security,
Washington, DC, May 14, 2015.
Hon. Paul Ryan,
Chairman, Committee on Ways and Means, Rayburn House Office
Building, Washington, DC.
Dear Chairman Ryan: I am writing to you concerning the
jurisdictional interest of the Committee on Homeland Security
in H.R. 1907, the ``Trade Facilitation and Trade Enforcement
Act of 2015.'' The bill includes provisions that fall within
the jurisdiction of the Committee on Homeland Security.
I recognize and appreciate the desire to bring this
legislation before the House of Representatives in an
expeditious manner, and accordingly, the Committee on
Homeland Security will forego consideration of this bill. The
Committee takes this action
[[Page H4322]]
with the mutual understanding that by foregoing consideration
of H.R. 1907 at this time, we do not waive any jurisdiction
over subject matter contained in this or similar legislation,
and that our Committee will be appropriately consulted and
involved as this bill or similar legislation moves forward so
that we may address any remaining issues in our jurisdiction.
This waiver is also given with the understanding that the
Committee on Homeland Security expressly reserves its
authority to seek conferees on any provision within its
jurisdiction during any House-Senate conference that may be
convened on this or any similar legislation, and requests
your support for such a request.
I would appreciate your response to this letter confirming
this understanding with respect to H.R. 1907, and ask that a
copy of this letter and your response be included in the
Committee report on the bill as well as in the Congressional
Record during consideration of this bill on the House floor.
Sincerely,
Michael T. McCaul,
Chairman,
Committee on Homeland Security.
____
Committee on Ways and Means,
House of Representatives,
Washington, DC, May 14, 2015.
Hon. Michael T. McCaul,
Chairman, Committee on Homeland Security, Ford House Office
Building, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding the
Committee's jurisdictional interest in H.R. 1907, the Trade
Facilitation and Trade Enforcement Act of 2015, and your
willingness to forego consideration by your committee.
I agree that the Committee on Homeland Security has a valid
jurisdictional interest in certain provisions of the bill and
that the Committee's jurisdiction will not be adversely
affected by your decision to forego consideration. As you
have requested, I will support your request for an
appropriate appointment of outside conferees from your
committee in the event of a House-Senate conference on this
or similar legislation should such a conference be convened.
Finally, I will include a copy of your letter and this
response in the Congressional Record during the floor
consideration of H.R. 1907. Thank you again for your
cooperation.
Sincerely,
Paul Ryan,
Chairman.
____
House of Representatives,
Committee on Foreign Affairs,
Washington, DC, May 1, 2015.
Hon. Paul Ryan,
Chairman, Committee on Ways and Means, Longworth House Office
Building, Washington, DC.
Dear Chairman Ryan: Thank you for consulting with the
Foreign Affairs Committee on H.R. 1907, the Trade
Facilitation and Trade Enforcement Act of 2015, which was
referred to us on April 21, 2015.
I agree that the Foreign Affairs Committee may be
discharged from further action on this bill so that it may
proceed expeditiously to the Floor, subject to the
understanding that this waiver does not in any way diminish
or alter the jurisdiction of the Foreign Affairs Committee,
or prejudice its jurisdictional prerogatives on this bill or
similar legislation in the future. I also request your
support for the appointment of House Foreign Affairs
conferees during any House-Senate conference on this
legislation.
I ask that you place our letters on H.R. 1907 into the
Congressional Record during floor consideration of the bill.
I appreciate your cooperation regarding this legislation and
look forward to continuing to work with the Committee on Ways
and Means as this measure moves through the legislative
process.
Sincerely,
Edward R. Royce,
Chairman.
____
Committee on Ways and Means,
House of Representatives,
Washington, DC, May 4, 2015.
Hon. Edward R. Royce,
Chairman, Committee on Foreign Affairs, Rayburn House Office
Building, Washington, DC.
Dear Chairman: Thank you for your letter regarding the
Foreign Affairs Committee's jurisdictional interest in H.R.
1907, the Trade Facilitation and Trade Enforcement Act of
2015, and your willingness to forego consideration by your
committee.
I agree that the Committee on Foreign Affairs has a valid
jurisdictional interest in certain provisions of the bill and
that the Committee's jurisdiction will not be adversely
affected by your decision to forego consideration. As you
have requested, I will support your request for an
appropriate appointment of outside conferees from your
committee in the event of a House-Senate conference on this
or similar legislation should such a conference be convened.
Finally, I will include a copy of your letter and this
response in the Congressional Record during the floor
consideration of the bill. Thank you again for your
cooperation.
Sincerely,
Paul Ryan,
Chairman.
____
House of Representatives,
Committee on Financial Services,
Washington, DC, May 13, 2015.
Hon. Paul Ryan,
Chairman, Committee on Ways and Means, Longworth House Office
Building, Washington, DC.
Dear Chairman Ryan: On April 23, 2015, the Committee on
Ways and Means ordered H.R. 1907, the Trade Facilitation and
Trade Enforcement Act of 2015, to be reported favorably to
the House. I agree to discharge the Committee on Financial
Services from further consideration of the bill so that it
may proceed expeditiously to the House Floor.
The Committee takes this action with our mutual
understanding that, by foregoing consideration of H.R. 1907
at this time, we do not waive any jurisdiction over the
subject matter contained in this or similar legislation, and
that our committee will be appropriately consulted and
involved as the bill or similar legislation moves forward so
that we may address any remaining issues that fall within our
Rule X jurisdiction. Our committee also reserves the right to
seek appointment of an appropriate number of conferees to any
House-Senate conference involving this or similar
legislation, and requests your support for any such request.
Finally, I would appreciate your response to this letter
confirming this understanding with respect to H.R. 1907 and
would ask that a copy of our exchange of letters on this
matter be included in your committee's report to accompany
the legislation and/or in the Congressional Record during
floor consideration thereof.
Sincerely,
Jeb Hensarling,
Chairman.
____
Committee on Ways and Means,
House of Representatives,
Washington, DC, May 14, 2015.
Hon. Jeb Hensarling,
Chairman, Committee on Financial Services, Rayburn House
Office Building, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding the
Committee's jurisdictional interest in H.R. 1907, the Trade
Facilitation and Trade Enforcement Act of 2015, and your
willingness to forego consideration by your committee.
I agree that the Committee on Financial Services has a
valid jurisdictional interest in certain provisions of the
bill and that the Committee's jurisdiction will not be
adversely affected by your decision to forego consideration.
As you have requested, I will support your request for an
appropriate appointment of outside conferees from your
committee in the event of a House-Senate conference on this
or similar legislation should such a conference be convened.
Finally, I will include a copy of your letter and this
response in the Congressional Record during the floor
consideration of H.R. 1907. Thank you again for your
cooperation.
Sincerely,
Paul Ryan,
Chairman.
____
House of Representatives,
Committee on the Judiciary,
Washington, DC, May 13, 2015.
Hon. Paul Ryan,
Chairman, Committee on Ways and Means, Longworth House Office
Building, Washington, DC.
Dear Chairman Ryan, I am writing with respect to H.R. 1907,
the ``Trade Facilitation and Trade Enforcement Act of 2015.''
As a result of your having consulted with us on provisions in
H.R. 1907 that fall within the Rule X jurisdiction of the
Committee on the Judiciary, I agree to waive consideration of
this bill so that it may proceed expeditiously to the House
floor for consideration.
The Judiciary Committee takes this action with our mutual
understanding that by foregoing consideration of H.R. 1907 at
this time, we do not waive any jurisdiction over the subject
matter contained in this or similar legislation, and that our
Committee will be appropriately consulted and involved as the
bill or similar legislation moves forward so that we may
address any remaining issues in our jurisdiction. Our
Committee also reserves the right to seek appointment of an
appropriate number of conferees to any House-Senate
conference involving this or similar legislation, and asks
that you support any such request.
I would appreciate a response to this letter confirming
this understanding, and would ask that a copy of our exchange
of letters on this matter be included in the Congressional
Record during Floor consideration of H.R. 1907.
Sincerely,
Bob Goodlatte,
Chairman.
____
Committee on Ways and Means,
House of Representatives,
Washington, DC, May 13, 2015.
Hon. Bob Goodlatte,
Chairman, Committee on the Judiciary, Rayburn House Office
Building, Washington, DC.
Dear Mr. Chairman: Thank you for your letter regarding the
Committee's jurisdictional interest in H.R. 1907, the Trade
Facilitation and Trade Enforcement Act of 2015, and your
willingness to forego consideration by your committee.
I agree that the Committee on Judiciary has a valid
jurisdictional interest in certain
[[Page H4323]]
provisions of the bill and that the Committee's jurisdiction
will not be adversely affected by your decision to forego
consideration. As you have requested, I will support your
request for an appropriate appointment of outside conferees
from your committee in the event of a House-Senate conference
on this or similar legislation should such a conference be
convened.
Finally, I will include a copy of your letter and this
response in the Congressional Record during the floor
consideration of H.R. 1907. Thank you again for your
cooperation.
Sincerely,
Paul Ryan,
Chairman.
Mr. TIBERI. Mr. Speaker, I yield 1 minute to the gentleman from
Arizona (Mr. Schweikert).
Mr. SCHWEIKERT. I thank the gentleman from Ohio for yielding.
Mr. Speaker, have you ever had one of those moments where you are
compelled to come running down here and come up to the mike because you
are so enraged with the duplicity of some of the things you are
hearing?
Beyond the simple facts of the rhetoric, looking at the math of our
trade surplus and deficits, the countries that we actually have trade
agreements with, we have a surplus in manufactured goods; but let's
move beyond the basic math of growing our economy, the demographics
issue we have in our country, and the need to have markets around the
world.
Some of the crazy things I am seeing put out in the media by Big
Labor, the willingness to make up stories, to make up facts, Goebbels
would be very proud of them.
Having paid attention to Arizona during the NAFTA disputes and some
of the crazy things that were said then, now, we look back, and it
wasn't true. NAFTA has been a net positive. All the scary things that
were supposed to happen never happened.
Be careful that we are not getting conned by made-up stories. This is
good for America.
Mr. LEVIN. Mr. Speaker, I yield myself such time as I may consume.
I want everybody to understand how these three bills are sequenced
and how and why they were set up this way by the majority so people
will understand our votes.
The sequence is the first vote will be TAA; next, TPA; and next,
Customs. The reason for TAA being first is to try to maximize the votes
among Democrats for TPA. That is really why they were set up this way.
Why is Customs last? It is because there are many Democrats who will
vote for TPA--at least some, there aren't that many perhaps--who don't
like the Customs bill.
Everybody who is listening should understand the rationale for this
sequencing, and everybody should understand our reaction to the
sequencing and what has happened here.
The way this has evolved is this. For years, I have worked to try to
build strong bipartisan support for trade agreements, and we often have
succeeded. With Peru, it was over 100 Democrats. We worked on Korea and
got less, but the leadership and I voted for it because we worked
together eventually for a truly bipartisan bill.
This TPA bill doesn't have that, and essentially, what has happened--
in part, because of that--is that the leverage has been lost by the
administration, to some extent, and on our side to resist items like in
the Customs bill. That is really what is happening here. So this
Customs bill has to go over to the Senate, but everybody should
understand the predicament that this places the administration and all
of us in.
For example, the language regarding Malaysia and human trafficking--
or human trafficking generally. What this Customs bill does is to
weaken the language that is in the Senate bill. This is on human
trafficking, sex human trafficking.
It also relates to workers. Hundreds of thousands of people--for
example, in Malaysia, and other countries--essentially come to those
countries. Often, their passports are taken. They have no rights. We
say this should not happen. Malaysia is in tier 3, and the original
amendment said any country in tier 3 should not have the benefits of
TPP. This weakens it and places this in--if it succeeds--in the TPA
bill.
Secondly, on climate change--we worked hard in the Peru FTA to
incorporate the May 10 agreement. We worked hard on worker rights, on
environment, on medicines. Actually, because the then-Administration
would not negotiate it, Mr. Rangel and I negotiated the United States-
Peru Free Trade Agreement with the Peruvian Government. Let no one say
I am not for expanded trade--or lots of other Democrats. It had an
annex in it relating to forestation and deforestation and illegal
logging. Why? It is because the Amazon affects all of us, and it
affects trade.
Now, what we have is language which, if accepted here and then in the
Senate, would essentially preclude that kind of an agreement. That is
what happens when you don't proceed on a truly bipartisan basis and
there is no leverage for some of us.
Let me also talk about currency. There is also a provision on
immigration which could have an impact in terms of the negotiation. I
don't know that there will be a provision. What I do know is that this
amendment takes out the Schumer amendments on currency.
Let me just say a word. You have put some language into this bill on
currency. It is like every other negotiating objective. It is not even
Swiss cheese, with lots of holes. It is the weakest kind of cheese that
has no real substance to it, except maybe a good taste, but this has a
bad taste.
Those negotiating objectives really are not meaningful; they are so
vague, and it is the person who negotiates it who judges whether those
vague negotiating objectives have been met.
So you take out the Schumer amendment. Now, what has been the impact
of currency manipulation on jobs in the United States of America? This
is one of the bases of the feeling of a lot of people in various
communities, including the labor community, but way beyond--and our
citizenry.
Because of Japan's manipulation of currency--and then China's--we
lost several million jobs. That is the reality. When people come here
and say this bill of theirs, this TPA bill will help in terms of job
creation, and they say, as was said many times in various places, these
are jobs we have already lost, that is nonsense.
There are more jobs in manufacturing and other places that could be
lost that relate to the worker provisions in terms of Mexico, which
competes with us, but it also relates to currency manipulation. The
President has now said that China is interested, and there will be no
meaningful currency manipulation in TPP. Essentially, we are opening
the door for more and more currency manipulation.
This is the reason for the depth of our feeling about this TPA and
these amendments that will make it even worse. Everybody listening
should understand the depth of the feeling from so many of us in and
out of this place, every movement--whether labor, environmental,
medicines, or whatever--to what is going on here.
I think this Customs bill makes TPA even worse and essentially has
tied the hands--because there is not a strong bipartisan basis--I
think, of the Administration to really throw its weight around in terms
of these amendments. I am afraid some of them are going to become law,
and that should not happen.
I strongly urge strong opposition to this Customs bill, H.R. 644. It
is one of the several reasons we should be voting ``no'' on the three
votes that are coming before us.
I reserve the balance of my time.
The SPEAKER pro tempore. Without objection, the gentleman from
Wisconsin (Mr. Ryan) will now control the time for the majority.
There was no objection.
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, it is my pleasure
to yield 1 minute to the distinguished gentleman from Ohio (Mr.
Boehner), the Speaker of the House.
Mr. BOEHNER. Let me start by thanking the gentleman from Wisconsin
for his leadership on the committee and his leadership on this bill. I
also want to thank Chairman Sessions and members of the Rules Committee
for all of their work.
I want to thank Mr. Tiberi, the chairman of the Trade Subcommittee,
for the tremendous job that he has done. I am grateful to all Members
who have offered constructive contributions to this debate.
My colleagues, we are not here today to debate any particular trade
bill. The day for that may come, and when it does, we want to make sure
that agreement reflects the people's priorities.
[[Page H4324]]
That means more jobs, higher pay, and more opportunities for workers,
farmers, and small businesses. That is why we want to make sure that
this agreement isn't rushed and we want to make sure that there is no
agreement that is in secret. We want to make sure--darn sure--that
there is less authority for the President and more authority for the
people.
That is what this bill does. It is a means to an end, and the end is
more free trade that is good for our economy and good for our country,
which brings me to another priority in this bill, and that is American
leadership.
When America leads, the world is safer, for freedom and for free
enterprise. When we don't lead, we are allowing and essentially
inviting China to go right on setting the rules of the world economy.
What that does is keep our workers and our products on the sidelines.
We are Americans, aren't we? We are not people who stand still. We
don't give in to doubt and defeatism. This is one of those moments when
we need to remember that this country is an idea. It is an idea of
people who choose their own destiny and people who dare to be
exceptional.
{time} 1200
My colleagues, you will recall that the Prime Minister of Japan was
here earlier this spring. And during his address, which was about the
need for America to lead on trade, he talked about how this is an
``awesome country'' because here, he said, ``you just choose the best
idea, no matter who it comes from.''
Well, today, the best idea is to vote ``yes,'' not for the President,
not for ourselves, but for our kids and our grandkids.
I know some Members of this body don't like trade promotion
authority, some don't like Trade Adjustment Assistance. But today I am
here to vote for both because it is the right thing to do.
Mr. LEVIN. I yield 1 minute to the gentleman from New Jersey (Mr.
Norcross).
Mr. NORCROSS. I thank the gentleman for yielding. I certainly
appreciate it, and talking about these three bills, how they are linked
together.
But if we look at a couple of them, in particular, the trade
adjustment is the equivalent of an execution, but you are getting to
choose your last meal. But the end result is you are dead or, in this
case, you are losing your job.
I am an electrician with a tie. That is where I started my career.
Day in and day out I heard those struggles. I can take you to my
district and show you those empty buildings from the failed promises of
a trade agreement.
I joined this body on November 12, coming out of the worst economic
times, and the first thing we are going to do is kick the American
worker, kick him when he is down.
We have empty plants, as I mentioned before. Trade adjustment helps
you get a job for lower pay, less benefits, less wages. They call it a
trade bill for a reason. You are trading good jobs in here in America
for trade jobs----
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. LEVIN. I yield the gentleman an additional 30 seconds.
Mr. NORCROSS. They call it a trade bill because they are trading
jobs. You lose your good job that has a pension, benefits, and a good
wage that can take care of your children, for a job, after you go
through the wringer, that pays less than half.
Yeah, we might have more jobs, but they are at the bottom end. They
are not the kind that would help raise that.
So this body, if we worked as hard as we are on this bill for a
transportation and infrastructure bill, those are jobs that are here
today and are for our future and make our country stronger.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself such time as I may
consume for the purpose of engaging in a colloquy. I yield to the
gentleman from Pennsylvania (Mr. Marino).
Mr. MARINO. I thank the chairman.
Mr. Speaker, from the time of Ben Franklin, reliable and affordable
universal mail delivery service has been an essential commitment here
in the United States, particularly to rural and low-income urban areas
like my own.
I am concerned when I hear my constituents assert that our ongoing
trade negotiations could undermine our Postal Service. TPA and trade
negotiations must not undermine the U.S. Postal Service.
I am also very concerned that continued dumped steel imports are
hurting our steel manufacturers. This is a very important industry in
my district. Even when we have antidumping duties to counter dumped
imports, these duties are often evaded through various schemes, such as
sending steel to another country to manufacture steel products, then
send the finalized product to the United States.
We must address these problems in this litigation for my support.
Mr. RYAN of Wisconsin. Reclaiming my time, I appreciate the
gentleman's concern about the impact of currently negotiated trade
agreements on the U.S. Postal Service.
The United States has consistently excluded government services, such
as mail delivery, from its obligations in past agreements. It is my
understanding that the United States is continuing to do so in the
ongoing Trans-Pacific, EU, and Trade in Services negotiations.
In addition, TPA specifically directs that trade agreements take into
account legitimate U.S. domestic objectives, which has consistently
included providing universal mail services.
Our trade remedy laws are vital for countering unfairly priced and
subsidized imports. That is also why I worked with the Steel Caucus
here in the House, you being a member of that, to add to our
enforcement bill a series of provisions that we call ``Level the
Playing Field'' to strengthen those laws.
Evasion of these laws is also a serious problem, which is why this
enforcement bill contains extensive provisions to create new tools and
authorities to both prevent and go after evasion.
I thank the gentleman and appreciate his leadership on these issues.
Mr. Speaker, I yield to the gentleman from Pennsylvania (Mr.
Barletta) for the purpose of engaging in a colloquy.
Mr. BARLETTA. I thank the chairman for helping me to improve this
bill by including Steve King's immigration prohibitions and strong
tools to stop currency manipulation.
We need to establish a process at Customs that will stop duty
evasion, which hurts manufacturers in my district.
You and I, Mr. Chairman, have talked about having Customs investigate
and decide duty-evasion cases subject to deadlines. Subjecting the
decisionmaking process at Customs to review at the U.S. Court of
International Trade will allow U.S. manufacturers hurt by duty evasion
to finally get the relief that they deserve.
Mr. Chairman, do you commit to working with me on achieving these
goals in conference?
Mr. RYAN of Wisconsin. Reclaiming my time, I commit to working with
the gentleman to improve the bill in conference to level the playing
field for American manufacturing and American workers. And I also thank
the gentleman for his leadership in ensuring that we fully enforce U.S.
trade laws.
Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentleman from
California (Mr. Becerra), a member of the Ways and Means Committee, and
the chair of our caucus.
Mr. BECERRA. I thank the gentleman for yielding.
Trade is pretty simple. We do it every day, whether you are trading
in the old car for a newer car, or whether it is the largest economy in
the world trading with the rest of the world. We do it every day.
At the end of the day, what we want is a fair deal. I give you
something; the benefit of the bargain is I get something back.
Any country that wants access to our markets needs to play by the
rules. We can't allow cheating to hurt our workers, their wages, our
businesses, or our economy.
And the American people get it. That is why they are so apprehensive
about any trade deal this Congress puts before it, because they want to
know, will we lead on their behalf? Or are we going to let the special
interests dictate the rules?
Will we retreat from our responsibility to make sure that if some
foreign company is going to have access
[[Page H4325]]
to our markets, they are going to play by the rules?
When I take a look at this trade promotion authority legislation, I
ask myself, how can you ever get a good trade deal out of this when the
rules are rigged against America?
One simple example. Everyone agrees we have had a bipartisan
consensus in this House--more than 230 Members have signed on to a
letter in the past saying, We have got to stop countries that
manipulate their currency to try to make their products produced by
their companies look cheaper than American products.
Yet, this legislation would prohibit us from going after the
countries that are cheating to prevent the companies in those countries
from cheating. So how are we going to stop the companies that we know
are pirating, that are stealing, that are cheating against us, how are
we ever going to stop them if the rules require us to go through those
countries to try to get those companies to abide by the rules?
When the country is cheating, I guarantee you, the companies are
going to cheat. And that is not the way you get foreigners to access
our market.
We can do much better. We have to do much better because the American
people want us to lead, not retreat.
That is why we should vote this down and get a better deal that the
American people know and feel is the right thing for America.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 2 minutes to the
gentleman from Louisiana (Mr. Scalise), the distinguished majority
whip.
Mr. SCALISE. Mr. Speaker, I want to thank the gentleman from
Wisconsin for his leadership in bringing this bill to the floor.
Mr. Speaker, American trade is critical to strengthening our economy
and to giving American workers the competitive advantage that we need
so we can go out and sell more of our goods all around the world.
There aren't many impediments for foreign countries to bring their
products into our countries and sell their goods here, but there are
many, many impediments when we want to sell our products that we make,
by American workers, to foreign countries, especially in Asian
countries and European countries.
Those countries right now, our allies around the world, want to get
good trade agreements, good level playing fields, so that we can have
good negotiated trade back and forth and sell more of our products in
those countries.
But right now China is writing the rules while America sits on the
sidelines. We are not a country that sits on the sidelines, Mr.
Speaker.
This bill gets us in the game so America can go out and our workers
can compete on a level playing field and we can sell more of our
products overseas.
But something else that this bill does, Mr. Speaker, is it actually
gives Congress a direct say in the process, every step of the way. We
lay out criteria, things that cannot be in trade deals, protections
against immigration and global warming-type issues being included in
these trade deals.
But it also gives transparency, strong and enforceable rules so that
any agreement that is reached would have to be available online, not
just for us to read, as Members of Congress, but for the entire Nation
to read for at least 60 days before there is even a vote in Congress.
And then, of course, Congress would have the ultimate veto authority
over a bad deal if it was sent.
This bill is critical to getting America back in the game so our
workers can be competitive. And when America competes on a level
playing field, we win.
Let's go create those American jobs by passing this bill.
Mr. LEVIN. Mr. Speaker, how much time is remaining?
The SPEAKER pro tempore. The gentleman from Michigan has 17\1/2\
minutes remaining. The gentleman from Wisconsin has 22\1/2\ minutes
remaining.
Mr. LEVIN. Mr. Speaker, I take special pleasure to yield 1 minute to
the gentlewoman from Michigan (Mrs. Dingell).
Mrs. DINGELL. Mr. Speaker, the vote today is why I came to Congress.
I promised the working men and women in my district that I would fight
to make sure that they had a seat at the table when we were making
decisions that impact their life and their livelihood.
We all know that we must grow our economy and we must compete in a
global marketplace. We all know what great products the American worker
builds, and that we can outcompete anybody in the world. But we cannot
compete with the Bank of Japan and the Bank of China.
NAFTA cost us 1 million jobs, and Michigan is still paying the price.
The Korea Free Trade Agreement was a great deal for South Korea. They
have expanded their imports into this country by almost half a million
products. And we have worked to just get 20,000 into that market.
Enough is enough. Congress cannot abdicate its responsibility to the
working men and women of this country. It is our responsibility to
protect our workers. Fast Track doesn't allow this. We should not pass
it.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 1 minute to the
distinguished gentleman from Illinois (Mr. Rodney Davis).
Mr. RODNEY DAVIS of Illinois. Mr. Speaker, I understand the
importance of trade and the impact trade negotiations can have on our
local economies, even back home in Illinois.
Currently, 1 in 3 manufacturing jobs depend on exports, and 1 in 3
acres on all American farms are planted for hungry families overseas.
As a Congressman, it is my job to make sure trade agreements protect
American workers, farmers, manufacturers, innovators, and service
providers by opening markets around the world because, when given a
fair playing field, I have the utmost confidence that American
companies and industries can outcompete foreign competitors.
But too many times, past trade agreements have left our industries,
especially steel, vulnerable to unfair trading practices like dumping.
I will continue to fight for stronger trade enforcement and be
committed to protecting American jobs.
I want to thank Chairman Ryan and Subcommittee Chairman Tiberi for
their leadership on this issue. And I really want to thank my colleague
from Illinois, Representative Mike Bost, for his tireless efforts to
strengthen our trade remedy laws to protect American workers and more
than 2,000 workers at our steel factory in Granite City, Illinois.
I urge a ``yes'' vote.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 3 minutes to the
gentleman from Louisiana (Mr. Boustany), a senior member of the Ways
and Means Committee.
{time} 1215
Mr. BOUSTANY. I thank the distinguished chairman of the committee for
yielding.
Mr. Speaker, I believe all of us here in Congress can agree that
evasion of antidumping and countervailing duties is a serious problem
and needs to be effectively addressed. That is why I rise in support of
this bill, because I think it thoroughly and thoughtfully addresses the
issue.
The seafood industry in Louisiana has been particularly hit by this,
which prompted me to work with industry, the committee, and others in
the administration to come up with a legislative fix for the growing
problem.
Thankfully, the bill before us today contains language from my
PROTECT Act, providing tools for Customs to help out our legitimate
importers, distributors, and trade-affected domestic industries to
prevent and combat fraud at our border, not after the fact, which makes
it much more difficult to deal with.
Specifically, the language in this bill is dedicated to preventing
and investigating evasion. Within that unit, there will be a point of
contact for private sector evasion allegations who will have the
authority to direct these evasion investigations and the duty to inform
interested parties. They have to inform the interested parties about
the status of the investigations.
We have also increased the types of data that Customs can use to
target evading imports, and this language will increase information
sharing between the Department of Commerce and the International Trade
Commission to effectively investigate evasion.
[[Page H4326]]
Finally, the bill sets specific requirements for Customs to
adequately train its personnel involved in combating this. These are
necessary improvements to stop fraud before it gets to our borders.
I can tell you, I have gotten plenty of comments from folks back in
my district. Kimberly Chauvin, who is the owner of Bluewater Shrimp
Company in Dulac, Louisiana, said the language ``creates provisions
that we need. The Senate bill is a watered-down version. If we do not
get Boustany's bill, the whole bill does us no good whatsoever.''
We need these tools. These tools are essential to effectively combat
evasion. Evasion is too important a problem to remain unaddressed, and
I think we are going to get to the best possible agreement on this when
we go to conference with this bill.
So I urge my colleagues to join me in supporting this very important
piece of legislation. Let's move the ball forward. Let's really
strengthen our laws to combat evasion and get this job done.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, I yield 1 minute to
the gentlewoman from California (Mrs. Mimi Walters).
Mrs. MIMI WALTERS of California. Mr. Speaker, today I rise in support
of trade promotion authority, or TPA, and I would like to thank the
gentleman from Wisconsin, Paul Ryan, for his leadership on this issue.
TPA, not to be confused with TPP, would put Congress in the driver's
seat when it comes to negotiating trade agreements. It would ensure the
President is held accountable to Congress and the American people in
negotiating all trade deals. TPA, a public document which I have read
and is available for the American people to read--in fact, it is right
here--would require the President to make public any free trade
agreement before it comes to Congress for a vote.
Trade is a vital part of our economy. One in five jobs is supported
by trade, and 4.7 million jobs depend on trade in California.
Right now, American companies cannot compete on a level playing
field. Trade barriers make it difficult for the U.S. to sell their
goods to the 95 percent of consumers that live overseas. Free trade
agreements would eliminate these barriers and put in place fair and
strong rules for U.S. companies to compete and win.
Furthermore, if Congress fails to pass TPA and set the rules of the
global economy, China will. We simply cannot cede our role as the
global leader in the 21st century.
I urge my colleagues in the House and the American people to rally
behind TPA.
Mr. LEVIN. Mr. Speaker, I yield 2 minutes to the gentlewoman from
California (Ms. Linda T. Sanchez), a member of our committee.
Ms. LINDA T. SANCHEZ of California. Mr. Speaker, I rise to express
both strong concern and guarded optimism about the customs bill before
us today.
I will be voting against the underlying bill before us today because
of the drastic and unnecessary changes the bill makes to TPA provisions
related to human trafficking, currency manipulation, and immigration
policy. However, I remain optimistic that the customs provisions in
this bill can become as strong as the Senate bill during conference.
Senators worked on a bipartisan basis to reach an agreement after
nearly a decade of negotiations on how we should be enforcing our trade
laws. I am now hoping that House Republicans will be part of getting
these provisions across the finish line.
One of my biggest priorities for many years has been finding a way to
combat the blatant abuse and duty evasion by some foreign producers
that undercut American industry here. Foreign companies use schemes to
avoid paying the duties they owe on goods that they import into the
United States. That is why I have introduced and fought for the ENFORCE
Act. For the first time, it finally feels like we are very close to
getting this done.
And to that end, I want to thank Representatives Tiberi and Boustany,
along with Chairman Ryan, for several productive discussions on the
best way to get this done in conference. I hope that we will be able to
keep working on a bipartisan basis to get a final, bipartisan House
customs bill.
Giving up on the opportunity to give real teeth to our enforcement
procedures would not only be harmful to our economy, but it sends a
message to manufacturers, employers, and U.S. workers that this
Congress doesn't care about them. By increasing our customs security
measures, we can ensure that American companies that play by the rules
are not undercut by foreign competitors who cheat by evading duties on
their goods.
I urge my colleagues to work to improve this bill by incorporating
final language with some teeth. U.S. manufacturers have waited long
enough to have customs enforcement that works.
Mr. RYAN of Wisconsin. At this time, I yield 1 minute to the
distinguished gentleman from Iowa (Mr. King).
Mr. KING of Iowa. I thank Chairman Ryan for yielding, and I also
thank him for his leadership on this issue.
Mr. Speaker, I would point out three things: trade promotion
authority needs to pass, TAA needs to pass, and the customs bill needs
to pass. Those are the toggle switches that are set up.
The negotiations with Chairman Ryan could not have been better. I
laid two issues out in front: one was my concern that the President
would negotiate global warming and climate change; the other one was
the strong things that go beyond rumors of the negotiation of
immigration provisions into the future trade agreements that would be
negotiated under a trade promotion authority.
We addressed those issues. The language in the customs bill is
language that is tight. I have confidence in it. It says it shall not
obligate the United States to grant access or expand access to visas
issued under 8 U.S.C. 1101(a)(15).
Mr. Speaker, this satisfies my concerns, and I know that enforcement
is a concern. But we are committed to standing together should that day
come that we need to do that, and we are hopeful that and expect that
the President, who we also anticipate will follow his commitment to
sign this bill, will also abide by the provisions in it.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. RYAN of Wisconsin. I yield the gentleman an additional 30
seconds.
Mr. KING of Iowa. I thank the chairman.
We expect the President to abide by the provisions in it. We will
follow through on our part of this bargain, if not. And this Congress
has an opportunity to veto.
So what a wonderful thing it is to go into a trade promotion
authority circumstance and know that for the next 6 to 9 years the U.S.
Trade Representative will not be negotiating global warming, will not
be negotiating immigration. We preserve that for the United States
Congress, as the Constitution directs. So that level of confidence lets
us then focus on the trade agreements that are good for the economic
growth of the United States of America. That is what is in front of us
here today, and I am very grateful we have gotten to this point.
I urge adoption of the customs bill.
Mr. LEVIN. Mr. Speaker, I now yield 2 minutes to the gentleman from
Oregon (Mr. Blumenauer), a member of our committee.
Mr. BLUMENAUER. Mr. Speaker, I am frustrated to be on the floor today
unable to vote for H.R. 644. This bill should be about helping American
businesses export more, with greater efficiency, cutting red tape at
the border, and enhancing our ability to hold foreign tax cheats
accountable. Instead, this bill cuts corners on what matters to
America's exporters and those undercut by bad actors abroad and gives
special attention to the paranoia of the Republican caucus.
The Senate passed a perfectly good, bipartisan customs bill which had
a couple of strong provisions that I have authored in it. That
legislation is not what we are considering. Instead, today's bill
contains ill-advised language on immigration, climate change. It shorts
efforts to deal with human trafficking and currency, and it reverses
longstanding American policy towards Israel and settlements.
It is not so much the fact that there were these vote-buying tactics
that
[[Page H4327]]
were used to lard this up with inappropriate items that's concerning,
because most will fall off in conference. I am frustrated that
provisions that would strengthen the bill and get bipartisan support
have been left out.
The Green 301 provisions, to help American businesses working abroad
who are put at a competitive disadvantage by operating at or above
local environmental laws while native companies get a free pass when it
comes to following what is on the books. It is not fair, and there
should be an avenue of redress. The Green 301 would have done that.
And no one benefits from a trade agreement which can't be enforced.
I had the STRONGER Act, a trade enforcement and capacity building
provision that I have offered up, that we have attempted to get through
here. It is in the Senate bill--and should be in the House bill.
I will be fighting in conference to make sure that these provisions--
Green 301 and STRONGER--are protected in the Senate, that we have a
customs bill that is worthy of support and some of the goofy stuff gets
stripped away.
I will vote for TPA, but I am really frustrated that we don't have a
customs bill that we all can support.
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, I yield myself such
time as I may consume to engage in a colloquy with the gentleman from
Ohio (Mr. Turner).
Mr. TURNER. I thank the gentleman for yielding.
Mr. Chairman, despite a longstanding U.S. policy against the use of
offset agreements, many foreign governments continue to insist on using
offset agreements, which clearly distort trade, are an unfair trade
practice, and result in lost opportunities for American workers.
Offset agreements and military sales contracts are add-on provisions
that require U.S. companies to reinvest in foreign companies through
the purchase of additional goods and services, technology transfer,
foreign-based subcontractor mandates, and other similar activities.
Chairman Ryan, under TPA, how will the Federal Government curb a
foreign country's use of military offsets?
Mr. RYAN of Wisconsin. I thank my friend for his question.
I agree that offset agreements distort fair trade. Under TPA,
Congress will establish negotiating objectives for the President to
seek more open market access for U.S. companies in the reduction,
elimination, or prevention of trade distortion and localization
barriers. Thus, these provisions will direct the President to seek to
curb our negotiating partners' insistence on the use of offset
agreements.
Mr. TURNER. I thank the gentleman for his response, and I look
forward to working with him on this important issue.
Mr. RYAN of Wisconsin. Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from Rhode
Island (Mr. Cicilline).
Mr. CICILLINE. Mr. Speaker, many this morning have said TPA will
protect American jobs. In Rhode Island, my home State, we know that is
not true. TPA will facilitate another bad trade deal that will result
in more American jobs being shipped overseas.
Those who think this trade deal is good should come to Rhode Island
and meet with the men and women who still can't find work after decades
of a bad trade deal just like this one.
I have listened to former jewelry and textile workers who worked in
the once bustling mills in Woonsocket, Pawtucket, and Providence, who
don't understand why Congress is considering another trade bill that
will eliminate more American jobs.
My State lost over 40,000 jobs after NAFTA, mostly in manufacturing.
Haven't we seen the devastating impact of bad trade deals? Haven't we
learned our lesson, that a trade deal that fails to address currency
manipulation, that doesn't include enforceable provisions on the
environment and on labor is a bad deal for American workers?
Of course we need to compete in a global economy. Of course we need
to grow our economy. But we need to do it in a way that protects
American jobs and protects American workers. We need fair trade, not
just free trade.
I urge my colleagues to vote ``no.''
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, I yield 1 minute to
the gentleman from Illinois (Mr. Bost), a member of the Steel Caucus, a
Member who has been very passionate on the issue of leveling the
playing field.
Mr. BOST. I thank the gentleman from Wisconsin for yielding.
Mr. Speaker, American workers can compete when everyone is on the
same playing field and has the same rules.
While opening new markets in the U.S., products are important. We
must have effective laws that protect companies and their workers from
foreign companies who cheat. This includes nations that illegally dump
into our markets.
Under our current trade laws, American companies like U.S. Steel in
southern Illinois must suffer long-term harm before remedies take
effect. You know, that is like waiting until the house burns to the
ground before you call the fire department. It doesn't make sense.
That is why I am pleased that we are voting on the Enforcement bill
today, which includes language that my friend from Illinois,
Congressman Rodney Davis, and I introduced to combat these illegal
trade practices. This legislation speeds up the process and helps
companies like U.S. Steel respond to illegal dumping before it causes
serious harm to the company and its workers.
I encourage my colleagues to support today's bill, and we can protect
our businesses and our workers from unfair trade.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, I yield 1\1/2\
minutes to the gentleman from Indiana (Mr. Messer), a member of our
leadership team, the Policy Committee director.
Mr. MESSER. Mr. Speaker, today I rise in support of trade promotion
authority because I am a conservative who believes trade creates jobs
and opportunity.
In my district, farmers grow corn and soybeans and sell them all over
the world. Factory workers, like my mom, build faucets, cars,
forklifts, and caskets and sell them all over the world.
{time} 1230
Trade allows that to happen. When the American worker gets a chance
to compete on a level playing field, we win. That is why we need trade
agreements.
The truth is, under the policies of this administration, paychecks
are shrinking. For many workers, there is more month than money as they
struggle to pay their bills. Killing this legislation does nothing to
help those workers. In fact, it would only make their situation worse.
Trade-related jobs pay better. And when 95 percent of the Earth's
population lives outside the United States, we can't afford to pull up
the drawbridges and shut out the rest of the world. That is not smart
policy, and it won't help the American worker.
Let's grow our economy. Let's secure good-paying jobs. And let's make
sure the American worker leads this century just like we did the last.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, I yield 1 minute to
the gentleman from California (Mr. McCarthy), the distinguished House
majority leader.
Mr. McCARTHY. Mr. Speaker, before I move forward, I want to thank the
gentleman. He has shown true leadership in working, and working with
everybody, in this House. Any time you take up a large piece of
legislation, there are concerns. I have never seen another Member of
this House sit with more meaning, more concerns, and try to find a
solution, and I thank the chairman for that work.
Mr. Speaker, earlier this year, when I was headed home to California
from D.C. one weekend, I saw something very troubling, but something
actually today we can solve for the future. You see, it was February,
and there was a labor dispute. There was a shutdown on our ports on the
West Coast. So as the plane descended, instead of seeing the beaches
stretched throughout California or the Santa Monica mountains, my
attention was drawn to the number of ships sitting idle in the ocean
and the number of ships that were just sitting in the port. You see,
the docks were shut down and our economy was halted.
[[Page H4328]]
When Americans cannot have their products moved to willing buyers,
the men and women who are part of the creation do not receive the
rewards of their efforts. And in California, we cannot afford to waste
any of our resources, especially what we have a short supply of--water.
So when the trade was shut down, the food that was produced throughout
the Central Valley would just rot on the docks.
But what was most interesting to me, Mr. Speaker, I remember a phone
call I got just another weekend after. It was the president of the
Republican freshman class here. He had just done a town hall, and he is
from Colorado. He said: Mr. Leader, I have got a big issue in Colorado.
The ports of the West Coast are shut down. You see, my small businesses
are hurt by that. They are hurt when we are not able to have trade.
I remember a big bipartisan press conference we had, Republicans and
Democrats alike, the largest one I have ever been a part of in the
press room, talking about the ports being shut down, because every
single one of their districts were affected, especially the small
businesses.
When we cannot trade, our economy suffers and our way of life
suffers. In fact, during that same period of this crippling shutdown,
our economy actually shrank.
Today, what we are talking about on the floor is trade promotion
authority. It allows us to get to an agreement. You know, we have not
had it for a few years.
So what has happened around the world while the rest of America sat
idle? There have been 100 trade agreements; 100 trade agreements around
the world that we would want more of our small businesses to be a part
of. You know how many we were a part of during that time? Zero, because
we did not have TPA.
You know, trade is the difference between rotting produce on the
harbor docks and sending California goods around the world. Trade is
the difference between the lines of prosperity and the lines of
stagnation.
We have a unique opportunity today. It is not a trade agreement. It
is an opportunity. It is an opportunity that will empower each and
every Member of this floor to have input, to have transparency, but
what is more important, to empower every single American to make sure
they are now at the table, that when there is the next trade agreement
between countries who want to engage, America won't be left out,
America can lead once more.
Mr. LEVIN. I yield 1 minute to the gentleman from New York (Mr.
Nadler).
Mr. NADLER. Mr. Speaker, I rise in opposition to this bill. All the
trade agreements since NAFTA have been sold on the same propaganda,
that they will increase our exports and jobs, yet the results have
always been the same: they have multiplied our imports, ballooned our
trade deficits, hemorrhaged our jobs, and depressed our wages.
Now we are asked to vote for a fast-track agreement that will say we
cannot amend any trade agreements, only vote them up or down, even if
they, like their predecessors, lack any means of protecting our workers
from competition with workers who are paid 30 cents an hour and are
assassinated if they try to form a union.
We know there will be a provision for private corporate tribunals
that can invalidate and render unenforceable American laws and
regulations. It is our constitutional duty to regulate foreign commerce
and trade agreements, not take them on a take-it-or-leave-it basis from
the executive branch. It is our constitutional duty to protect the
American sovereignty against foreign companies invalidating our laws
through private corporate tribunals.
We must vote ``no'' on fast track to allow Congress to do its job to
see that the next trade agreement doesn't hemorrhage our jobs, doesn't
ignore currency manipulation, and doesn't invalidate our consumer,
labor, and environmental laws. We must say ``no.''
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 1 minute to the gentleman
from Florida (Mr. Curbelo).
Mr. CURBELO of Florida. Mr. Speaker, we are in the midst of an
impassioned debate on trade promotion authority, trade adjustment
assistance, and trade enforcement. We are hearing arguments from our
colleagues on both sides of this issue, from both sides of the aisle.
Mr. Speaker, I am honored to serve as the voice of my constituents from
south Florida, who directly see the impact of these free trade
agreements every single day.
The United States currently has 20 free trade agreements, 11 of which
are with countries in South and Central America. Miami is often called
the gateway to the Americas, and I am proud to represent a diverse and
proud community that has seen the positive impact of free trade.
Workers in south Florida create goods and services that are used
throughout the world, something that is only made possible with free
trade agreements.
Congress must pass TPA so the United States can open up new markets.
Since 2007, there have been over 100 agreements signed on a global
scale while our country has sat idly by.
The SPEAKER pro tempore. The time of the gentleman has expired.
Mr. RYAN of Wisconsin. I yield an additional 30 seconds to the
gentleman.
Mr. CURBELO of Florida. Mr. Speaker, I want the American people's
representatives to have a strong hand in negotiating future free trade
agreements, and this TPA bill ensures this will happen. It provides
unprecedented amounts of time for the agreements to be read and ensures
proper safeguards are in place for Congress, not the President, to
drive the agenda on the negotiations.
Mr. Speaker, I encourage a ``yes'' vote on TAA, TPA, and trade
enforcement. If anyone has any doubts as to whether TPA is good for our
country, I encourage you to visit south Florida.
Mr. LEVIN. I yield 30 seconds to the gentleman from Pennsylvania (Mr.
Brendan F. Boyle), who I think has lost his voice.
Mr. BRENDAN F. BOYLE of Pennsylvania. Mr. Speaker, I am not going to
speak long as I have lost my voice.
If we pass fast track, the American workers will lose their voice.
This is wrong. The President has said that social mobility and income
inequality are the issues of our time. If I really believed that
anything we are voting on here would do anything to address that, I
would sincerely be voting ``yes,'' but it doesn't.
After 20 years of NAFTA and CAFTA and every sort of trade agreement,
we have not seen our middle class benefit. Let's finally use this time
to rebuild the American middle class and stand up for our workers.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 1\1/2\ minutes to the
gentleman from Virginia (Mr. Connolly), a Member from the other side of
the aisle.
Mr. CONNOLLY. Mr. Speaker, today's vote is about America's future.
Who will shape it? It is not shaped by a recitation of grievance. It is
not shaped by making trade a symbol of all that we find bad in economic
progress. It is by seizing that future and shaping it, and that is what
TPA does. It pries open foreign markets. It sets American rules
setting. It allows us to frame the issues in 40 percent of the world's
trade and economic activity.
We have never had an opportunity as important as this one to shape
the global economy to our advantage and to those of our trading
partners. We must not lose this opportunity.
The grievances are legitimate, the concerns and fears are legitimate,
but we must look beyond them. We must address the future for future
generations of American workers. I support the bill in front of us and
urge my colleagues to do the same.
Again, I thank Mr. Ryan for his courtesy.
Mr. LEVIN. Mr. Speaker, how much time do we have remaining?
The SPEAKER pro tempore. The gentleman from Michigan has 10 minutes
remaining. The gentleman from Wisconsin has 9\1/2\ minutes remaining.
Mr. LEVIN. I yield for the purpose of a unanimous consent request to
the gentleman from California (Mr. Sherman).
(Mr. SHERMAN asked and was given permission to revise and extend his
remarks.)
Mr. SHERMAN. I insert in the Record a chart showing that we have a
$100 billion trade deficit with our FTA countries. Those are the
official statistics of the U.S. International Trade Commission.
[[Page H4329]]
Public Citizen,
Washington, DC, February 2015.
Job-Killing Trade Deficits Surge Under FTAs: U.S. Trade Deficits Grow
More Than 425% With FTA Countries, but Decline 11% With Non-FTA
Countries
The aggregate U.S. goods trade deficit with Free Trade
Agreement (FTA) partners is more than five times as high as
before the deals went into effect, while the aggregate trade
deficit with non-FTA countries has actually fallen. The key
differences are soaring imports into the United States from
FTA partners and lower growth in U.S. exports to those
nations than to non-FTA nations. Growth of U.S. exports to
FTA partners has been 20 percent lower than U.S. export
growth to the rest of the world over the last decade (annual
average growth of 5.3 percent to non-FTA nations vs. 4.3
percent to FTA nations from 2004 to 2014).
The aggregate U.S. trade deficit with FTA partners has
increased by about $144 billion, or 427 percent, since the
FTAs were implemented. In contrast, the aggregate trade
deficit with all non-FTA countries has decreased by about $95
billion, or 11 percent, since 2006 (the median entry date of
existing FTAs). Using the Obama administration's net exports-
to-jobs ratio, the FTA trade deficit surge implies the loss
of about 780,000 U.S. jobs. The North American Free Trade
Agreement (NAFTA) contributed the most to the widening FTA
deficit--under NAFTA, the U.S. trade deficit with Canada has
ballooned and a U.S. trade surplus with Mexico has turned
into a nearly $100 billion deficit. More recent deals have
produced similar results. Under the 2012 Korea FTA, the U.S.
template for the Trans-Pacific Partnership, the U.S. trade
deficit with Korea has already surged 72 percent.
----------------------------------------------------------------------------------------------------------------
Pre-FTA trade Change in balance
FTA partner Entry date balance 2014 Balance since FTA
----------------------------------------------------------------------------------------------------------------
Israel *............................ 1985 ($1.0) ($15.2) ($14.2)
Canada.............................. 1989 (23.9) (82.4) (58.5)
Mexico.............................. 1994 2.6 (99.8) (102.3)
Jordan.............................. 2001 0.3 0.6 0.3
Chile............................... 2004 (2.0) 5.8 7.8
Singapore........................... 2004 0.8 10.2 9.4
Australia........................... 2005 7.4 13.6 6.2
Bahrain............................. 2006 (0.1) 0.1 0.2
El Salvador......................... 2006 (0.2) 0.7 0.9
Guatemala........................... 2006 (0.6) 1.5 2.1
Honduras............................ 2006 (0.7) 1.2 1.9
Morocco............................. 2006 0.1 1.0 1.0
Nicaragua........................... 2006 (0.7) (2.2) (1.5)
Dominican Republic.................. 2007 0.6 2.8 2.2
Costa Rica.......................... 2009 1.2 (3.2) (4.4)
Oman................................ 2009 0.6 0.9 0.4
Peru................................ 2009 (0.2) 2.9 3.0
Korea............................... 2012 (15.4) (26.6) (11.2)
Colombia............................ 2012 (10.0) (1.2) 11.2
Panama.............................. 2012 7.8 9.4 1.6
---------------------------------------------------------------------------
FTA TOTAL:...................... ................. ($33.7) ($177.5) ($143.9)
---------------------------------------------------------------------------
Non-FTA TOTAL:.................. [2006] ($829.3) ($734.2) $95.1
---------------------------------------------------------------------------
FTA Deficit Increase: 427% Non-FTA Deficit Decrease: 11%
----------------------------------------------------------------------------------------------------------------
Source: U.S. International Trade Commission. Units: billions of 2014 dollars. (*Measured since 1989 due to data
availability)
Mr. LEVIN. I yield 1 minute to the gentleman from Minnesota (Mr.
Ellison).
Mr. ELLISON. Mr. Speaker, Members, trade adjustment assistance should
not be a sweetener, a trade-in coin. Trade adjustment assistance should
be what we do no matter what. It shouldn't pave the way for trade
promotion authority.
It is important and good to stand with dislocated workers who
basically are pushed off their jobs because of bad trade deals, which
we have been pursuing for 40 years. Yet here we are today, told that we
have got to vote for this trade adjustment authority, which does not
include public sector workers, which is smaller than it should be. We
have got to support it because--and the only reason we are here to
support it, the only reason we have been lobbied by no less than the
President and three top Cabinet officials, is because they know it
paves the way to trade promotion authority, which is what they really
want so that, literally, Members give up our constitutional duty.
Where are my constitutional conservatives when you need them?
Mr. RYAN of Wisconsin. I reserve the balance of my time.
Mr. LEVIN. I yield 1 minute to the gentleman from Michigan (Mr.
Kildee).
Mr. KILDEE. Mr. Speaker, I come from Flint, Michigan. Flint,
Michigan, was the birthplace of General Motors, a place that put the
world on wheels. In the last couple of decades, it has seen 90 percent
of our manufacturing jobs go away. Now, true, not all of them were lost
because of bad trade deals, but many of them were. And bad trade deals
have exacerbated that job loss and have ruined many parts of that
community.
I support, as virtually all of us do, expanded trade as a way of
growing the U.S. economy. I am a member of the President's Export
Council. This is something we have to do. But this TPA is not a ``yes''
or ``no'' question on whether we should expand trade. This TPA is
flawed. It fails to address the most significant trade barriers hurting
American manufacturers. It fails to address currency manipulation by
our trading partners. And if we don't address the most significant
barrier, how can we expect any trade deal to have the effect? All we
have to do is look at the performance of past deals that have had
similar flaws and we can see why we have failed.
If we are going to engage in expanded trade, we have to do it right,
in a way that deals with currency, that deals with labor obligations,
that deals with environmental obligations.
Mr. RYAN of Wisconsin. I reserve the balance of my time.
{time} 1245
Mr. RYAN of Wisconsin. Mr. Speaker, I continue to reserve the balance
of my time
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from New
York (Mr. Meeks).
Mr. MEEKS. Mr. Speaker, today's vote to grant the President trade
promotion authority is about America's future in a globalized world.
Let's be clear what is at stake. America's standing as a global
leader has not come without strong leadership from this body, and it
will not be sustained if we act out of fear rather than on facts. The
most basic fact is that nations around the world are fighting for trade
agreements for every advantage they can get for their economies and
their workers.
It then raises the question: If we don't pass this agreement, who
will set the standards of trade? Will it be us, or will it be China? If
this bill fails, it will be China.
The bill before us today is a bipartisan effort to ensure that trade
deals negotiated by the Executive will be guided by congressional
directives to reach the highest, most transparent, and progressive
standards ever required by law.
This bill should have the support of any Member who cares about the
enforceable labor and environmental standards, promoting the rule of
law, greater congressional oversight, and greater transparency for the
American people.
Today, we are also considering Trade Adjustment Assistance, a program
that for years Democrats have promoted to provide income and job
training for those affected. TAA should pass also.
Mr. RYAN of Wisconsin. Mr. Speaker, I continue to reserve the balance
of my time.
Mr. LEVIN. Mr. Speaker, may I inquire how much time is remaining?
The SPEAKER pro tempore. The gentleman from Wisconsin has 9\1/2\
minutes remaining. The gentleman from Michigan has 7 minutes remaining.
Mr. LEVIN. Mr. Speaker, I reserve the balance of my time.
[[Page H4330]]
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 3 minutes to the
gentleman from Ohio (Mr. Tiberi), chairman of the Trade Subcommittee
and member of the Ways and Means Committee.
Mr. TIBERI. Mr. Speaker, I thank the chairman and thank him for his
leadership, credible leadership, on this debate, about American
leadership, quite frankly.
Ladies and gentlemen, we are here to debate three bills today: trade
assistance for displaced workers, trade promotional and accountability
authority that inserts Congress into the President's ability under the
Constitution to negotiate a trade agreement with anybody he or she
wants, and then finally customs and enforcement.
Enforcement is critical, ladies and gentlemen. It is a bill I am so
thrilled and honored to have had the opportunity to introduce here in
the House. This is a key bill as part of trade. Far too long, we
haven't had as good of enforcement, quite frankly, as we need to have,
and I am committed to that.
Now, let me just mention one thing--trade deficits, trade surpluses.
We have 20 countries that we have agreements with, trade agreements
with, 20 of them. Two of them happen to be on our borders, Mexico and
Canada.
You take out energy that we import from them--and I would rather
import it from them than anywhere else in the world--we have a trade
surplus with those 20 countries, a surplus in manufacturing.
My dad was in manufacturing. I already told you before--and Mr. Levin
has heard this 1,000 times, I think; he is probably tired of hearing
it--my dad lost his job of 25 years, and I lost my health care as a kid
in the household, along with my sisters, long before NAFTA.
Globalization began occurring, as Dr. Boustany said, after World War
II. We can either engage or disengage. When we disengage, we lose. When
America engages, we win. We can outwork anybody.
What trade agreements do actually is break down barriers so we can
compete, and then we have to have the enforcement piece. Ladies and
gentlemen, that is what this is about. It is about breaking down
barriers.
My State of Ohio has been devastated by globalization. My dad's job
before NAFTA was devastated by globalization. Forty-eight countries in
Asia have had trade agreements with each other. For the last 10 years,
we are party to two. The world is passing us by. We are being left
behind. We can compete if we break down barriers. That is what we need
to do today.
Trade assistance--insert Congress into the President's ability to
negotiate because he already has that ability. This doesn't change
that. This inserts us. This inserts slow track. With that agreement,
whatever that agreement is, in Asia, in Europe, 60 days in public
before the President can sign it, 60 days.
I wish I had 6 hours--6 hours--to review the Affordable Care Act
before I had to vote on it. This is 60 days where Members will have an
ability to look at what was negotiated. If we don't like it, we will
vote it down. We have the constitutional authority to do that.
This is about jobs. Vote all three bills ``yes.''
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from
Illinois (Mr. Lipinski).
Mr. LIPINSKI. Mr. Speaker, I rise today in strong support of American
workers, American manufacturing, and the environment and in strong
opposition to TPA.
TPA is woefully inadequate when it comes to stopping currency
manipulation, enforcing labor standards, and protecting American
consumer and environmental protections. This is exactly the wrong time
for Congress to be giving up its authority, which is our constituents'
ability to have a voice on trade deals.
This is not labor versus business. Lapham-Hickey Steel, Independence
Tube, and countless other manufacturers across my district oppose this.
Ford Motor opposes this because they know past trade agreements sold as
economic boons have been a bust, and they are gravely concerned about
how the massive TPP enabled by this TPA will kill more Americans jobs.
We need fair trade and American workers will win, but that is not what
they are being given.
It is time for Congress to stand up for the middle class and American
manufacturing and stop passing bad trade deals. Vote ``no'' on TPA.
Mr. RYAN of Wisconsin. Mr. Speaker, I reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from Ohio
(Mr. Ryan).
Mr. RYAN of Ohio. Mr. Speaker, I thank the gentleman for yielding.
This reminds me of the song: Are you going to believe me or your
lying eyes? When you come from areas of the country that some of us
represent, you see what has happened with these trade deals.
Adelphi factory in Warren, Ohio, had 13,000 workers. NAFTA passed;
they moved over the border and ship their products back to the United
States. We will be lucky if there are even 2,000 workers there. An auto
plant had 16,000 workers, General Motors. Now, they are down to 3,000-
4,000 because of the trade agreements.
The chairman talked about currency manipulation. We have countries
shipping products to the United States; their final product lands on
our shores, and it is the same cost as the raw materials for the
American company. That is not free trade. That is not fair trade. That
is a raw deal for the companies in the United States and the American
workers.
Let's even say that these trade agreements are good for the economy,
as many people may believe. You still need immigration reform; you
still need a transportation bill; you still need investments in
research, in biosciences, and renewable energy.
I can't believe that some of us are voting for this and not getting
any of those other things implemented. No, no, no.
Mr. RYAN of Wisconsin. Mr. Speaker, at this time, I yield 2 minutes
to the gentleman from New York (Mr. Reed), a Member of the House Ways
and Means Committee.
Mr. REED. Mr. Speaker, I thank the chairman for yielding.
I rise today, Mr. Speaker, in strong support of trade. It is time for
us to lead. When you open up markets to our manufacturers, to our
workers, you are creating jobs here on American soil.
I am a firm believer in U.S. manufacturing, Mr. Speaker. I co-chair
with my colleague from Ohio the Manufacturing Caucus here, and what we
are seeing is a renaissance in U.S. manufacturing. We are finally
driving utility costs down. We are creating an opportunity where U.S.
manufacturers are coming back on shore.
What do we need to do? We need to create markets. Ninety-five percent
of the world's population lives outside of America's borders. Forty
percent of the world's market is represented in the negotiations that
are going on with the Trans-Pacific Partnership.
Why in the world would we not lead and negotiate an openness and fair
level playing field for our American workers and our American
manufacturers? It doesn't make any sense.
I ask my colleagues to join us, join with us, to open up these
markets so that we can create the jobs of today and tomorrow where we
make it here to sell it there. That is what this is doing. That is what
trade is all about. When we have rules-based trade, our workers and our
manufacturers win.
I encourage us not to get into these petty political fights and have
some type of litmus test as to who is on whose side in regards to this
issue. Stand with the American workers; stand with the American
manufacturers; open up those world markets to our rules-based system,
and I would agree, at the end of the day, we all win, and America will
win.
Mr. LEVIN. Mr. Speaker, I yield 1 minute to the gentleman from
Florida (Mr. Clawson), as I understand he hasn't been able to get time
from his side.
Mr. CLAWSON of Florida. Mr. Speaker, I am for opportunity for
everyone and fairness for everyone, including American companies and
American workers.
Since leaving my career in the automotive industry, I often run into
folks that I used to know from the industry, except now they work at
CVS or they work at the TSA. They say: Mr. Clawson, any chance the
plant is going to open back up? I am having a hard time making ends
meet. I am having a hard time paying for my kid's college education.
[[Page H4331]]
I, unfortunately, can't give them much hope. If those plants close
because of lack of American competitiveness, I can swallow hard, and I
can accept it; but when those plants close because of currency
manipulations, which is an afterthought today, then I don't accept it,
and my sadness for this unemployment turns to hardness, which is where
I am today.
This is not about American competitiveness; this is about getting a
chance for world-class manufacturing facilities who eliminate jobs.
I say currency manipulation, no way. I say TPA, no way. I say vote
``no.''
Mr. RYAN of Wisconsin. Mr. Speaker, may I inquire as to how many
speakers are left on the other side?
Mr. LEVIN. We have one, and I will close.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield 1 minute to the gentleman
from Texas (Mr. Sessions), the distinguished chairman of the House
Rules Committee, the coauthor of the TPA bill.
Mr. SESSIONS. Mr. Speaker, I thank the young chairman from Wisconsin
for his hard work.
Mr. Speaker, before we pass TPA today, the law is that the President
of the United States can go negotiate whatever he wants without
negotiation with the Congress and just go do it and come and plop it on
our doorstep.
I disagree with that, and that is why we are doing TPA, trade
promotion authority, where the House of Representatives maintains its
constitutional prerogatives and is empowering through TPA any
President, whoever the President is, for the next 7 years to go
negotiate in some 150 parameters as they negotiate.
We maintain our sovereignty in this bill, including additions that we
say the President cannot go negotiate--a new global warming trade bill,
climate change, he cannot go negotiate anything new on immigration; it
goes on and on and on--steel, and other things.
We are giving the President our authority and expecting him to
negotiate therein. This is a good deal for the American worker.
Mr. LEVIN. Mr. Speaker, it is now my real pleasure to yield 1 minute
to the gentlewoman from California (Ms. Pelosi), our leader.
{time} 1300
Ms. PELOSI. Mr. Speaker, today, we have a very important decision to
make in this Congress.
I join with the Speaker in acknowledging the hard work that so many
have put in on this important subject.
I want to thank the President of the United States and his
administration for being available with their Cabinet officers and the
rest to explain to us how they see what is in the TPA--let me call it
``fast track'' so we separate this out--and what the prospects are now
for the Trans-Pacific Partnership.
I want to thank our friends in labor, environmental groups, and
faith-based groups who have expressed their opposition to so much of
what has been presented, all of which will be constructive as we try to
move forward with a better trade promotion act--fast track. Not so fast
fast track.
We all understand that we live in a global economy. Some of us, as I
do, represent cities that are built on trade, the city of San
Francisco, and I grew up in a city where the famous clipper ships
brought product to and from our shores in Baltimore, Maryland. It is a
great and exciting prospect to expand markets for our products and
having U.S. global leadership.
I was hopeful from the start of all of this discussion that we could
find a path to ``yes'' for the fast-track legislation that was being
put forth. There were some bumps in the road along the way and some
potholes along the way--unfortunately, I think, sinkholes as well--but
that doesn't mean that that road cannot be repaired. I just believe
that it must be lengthened.
Each week, each of us goes home to our districts, and in the case of
many of us, we put our hands on a very hot stove. We hear the concerns
of so many families who have financial instability and uncertainty.
Some of it is still springing from 2008 when they were threatened with
the loss of their homes, their jobs, and their pensions, when they were
living on their savings, with the inability to send their kids to
college--all of it undermining the American Dream. As the economy has
improved under the leadership of President Obama, still, middle class
economics have not fully turned around the country, because the
consumer confidence that people must have in order to invest, to spend,
to inject demand into the economy is simply not there.
So my concern about all of this, it is about time. Why are we fast-
tracking trade and slow-walking the highway bill? It is about time.
Again, people have not recovered from 2008 sufficiently to have the
consumer confidence to turn around our consumer economy. I think,
today, we have an opportunity to slow down. We all know we want to
engage in trade promotion and the rest of that, but we have to slow
down. With whatever the deal is with other countries, we want a better
deal for America's workers.
Another element of time that I am concerned about is the time that is
running out for us to rein in the consequences of climate change. I
want to just talk about myself for a moment, and I am bragging. I hold
myself second to none in this body on the subject of protecting the
environment and recognizing the challenges of climate crisis.
When I first came to the Congress, President George Herbert Walker
Bush was President, and he signed my legislation, which is now called
the Pelosi Amendment to the International Development and Finance Act
of 1989. It said that any of our directors with any of our multilateral
development banks had to have an environmental assessment made--and
made known--to the indigenous people who were affected by whatever
development was there and made known to the world. The connection
between the environment and commerce is inseparable, and for over 25
years, the Pelosi Amendment has been in effect.
When I became Speaker, my flagship issue was energy independence and
climate, so I speak from some authority on this subject. The son of
George Herbert Walker Bush, President George W. Bush, signed the energy
bill of 2007. We worked together to find alternatives to fossil fuels.
He wanted nuclear, and I wanted renewables. We had a very successful
energy bill of 2007, done under the auspices of the Select Committee on
Energy Independence and Global Warming that I established as Speaker,
which has been abolished since then.
Pope Francis, in another week, will be announcing his initiative on
climate. While this is all going on--while schoolchildren know that
this is a challenge that we must face to protect our planet, while
people of faith join us and say, ``This is God's creation, and we have
a moral responsibility to be good stewards of it''--in this bill today,
which is the customs bill that is on the floor right now, it prohibits
the USTR from negotiating on climate change. How could it be? Twenty-
five years ago, the Pelosi Amendment was passed because we saw melting
snow in regions, and areas as big as the United Kingdom were burning in
the Amazon. This is 25 years later, and we are putting in the bill that
the USTR cannot negotiate on climate change. You cannot separate
commerce and the environment.
I salute the President. He has been magnificent and courageous in
going out there and taking up the fight for America's leadership on
climate change. He has been great. He has an agreement with China,
which almost could not have been foreseen except for his leadership and
the cooperation between our two countries. So it is not that he isn't
doing his part. It is Congress. Again, it is about time, slowing down
our responses when we should be proactive, yet fast-tracking
legislation to do that.
What is interesting is, we in the House, are we labeling ourselves
the ``lower body'' and giving new meaning to that term when the Senate
could have opportunity for amendment after amendment if their
colleagues gave them the votes? In this House, we fast-track the fast
track with no chance to amend any of it. Just vote it up or down. I
find that unnecessary, unacceptable, and one place we could go to have
a discussion on how to improve the fast-track legislation. At the same
time, the Republican majority is allowing in the customs bill
amendments to the fast-track bill, this amendment on climate, other
amendments on immigration, and they were spelled out by Mr. Sessions
earlier and with great
[[Page H4332]]
pride--amendments to the fast track in the customs bill but no
amendments for Democrats. Again, I don't see how this Congress can
ignore that. I don't see how this trade agreement can ignore it.
Much has been said about security issues that are involved in this
agreement and that we have to make a geopolitical case for this trade
agreement. Of course, we always have the safety of the American people
as our first responsibility. Their security is what we come here to
protect. Yet how could it be that we are allowing--again, let me say it
another way because I am being very prayerful about this. Pope Paul VI
said--I mentioned Francis earlier--if you want peace, work for justice,
economic justice. I don't see this happening in this fast-track bill,
or the lifting up of people in the rest of the world or having trade
agreements that increase the paycheck of America's workers. That should
be our first order of business--environmental justice, looking at these
prohibitions on dealing with climate in 11 other countries in the world
and then our own.
I commend the President because, in the fast-track bill, there are
some good provisions, issues, on the environment. I am talking about an
ethic, a responsibility, a comprehensive view of the future. Again, the
Pelosi Amendment addressed the indigenous people, all of these people,
who will be not of the first, shall we say, priority for many of these
countries as they make their economic decisions.
On the subject of security, last year, 16 former three- and four-star
generals and admirals who served on the CNA Corporation's Military
Advisory Board released a report, and 16 former three- and four-star
generals said that climate change is a catalyst for conflict. Climate
change, they said, will have an impact on military readiness, strain
base resilience both at home and abroad, and it may limit our ability
to respond to future demands.
We have rejected fast track before. After NAFTA, President Clinton
sent a fast-track bill to the Congress, and it didn't even have enough
votes to be taken up. The second time, it was rejected. When we had a
majority in the House, we did not have fast track for President Bush.
So, when people say this is the first time, it isn't so. Instead, under
the leadership of Mr. Levin and Mr. Rangel, we had the May 10 agreement
with the basic principles of how we should engage other countries. That
is part of--and thank you, Mr. President--what the TPA has as its
goals, but we were dealing bilaterally, one country at a time. This is
a multilateral agreement with 11 other countries--12 countries and
growing--and we need to slow this fast track down. I think it is
possible.
One of the questions that arises is the question of the trade
adjustment assistance. Most of us have not only voted for this but have
been champions of it over time. In speaking about myself again, it was
one of the first issues I dealt with when I came to the Congress. It is
really important, but as some of my colleagues have said, our people
would rather have a job than trade adjustment assistance. I talked
about that red-hot stove that people put their hands on when they go
home. Mr. Cicilline talked about his district, Mr. Norcross about his,
Mr. Boyle about his, and the list goes on and on. How do we say to
these people, ``We are here for you; you are our top priority'' when
the impression that they have is that this is not a good deal for them?
But it can be. I am hopeful that it can be. So, while I am a big
supporter of TAA, if TAA slows down the fast track, I am prepared to
vote against TAA because, then, its defeat, sad to say, is the only way
that we will be able to slow down the fast track.
Now, I understand there will be some manipulations here one way or
another as to what bill comes first and what can come up and what
can't, but the facts are these, actually: if TAA fails, the fast track
bill is stopped. They may take up the vote, as they said they would
not, but they have changed. They may take up the vote, but it doesn't
go anyplace. It is stuck in the station. And for that reason, because
the Senate has sent us the bill that way, connected--and if the fast
track passes, we will need TAA--sadly, I would vote against the TAA,
and I just wanted you to know where I was coming from on that.
For these and other reasons, I will be voting today to slow down the
fast track in order to get a better deal for the American people--
bigger paychecks, better infrastructure. Help the American people
fulfill the American Dream.
Again, I thank Mr. Levin for his leadership, and I thank all of our
colleagues who have worked so hard on this, really, on both sides of
the issue.
{time} 1315
Mr. RYAN of Wisconsin. How much time is remaining?
The SPEAKER pro tempore. The gentleman from Wisconsin has 3\1/2\
minutes remaining, and the gentleman from Michigan has 3 minutes
remaining.
Mr. RYAN of Wisconsin. Given that I have the right to close, I
reserve the balance of my time.
Mr. LEVIN. Mr. Speaker, I am ready to close, and I yield myself the
balance of my time.
Today the votes on TAA and TPA are combined, and we did not do that.
The Republicans did so to win votes for TPA, so they used TAA as a
bargaining chip. I don't support their doing so, as someone who has
been a lead sponsor of TAA. Voting ``no'' on TAA gives us a better
chance to get all of these issues right.
Throughout my career, I have voted on lots of trade agreements, and I
have voted for most of them. I negotiated a few of them when USTR would
not do so. As mentioned, we Democrats are responsible for the labor and
environmental standards and, very importantly, access to medicines that
we worked out with difficulty also on May 10. So we Democrats built the
foundation, and we don't want to see it eroded. Language in bills isn't
enough; it is what will happen in terms of the implementation of that
language.
I want to say just a few words about jobs, because it is often said
we have lost those jobs, they have gone away, so, therefore, don't
worry. There are millions of jobs in this country that are in danger of
being lost if we don't do trade right. That is why we need to do it
right. I think TPA essentially puts TPP on a fast track when it is on
the wrong track. It is on the wrong track. There are negotiating
objectives, but they are so vague, they don't really mean anything.
We put forth a very, very important alternative, a substitute bill
that laid out instructions on each of these 10 or 11 issues, whether it
was workers' rights--I can go down the list--currency, environment,
investment, access to medicines, automotive market access, rules of
origin, tobacco controls, state-owned enterprises, agricultural market
access, food safety. There has been a response to none of these.
So as someone who believes in expanded trade, we have to do better,
and to fast-track TPA is on the wrong track. I urge a ``no'' vote on
all of these bills.
I yield back the balance of my time.
Mr. RYAN of Wisconsin. Mr. Speaker, I yield myself the balance of my
time.
I make two points. This is about bringing transparency and
accountability to government. We are not considering a trade agreement
today. We are considering a process by which we consider trade
agreements. That is what trade promotion authority is. In this process,
we are saying you have got to let Members of Congress see the
negotiating text, you have got to let the country see a trade agreement
once an agreement is reached, and you have got to follow Congress'
rules, Congress' direction. That is what this does to make sure that
the executive branch follows the track laid out by the legislative
branch. The bigger point is this: this is about jobs; it is about
income, take-home pay, American leadership.
Mr. Speaker, the world is watching us right now. They are watching
this vote. Since TPA lapsed in 2007, the rest of the world kept going.
While America stood still on trade, the rest of the world created 100
trade agreements, negotiated and passed 100 trade agreements, to which
the United States was a party to zero of them. What this means is other
countries are going around the world getting better agreements between
other countries, lower tariffs, lower nontariff barriers, so their
trade grows, and as a result the barriers against American products go
higher.
Ninety-five percent of the world's consumers don't live here; they
live in
[[Page H4333]]
other countries. If we want good jobs and good wages, we need to make
and grow more things in America and sell them overseas. What is
happening is, every single day we do nothing to open these markets up,
we lose, and the rest of the world gets those jobs.
The last point is a point that I think people don't appreciate as
well. We are in the dawn of the 21st century with enormous issues:
cyber threats, intellectual property, you name it. The rule book on how
the global economy works is being written right now. The only way for
us to be in the game to write that rule book is through trade
agreements: get other countries to agree to our rules, get other
countries to agree to our standards, open their markets to our
products. That is how we write the rules for the global economy. That
is how America leads.
A ``no'' vote is to say America can't even try. A ``yes'' vote is to
say more transparency, more accountability. Then Congress decides, and
we are giving America a chance to stay in the leading position in the
world. That is why I argue for a ``yes,'' ``yes,'' ``yes'' vote.
I want to thank everyone on the staff of the Ways and Means Trade
Subcommittee.
Our staff director, Angela Ellard, Geoff Antell, Stephen Claeys,
Nasim, Neena Shenai, Casey Higgins, Paul Guaglianone.
Mr. Speaker, I yield back the balance of my time.
Mr. GENE GREEN of Texas. Mr. Speaker, I rise in strong opposition to
fast track authority and the Trade Act of 2015. Passage of this
legislation today will undermine Congress's constitutional authority to
regulate trade and, I fear, accelerate the de-industrialization of our
great country.
The Constitution is very clear that it is Congress, and Congress
alone, that has the power to ``regulate commerce with foreign
nations.'' Passage of fast track, which grants the Executive Branch
authority over how and when legislation must be considered by Congress,
undermines our chamber's very ability to effectively regulate foreign
commerce.
I share the concerns of many Members and middle class families in
Texas and around the country about the Trans-Pacific Partnership--TPP--
this mega-trade deal we are negotiating with Japan, Vietnam, and other
countries.
To this date, Congress has been left in the dark as to what's in TPP,
let alone made public to the American people. We are told that TPP will
help American businesses export billions of dollars of manufactured and
services each year and has labor and environmental protections that all
countries will have to abide by. But we simply don't know because we
haven't seen the text.
What I do know is that these so-called free trade deals have
displaced millions of middle class jobs to developing countries over
the past 20 years.
Our district in Houston and Harris County, Texas saw first-hand the
consequences of free trade when five plants moved to Mexico in the
years immediately after we joined NAFTA.
If TPP benefits the American people as much its supporters say, it
doesn't need fast track. It can--and should--be considered under
regular order and give Congress and the American people the time to
debate the merits of this trade agreement, the largest our country has
ever negotiated.
Mr. Speaker, I call on Members from both sides of the aisle to stand
with America's working families and small businesses and to vote no on
fast track.
The SPEAKER pro tempore. All time for debate has expired.
Pursuant to clause 1(c) of rule XIX, further consideration of the
motion to concur with an amendment is postponed.
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