[Congressional Record Volume 161, Number 178 (Wednesday, December 9, 2015)]
[House]
[Pages H9104-H9173]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




CONFERENCE REPORT ON H.R. 644, TRADE FACILITATION AND TRADE ENFORCEMENT 
                              ACT OF 2015

  Mr. BRADY of Texas submitted the following conference report and 
statement on the bill (H.R. 644) to reauthorize trade facilitation and 
trade enforcement functions and activities, and for other purposes:

               Conference Report (To Accompany H.R. 644)

       The committee of conference on the disagreeing votes of the 
     two Houses on the amendment of the House to the amendment of 
     the Senate to the bill (H.R. 644), to reauthorize trade 
     facilitation and trade enforcement functions and activities, 
     and for other purposes, having met, after full and free 
     conference, have agreed to recommend and do recommend to 
     their respective Houses as follows:
       That the Senate recede from its disagreement to the 
     amendment of the House to the amendment of the Senate and 
     agree to the same with an amendment as follows:
       In lieu of the matter proposed to be inserted by the House 
     amendment, 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 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.

[[Page H9105]]

Sec. 114. Importer of record program.
Sec. 115. Establishment of importer risk assessment program.
Sec. 116. Customs broker identification of importers.
Sec. 117. Priority trade issues.
Sec. 118. 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 investigating claims of evasion of antidumping 
              and countervailing duty orders.

                       Subtitle C--Other Matters

Sec. 431. Allocation and training of personnel.
Sec. 432. Annual report on prevention and investigation of evasion of 
              antidumping and countervailing duty orders.
Sec. 433. Addressing circumvention by new shippers.

   TITLE V--SMALL BUSINESS TRADE ISSUES AND STATE TRADE COORDINATION

Sec. 501. Short title.
Sec. 502. Outreach and input from small businesses to trade promotion 
              authority.
Sec. 503. State Trade Expansion Program.
Sec. 504. State and Federal Export Promotion Coordination.
Sec. 505. State trade coordination.

              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.
Sec. 604. Establishment of Interagency Center on Trade Implementation, 
              Monitoring, and Enforcement.
Sec. 605. Inclusion of interest in certain distributions of antidumping 
              duties and countervailing duties.
Sec. 606. Illicitly imported, exported, or trafficked cultural 
              property, archaeological or ethnological materials, and 
              fish, wildlife, and plants.
Sec. 607. Enforcement under title III of the Trade Act of 1974 with 
              respect to certain acts, policies, and practices.
Sec. 608. Honey transshipment.
Sec. 609. Establishment of Chief Innovation and Intellectual Property 
              Negotiator.
Sec. 610. Measures relating to countries that deny adequate protection 
              for intellectual property rights.
Sec. 611. Trade Enforcement Trust Fund.

 TITLE VII--ENGAGEMENT ON CURRENCY EXCHANGE RATE AND ECONOMIC POLICIES

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--MATTERS RELATING TO U.S. CUSTOMS AND BORDER PROTECTION

    Subtitle A--Establishment of U.S. Customs and Border Protection

Sec. 801. Short title.
Sec. 802. Establishment of U.S. Customs and Border Protection.

                  Subtitle B--Preclearance Operations

Sec. 811. Short title.
Sec. 812. Definitions.
Sec. 813. Establishment of preclearance operations.
Sec. 814. Notification and certification to Congress.
Sec. 815. Protocols.
Sec. 816. Lost and stolen passports.
Sec. 817. Recovery of initial U.S. Customs and Border Protection 
              preclearance operations costs.
Sec. 818. Collection and disposition of funds collected for immigration 
              inspection services and preclearance activities.
Sec. 819. Application to new and existing preclearance operations.

                   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. Report on certain U.S. Customs and Border Protection 
              agreements.
Sec. 908. Charter flights.
Sec. 909. United States-Israel trade and commercial enhancement.
Sec. 910. Elimination of consumptive demand exception to prohibition on 
              importation of goods made with convict labor, forced 
              labor, or indentured labor; report.
Sec. 911. Voluntary reliquidations by U.S. Customs and Border 
              Protection.
Sec. 912. Tariff classification of recreational performance outerwear.
Sec. 913. Modifications to duty treatment of protective active 
              footwear.
Sec. 914. Amendments to Bipartisan Congressional Trade Priorities and 
              Accountability Act of 2015.
Sec. 915. Trade preferences for Nepal.
Sec. 916. Agreement by Asia-Pacific Economic Cooperation members to 
              reduce rates of duty on certain environmental goods.
Sec. 917. Amendment to Tariff Act of 1930 to require country of origin 
              marking of certain castings.
Sec. 918. Inclusion of certain information in submission of nomination 
              for appointment as Deputy United States Trade 
              Representative.
Sec. 919. Sense of Congress on the need for a miscellaneous tariff bill 
              process.
Sec. 920. Customs user fees.
Sec. 921. Increase in penalty for failure to file return of tax.
Sec. 922. Permanent moratorium on Internet access taxes and on multiple 
              and discriminatory taxes on electronic commerce.

     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) Commercial operations of u.s. customs and border 
     protection.--The term ``commercial operations of U.S. Customs 
     and Border Protection'' includes--
       (A) administering any customs revenue function (as defined 
     in section 415 of the Homeland Security Act of 2002 (6 U.S.C. 
     215));
       (B) coordinating efforts of the Department of Homeland 
     Security with respect to trade facilitation and trade 
     enforcement;
       (C) coordinating with the Director of U.S. Immigration and 
     Customs Enforcement with respect to--
       (i) investigations relating to trade enforcement; and
       (ii) the development and implementation of the joint 
     strategic plan required by section 105;
       (D) coordinating, on behalf of the Department of Homeland 
     Security, efforts among Federal agencies to facilitate 
     legitimate trade and to enforce the customs and trade laws of 
     the United States, including representing the Department of 
     Homeland Security in interagency fora addressing such 
     efforts;
       (E) coordinating with customs authorities of foreign 
     countries to facilitate legitimate international trade and 
     enforce the customs and trade laws of the United States and 
     the customs and trade laws of foreign countries;
       (F) collecting, assessing, and disseminating information as 
     appropriate and in accordance with any law regarding cargo 
     destined for the United States--
       (i) to ensure that such cargo complies with the customs and 
     trade laws of the United States; and
       (ii) to facilitate the legitimate international trade of 
     such cargo;
       (G) soliciting and considering on a regular basis input 
     from private sector entities, including the Commercial 
     Customs Operations Advisory Committee established by section 
     109 and the Trade Support Network, with respect to, as 
     appropriate--
       (i) the implementation of changes to the customs and trade 
     laws of the United States; and
       (ii) the development, implementation, or revision of 
     policies or regulations administered by U.S. Customs and 
     Border Protection; and
       (H) otherwise advising the Secretary of Homeland Security 
     with respect to the development of

[[Page H9106]]

     policies associated with facilitating legitimate trade and 
     enforcing the customs and trade laws of the United States.
       (3) 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 amended by section 802(a) of this Act.
       (4) 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 Act of June 18, 1934 (48 Stat. 998, chapter 590; 19 
     U.S.C. 81a et seq.; commonly known as the ``Foreign Trade 
     Zones Act'').
       (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. 2101 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. 1262, chapter 566).
       (X) The Bipartisan Congressional Trade Priorities and 
     Accountability Act of 2015 (Public Law 114-26; 19 U.S.C. 4201 
     et seq.).
       (Y) The Trade Preferences Extension Act of 2015 (Public Law 
     114-27; 129 Stat. 362).
       (Z) Any other provision of law implementing a trade 
     agreement.
       (AA) Any other provision of law vesting customs revenue 
     functions in the Secretary of the Treasury.
       (BB) 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 established under section 411(d) of the 
     Tariff Act of 1930 (19 U.S.C. 1411(d)).
       (CC) Any other provision of customs or trade law 
     administered by U.S. Customs and Border Protection or U.S. 
     Immigration and Customs Enforcement.
       (5) 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.
       (6) Trade enforcement.--The term ``trade enforcement'' 
     means the enforcement of the customs and trade laws of the 
     United States.
       (7) 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 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 
     established under section 411(d) of the Tariff Act of 1930 
     (19 U.S.C. 1411(d));
       (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 such partnership programs;
       (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 partnership 
     programs; and
       (9) summarizes the plans, targets, and goals of U.S. 
     Customs and Border Protection with respect to such 
     partnership 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;
       (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 section 
     117, including--
       (A) methodologies used in such enforcement activities, such 
     as targeting;

[[Page H9107]]

       (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 
     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 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 
     117.
       (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 or performance standards 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) Establishment.--The Commissioner and the Director shall 
     establish and carry out on a fiscal year basis educational 
     seminars to--
       (1) improve the ability of personnel of U.S. Customs and 
     Border Protection to classify and appraise articles imported 
     into the United States in accordance with the customs and 
     trade laws of the United States;
       (2) improve the trade enforcement efforts of personnel of 
     U.S. Customs and Border Protection and personnel of U.S. 
     Immigration and Customs Enforcement; and
       (3) otherwise improve the ability and effectiveness of 
     personnel of U.S. Customs and Border Protection and personnel 
     of U.S. Immigration and Customs Enforcement to facilitate 
     legitimate international trade.
       (b) Content.--
       (1) Classifying and appraising imported articles.--In 
     carrying out subsection (a)(1), 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 
     carried out under this section to personnel of U.S. Customs 
     and Border Protection and, as appropriate, to personnel of 
     U.S. Immigration and Customs Enforcement 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)(2), 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 carried out under this section to 
     personnel of U.S. Customs and Border Protection and, as 
     appropriate, to personnel of U.S. Immigration and Customs 
     Enforcement 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 carried out 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 carried out 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 
     personnel of U.S. Customs and Border Protection 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 
     carried out under this section.
       (f) Reporting.--Not later than September 30, 2016, and 
     annually thereafter, the Commissioner and the Director shall 
     submit to the appropriate congressional committees a report 
     on the effectiveness of educational seminars carried out 
     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 multiyear 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 117 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 at 
     educational seminars carried out 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;

[[Page H9108]]

       (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. Immigration and Customs Enforcement shall 
     consult with--
       (A) appropriate officials from 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.
       (d) Form of Plan.--The joint strategic plan required under 
     this section 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.--
       (1) In general.--Not later than December 31, 2016, 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 a report detailing--
       (A) 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 not later than September 30, 2016, to conform 
     with the admissibility criteria of agencies participating in 
     the International Trade Data System identified pursuant to 
     paragraph (4)(A)(iii) of section 411(d) of the Tariff Act of 
     1930 (19 U.S.C. 1411(d)), as added by section 107 of this 
     Act;
       (B) 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, and 
     the objectives and plans for implementing these remaining 
     priorities;
       (C) the components of the National Customs Automation 
     Program specified in section 411(a)(2) of the Tariff Act of 
     1930 that have not been implemented; and
       (D) 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.
       (2) 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 paragraph (1), 
     and--
       (A) evaluating the effectiveness of the implementation of 
     the Automated Commercial Environment; and
       (B) detailing the percentage of trade processed in the 
     Automated Commercial Environment every month since September 
     30, 2016.
       (3) Repeal.--Section 311(b) of the Customs Border Security 
     Act of 2002 (19 U.S.C. 2075 note) is amended by striking 
     paragraph (3).
       (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 
     subparagraphs (A) through (D) of subsection (b)(1) 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 
     would compromise 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 with the appropriate congressional committees--
       (1) not later than 30 days before initiating negotiations 
     to enter into any such arrangement or similar agreement; and
       (2) not later than 30 days before entering into any such 
     arrangement or similar agreement.
       (b) Negotiating Objective.--It shall be a negotiating 
     objective of the United States in any negotiation for a 
     mutual recognition arrangement or similar agreement 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, 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.

[[Page H9109]]

     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.--Notwithstanding section 10(f) of the Federal 
     Advisory Committee Act (5 U.S.C. App.), 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.
       (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 
     under 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 117, 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 
     117, 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, in coordination with the Office of 
     Trade established under section 4 of the Act of March 3, 1927 
     (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), as 
     added by section 802(h) of this Act, as appropriate, 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 117; 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, the Automated 
     Targeting System, the Automated Export System, the 
     International Trade Data System established under section 
     411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)), 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;
       (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 
     with respect to merchandise relating to the priority trade 
     issues described in section 117; and
       (4) notify, on a timely basis, each interested party in the 
     private sector that has submitted an allegation of any 
     violation of the customs and trade laws of the United States 
     of any civil or criminal actions taken by U.S. Customs and 
     Border Protection or any other Federal agency resulting from 
     the allegation.
       (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 of the United States 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 the director--
       (A) 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 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 calendar 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 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 of the United States 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 than June 30, 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

[[Page H9110]]

     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 section, 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 IMPORTER RISK ASSESSMENT 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 program that directs U.S. Customs and 
     Border Protection to adjust bond amounts for importers, 
     including new importers and nonresident importers, based on 
     risk assessments of such importers conducted by U.S. Customs 
     and Border Protection, in order to protect the revenue of the 
     Federal Government.
       (b) Requirements.--The Commissioner shall ensure that, as 
     part of the program established under subsection (a), U.S. 
     Customs and Border Protection--
       (1) develops risk assessment guidelines for importers, 
     including new importers and nonresident importers, to 
     determine if and to what extent--
       (A) to adjust bond amounts of imported products of such 
     importers; and
       (B) to increase screening of imported products of such 
     importers;
       (2) develops procedures to ensure increased oversight of 
     imported products of new importers, including nonresident 
     importers, relating to the enforcement of the priority trade 
     issues described in section 117;
       (3) develops procedures to ensure increased oversight of 
     imported products of new importers, including new nonresident 
     importers, by Centers of Excellence and Expertise established 
     under section 110; and
       (4) establishes a centralized database of new importers, 
     including new nonresident importers, to ensure accuracy of 
     information that is required to be provided by such importers 
     to U.S. Customs and Border Protection.
       (c) Exclusion of Certain Importers.--This section shall not 
     apply to an importer that 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 Security and Accountability for Every Port Act of 2006 (6 
     U.S.C. 961 et seq.).
       (d) Report.--Not later than the date that is 2 years after 
     the date of the enactment of this Act, 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 
     detailing--
       (1) the risk assessment guidelines developed under 
     subsection (b)(1);
       (2) the procedures developed under subsection (b)(2) to 
     ensure increased oversight of imported products of new 
     importers, including new nonresident importers, relating to 
     the enforcement of priority trade issues described in section 
     117;
       (3) the procedures developed under subsection (b)(3) to 
     ensure increased oversight of imported products of new 
     importers, including new nonresident importers, by Centers of 
     Excellence and Expertise established under section 110; and
       (4) the number of bonds adjusted based on the risk 
     assessment guidelines developed under subsection (b)(1).
       (e) Definitions.--In this section:
       (1) Importer.--The term ``importer'' means one of the 
     parties qualifying as an importer of record under section 
     484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
     1484(a)(2)(B)).
       (2) Nonresident importer.--The term ``nonresident 
     importer'' means an importer who is--
       (A) an individual who is not a citizen of the United States 
     or an alien lawfully admitted for permanent residence in the 
     United States; or
       (B) a partnership, corporation, or other commercial entity 
     that is not organized under the laws of a jurisdiction within 
     the customs territory of the United States (as such term is 
     defined in General Note 2 of the Harmonized Tariff Schedule 
     of the United States) or in the Virgin Islands of the United 
     States.

     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 required under 
     paragraph (1) shall, at a minimum--
       ``(A) identify the information that an importer, including 
     a nonresident importer, is required to submit to a broker and 
     that a broker is required to collect in order to verify the 
     identity of the importer;
       ``(B) identify reasonable procedures that a broker is 
     required to follow in order to verify the authenticity of 
     information collected from an importer; and
       ``(C) require a broker to maintain records of the 
     information collected by the broker to verify the identity of 
     an importer.
       ``(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 
     shall be subject to revocation or suspension of a license or 
     permit of the customs broker pursuant to the procedures set 
     forth in subsection (d). This penalty shall be assessed in 
     the same manner and under the same procedures as the monetary 
     penalties provided for in subsection (d)(2)(A).
       ``(4) Definitions.--In this subsection:

[[Page H9111]]

       ``(A) Importer.--The term `importer' means one of the 
     parties qualifying as an importer of record under section 
     484(a)(2)(B).
       ``(B) Nonresident importer.--The term `nonresident 
     importer' means an importer who is--
       ``(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 the date 
     that is 180 days after the date of the enactment of this Act, 
     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 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. 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)(A) in the case of new priority trade issues, submits to 
     the appropriate congressional committees a summary of 
     proposals to establish such new priority trade issues not 
     later than 30 days after such new priority trade issues are 
     to take effect; and
       (B) in the case of existing priority trade issues, submits 
     to the appropriate congressional committees a summary of 
     proposals to eliminate, consolidate, or otherwise modify such 
     existing priority trade issues not later than 60 days before 
     such changes are to take effect.

     SEC. 118. 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 Governmental 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 into the 
     United States and the expeditious entry of such merchandise, 
     including--
       (A) minimizing the duplication of efforts among Federal 
     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;
       (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

[[Page H9112]]

     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 at the end 
     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 subsection (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 to 
     be established and maintained by the Commissioner. The 
     Commissioner shall publish notice of the establishment of and 
     revisions to the list in the Federal Register.
       (3) Regulations.--Not later than the date that is 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--
       (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

[[Page H9113]]

     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 September 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. 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 Trade established under section 4 of the Act of March 3, 
     1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), as 
     added by section 802(h) of this Act, 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 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 ``Enforce and Protect Act of 
     2015''.

     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 (19 U.S.C. 1671e); or
       (B) an antidumping duty order issued under section 736 of 
     the Tariff Act of 1930 (19 U.S.C. 1673e).
       (3) Eligible small business.--
       (A) In general.--The term ``eligible small business'' means 
     any business concern that, in the judgment of the 
     Commissioner, 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, 
     of merchandise 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 (19 U.S.C. 1671 et 
     seq.).

     SEC. 403. APPLICATION TO CANADA AND MEXICO.

       Pursuant to article 1902 of the North American Free Trade 
     Agreement and section 408 of

[[Page H9114]]

     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 Trade established 
     under section 4 of the Act of March 3, 1927 (44 Stat. 1381, 
     chapter 348; 19 U.S.C. 2071 et seq.), as added by section 
     802(h) of this Act, a Trade Remedy Law Enforcement Division.
       (2) Composition.--The Trade Remedy Law Enforcement Division 
     shall be composed of--
       (A) headquarters personnel led by a Director, who shall 
     report to the Executive Assistant Commissioner of the Office 
     of 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, including policies relating to 
     the implementation of section 517 of the Tariff Act of 1930, 
     as added by section 421 of this Act;
       (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 Federal 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 activities 
     concerning evasion, including activities relating to 
     investigations conducted under section 517 of the Tariff Act 
     of 1930, as added by section 421 of this Act, which include--
       (A) receiving allegations of evasion from parties, 
     including allegations described in section 517(b)(2) of the 
     Tariff Act of 1930, as so added;
       (B) upon request by the party or parties that submitted 
     such an allegation of evasion, providing 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, requesting from the party or parties that 
     submitted such 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) notifying 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, providing technical assistance and advice 
     to eligible small businesses to enable such businesses to 
     prepare and submit such an allegation of evasion, except that 
     the Director may deny technical 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 established under section 109, 
     the Trade Support Network, and any other relevant parties and 
     organizations, developing guidelines on the types and nature 
     of information that may be provided in such an allegation of 
     evasion; and
       (G) consulting regularly 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, the Automated 
     Targeting System, the Automated Export System, the 
     International Trade Data System established under section 
     411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)), and the 
     TECS (formerly known as the ``Treasury Enforcement 
     Communications System''), 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--
       (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) Use of adverse inference.--
       (A) In general.--If the Secretary finds that a person 
     described in subparagraph (B) has failed to cooperate by not 
     acting to the best of the person's ability to comply with a 
     request for information under subsection (a), 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.
       (B) Person described.--A person described in this 
     subparagraph is--
       (i) a person who filed an allegation with respect to 
     covered merchandise;
       (ii) a person alleged to have entered covered merchandise 
     into the customs territory of the United States through 
     evasion; or
       (iii) a foreign producer or exporter of covered merchandise 
     that is alleged to have entered into the customs territory of 
     the United States through evasion.
       (C) Application.--An inference described in subparagraph 
     (A) may be used under that subparagraph with respect to a 
     person described in clause (ii) or (iii) of subparagraph (B) 
     without regard to whether another person involved in the same 
     transaction or transactions under examination has provided 
     the information sought by the Secretary, such as import or 
     export documentation.
       (2) Adverse inference described.--An adverse inference used 
     under paragraph (1)(A) 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

[[Page H9115]]

     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 calendar 
     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 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 of U.S. Customs and Border Protection.
       ``(3) Covered merchandise.--The term `covered merchandise' 
     means merchandise that is subject to--
       ``(A) an antidumping duty order issued under section 736; 
     or
       ``(B) 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 into 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 foreign manufacturer, producer, or exporter, or the 
     United States importer, of covered merchandise or a trade or 
     business association a majority of the members of which are 
     producers, exporters, or importers of such merchandise;
       ``(ii) a manufacturer, producer, or wholesaler in the 
     United States of a domestic like product;
       ``(iii) 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;
       ``(iv) a trade or business association a majority of the 
     members of which manufacture, produce, or wholesale a 
     domestic like product in the United States;
       ``(v) an association a majority of the members of which is 
     composed of interested parties described in clause (ii), 
     (iii), or (iv) with respect to a domestic like product; and
       ``(vi) 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.

       ``(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 15 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) Consideration by administering authority.--
       ``(A) In general.--If the Commissioner receives an 
     allegation under paragraph (2) and is unable to determine 
     whether the merchandise at issue is covered merchandise, the 
     Commissioner shall--
       ``(i) refer the matter to the administering authority to 
     determine whether the merchandise is covered merchandise 
     pursuant to the authority of the administering authority 
     under title VII; and
       ``(ii) notify the party that filed the allegation, and any 
     other interested party participating in the investigation, of 
     the referral.
       ``(B) Determination; transmission to commissioner.--After 
     receiving a referral under subparagraph (A)(i) with respect 
     to merchandise, the administering authority shall determine 
     whether the merchandise is covered merchandise and promptly 
     transmit that determination to the Commissioner.
       ``(C) Stay of deadlines.--The period required for any 
     referral and determination under this paragraph shall not be 
     counted in calculating any deadline under this section.
       ``(D) Rule of construction.--Nothing in this paragraph 
     shall be construed to affect the authority of an interested 
     party to commence an action in the United States Court of 
     International Trade under section 516A(a)(2) with respect to 
     a determination of the administering authority under this 
     paragraph.
       ``(5) 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.
       ``(6) 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.
       ``(7) Technical assistance and advice.--
       ``(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 technical assistance if the 
     Commissioner concludes that the allegation, if

[[Page H9116]]

     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) Determination of evasion.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     not later than 300 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.
       ``(B) Additional time.--The Commissioner may extend the 
     time to make a determination under subparagraph (A) by not 
     more than 60 calendar days if the Commissioner determines 
     that--
       ``(i) the investigation is extraordinarily complicated 
     because of--

       ``(I) the number and complexity of the transactions to be 
     investigated;
       ``(II) the novelty of the issues presented; or
       ``(III) the number of entities to be investigated; and

       ``(ii) additional time is necessary to make the 
     determination under subparagraph (A).
       ``(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.--
       ``(A) In general.--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.
       ``(B) Application.--An inference described in subparagraph 
     (A) may be used under that subparagraph with respect to a 
     person described in clause (ii) or (iii) of paragraph (2)(A) 
     without regard to whether another person involved in the same 
     transaction or transactions under examination has provided 
     the information sought by the Commissioner, such as import or 
     export documentation.
       ``(C) Adverse inference described.--An adverse inference 
     used under subparagraph (A) may include reliance on 
     information derived from--
       ``(i) the allegation of evasion of the trade remedy laws, 
     if any, submitted to U.S. Customs and Border Protection;
       ``(ii) a determination by the Commissioner in another 
     investigation, proceeding, or other action regarding evasion 
     of the unfair trade laws; or
       ``(iii) any other available information.
       ``(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 rule sets for 
     identifying, particularly through the Automated Targeting 
     System and the Automated Commercial Environment authorized 
     under section 13031(f)(4) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)), 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

[[Page H9117]]

     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 seek judicial review 
     of the determination under subsection (c) and the review 
     under subsection (f) in the United States Court of 
     International Trade to determine whether the determination 
     and review is conducted in accordance with subsections (c) 
     and (f).
       ``(2) Standard of review.--In determining whether a 
     determination under subsection (c) or review under subsection 
     (f) is conducted in accordance with those subsections, the 
     United States Court of International Trade shall examine--
       ``(A) whether the Commissioner fully complied with all 
     procedures under subsections (c) and (f); and
       ``(B) whether any determination, finding, or conclusion is 
     arbitrary, capricious, an abuse of discretion, or otherwise 
     not in accordance with law.
       ``(3) Rule of construction.--Nothing in this subsection 
     shall affect the availability of judicial review to an 
     interested party under any other provision of law.
       ``(h) Rule of Construction With Respect to Other Civil and 
     Criminal Proceedings and Investigations.--No determination 
     under subsection (c), review under subsection (f), or action 
     taken by the Commissioner pursuant to this section shall 
     preclude any individual or entity from proceeding, or 
     otherwise affect or limit the authority of any individual or 
     entity to proceed, with any civil, criminal, or 
     administrative investigation or proceeding 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''.
       (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 
     shall prescribe such regulations as may be necessary to 
     implement the amendments made by this section.

                       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 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, 
     including allegations received under subsection (b) of 
     section 517 of the Tariff Act of 1930, as added by section 
     421 of this Act, and the number of such allegations resulting 
     in investigations by U.S. Customs and Border Protection or 
     any other Federal agency;
       (C) a summary of investigations initiated, including 
     investigations initiated under subsection (b) of such section 
     517, including--
       (i) the number and nature of the investigations initiated, 
     conducted, or completed; and
       (ii) the resolution of each completed investigation;
       (D) 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;
       (E) with respect to each such investigation that led to the 
     imposition of a penalty, the amount of the penalty;
       (F) 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;
       (G) 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 Federal 
     agency;
       (H) 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
       (I) 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 
     421 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.

     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) by inserting after clause (iii), as redesignated by 
     paragraph (2) of this section, the following:
       ``(iv) Determinations based on bona fide 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.''.

   TITLE V--SMALL BUSINESS TRADE ISSUES AND STATE TRADE COORDINATION

     SECTION 501. SHORT TITLE.

       This title may be cited as the ``Small Business Trade 
     Enhancement Act of 2015'' or the ``State Trade Coordination 
     Act''.

     SEC. 502. OUTREACH AND INPUT FROM SMALL BUSINESSES TO TRADE 
                   PROMOTION AUTHORITY.

       Section 203 of Public Law 94-305 (15 U.S.C. 634c) is 
     amended--
       (1) in the matter preceding paragraph (1), by striking 
     ``The Office of Advocacy'' and inserting the following:
       ``(a) In General.--The Office of Advocacy''; and
       (2) by adding at the end the following:
       ``(b) Outreach and Input From Small Businesses on Trade 
     Promotion Authority.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `agency' has the meaning given the term in 
     section 551 of title 5, United States Code;
       ``(B) the term `Chief Counsel for Advocacy' means the Chief 
     Counsel for Advocacy of the Small Business Administration;

[[Page H9118]]

       ``(C) the term `covered trade agreement' means a trade 
     agreement being negotiated pursuant to section 103(b) of the 
     Bipartisan Congressional Trade Priorities and Accountability 
     Act of 2015 (Public Law 114-26; 19 U.S.C. 4202(b)); and
       ``(D) the term `Working Group' means the Interagency 
     Working Group convened under paragraph (2)(A).
       ``(2) Working group.--
       ``(A) In general.--Not later than 30 days after the date on 
     which the President submits the notification required under 
     section 105(a) of the Bipartisan Congressional Trade 
     Priorities and Accountability Act of 2015 (Public Law 114-26; 
     19 U.S.C. 4204(a)), the Chief Counsel for Advocacy shall 
     convene an Interagency Working Group, which shall consist of 
     an employee from each of the following agencies, as selected 
     by the head of the agency or an official delegated by the 
     head of the agency:
       ``(i) The Office of the United States Trade Representative.
       ``(ii) The Department of Commerce.
       ``(iii) The Department of Agriculture.
       ``(iv) Any other agency that the Chief Counsel for 
     Advocacy, in consultation with the United States Trade 
     Representative, determines to be relevant with respect to the 
     subject of the covered trade agreement.
       ``(B) Views of small businesses.--Not later than 30 days 
     after the date on which the Chief Counsel for Advocacy 
     convenes the Working Group under subparagraph (A), the Chief 
     Counsel for Advocacy shall identify a diverse group of small 
     businesses, representatives of small businesses, or a 
     combination thereof, to provide to the Working Group the 
     views of small businesses in the manufacturing, services, and 
     agriculture industries on the potential economic effects of 
     the covered trade agreement.
       ``(3) Report.--
       ``(A) In general.--Not later than 180 days after the date 
     on which the Chief Counsel for Advocacy convenes the Working 
     Group under paragraph (2)(A), the Chief Counsel for Advocacy 
     shall submit to the Committee on Small Business and 
     Entrepreneurship and the Committee on Finance of the Senate 
     and the Committee on Small Business and the Committee on Ways 
     and Means of the House of Representatives a report on the 
     economic impacts of the covered trade agreement on small 
     businesses, which shall--
       ``(i) identify the most important priorities, 
     opportunities, and challenges to various industries from the 
     covered trade agreement;
       ``(ii) assess the impact for new small businesses to start 
     exporting, or increase their exports, to markets in countries 
     that are parties to the covered trade agreement;
       ``(iii) analyze the competitive position of industries 
     likely to be significantly affected by the covered trade 
     agreement;
       ``(iv) identify--

       ``(I) any State-owned enterprises in each country 
     participating in negotiations for the covered trade agreement 
     that could pose a threat to small businesses; and
       ``(II) any steps to take to create a level playing field 
     for those small businesses;

       ``(v) identify any rule of an agency that should be 
     modified to become compliant with the covered trade 
     agreement; and
       ``(vi) include an overview of the methodology used to 
     develop the report, including the number of small business 
     participants by industry, how those small businesses were 
     selected, and any other factors that the Chief Counsel for 
     Advocacy may determine appropriate.
       ``(B) Delayed submission.--To ensure that negotiations for 
     the covered trade agreement are not disrupted, the President 
     may require that the Chief Counsel for Advocacy delay 
     submission of the report under subparagraph (A) until after 
     the negotiations for the covered trade agreement are 
     concluded, provided that the delay allows the Chief Counsel 
     for Advocacy to submit the report to Congress not later than 
     45 days before the Senate or the House of Representatives 
     acts to approve or disapprove the covered trade agreement.
       ``(C) Avoidance of duplication.--The Chief Counsel for 
     Advocacy shall, to the extent practicable, coordinate the 
     submission of the report under this paragraph with the United 
     States International Trade Commission, the United States 
     Trade Representative, other agencies, and trade advisory 
     committees to avoid unnecessary duplication of reporting 
     requirements.''.

     SEC. 503. STATE TRADE EXPANSION PROGRAM.

       Section 22 of the Small Business Act (15 U.S.C. 649) is 
     amended--
       (1) by redesignating subsection (l) as subsection (m); and
       (2) by inserting after subsection (k) the following:
       ``(l) State Trade Expansion Program.--
       ``(1) Definitions.--In this subsection--
       ``(A) the term `eligible small business concern' means a 
     business concern that--
       ``(i) is organized or incorporated in the United States;
       ``(ii) is operating in the United States;
       ``(iii) meets--

       ``(I) the applicable industry-based small business size 
     standard established under section 3; or
       ``(II) the alternate size standard applicable to the 
     program under section 7(a) of this Act and the loan programs 
     under title V of the Small Business Investment Act of 1958 
     (15 U.S.C. 695 et seq.);

       ``(iv) has been in business for not less than 1 year, as of 
     the date on which assistance using a grant under this 
     subsection commences; and
       ``(v) has access to sufficient resources to bear the costs 
     associated with trade, including the costs of packing, 
     shipping, freight forwarding, and customs brokers;
       ``(B) the term `program' means the State Trade Expansion 
     Program established under paragraph (2);
       ``(C) the term `rural small business concern' means an 
     eligible small business concern located in a rural area, as 
     that term is defined in section 1393(a)(2) of the Internal 
     Revenue Code of 1986;
       ``(D) the term `socially and economically disadvantaged 
     small business concern' has the meaning given that term in 
     section 8(a)(4)(A) of the Small Business Act (15 U.S.C. 
     637(a)(4)(A)); and
       ``(E) the term `State' means each of the several States, 
     the District of Columbia, the Commonwealth of Puerto Rico, 
     the Virgin Islands, Guam, the Commonwealth of the Northern 
     Mariana Islands, and American Samoa.
       ``(2) Establishment of program.--The Associate 
     Administrator shall establish a trade expansion program, to 
     be known as the `State Trade Expansion Program', to make 
     grants to States to carry out programs that assist eligible 
     small business concerns in--
       ``(A) participation in foreign trade missions;
       ``(B) a subscription to services provided by the Department 
     of Commerce;
       ``(C) the payment of website fees;
       ``(D) the design of marketing media;
       ``(E) a trade show exhibition;
       ``(F) participation in training workshops;
       ``(G) a reverse trade mission;
       ``(H) procurement of consultancy services (after 
     consultation with the Department of Commerce to avoid 
     duplication); or
       ``(I) any other initiative determined appropriate by the 
     Associate Administrator.
       ``(3) Grants.--
       ``(A) Joint review.--In carrying out the program, the 
     Associate Administrator may make a grant to a State to 
     increase the number of eligible small business concerns in 
     the State exploring significant new trade opportunities.
       ``(B) Considerations.--In making grants under this 
     subsection, the Associate Administrator may give priority to 
     an application by a State that proposes a program that--
       ``(i) focuses on eligible small business concerns as part 
     of a trade expansion program;
       ``(ii) demonstrates intent to promote trade expansion by--

       ``(I) socially and economically disadvantaged small 
     business concerns;
       ``(II) small business concerns owned or controlled by 
     women; and
       ``(III) rural small business concerns;

       ``(iii) promotes trade facilitation from a State that is 
     not 1 of the 10 States with the highest percentage of 
     eligible small business concerns that are engaged in 
     international trade, based upon the most recent data from the 
     Department of Commerce; and
       ``(iv) includes--

       ``(I) activities which have resulted in the highest return 
     on investment based on the most recent year; and
       ``(II) the adoption of shared best practices included in 
     the annual report of the Administration.

       ``(C) Limitations.--
       ``(i) Single application.--A State may not submit more than 
     1 application for a grant under the program in any 1 fiscal 
     year.
       ``(ii) Proportion of amounts.--The total value of grants 
     made under the program during a fiscal year to the 10 States 
     with the highest percentage of eligible small business 
     concerns, based upon the most recent data available from the 
     Department of Commerce, shall be not more than 40 percent of 
     the amounts appropriated for the program for that fiscal 
     year.
       ``(iii) Duration.--The Associate Administrator shall award 
     a grant under this program for a period of not more than 2 
     years.
       ``(D) Application.--
       ``(i) In general.--A State desiring a grant under the 
     program shall submit an application at such time, in such 
     manner, and accompanied by such information as the Associate 
     Administrator may establish.
       ``(ii) Consultation to reduce duplication.--A State 
     desiring a grant under the program shall--

       ``(I) before submitting an application under clause (i), 
     consult with applicable trade agencies of the Federal 
     Government on the scope and mission of the activities the 
     State proposes to carry out using the grant, to ensure proper 
     coordination and reduce duplication in services; and
       ``(II) document the consultation conducted under subclause 
     (I) in the application submitted under clause (i).

       ``(4) Competitive basis.--The Associate Administrator shall 
     award grants under the program on a competitive basis.
       ``(5) Federal share.--The Federal share of the cost of a 
     trade expansion program carried out using a grant under the 
     program shall be--
       ``(A) for a State that has a high trade volume, as 
     determined by the Associate Administrator, not more than 65 
     percent; and
       ``(B) for a State that does not have a high trade volume, 
     as determined by the Associate Administrator, not more than 
     75 percent.
       ``(6) Non-federal share.--The non-Federal share of the cost 
     of a trade expansion program carried out using a grant under 
     the program shall be comprised of not less than 50 percent 
     cash and not more than 50 percent of indirect costs and in-
     kind contributions, except that no such costs or 
     contributions may be derived from funds from any other 
     Federal program.
       ``(7) Reports.--
       ``(A) Initial report.--Not later than 120 days after the 
     date of enactment of this subsection, the Associate 
     Administrator shall submit to the Committee on Small Business 
     and Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report, which 
     shall include--
       ``(i) a description of the structure of and procedures for 
     the program;
       ``(ii) a management plan for the program; and
       ``(iii) a description of the merit-based review process to 
     be used in the program.

[[Page H9119]]

       ``(B) Annual reports.--
       ``(i) In general.--The Associate Administrator shall 
     publish on the website of the Administration an annual report 
     regarding the program, which shall include--

       ``(I) the number and amount of grants made under the 
     program during the preceding year;
       ``(II) a list of the States receiving a grant under the 
     program during the preceding year, including the activities 
     being performed with each grant;
       ``(III) the effect of each grant on the eligible small 
     business concerns in the State receiving the grant;
       ``(IV) the total return on investment for each State; and
       ``(V) a description of best practices by States that showed 
     high returns on investment and significant progress in 
     helping more eligible small business concerns.

       ``(ii) Notice to congress.--On the date on which the 
     Associate Administrator publishes a report under clause (i), 
     the Associate Administrator shall notify the Committee on 
     Small Business and Entrepreneurship of the Senate and the 
     Committee on Small Business of the House of Representatives 
     that the report has been published.
       ``(8) Reviews by inspector general.--
       ``(A) In general.--The Inspector General of the 
     Administration shall conduct a review of--
       ``(i) the extent to which recipients of grants under the 
     program are measuring the performance of the activities being 
     conducted and the results of the measurements; and
       ``(ii) the overall management and effectiveness of the 
     program.
       ``(B) Reports.--
       ``(i) Pilot program.--Not later than 6 months after the 
     date of enactment of this subsection, the Inspector General 
     of the Administration shall submit to the Committee on Small 
     Business and Entrepreneurship of the Senate and the Committee 
     on Small Business of the House of Representatives a report 
     regarding the use of amounts made available under the State 
     Trade and Export Promotion Grant Program under section 1207 
     of the Small Business Jobs Act of 2010 (15 U.S.C. 649b note).
       ``(ii) New step program.--Not later than 18 months after 
     the date on which the first grant is awarded under this 
     subsection, the Inspector General of the Administration shall 
     submit to the Committee on Small Business and 
     Entrepreneurship of the Senate and the Committee on Small 
     Business of the House of Representatives a report regarding 
     the review conducted under subparagraph (A).
       ``(9) Authorization of appropriations.--There is authorized 
     to be appropriated to carry out the program $30,000,000 for 
     each of fiscal years 2016 through 2020.''.

     SEC. 504. STATE AND FEDERAL EXPORT PROMOTION COORDINATION.

       (a) State and Federal Export Promotion Coordination Working 
     Group.--Subtitle C of the Export Enhancement Act of 1988 (15 
     U.S.C. 4721 et seq.) is amended by inserting after section 
     2313 the following:

     ``SEC. 2313A. STATE AND FEDERAL EXPORT PROMOTION COORDINATION 
                   WORKING GROUP.

       ``(a) Statement of Policy.--It is the policy of the United 
     States to promote exports as an opportunity for small 
     businesses. In exercising their powers and functions in order 
     to advance that policy, all Federal agencies shall work 
     constructively with State and local agencies engaged in 
     export promotion and export financing activities.
       ``(b) Establishment.--The President shall establish a State 
     and Federal Export Promotion Coordination Working Group (in 
     this section referred to as the `Working Group') as a 
     subcommittee of the Trade Promotion Coordination Committee 
     (in this section referred to as the `TPCC').
       ``(c) Purposes.--The purposes of the Working Group are--
       ``(1) to identify issues related to the coordination of 
     Federal resources relating to export promotion and export 
     financing with such resources provided by State and local 
     governments;
       ``(2) to identify ways to improve coordination with respect 
     to export promotion and export financing activities through 
     the strategic plan developed under section 2312(c);
       ``(3) to develop a strategy for improving coordination of 
     Federal and State resources relating to export promotion and 
     export financing, including methods to eliminate duplication 
     of effort and overlapping functions; and
       ``(4) to develop a strategic plan for considering and 
     implementing the suggestions of the Working Group as part of 
     the strategic plan developed under section 2312(c).
       ``(d) Membership.--The Secretary of Commerce shall select 
     the members of the Working Group, who shall include--
       ``(1) representatives from State trade agencies 
     representing regionally diverse areas; and
       ``(2) representatives of the departments and agencies that 
     are represented on the TPCC, who are designated by the heads 
     of their respective departments or agencies to advise the 
     head on ways of promoting the exportation of United States 
     goods and services.''.
       (b) Report on Improvements to Export.gov as a Single Window 
     for Export Information.--
       (1) In general.--Not later than 180 days after the date of 
     enactment of this Act, the Associate Administrator for 
     International Trade of the Small Business Administration 
     shall, after consultation with the entities specified in 
     paragraph (2), submit to the appropriate congressional 
     committees a report that includes the recommendations of the 
     Associate Administrator for improving the experience provided 
     by the Internet website Export.gov (or a successor website) 
     as--
       (A) a comprehensive resource for information about 
     exporting articles from the United States; and
       (B) a single website for exporters to submit all 
     information required by the Federal Government with respect 
     to the exportation of articles from the United States.
       (2) Entities specified.--The entities specified in this 
     paragraph are--
       (A) small business concerns (as defined in section 3 of the 
     Small Business Act (15 U.S.C. 632)) that are exporters; and
       (B) the President's Export Council, State agencies with 
     responsibility for export promotion or export financing, 
     district export councils, and trade associations.
       (3) Appropriate congressional committees defined.--In this 
     subsection, the term ``appropriate congressional committees'' 
     means--
       (A) the Committee on Small Business and Entrepreneurship 
     and the Committee on Banking, Housing, and Urban Affairs of 
     the Senate; and
       (B) the Committee on Small Business and the Committee on 
     Foreign Affairs of the House of Representatives.
       (c) Availability of State Resources Guides on Export.gov.--
     The Secretary of Commerce shall make available on the 
     Internet website Export.gov (or a successor website) 
     information on the resources relating to export promotion and 
     export financing available in each State--
       (1) organized by State; and
       (2) including information on State agencies with 
     responsibility for export promotion or export financing and 
     district export councils and trade associations located in 
     the State.

     SEC. 505. STATE TRADE COORDINATION.

       (a) Membership of Representatives of State Trade Promotion 
     Agencies on Trade Promotion Coordinating Committee.--Section 
     2312 of the Export Enhancement Act of 1988 (15 U.S.C. 4727) 
     is amended--
       (1) in subsection (d)--
       (A) by redesignating paragraph (2) as paragraph (3); and
       (B) by inserting after paragraph (1) the following:
       ``(2) Representatives from state trade promotion 
     agencies.--The TPCC shall also include 1 or more members 
     appointed by the President who are representatives of State 
     trade promotion agencies.''; and
       (2) in subsection (e), in the first sentence, by inserting 
     ``(other than members described in subsection (d)(2))'' after 
     ``Members of the TPCC''.
       (b) Federal and State Export Promotion Coordination Plan.--
       (1) In general.--The Secretary of Commerce, acting through 
     the Trade Promotion Coordinating Committee and in 
     coordination with representatives of State trade promotion 
     agencies, shall develop a comprehensive plan to integrate the 
     resources and strategies of State trade promotion agencies 
     into the overall Federal trade promotion program.
       (2) Matters to be included.--The plan required under 
     paragraph (1) shall include the following:
       (A) A description of the role of State trade promotion 
     agencies in assisting exporters.
       (B) An outline of the role of State trade promotion 
     agencies and how it is different from Federal agencies 
     located within or providing services within the State.
       (C) A plan on how to utilize State trade promotion agencies 
     in the Federal trade promotion program.
       (D) An explanation of how Federal and State agencies will 
     share information and resources.
       (E) A description of how Federal and State agencies will 
     coordinate education and trade events in the United States 
     and abroad.
       (F) A description of the efforts to increase efficiency and 
     reduce duplication.
       (G) A clear identification of where businesses can receive 
     appropriate international trade information under the plan.
       (3) Deadline.--The plan required under paragraph (1) shall 
     be finalized and submitted to Congress not later than 12 
     months after the date of the enactment of this Act.
       (c) Annual Federal-State Export Strategy.--
       (1) In general.--The Secretary of Commerce, acting through 
     the head of the United States Foreign and Commercial Service, 
     shall develop an annual Federal-State export strategy for 
     each State that submits to the Secretary of Commerce its 
     export strategy for the upcoming calendar year. In developing 
     an annual Federal-State export strategy under this paragraph, 
     the Secretary of Commerce shall take into account the Federal 
     and State export promotion coordination plan developed under 
     subsection (b).
       (2) Matters to be included.--The Federal-State export 
     strategy required under paragraph (1) shall include the 
     following:
       (A) The State's export strategy and economic goals.
       (B) The State's key sectors and industries of focus.
       (C) Possible foreign and domestic trade events.
       (D) Efforts to increase efficiencies and reduce 
     duplication.
       (3) Report.--The Federal-State export strategy required 
     under paragraph (1) shall be submitted to the Trade Promotion 
     Coordinating Committee not later than February 1, 2017, and 
     February 1 of each year thereafter.
       (d) Coordinated Metrics and Information Sharing.--
       (1) In general.--The Secretary of Commerce, in coordination 
     with representatives of State trade promotion agencies, shall 
     develop a framework to share export success information, and 
     develop a coordinated set of reporting metrics.
       (2) Report to congress.--Not later than one year after the 
     date of the enactment of this Act, the Secretary of Commerce 
     shall submit to Congress a report that contains the framework 
     and reporting metrics required under paragraph (1).

[[Page H9120]]

       (e) Annual Survey and Analysis and Report Under National 
     Export Strategy.--Section 2312 of the Export Enhancement Act 
     of 1988 (15 U.S.C. 4727) is amended--
       (1) in subsection (c)--
       (A) in paragraph (5), by striking ``and'' at the end;
       (B) in paragraph (6), by striking the period at the end and 
     inserting ``; and''; and
       (C) by adding at the end the following:
       ``(7) in coordination with State trade promotion agencies, 
     include a survey and analysis regarding the overall 
     effectiveness of Federal-State coordination and export 
     promotion goals on an annual basis, to further include best 
     practices, recommendations to better assist small businesses, 
     and other relevant matters.''; and
       (2) in subsection (f)(1), by inserting ``(including 
     implementation of the survey and analysis described in 
     paragraph (7) of that subsection)'' after ``the 
     implementation of such plan''.

              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 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 calendar 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 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 the 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.''.

[[Page H9121]]

  


     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 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 the Trade Facilitation and Trade 
     Enforcement Act of 2015, 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 the Trade Facilitation and Trade 
     Enforcement Act of 2015, 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 the Trade Facilitation and Trade Enforcement 
     Act of 2015.''.
       (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 CENTER ON TRADE 
                   IMPLEMENTATION, MONITORING, AND ENFORCEMENT.

       (a) In General.--Section 141 of the Trade Act of 1974 (19 
     U.S.C. 2171) is amended by adding at the end the following:
       ``(h) Interagency Center on Trade Implementation, 
     Monitoring, and Enforcement.--
       ``(1) Establishment of center.--There is established in the 
     Office of the United States Trade Representative an 
     Interagency Center on Trade Implementation, Monitoring, and 
     Enforcement (in this section referred to as the `Center').
       ``(2) Functions of center.--The Center shall support the 
     activities of the United States Trade Representative in--
       ``(A) investigating potential disputes under the auspices 
     of the World Trade Organization;
       ``(B) investigating potential disputes pursuant to 
     bilateral and regional trade agreements to which the United 
     States is a party;
       ``(C) carrying out the functions of the United States Trade 
     Representative under this section with respect to the 
     monitoring and enforcement of trade agreements to which the 
     United States is a party; and
       ``(D) monitoring measures taken by parties to implement 
     provisions of trade agreements to which the United States is 
     a party.
       ``(3) Personnel.--
       ``(A) Director.--The head of the Center shall be a 
     Director, who shall be appointed by the United States Trade 
     Representative.
       ``(B) Additional employees.--A Federal agency may, in 
     consultation with and with the approval of the United States 
     Trade Representative, detail or assign one or more employees 
     to the Center without any reimbursement from the Center to 
     support the functions of the Center.''.
       (b) Interagency Resources.--Section 141(d)(1)(A) of the 
     Trade Act of 1974 (19 U.S.C. 2171(d)(1)(A)) is amended by 
     inserting ``, including resources of the Interagency Center 
     on Trade Implementation, Monitoring, and Enforcement 
     established under subsection (h),'' after ``interagency 
     resources''.
       (c) Reports.--Section 163 of the Trade Act of 1974 (19 
     U.S.C. 2213) is amended--
       (1) in subsection (a)(2)--
       (A) in subparagraph (J), by striking ``and'' at the end;
       (B) in subparagraph (K), by striking the period at the end 
     and inserting ``; and''; and
       (C) by adding at the end the following:
       ``(L) the operation of the Interagency Center on Trade 
     Implementation, Monitoring, and Enforcement established under 
     section 141(h), including--
       ``(i) information relating to the personnel of the Center, 
     including a description of any employees detailed or assigned 
     to the Center by a Federal agency under paragraph (3)(B) of 
     such section;
       ``(ii) information relating to the functions of the Center; 
     and
       ``(iii) an assessment of the operating costs of the 
     Center.''; and
       (2) by adding at the end the following:
       ``(d) Quadrennial Plan and Report.--
       ``(1) Quadrennial plan.--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 Trade Representative shall, 
     every 4 years, develop a plan--
       ``(A) to analyze internal quality controls and record 
     management of the Office;
       ``(B) 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 functions and powers of the Trade Policy Staff 
     Committee) as described in section 141 and section 301;
       ``(C) to identify existing staff of the Office and staff in 
     other Federal agencies who will be required to be detailed or 
     assigned to support interagency programs led by the Trade 
     Representative, including any associated expenses;
       ``(D) to provide an outline of budget justifications, 
     including salaries and expenses as well as nonpersonnel 
     administrative expenses, for the fiscal years required under 
     the strategic plan; and
       ``(E) to provide an outline of budget justifications, 
     including salaries and expenses as well as nonpersonnel 
     administrative expenses, for interagency programs led by the 
     Trade Representative for the fiscal years required under the 
     strategic plan.
       ``(2) Report.--
       ``(A) In general.--The Trade Representative shall submit to 
     the appropriate congressional committees a report that 
     contains the plan required under paragraph (1). Except as 
     provided in subparagraph (B), the report required under this 
     subparagraph shall be submitted in conjunction with the 
     strategic plan of the Office as required under section 306 of 
     title 5, United States Code.
       ``(B) Exception.--The Trade Representative shall submit to 
     the appropriate congressional committees an initial report 
     that contains the plan required under paragraph (1) not later 
     than June 1, 2016.
       ``(C) Appropriate congressional committees defined.--In 
     this paragraph, the term `appropriate congressional 
     committees' means--
       ``(i) the Committee on Finance and the Committee on 
     Appropriations of the Senate; and
       ``(ii) the Committee on Ways and Means and the Committee on 
     Appropriations of the House of Representatives.''.

     SEC. 605. 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 that--
       (1) were made on or before September 30, 2007; and
       (2) 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.--

[[Page H9122]]

       (1) Interest realized.--Interest described in this 
     subsection is interest earned on antidumping duties or 
     countervailing duties 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; 
     or
       (B) a settlement with respect to a customs bond, including 
     any payment made to U.S. Customs and Border Protection with 
     respect to that bond by a surety.
       (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 and 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. 606. 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).

     SEC. 607. ENFORCEMENT UNDER TITLE III OF THE TRADE ACT OF 
                   1974 WITH RESPECT TO CERTAIN ACTS, POLICIES, 
                   AND PRACTICES.

       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 a foreign country under which that government 
     fails to effectively enforce commitments under agreements to 
     which the foreign country and the United States are parties, 
     including with respect to trade in goods, trade in services, 
     trade in agriculture, foreign investment, intellectual 
     property, digital trade in goods and services and cross-
     border data flows, regulatory practices, state-owned and 
     state-controlled enterprises, localization barriers to trade, 
     labor and the environment, anticorruption, trade remedy laws, 
     textiles, and commercial partnerships.''.

     SEC. 608. HONEY TRANSSHIPMENT.

       (a) In General.--The Commissioner shall direct appropriate 
     personnel and the use of 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 of 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. 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)--
       (A) by striking ``and one Chief Agricultural Negotiator'' 
     and inserting ``, one Chief Agricultural Negotiator, and one 
     Chief Innovation and Intellectual Property Negotiator,'';
       (B) by striking ``or the Chief Agricultural Negotiator'' 
     and inserting ``, the Chief Agricultural Negotiator, or the 
     Chief Innovation and Intellectual Property Negotiator''; and
       (C) by striking ``and the Chief Agricultural Negotiator'' 
     and inserting ``, the Chief Agricultural Negotiator, and the 
     Chief Innovation and Intellectual Property Negotiator''; and
       (2) in subsection (c)--
       (A) by moving paragraph (5) 2 ems to the left; and
       (B) by adding at the end the following:
       ``(6) 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.''.
       (b) 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 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 one-year period 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. 610. 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 under 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 one year.
       ``(C) Action plan described.--An action plan developed 
     under 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, as of 
     one 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

[[Page H9123]]

     the priority watch list established by the Trade 
     Representative pursuant to subsection (a).
       ``(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 
     submit 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) a list of 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) Funding.--
       (A) In general.--Amounts from the Trade Enforcement Trust 
     Fund established under section 611 may be expended by the 
     United States Trade Representative, only as provided by 
     appropriations Acts, 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 or 
     the amendment made by 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.

     SEC. 611. 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 through fiscal year 2026, 
     an amount equal to $15,000,000 (or a lesser amount as 
     required pursuant to paragraph (2)).
       (2) Limitation.--The total amount in the Trust Fund at any 
     time may not exceed $30,000,000.
       (3) 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 in a manner 
     that ensures that the total amount in the Trust Fund at the 
     end of the quarter does not exceed the limitation established 
     under paragraph (2).
       (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 the Trust Fund shall be credited to and form a part of the 
     Trust Fund.
       (d) Availability of Amounts From Trust Fund.--
       (1) In general.--The United States Trade Representative 
     shall, on the basis of the advice of the Trade Policy 
     Committee and relevant subordinate bodies of the TPC, use or 
     transfer for the use by Federal agencies represented on the 
     TPC amounts in the Trust Fund, only as provided by 
     appropriations Acts, for making expenditures for 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 and ensure the full 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).
       (D) To support capacity-building efforts undertaken by the 
     United States pursuant to any free trade agreement to which 
     the United States is a party and to prioritize and give 
     special attention to the timely, consistent, and robust 
     implementation of the commitments and obligations of a party 
     to that free trade agreement, including commitments and 
     obligations related to trade in goods, trade in services, 
     trade in agriculture, foreign investment, intellectual 
     property, digital trade in goods and services and cross-
     border data flows, regulatory practices, state-owned and 
     state-controlled enterprises, localization barriers to trade, 
     labor and the environment, currency, foreign currency 
     manipulation, anticorruption, trade remedy laws, textiles, 
     and commercial partnerships.
       (E) To support capacity-building efforts undertaken by the 
     United States pursuant to any such free trade agreement and 
     to include performance indicators against which the progress 
     and obstacles for the implementation of commitments and 
     obligations can be identified and assessed within a 
     meaningful time frame.
       (2) Limitation.--Amounts made available in the Trust Fund 
     may not be used to offset costs of conducting negotiations 
     for any free trade agreement to be entered into on or after 
     the date of the enactment of this Act, but may be used to 
     support implementation and capacity building prior to entry 
     into force of a free trade agreement.
       (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, in consultation with the Federal agencies 
     represented on the TPC, shall submit to Congress a report on 
     the actions taken 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) Trade policy committee; tpc.--The terms ``Trade Policy 
     Committee'' and ``TPC'' mean the interagency organization 
     established under section 242 of the Trade Expansion Act of 
     1962 (19 U.S.C. 1872).
       (2) WTO.--The term ``WTO'' means the World Trade 
     Organization.
       (3) 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)).
       (4) WTO agreements.--The term ``WTO Agreements'' means the 
     WTO Agreement and agreements annexed to that Agreement.

 TITLE VII--ENGAGEMENT ON CURRENCY EXCHANGE RATE AND ECONOMIC POLICIES

     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; and
       (iv) patterns in the reserve accumulation of that country.
       (3) Assessment factors.--Not later than 90 days after the 
     date of the enactment of this Act, the Secretary shall 
     publicly describe the factors

[[Page H9124]]

     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 significant 
     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;
       (C) advise that country of the ability of the President to 
     take action under subsection (c); and/or
       (D) develop a plan with specific actions to address that 
     undervaluation and those surpluses.
       (2) Waiver.--
       (A) In general.--The Secretary may waive the requirement 
     under paragraph (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 and report.--The Secretary shall promptly 
     certify to Congress a determination under subparagraph (A) 
     and promptly submit to Congress a report that describes in 
     detail the reasons for the Secretary's 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 (3), and pursuant to 
     paragraph (4), 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 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 and report.--The President shall promptly 
     certify to Congress a determination under subparagraph (A) 
     and promptly submit to Congress a report that describes in 
     detail the reasons for the President's 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 fewer 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 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--MATTERS RELATING TO U.S. CUSTOMS AND BORDER PROTECTION

    Subtitle A--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.

[[Page H9125]]

       ``(b) Commissioner of U.S. Customs and Border Protection.--
       ``(1) In general.--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').
       ``(2) Committee referral.--As an exercise of the rulemaking 
     power of the Senate, any nomination for the Commissioner 
     submitted to the Senate for confirmation, and referred to a 
     committee, shall be referred to the Committee on Finance.
       ``(c) Duties.--The Commissioner shall--
       ``(1) coordinate and integrate the security, trade 
     facilitation, and trade enforcement functions of U.S. Customs 
     and Border Protection;
       ``(2) ensure the interdiction of persons and goods 
     illegally entering or exiting the United States;
       ``(3) facilitate and expedite the flow of legitimate 
     travelers and trade;
       ``(4) direct and administer the commercial operations of 
     U.S. Customs and Border Protection, and the enforcement of 
     the customs and trade laws of the United States;
       ``(5) 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;
       ``(6) safeguard the borders of the United States to protect 
     against the entry of dangerous goods;
       ``(7) ensure the overall economic security of the United 
     States is not diminished by efforts, activities, and programs 
     aimed at securing the homeland;
       ``(8) in coordination with U.S. Immigration and Customs 
     Enforcement and United States Citizenship and Immigration 
     Services, 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)), 
     including--
       ``(A) the inspection, processing, and admission of persons 
     who seek to enter or depart the United States; and
       ``(B) 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;
       ``(9) 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;
       ``(10) 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);
       ``(11) enforce and administer the laws relating to 
     agricultural import and entry inspection referred to in 
     section 421;
       ``(12) 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;
       ``(13) ensure that the policies and regulations of U.S. 
     Customs and Border Protection are consistent with the 
     obligations of the United States pursuant to international 
     agreements;
       ``(14) 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); and
       ``(B) the Customs-Trade Partnership Against Terrorism 
     program under subtitle B of title II of such Act (6 U.S.C. 
     961 et seq.);
       ``(15) conduct polygraph examinations in accordance with 
     section 3(1) of the Anti-Border Corruption Act of 2010 
     (Public Law 111-376; 124 Stat. 4105);
       ``(16) establish the standard operating procedures 
     described in subsection (k);
       ``(17) carry out the training required under subsection 
     (l); and
       ``(18) 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--
       ``(A) be at the level of Executive Assistant Commissioner 
     within U.S. Customs and Border Protection; and
       ``(B) 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 the illegal entry of terrorists, 
     terrorist weapons, persons, and contraband; and
       ``(C) carry out other duties and powers prescribed by the 
     Commissioner.
       ``(f) Air and Marine Operations.--
       ``(1) In general.--There is established in U.S. Customs and 
     Border Protection an office known as Air and Marine 
     Operations.
       ``(2) Executive assistant commissioner.--There shall be at 
     the head of Air and Marine Operations an Executive Assistant 
     Commissioner, who shall report to the Commissioner.
       ``(3) Duties.--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 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 Executive Assistant Commissioner 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, as directed by the Secretary;
       ``(ii) monitor and coordinate the airspace for unmanned 
     aerial systems operations 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, in 
     coordination with other appropriate agencies, as determined 
     by the Executive Assistant Commissioner;
       ``(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 
     Executive 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) Executive assistant commissioner.--There shall be at 
     the head of the Office of Field Operations an Executive 
     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);
       ``(F) coordinate with the Executive Assistant Commissioner 
     for the Office of Trade with respect to the trade 
     facilitation and trade enforcement activities of U.S. Customs 
     and Border Protection; and
       ``(G) 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 Executive 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 to identify and address security risks 
     and strengthen trade enforcement;
       ``(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) coordinate with the Transportation Security 
     Administration, as appropriate;
       ``(vi) issue Trade Alerts pursuant to section 111(b) of the 
     Trade Facilitation and Trade Enforcement Act of 2015; and
       ``(vii) carry out other duties and powers prescribed by the 
     Executive Assistant Commissioner.
       ``(5) Annual report on staffing.--
       ``(A) In general.--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 Executive Assistant 
     Commissioner 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 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.
       ``(B) Form.--The report required under subparagraph (A) 
     shall, to the greatest extent practicable, be submitted in 
     unclassified form, but

[[Page H9126]]

     may be submitted in classified form, if the Executive 
     Assistant Commissioner determines that such is appropriate 
     and informs 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 of the 
     reasoning for such.
       ``(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) manage the counterintelligence operations of U.S. 
     Customs and Border Protection;
       ``(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's duties and 
     responsibilities;
       ``(D) provide necessary capacity building, training, and 
     assistance to foreign customs and border control agencies to 
     strengthen border, 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 with customs authorities of foreign 
     countries with respect to trade facilitation and trade 
     enforcement;
       ``(G) coordinate U.S. Customs and Border Protection's 
     engagement in international negotiations;
       ``(H) advise the Commissioner with respect to matters 
     arising in the World Customs Organization and other 
     international organizations as such matters relate to the 
     policies and procedures of U.S. Customs and Border 
     Protection;
       ``(I) advise the Commissioner regarding international 
     agreements to which the United States is a party as such 
     agreements relate to the policies and regulations of U.S. 
     Customs and Border Protection; and
       ``(J) carry out other duties and powers prescribed by the 
     Commissioner.
       ``(j) Office of Professional Responsibility.--
       ``(1) In general.--There is established in U.S. Customs and 
     Border Protection an Office of Professional Responsibility.
       ``(2) Assistant commissioner.--There shall be at the head 
     of the Office of Professional Responsibility an Assistant 
     Commissioner, who shall report to the Commissioner.
       ``(3) Duties.--The Office of Professional Responsibility 
     shall--
       ``(A) investigate criminal and administrative matters and 
     misconduct by officers, agents, and other employees of U.S. 
     Customs and Border Protection;
       ``(B) manage integrity-related programs and policies of 
     U.S. Customs and Border Protection;
       ``(C) conduct research and analysis regarding misconduct of 
     officers, agents, and other employees of U.S. Customs and 
     Border Protection; and
       ``(D) 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) uniform, standardized, and publicly-available 
     procedures 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 
     Executive 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.--The Commissioner may withhold the 
     notifications required under paragraphs (1)(C) and (2) if the 
     Commissioner determines, in the sole and unreviewable 
     discretion of the Commissioner, that such notifications would 
     impair national security, law enforcement, or other 
     operational interests.
       ``(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, 
     during each of the three calendar years beginning in the 
     calendar year that begins after the date of the enactment of 
     the Trade Facilitation and Trade Enforcement Act of 2015, 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 Committee on Homeland 
     Security of the House of Representatives and the Committee on 
     Homeland Security and Governmental Affairs of the Senate 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 devices was subjected to such searches 
     and was transmitted to another Federal agency, including 
     whether such transmissions resulted in a prosecution or 
     conviction.
       ``(6) Requirements regarding other notifications.--The 
     standard use of force 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 Committee on Homeland Security of 
     the House of Representatives and the Committee on Homeland 
     Security and Governmental Affairs of the Senate; 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 Committee on Homeland Security of the 
     House of Representatives and the Committee on Homeland 
     Security and Governmental Affairs of the Senate an annual 
     report, for each of the three calendar years beginning in the 
     calendar year that begins after the date of the enactment of 
     the Trade Facilitation and Trade Enforcement Act of 2015, 
     that reviews whether the use of unmanned aerial systems is 
     being conducted in conformity with the standard operating 
     procedures required under subparagraph (E) of paragraph (1). 
     Such reports--
       ``(A) shall be submitted with the annual budget of the 
     United States Government submitted by the President under 
     section 1105 of title 31, United States Code;
       ``(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.

[[Page H9127]]

     Customs and Border Protection are 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 a United States port of entry or between ports 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 the 
     Trade Facilitation and Trade Enforcement Act of 2015, the 
     Comptroller General of the United States 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 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 publicly 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--
       ``(A) publish live wait times for travelers entering the 
     United States 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 website;
       ``(C) 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, for each 
     of the five calendar years beginning in the calendar year 
     that begins after the date of the enactment of the Trade 
     Facilitation and Trade Enforcement Act of 2015, a report that 
     includes 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 positions of 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 under paragraph (1), the Secretary shall 
     notify 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 not later than 30 days 
     before exercising such authority.
       ``(p) Reports to Congress.--The Commissioner shall, on and 
     after the date of the enactment of the Trade Facilitation and 
     Trade Enforcement Act of 2015, continue to 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 any report required, on the day 
     before such date of enactment, to be submitted under any 
     provision of law.
       ``(q) Other Federal Agencies.--Nothing in this section may 
     be construed as affecting in any manner the authority, 
     existing on the day before the date of the enactment of the 
     Trade Facilitation and Trade Enforcement Act of 2015, of any 
     other Federal agency or component of the Department.
       ``(r) Definitions.--In this section, the terms `commercial 
     operations', `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.''.
       (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 the date of the enactment of this 
     Act, and section 415 of the Homeland Security Act of 2002.
       (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 individual serving as Deputy 
     Commissioner, and 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 
     Executive Assistant Commissioners, Deputy Commissioner, 
     Assistant Commissioners, and other officers and officials, as 
     appropriate, 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'';

[[Page H9128]]

       (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:

      ``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) Executive Assistant Commissioner.--There shall be at 
     the head of the Office of Trade an Executive Assistant 
     Commissioner, who shall report to the Commissioner of U.S. 
     Customs and Border Protection.
       ``(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 of U.S. Customs and Border 
     Protection 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 with the Executive 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;
       ``(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 for trade facilitation and trade 
     enforcement required under section 105 of the Trade 
     Facilitation and Trade Enforcement Act of 2015;
       ``(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)(4) of the 
     Consolidated Omnibus Budget and Reconciliation Act of 1985 
     (19 U.S.C. 58c(f)(4)) and support for the establishment of 
     the International Trade Data System under the oversight of 
     the Department of the Treasury pursuant to section 411(d) of 
     the Tariff Act of 1930 (19 U.S.C. 1411(d));
       ``(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 June 
     1, 2016, and March 1 of each calendar year thereafter 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, Personnel, or 
     Liabilities; 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 of U.S. Customs and Border 
     Protection 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 the 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, or liabilities of the Office of International 
     Trade to an office other than the Office of Trade established 
     under subsection (a), unless the Commissioner of U.S. Customs 
     and Border Protection notifies 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 of the specific assets, functions, personnel, or 
     liabilities to be transferred, and the reason for the 
     transfer, not less than 90 days prior to the transfer of such 
     assets, functions, personnel, or liabilities.
       ``(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 
     this Act 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 of U.S. Customs and 
     Border Protection 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 (a).
       ``(B) Congressional notification.--Not less than 90 days 
     prior to the transfer of assets, functions, personnel, or 
     liabilities under subparagraph (A), the Commissioner of U.S. 
     Customs and Border Protection shall notify 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 of the specific assets, functions, 
     personnel, or liabilities to be transferred, and the reason 
     for such 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 Executive Assistant Commissioner of Trade on and 
     after such date of enactment, at the discretion of the 
     Commissioner of U.S. Customs and Border Protection.
       (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--

[[Page H9129]]

       (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 and annually thereafter for the next five years, the 
     Commissioner shall submit to the Committee on Ways and Means 
     and the Committee on Homeland Security of the House of 
     Representatives and the Committee on Finance and the 
     Committee on Homeland Security and Governmental Affairs 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 than 180 days after the date of the enactment of this 
     Act, the Commissioner 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 and annually thereafter for 
     the next three years, the Commissioner 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
       (2) makes available to the United States Government the 
     information described in paragraph (1) through another means 
     of reporting.
       (k) Agricultural Specialist Career Track.--Not later than 
     one year after the date of the enactment of this Act, the 
     Secretary of Homeland Security 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 plan to create an agricultural 
     specialist career track within U.S. Customs and Border 
     Protection. Such plan shall include the following:
       (1) A description of education, training, experience, and 
     assignments necessary for career progression as an 
     agricultural specialist.
       (2) Recruitment and retention goals for agricultural 
     specialists, including a timeline for fulfilling staffing 
     deficits identified in agricultural resource allocation 
     models.
       (3) An assessment of equipment and other resources needed 
     to support agricultural specialists.
       (4) Any other factors the Commissioner determines 
     appropriate.
       (l) 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.

                  Subtitle B--Preclearance Operations

     SEC. 811. SHORT TITLE.

       This subtitle may be cited as the ``Preclearance 
     Authorization Act of 2015''.

     SEC. 812. DEFINITIONS.

       In this subtitle:
       (1) Appropriate congressional committees.--The term 
     ``appropriate congressional committees'' means--
       (A) the Committee on Homeland Security and Governmental 
     Affairs, the Committee on Finance, the Committee on Commerce, 
     Science, and Transportation, and the Committee on 
     Appropriations of the Senate; and
       (B) the Committee on Homeland Security, the Committee on 
     Ways and Means, and the Committee on Appropriations of the 
     House of Representatives.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Homeland Security.

     SEC. 813. ESTABLISHMENT OF PRECLEARANCE OPERATIONS.

       Pursuant to section 629 of the Tariff Act of 1930 (19 
     U.S.C. 1629) and section 103(a)(7) of the Immigration and 
     Nationality Act (8 U.S.C. 1103(a)(7)), and provided that an 
     aviation security preclearance agreement (as defined in 
     section 44901(d)(4)(B) of title 49, United States Code) is in 
     effect, the Secretary may establish and maintain U.S. Customs 
     and Border Protection preclearance operations in a foreign 
     country--
       (1) to prevent terrorists, instruments of terrorism, and 
     other security threats from entering the United States;
       (2) to prevent inadmissible persons from entering the 
     United States;
       (3) to ensure that merchandise destined for the United 
     States complies with applicable laws;
       (4) to ensure the prompt processing of persons eligible to 
     travel to the United States; and
       (5) to accomplish such other objectives as the Secretary 
     determines are necessary to protect the United States.

     SEC. 814. NOTIFICATION AND CERTIFICATION TO CONGRESS.

       (a) Initial Notification.--Not later than 60 days before an 
     agreement with the government of a foreign country to 
     establish U.S. Customs and Border Protection preclearance 
     operations in such foreign country enters into force, the 
     Secretary shall provide the appropriate congressional 
     committees with--
       (1) a copy of the agreement to establish such preclearance 
     operations, which shall include--
       (A) the identification of the foreign country with which 
     U.S. Customs and Border Protection intends to enter into a 
     preclearance agreement;
       (B) the location at which such preclearance operations will 
     be conducted; and
       (C) the terms and conditions for U.S. Customs and Border 
     Protection personnel operating at the location;
       (2) an assessment of the impact such preclearance 
     operations will have on legitimate trade and travel, 
     including potential impacts on passengers traveling to the 
     United States;
       (3) an assessment of the impacts such preclearance 
     operations will have on U.S. Customs and Border Protection 
     domestic port of entry staffing;
       (4) country-specific information on the anticipated 
     homeland security benefits associated with establishing such 
     preclearance operations;
       (5) information on potential security vulnerabilities 
     associated with commencing such preclearance operations and 
     mitigation plans to address such potential security 
     vulnerabilities;
       (6) a U.S. Customs and Border Protection staffing model for 
     such preclearance operations and plans for how such positions 
     would be filled; and
       (7) information on the anticipated costs over the 5 fiscal 
     years after the agreement enters into force associated with 
     commencing such preclearance operations.
       (b) Further Notification Relating to Preclearance 
     Operations Established at Airports.--Not later than 45 days 
     before an agreement with the government of a foreign country 
     to establish U.S. Customs and Border Protection preclearance 
     operations at an airport in such country enters into force, 
     the Secretary, in addition to complying with the notification 
     requirements under subsection (a), shall provide the 
     appropriate congressional committees with--
       (1) an estimate of the date on which U.S. Customs and 
     Border Protection intends to establish preclearance 
     operations under such agreement, including any pending 
     caveats that must be resolved before preclearance operations 
     are approved;
       (2) the anticipated funding sources for preclearance 
     operations under such agreement, and other funding sources 
     considered;
       (3) a homeland security threat assessment for the country 
     in which such preclearance operations are to be established;
       (4) information on potential economic, competitive, and job 
     impacts on United States air carriers associated with 
     establishing such preclearance operations;
       (5) details on information sharing mechanisms to ensure 
     that U.S. Customs and Border Protection has current 
     information to prevent terrorist and criminal travel; and
       (6) other factors that the Secretary determines to be 
     necessary for Congress to comprehensively assess the 
     appropriateness of commencing such preclearance operations.
       (c) Certifications Relating to Preclearance Operations 
     Established at Airports.--Not later than 60 days before an 
     agreement with the government of a foreign country to 
     establish U.S. Customs and Border Protection preclearance 
     operations at an airport in such country enters into force, 
     the Secretary, in addition to complying with the notification 
     requirements under subsections (a) and (b), shall provide the 
     appropriate congressional committees with--
       (1) a certification that preclearance operations under such 
     preclearance agreement, after considering alternative 
     options, would provide

[[Page H9130]]

     homeland security benefits to the United States through the 
     most effective means possible;
       (2) a certification that preclearance operations within 
     such foreign country will be established under such agreement 
     only if--
       (A) at least one United States passenger carrier operates 
     at such airport; and
       (B) any United States passenger carriers operating at such 
     airport and desiring to participate in preclearance 
     operations are provided access that is comparable to that of 
     any non-United States passenger carrier operating at that 
     airport;
       (3) a certification that the establishment of preclearance 
     operations in such foreign country will not significantly 
     increase customs processing times at United States airports;
       (4) a certification that representatives from U.S. Customs 
     and Border Protection consulted with stakeholders, including 
     providers of commercial air service in the United States, 
     employees of such providers, security experts, and such other 
     parties as the Secretary determines to be appropriate; and
       (5) a report detailing the basis for the certifications 
     referred to in paragraphs (1) through (4).
       (d) Amendment of Existing Agreements.--Not later than 30 
     days before a substantially amended preclearance agreement 
     with the government of a foreign country in effect as of the 
     date of the enactment of this Act enters into force, the 
     Secretary shall provide to the appropriate congressional 
     committees--
       (1) a copy of the agreement, as amended; and
       (2) the justification for such amendment.
       (e) Implementation Plan.--
       (1) In general.--The Commissioner shall report to the 
     appropriate congressional committees, on a quarterly basis--
       (A) the number of U.S. Customs and Border Protection 
     officers, by port, assigned from domestic ports of entry to 
     preclearance operations; and
       (B) the number of the positions at domestic ports of entry 
     vacated by U.S. Customs and Border Protection officers 
     described in subparagraph (A) that have been filled by other 
     hired, trained, and equipped U.S. Customs and Border 
     Protection officers.
       (2) Submission.--If the Commissioner has not filled the 
     positions of U.S. Customs and Border Protection officers that 
     were reassigned to preclearance operations and determines 
     that U.S. Customs and Border Protection processing times at 
     domestic ports of entry from which U.S. Customs and Border 
     Protection officers were reassigned to preclearance 
     operations have significantly increased, the Commissioner, 
     not later than 60 days after making such a determination, 
     shall submit to the appropriate congressional committees an 
     implementation plan for reducing processing times at the 
     domestic ports of entry with such increased processing times.
       (3) Suspension.--If the Commissioner does not submit the 
     implementation plan described in paragraph (2) to the 
     appropriate congressional committees before the deadline set 
     forth in such paragraph, the Commissioner may not commence 
     preclearance operations at an additional port of entry in any 
     country until such implementation plan is submitted.
       (f) Classified Report.--The report required under 
     subsection (c)(5) may be submitted in classified form if the 
     Secretary determines that such form is appropriate.

     SEC. 815. PROTOCOLS.

       Section 44901(d)(4) of title 49, United States Code, is 
     amended--
       (1) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (2) by inserting after subparagraph (B) the following:
       ``(C) Rescreening requirement.--If the Administrator of the 
     Transportation Security Administration determines that the 
     government of a foreign country has not maintained security 
     standards and protocols comparable to those of the United 
     States at airports at which preclearance operations have been 
     established in accordance with this paragraph, the 
     Administrator shall ensure that Transportation Security 
     Administration personnel rescreen passengers arriving from 
     such airports and their property in the United States before 
     such passengers are permitted into sterile areas of airports 
     in the United States.''.

     SEC. 816. LOST AND STOLEN PASSPORTS.

       The Secretary may not enter into an agreement with the 
     government of a foreign country to establish or maintain U.S. 
     Customs and Border Protection preclearance operations at an 
     airport in such country unless the Secretary certifies to the 
     appropriate congressional committees that such government--
       (1) routinely submits information about lost and stolen 
     passports of its citizens and nationals to INTERPOL's Stolen 
     and Lost Travel Document database; or
       (2) makes such information available to the United States 
     Government through another comparable means of reporting.

     SEC. 817. RECOVERY OF INITIAL U.S. CUSTOMS AND BORDER 
                   PROTECTION PRECLEARANCE OPERATIONS COSTS.

       (a) Cost Sharing Agreements With Relevant Airport 
     Authorities.--The Commissioner may enter into a cost sharing 
     agreement with airport authorities in foreign countries at 
     which preclearance operations are to be established or 
     maintained if--
       (1) an executive agreement to establish or maintain such 
     preclearance operations pursuant to the authorities under 
     section 629 of the Tariff Act of 1930 (19 U.S.C. 1629) and 
     section 103(a)(7) of the Immigration and Nationality Act (8 
     U.S.C. 1103(a)(7)) has been signed, but has not yet entered 
     into force; and
       (2) U.S. Customs and Border Protection has incurred, or 
     expects to incur, initial preclearance operations costs in 
     order to establish or maintain preclearance operations under 
     the agreement described in paragraph (1).
       (b) Contents of Cost Sharing Agreements.--
       (1) In general.--Notwithstanding section 13031(e) of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 (19 
     U.S.C. 58c(e)) and section 286(g) of the Immigration and 
     Nationality Act (8 U.S.C. 1356(g)), any cost sharing 
     agreement with an airport authority authorized under 
     subsection (a) may provide for the airport authority's 
     payment to U.S. Customs and Border Protection of its initial 
     preclearance operations costs.
       (2) Timing of payments.--The airport authority's payment to 
     U.S. Customs and Border Protection for its initial 
     preclearance operations costs may be made in advance of the 
     incurrence of the costs or on a reimbursable basis.
       (c) Account.--
       (1) In general.--All amounts collected pursuant to any cost 
     sharing agreement authorized under subsection (a)--
       (A) shall be credited as offsetting collections to the 
     currently applicable appropriation, account, or fund of U.S. 
     Customs and Border Protection;
       (B) shall remain available, until expended, for the 
     purposes for which such appropriation, account, or fund is 
     authorized to be used; and
       (C) may be collected and shall be available only to the 
     extent provided in appropriations Acts.
       (2) Return of unused funds.--Any advances or reimbursements 
     not used by U.S. Customs and Border Protection may be 
     returned to the relevant airport authority.
       (3) Rule of construction.--Nothing in this subsection may 
     be construed to preclude the use of appropriated funds from 
     sources other than the payments collected under this subtitle 
     to pay initial preclearance operation costs.
       (d) Defined Term.--
       (1) In general.--In this section, the term ``initial 
     preclearance operations costs'' means the costs incurred, or 
     expected to be incurred, by U.S. Customs and Border 
     Protection to establish or maintain preclearance operations 
     at an airport in a foreign country, including costs relating 
     to--
       (A) hiring, training, and equipping new U.S. Customs and 
     Border Protection officers who will be stationed at United 
     States domestic ports of entry or other U.S. Customs and 
     Border Protection facilities to backfill U.S. Customs and 
     Border Protection officers to be stationed at an airport in a 
     foreign country to conduct preclearance operations; and
       (B) visits to the airport authority conducted by U.S. 
     Customs and Border Protection personnel necessary to prepare 
     for the establishment or maintenance of preclearance 
     operations at such airport, including the compensation, 
     travel expenses, and allowances payable to such personnel 
     attributable to such visits.
       (2) Exception.--The costs described in paragraph (1)(A) 
     shall not include the salaries and benefits of new U.S. 
     Customs and Border Protection officers once such officers are 
     permanently stationed at a domestic United States port of 
     entry or other domestic U.S. Customs and Border Protection 
     facility after being hired, trained, and equipped.
       (e) Rule of Construction.--Except as otherwise provided in 
     this section, nothing in this section may be construed as 
     affecting the responsibilities, duties, or authorities of 
     U.S. Customs and Border Protection.

     SEC. 818. COLLECTION AND DISPOSITION OF FUNDS COLLECTED FOR 
                   IMMIGRATION INSPECTION SERVICES AND 
                   PRECLEARANCE ACTIVITIES.

       (a) Immigration and Nationality Act.--Section 286(i) of the 
     Immigration and Nationality Act (8 U.S.C. 1356(i)) is amended 
     by striking the last sentence and inserting the following: 
     ``Reimbursements under this subsection may be collected in 
     advance of the provision of such immigration inspection 
     services. Notwithstanding subsection (h)(1)(B), and only to 
     the extent provided in appropriations Acts, any amounts 
     collected under this subsection shall be credited as 
     offsetting collections to the currently applicable 
     appropriation, account, or fund of U.S. Customs and Border 
     Protection, remain available until expended, and be available 
     for the purposes for which such appropriation, account, or 
     fund is authorized to be used.''.
       (b) Farm Security and Rural Investment Act of 2002.--
     Section 10412(b) of the Farm Security and Rural Investment 
     Act of 2002 (7 U.S.C. 8311(b)) is amended to read as follows:
       ``(b) Funds Collected for Preclearance.--Funds collected 
     for preclearance activities--
       ``(1) may be collected in advance of the provision of such 
     activities;
       ``(2) shall be credited as offsetting collections to the 
     currently applicable appropriation, account, or fund of U.S. 
     Customs and Border Protection;
       ``(3) shall remain available until expended;
       ``(4) shall be available for the purposes for which such 
     appropriation, account, or fund is authorized to be used; and
       ``(5) may be collected and shall be available only to the 
     extent provided in appropriations Acts.''.

     SEC. 819. APPLICATION TO NEW AND EXISTING PRECLEARANCE 
                   OPERATIONS.

       Except for sections 814(d), 815, 817, and 818, this 
     subtitle shall only apply to the establishment of 
     preclearance operations in a foreign country in which no 
     preclearance operations have been established as of the date 
     of the enactment of this Act.

                   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,

[[Page H9131]]

     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 Security and Accountability For Every 
     Port Act of 2006 (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 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

[[Page H9132]]

     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'';
       (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.
       ``(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, 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 on the imported merchandise, 
     which were imposed under Federal law upon entry or 
     importation of the imported merchandise, and may require the 
     claim to be based upon the average per unit duties, taxes, 
     and fees as reported on the entry summary line item or, if 
     not reported on the entry summary line item, as otherwise 
     allocated by U.S. Customs and Border Protection, except that 
     where there is substitution of the 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 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

[[Page H9133]]

       ``(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 manufactured articles into 
     which imported or 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 equal to 99 percent of 
     the duties, taxes, and fees paid on the imported merchandise 
     incorporated into an article that is exported or destroyed, 
     which were imposed under Federal law upon entry or 
     importation of the imported merchandise incorporated into an 
     article that is exported or destroyed, and may require the 
     claim to be based upon the average per unit duties, taxes, 
     and fees as reported on the entry summary line item, or if 
     not reported on the entry summary line item, as otherwise 
     allocated by U.S. Customs and Border Protection, 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).

       ``(D) Exceptions.--The calculations set forth in 
     subparagraphs (B) and (C) shall not apply to claims for wine 
     based on subsection (j)(2) and claims based on subsection (p) 
     and instead--
       ``(i) for any drawback claim for wine based on subsection 
     (j)(2), the amount of the refund shall be equal to 99 percent 
     of the duties, taxes, and fees paid with respect to the 
     imported merchandise, without regard to the limitations in 
     subparagraphs (B)(i) and (B)(ii); and
       ``(ii) for any drawback claim based on subsection (p), the 
     amount of the refund shall be subject to the limitations set 
     out in paragraph (4) of that subsection and without regard to 
     subparagraph (B)(i), (B)(ii), (C)(i), or (C)(ii).
       ``(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'' each 
     place it appears 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 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 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) shall 
     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 paragraph (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.--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 the Committee on Finance of the 
     Senate and the Committee on Ways and Means of the House of 
     Representatives 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) of this section.
       (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, 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. 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 and the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on Ways 
     and Means and the

[[Page H9134]]

     Committee on Homeland Security of the House of 
     Representatives a report that includes the following:
       (1) A description of the development of the program, 
     including an identification of the authority under which the 
     program operates.
       (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 and security benefits (if 
     applicable) 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) The total operating expenses of the program during that 
     year.
       (7) A detailed accounting of how the fees collected under 
     the agreement have been spent during that year.
       (8) A summary of any complaints or criticism received by 
     U.S. Customs and Border Protection during that year regarding 
     the agreement.
       (9) An assessment of the compliance of the entity described 
     in paragraph (2) with the terms of the agreement.
       (10) Recommendations with respect to how activities 
     conducted pursuant to the agreement could function more 
     effectively or better produce economic benefits and security 
     benefits (if applicable).
       (11) 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.
       (12) If the entity described in paragraph (2) is an 
     operator of an airport--
       (A) a detailed account of the revenue collected by U.S. 
     Customs and Border Protection at the airport from--
       (i) fees collected under the agreement; and
       (ii) fees collected from sources other than under the 
     agreement, including fees paid by passengers and air 
     carriers; and
       (B) an assessment of the revenue described in subparagraph 
     (A) compared with the operating costs of U.S. Customs and 
     Border Protection at the airport.
       (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);
       (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);
       (3) the program under which U.S. Customs and Border 
     Protection collects a fee for the use of customs services at 
     designated facilities under section 236 of the Trade and 
     Tariff Act of 1984 (19 U.S.C. 58b); or
       (4) the program established by subtitle B of title VIII of 
     this Act authorizing U.S. Customs and Border Protection to 
     establish preclearance operations in foreign countries.

     SEC. 908. 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 
     similar service that could lawfully be performed during 
     regular hours of operation.''.

     SEC. 909. 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 $45,000,000,000 in goods and services is 
     traded annually between the two countries, in addition to 
     roughly $10,000,000,000 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; 22 
     U.S.C. 8601 et seq.) and the United States-Israel Strategic 
     Partnership Act of 2014 (Public Law 113-296; 128 Stat. 4075).
       (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 (50 U.S.C. 4601 et seq.) (as 
     continued in effect pursuant to the International Emergency 
     Economic Powers Act (50 U.S.C. 1701 et seq.)), including 
     sections to ensure foreign persons comply with applicable 
     reporting requirements relating to the Boycott;
       (C) enactment of the Tax Reform Act of 1976 (Public Law 94-
     455; 90 Stat. 1520) 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 economic cooperation 
     between the United States and Israel 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 of, divestment from, or sanctions 
     against Israel;
       (5) notes that boycotts of, divestment from, and sanctions 
     against Israel by governments, governmental bodies, quasi-
     governmental bodies, international organizations, and other 
     such entities are contrary to principle of nondiscrimination 
     under the GATT 1994 (as defined in section 2(1)(B) of the 
     Uruguay Round Agreements Act (19 U.S.C. 3501(1)(B)));
       (6) encourages the inclusion of politically motivated 
     actions that penalize or otherwise limit commercial relations 
     specifically with Israel such as boycotts of, divestment 
     from, or sanctions against Israel as a topic of discussion at 
     the U.S.-Israel Joint Economic Development Group (JEDG) to 
     support the strengthening of the United States-Israel 
     commercial relationship and combat any commercial 
     discrimination against Israel; and
       (7) supports efforts to prevent investigations or 
     prosecutions by governments or international organizations of 
     United States persons solely on the basis of such persons 
     doing business with Israel, with Israeli entities, or in any 
     territory controlled by 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 boycotts of, 
     divestment from, and sanctions against Israel and to seek the 
     elimination of politically motivated nontariff barriers on 
     Israeli goods, services, or other commerce imposed on Israel.
       (C) To seek the elimination of state-sponsored unsanctioned 
     foreign boycotts of 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 such date of 
     enactment.
       (d) Report on Politically Motivated Acts of Boycott of, 
     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 boycotts of, 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 nontariff 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 solely on the basis of such persons doing business 
     with

[[Page H9135]]

     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 any territory controlled by 
     Israel.
       (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 in Israel or any territory controlled by 
     Israel or with Israeli entities constitutes a violation of 
     law.
       (f) Definitions.--In this section:
       (1) Boycott of, divestment from, and sanctions against 
     israel.--The term ``boycott of, divestment from, and 
     sanctions against Israel'' means actions by states, nonmember 
     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 any territory 
     controlled by Israel.
       (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) an individual who is not a United States person or an 
     alien lawfully admitted for permanent residence into the 
     United States; or
       (B) a corporation, partnership, or other nongovernmental 
     entity which is not a United States person.
       (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 that 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. 910. 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. 911. VOLUNTARY RELIQUIDATIONS BY U.S. CUSTOMS AND BORDER 
                   PROTECTION.

       Section 501 of the Tariff Act of 1930 (19 U.S.C. 1501) is 
     amended--
       (1) in the section heading, by striking ``the customs 
     service'' and inserting ``u.s. customs and border 
     protection'';
       (2) by striking ``the Customs Service'' and inserting 
     ``U.S. Customs and Border Protection''; and
       (3) by striking ``on which notice of the original 
     liquidation is given or transmitted to the importer, his 
     consignee or agent'' and inserting ``of the original 
     liquidation''.

     SEC. 912. TARIFF CLASSIFICATION OF RECREATIONAL PERFORMANCE 
                   OUTERWEAR.

       (a) Repeal.--Section 601 of the Trade Preferences Extension 
     Act of 2015 (Public Law 114-27; 129 Stat. 387) is repealed, 
     and any provision of law amended by such section is restored 
     as if such section had not been enacted into law.
       (b) Amendments to Additional U.S. Notes.--The additional 
     U.S. notes to chapter 62 of the Harmonized Tariff Schedule of 
     the United States are amended--
       (1) in additional U.S. note 2--
       (A) by striking ``For the purposes of subheadings'' and all 
     that follows through ``6211.20.15'' and inserting ``For the 
     purposes of subheadings 6201.92.17, 6201.92.35, 6201.93.47, 
     6201.93.60, 6202.92.05, 6202.92.30, 6202.93.07, 6202.93.48, 
     6203.41.01, 6203.41.25, 6203.43.03, 6203.43.11, 6203.43.55, 
     6203.43.75, 6204.61.05, 6204.61.60, 6204.63.02, 6204.63.09, 
     6204.63.55, 6204.63.75 and 6211.20.15'';
       (B) by striking ``(see ASTM designations D 3600-81 and D 
     3781-79)'' and inserting ``(see current version of ASTM 
     D7017)''; and
       (C) by striking ``in accordance with AATCC Test Method 35-
     1985.'' and inserting ``in accordance with the current 
     version of AATCC Test Method 35.''; and
       (2) by adding at the end the following new note:
       ``3. (a) When used in a subheading of this chapter or 
     immediate superior text thereto, the term `recreational 
     performance outerwear' means trousers (including, but not 
     limited to, ski or snowboard pants, and ski or snowboard 
     pants intended for sale as parts of ski-suits), coveralls, 
     bib and brace overalls, jackets (including, but not limited 
     to, full zip jackets, ski jackets and ski jackets intended 
     for sale as parts of ski-suits), windbreakers and similar 
     articles (including padded, sleeveless jackets), the 
     foregoing of fabrics of cotton, wool, hemp, bamboo, silk or 
     manmade fibers, or a combination of such fibers; that are 
     either water resistant within the meaning of additional U.S. 
     note 2 to this chapter or treated with plastics, or both; 
     with critically sealed seams, and with 5 or more of the 
     following features (as further provided herein):
       ``(i) insulation for cold weather protection;
       ``(ii) pockets, at least one of which has a zippered, hook 
     and loop, or other type of closure;
       ``(iii) elastic, draw cord or other means of tightening 
     around the waist or leg hems, including hidden leg sleeves 
     with a means of tightening at the ankle for trousers and 
     tightening around the waist or bottom hem for jackets;
       ``(iv) venting, not including grommet(s);
       ``(v) articulated elbows or knees;
       ``(vi) reinforcement in one of the following areas: the 
     elbows, shoulders, seat, knees, ankles or cuffs;
       ``(vii) weatherproof closure at the waist or front;
       ``(viii) multi-adjustable hood or adjustable collar;
       ``(ix) adjustable powder skirt, inner protective skirt or 
     adjustable inner protective cuff at sleeve hem;
       ``(x) construction at the arm gusset that utilizes fabric, 
     design or patterning to allow radial arm movement; or
       ``(xi) odor control technology.
     The term `recreational performance outerwear' does not 
     include occupational outerwear.
       ``(b) For purposes of this note, the following terms have 
     the following meanings:
       ``(i) The term `treated with plastics' refers to textile 
     fabrics impregnated, coated, covered or laminated with 
     plastics, as described in note 2 to chapter 59.
       ``(ii) The term `sealed seams' means seams that have been 
     covered by means of taping, gluing, bonding, cementing, 
     fusing, welding or a similar process so that air and water 
     cannot pass through the seams when tested in accordance with 
     the current version of AATCC Test Method 35.
       ``(iii) The term `critically sealed seams' means--
       ``(A) for jackets, windbreakers and similar articles 
     (including padded, sleeveless jackets), sealed seams that are 
     sealed at the front and back yokes, or at the shoulders, arm 
     holes, or both, where applicable; and
       ``(B) for trousers, overalls and bib and brace overalls and 
     similar articles, sealed seams that are sealed at the front 
     (up to the zipper or other means of closure) and back rise.
       ``(iv) The term `insulation for cold weather protection' 
     means insulation that meets a minimum clo value of 1.5 per 
     ASTM F 2732.
       ``(v) The term `venting' refers to closeable or permanent 
     constructed openings in a garment (excluding front, primary 
     zipper closures and grommet(s)) to allow increased expulsion 
     of built-up heat during outdoor activities. In a jacket, such 
     openings are often positioned on the underarm seam of a 
     garment but may also be placed along other seams in the front 
     or back of a garment. In trousers, such openings are often 
     positioned on the inner or outer leg seams of a garment but 
     may also be placed along other seams in the front or back of 
     a garment.
       ``(vi) The term `articulated elbows or knees' refers to the 
     construction of a sleeve (or pant leg) to allow improved 
     mobility at the elbow (or knee) through the use of extra 
     seams, darts, gussets or other means.
       ``(vii) The term `reinforcement' refers to the use of a 
     double layer of fabric or section(s) of fabric that is 
     abrasion-resistant or otherwise more durable than the face 
     fabric of the garment.
       ``(viii) The term `weatherproof closure' means a closure 
     (including, but not limited to, laminated or coated zippers, 
     storm flaps or other weatherproof construction) that has been 
     reinforced or engineered in a manner to reduce the 
     penetration or absorption of moisture or air through an 
     opening in the garment.
       ``(ix) The term `multi-adjustable hood or adjustable 
     collar' means, in the case of a hood, a hood into which is 
     incorporated two or more draw cords, adjustment tabs or 
     elastics, or, in the case of a collar, a collar into which is 
     incorporated at least one draw cord, adjustment tab,

[[Page H9136]]

     elastic or similar component, to allow volume adjustments 
     around a helmet, or the crown of the head, neck or face.
       ``(x) The terms `adjustable powder skirt' and `inner 
     protective skirt' refer to a partial lower inner lining with 
     means of tightening around the waist for additional 
     protection from the elements.
       ``(xi) The term `arm gusset' means construction at the arm 
     of a gusset that utilizes an extra fabric piece in the 
     underarm, usually diamond- or triangular-shaped, designed or 
     patterned to allow radial arm movement.
       ``(xii) The term `radial arm movement' refers to 
     unrestricted, 180-degree range of motion for the arm while 
     wearing performance outerwear.
       ``(xiii) The term `odor control technology' means the 
     incorporation into a fabric or garment of materials, 
     including, but not limited to, activated carbon, silver, 
     copper or any combination thereof, capable of adsorbing, 
     absorbing or reacting with human odors, or effective in 
     reducing the growth of odor-causing bacteria.
       ``(xiv) The term `occupational outerwear' means outerwear 
     garments, including uniforms, of a kind principally used in 
     the work place and specially designed to provide protection 
     from work place hazards such as fire, electrical, abrasion or 
     chemical hazards, or impacts, cuts and punctures.
       ``(c) The importer of goods entered as `recreational 
     performance outerwear' under a particular subheading of this 
     chapter shall maintain records demonstrating that the entered 
     goods meet the terms of this note, including such information 
     as is necessary to demonstrate the presence of the specific 
     features that render the goods eligible for classification as 
     `recreational performance outerwear'.''.
       (c) Tariff Classifications.--Chapter 62 of the Harmonized 
     Tariff Schedule of the United States is amended as follows:
       (1)(A) By striking subheadings 6201.91.10 through 
     6201.91.20 and inserting the following, with the superior 
     text to subheading 6201.91.03 having the same degree of 
     indentation as the article description for subheading 
     6201.91.10 (as in effect on the day before the effective date 
     of this section):


``     ..............  Recreational        ..................  .....................  ......................
                        performance
                        outerwear:
 
       6201.91.03        Padded,           8.5%                Free (AU, BH, CA, CL,  58.5%
                          sleeveless                            CO, IL, JO, KR, MA,
                          jackets........                       MX, P, PA, PE, SG)
                                                                2.5% (OM)
 
       6201.91.05        Other...........  49.7 cents/kg +     Free (AU,BH, CA, CL,   52.9 cents/kg + 58.5%
                                            19.7%               CO, IL, JO, KR, MA,
                                                                MX, P, PA, PE, SG)
                                                                14.9 cents/kg +5.9%
                                                                (OM)
 
       ..............  Other:              ..................  .....................  ......................
 
       6201.91.25        Padded,           8.5%                Free (AU,BH, CA, CL,    58.5%
                          sleeveless                            CO, IL, JO, KR, MA,
                          jackets........                       MX, P, PA, PE, SG)
                                                                2.5% (OM)
 
       6201.91.40        Other...........  49.7 cents/kg +     Free (AU,BH, CA, CL,   52.9 cents/kg + 58.5%   ''
                                            19.7%               CO, IL, JO, KR, MA,                            .
                                                                MX, P, PA, PE, SG)
                                                                14.9 cents/kg +5.9%
                                                                (OM)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6201.91.10 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6201.91.03 and 
     6201.91.25 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (C) The staged reductions in the special rate of duty 
     proclaimed for subheading 6201.91.20 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6201.91.05 and 6201.91.40 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (2) By striking subheadings 6201.92.10 through 6201.92.20 
     and inserting the following, with the superior text to 
     subheading 6201.92.05 having the same degree of indentation 
     as the article description for subheading 6201.92.10 (as in 
     effect on the day before the effective date of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6201.92.05         Containing 15      4.4%                 Free (AU, BH, CA, CL,  60%
                            percent or more                         CO, IL, JO, KR, MA,
                            by weight of                            MX, OM, P, PA, PE,
                            down and                                SG)
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        6201.92.17          Water resistant.  6.2%                 Free (AU, BH, CA, CL,  37.5%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        6201.92.19          Other...........  9.4%                 Free (AU,BH, CA, CL,   90%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        ...............  Other:               ...................  .....................  ..................
 

[[Page H9137]]

 
        6201.92.30         Containing 15      4.4%                 Free (AU, BH, CA, CL,  60%
                            percent or more                         CO, IL, JO, KR, MA,
                            by weight of                            MX, OM, P, PA, PE,
                            down and                                SG)
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        6201.92.35          Water resistant.  6.2%                 Free (AU, BH, CA, CL,  37.5%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        6201.92.45          Other...........  9.4%                 Free (AU,BH, CA, CL,   90%                 ''
                                                                    CO, IL, JO, KR, MA,                        .
                                                                    MX, OM, P, PA, PE,
                                                                    SG)

       (3) By striking subheadings 6201.93.10 through 6201.93.35 
     and inserting the following, with the superior text to 
     subheading 6201.93.15 having the same degree of indentation 
     as the article description for subheading 6201.93.10 (as in 
     effect on the day before the effective date of this section):


``     ..............  Recreational        ..................  .....................  ......................
                        performance
                        outerwear:
 
       6201.93.15        Containing 15     4.4%                Free (AU, BH, CA, CL,  60%
                          percent or more                       CO, IL, JO, KR, MA,
                          by weight of                          MX, OM, P, PA, PE,
                          down and                              SG)
                          waterfowl
                          plumage and of
                          which down
                          comprises 35
                          percent or more
                          by weight;
                          containing 10
                          percent or more
                          by weight of
                          down...........
 
       ..............    Other:            ..................  .....................  ......................
 
       6201.93.18         Padded,          14.9%               Free (AU, BH, CA, CL,  76%
                           sleeveless                           CO, IL, JO, KR, MA,
                           jackets.......                       MX, OM, P, PA, PE,
                                                                SG)
 
       ..............     Other:           ..................  .....................  ......................
 
       6201.93.45          Containing 36   49.5 cents/kg +     Free (AU, BH, CA, CL,  52.9 cents/kg + 58.5%
                            percent or      19.6%               CO, IL, JO, KR, MA,
                            more by                             MX, OM, P, PA, PE,
                            weight of                           SG)
                            wool or fine
                            animal hair..
 
       ..............      Other:          ..................  .....................  ......................
 
       6201.93.47           Water          7.1%                Free (AU, BH, CA, CL,  65%
                             resistant...                       CO, IL, JO, KR, MA,
                                                                MX, OM, P, PA, PE,
                                                                SG)
 
       6201.93.49           Other........  27.7%               Free (AU, BH, CA, CL,  90%
                                                                CO, IL, JO, KR, MA,
                                                                MX, OM, P, PA, PE,
                                                                SG)
 
       ..............  Other:              ..................  .....................  ......................
 
       6201.93.50        Containing 15     4.4%                Free (AU, BH, CA, CL,  60%
                          percent or more                       CO, IL, JO, KR, MA,
                          by weight of                          MX, OM, P, PA, PE,
                          down and                              SG)
                          waterfowl
                          plumage and of
                          which down
                          comprises 35
                          percent or more
                          by weight;
                          containing 10
                          percent or more
                          by weight of
                          down...........
 
       ..............    Other:            ..................  .....................  ......................
 
       6201.93.52         Padded,          14.9%               Free (AU, BH, CA, CL,  76%
                           sleeveless                           CO, IL, JO, KR, MA,
                           jackets.......                       MX, OM, P, PA, PE,
                                                                SG)
 
       ..............     Other:           ..................  .....................  ......................
 

[[Page H9138]]

 
       6201.93.55          Containing 36   49.5 cents/kg +     Free (AU, BH, CA, CL,  52.9 cents/kg + 58.5%
                            percent or      19.6%               CO, IL, JO, KR, MA,
                            more by                             MX, OM, P, PA, PE,
                            weight of                           SG)
                            wool or fine
                            animal hair..
 
       ..............      Other:          ..................  .....................  ......................
 
       6201.93.60           Water          7.1%                Free (AU, BH, CA, CL,  65%
                             resistant...                       CO, IL, JO, KR, MA,
                                                                MX, OM, P, PA, PE,
                                                                SG)
 
       6201.93.65           Other........  27.7%               Free (AU, BH, CA, CL,  90%                     ''
                                                                CO, IL, JO, KR, MA,                            .
                                                                MX, OM, P, PA, PE,
                                                                SG)

       (4) By striking subheadings 6201.99.10 through 6201.99.90 
     and inserting the following, with the superior text to 
     subheading 6201.99.05 having the same degree of indentation 
     as the article description for subheading 6201.99.10 (as in 
     effect on the day before the effective date of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6201.99.05         Containing 70      Free                 .....................  35%
                            percent or more
                            by weight of
                            silk or silk
                            waste...........
 
        6201.99.15         Other............  4.2%                 Free (AU,BH, CA, CL,   35%
                                                                    CO, E*, IL, JO, KR,
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............  Other:               ...................  .....................  ..................
 
        6201.99.50         Containing 70      Free                 .....................  35%
                            percent or more
                            by weight of
                            silk or silk
                            waste...........
 
        6201.99.80         Other............  4.2%                 Free (AU, BH, CA, CL,  35%                 ''
                                                                    CO, E*, IL, JO, KR,                        .
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)


       (5)(A) By striking subheadings 6202.91.10 through 
     6202.91.20 and inserting the following, with the superior 
     text to subheading 6202.91.03 having the same degree of 
     indentation as the article description for subheading 
     6202.91.10 (as in effect on the day before the effective date 
     of this section):


``     ..............  Recreational        ..................                         ......................
                        performance
                        outerwear:
 
       6202.91.03        Padded,           14%                 Free (AU, BH, CA, CL,  58.5%
                          sleeveless                            CO, IL, JO, KR, MA,
                          jackets........                       MX, P, PA, PE, SG)
                                                                4.2% (OM)
 
       6202.91.15        Other...........  36 cents/kg +       Free (AU, BH, CA, CL,  46.3 cents/kg +58.5%
                                            16.3%               CO, IL, JO, KR, MA,
                                                                MX, P, PA, PE, SG)
                                                                10.8 cents/kg + 4.8%
                                                                (OM)................
 
       ..............  Other:              ..................                         ......................
 
       6202.91.60        Padded,           14%                 Free (AU, BH, CA, CL,  58.5%
                          sleeveless                            CO, IL, JO, KR, MA,
                          jackets........                       MX, P, PA, PE, SG)
                                                               4.2% (OM)    ........
 
       6202.91.90        Other...........  36 cents/kg +       Free (AU, BH, CA, CL,  46.3 cents/kg + 58.5%   ''
                                            16.3%               CO, IL, JO, KR, MA,                            .
                                                                MX, P, PA, PE, SG) .
                                                               10.8 cents/kg + 4.8%
                                                                (OM)      ..........


       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6202.91.10 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6202.91.03 and 
     6202.91.60 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (C) The staged reductions in the special rate of duty 
     proclaimed for subheading 6202.91.20 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6202.91.15 and 6202.91.90 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (6) By striking subheadings 6202.92.10 through 6202.92.20 
     and inserting the following, with the superior text to 
     subheading 6202.92.03 having the same degree of indentation 
     as the article description for subheading 6202.92.10 (as in 
     effect

[[Page H9139]]

     on the day before the effective date of this section):


``      ...............  Recreational         ...................                         ..................
                          performance
                          outerwear:
 
        6202.92.03         Containing 15      4.4%                 Free (AU, BH, CA, CL,  60%
                            percent or more                         CO, IL, JO, KR, MA,
                            by weight of                            MX, OM, P, PA, PE,
                            down and                                SG)
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................                         ..................
 
        6202.92.05          Water resistant.  6.2%                 Free (AU, BH, CA, CL,  37.5%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        6202.92.12          Other...........  8.9%                 Free (AU, BH, CA, CL,  90%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX,OM, P, PA,PE, SG)
 
        ...............  Other:               ...................                         ..................
 
        6202.92.25         Containing 15      4.4%                 Free (AU, BH, CA, CL,  60%
                            percent or more                         CO, IL, JO, KR, MA,
                            by weight of                            MX, OM, P, PA, PE,
                            down and                                SG)
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................                         ..................
 
        6202.92.30          Water resistant.  6.2%                 Free (AU, BH, CA, CL,  37.5%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        6202.92.90          Other...........  8.9%                 Free (AU, BH, CA, CL,  90%                 ''
                                                                    CO, IL, JO, KR, MA,                        .
                                                                    MX, OM, P, PA, PE,
                                                                    SG)        .........


       (7) By striking subheadings 6202.93.10 through 6202.93.50 
     and inserting the following, with the superior text to 
     subheading 6202.93.01 having the same degree of indentation 
     as the article description for subheading 6202.93.10 (as in 
     effect on the day before the effective date of this section):


``     ..............  Recreational        ..................  .....................  ......................
                        performance
                        outerwear:
 
       6202.93.01        Containing 15     4.4%                Free (AU, BH, CA, CL,  60%
                          percent or more                       CO, IL, JO, KR, MA,
                          by weight of                          MX, OM, P, PA, PE,
                          down and                              SG)
                          waterfowl
                          plumage and of
                          which down
                          comprises 35
                          percent or more
                          by weight;
                          containing 10
                          percent or more
                          by weight of
                          down...........
 
       ..............    Other:            ..................  .....................  ......................
 
       6202.93.03         Padded,          14.9%               Free (AU, BH, CA, CL,  76%
                           sleeveless                           CO, IL, JO, KR, MA,
                           jackets.......                       MX, OM, P, PA, PE,
                                                                SG)
 
       ..............     Other:           ..................  .....................  ......................
 
       6202.93.05          Containing 36   43.4 cents/kg +     Free (AU, BH, CA, CL,  46.3 cents/kg + 58.5%
                            percent or      19.7%               CO, IL, JO, KR, MA,
                            more by                             MX, OM, P, PA, PE,
                            weight of                           SG)
                            wool or fine
                            animal hair..
 
       ..............      Other:          ..................  .....................  ......................
 
       6202.93.07           Water          7.1%                Free (AU, BH, CA, CL,  65%
                             resistant...                       CO, IL, JO, KR, MA,
                                                                MX, OM, P, PA, PE,
                                                                SG)
 

[[Page H9140]]

 
       6202.93.09           Other........  27.7%               Free (AU, BH, CA, CL,  90%
                                                                CO, IL, JO, KR, MA,
                                                                MX, OM, P, PA, PE,
                                                                SG)
 
       ..............  Other:              ..................  .....................  ......................
 
       6202.93.15        Containing 15     4.4%                Free (AU, BH, CA, CL,  60%
                          percent or more                       CO, IL, JO, KR, MA,
                          by weight of                          MX, OM, P, PA, PE,
                          down and                              SG)
                          waterfowl
                          plumage and of
                          which down
                          comprises 35
                          percent or more
                          by weight;
                          containing 10
                          percent or more
                          by weight of
                          down...........
 
       ..............    Other:            ..................  .....................  ......................
 
       6202.93.25         Padded,          14.9%               Free (AU, BH, CA, CL,  76%
                           sleeveless                           CO, IL, JO, KR, MA,
                           jackets.......                       MX, OM, P, PA, PE,
                                                                SG)
 
       ..............     Other:           ..................  .....................  ......................
 
       6202.93.45          Containing 36   43.4 cents/kg +     Free (AU, BH, CA, CL,  46.3 cents/kg + 58.5%
                            percent or      19.7%               CO, IL, JO, KR, MA,
                            more by                             MX, OM, P, PA, PE,
                            weight of                           SG)
                            wool or fine
                            animal hair..
 
       ..............      Other:          ..................  .....................  ......................
 
       6202.93.48           Water          7.1%                Free (AU, BH, CA, CL,  65%
                             resistant...                       CO, IL, JO, KR, MA,
                                                                MX, OM, P, PA, PE,
                                                                SG)
 
       6202.93.55           Other........  27.7%               Free (AU, BH, CA, CL,  90%                     ''
                                                                CO, IL, JO, KR, MA,                            .
                                                                MX, OM, P, PA, PE,
                                                                SG)

       (8) By striking subheadings 6202.99.10 through 6202.99.90 
     and inserting the following, with the superior text to 
     subheading 6202.99.03 having the same degree of indentation 
     as the article description for subheading 6202.99.10 (as in 
     effect on the day before the effective date of this section):


``      ...............  Recreational         ...................                         ..................
                          performance
                          outerwear:
 
        6202.99.03         Containing 70      Free                                        35%
                            percent or more
                            by weight of
                            silk or silk
                            waste...........
 
        6202.99.15         Other............  2.8%                 Free (AU,BH, CA, CL,   35%
                                                                    CO, E*, IL, JO, KR,
                                                                    MA,MX, OM, P, PA,
                                                                    PE,SG)
 
        ...............  Other:               ...................                         ..................
 
        6202.99.60         Containing 70      Free                                        35%
                            percent or more
                            by weight of
                            silk or silk
                            waste...........
 
        6202.99.80         Other............  2.8%                 Free (AU, BH, CA, CL,  35%                 ''
                                                                    CO, E*, IL, JO, KR,                        .
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)    .........

       (9)(A) By striking subheadings 6203.41 through 6203.41.20 
     and inserting the following, with the article description for 
     subheading 6203.41 having the same degree of indentation as 
     the article description for subheading 6203.41 (as in effect 
     on the day before the effective date of this section):


``     6203.41         Of wool or fine     ..................  .....................  ......................
                        animal hair:
 
       ..............    Recreational      ..................  .....................  ......................
                          performance
                          outerwear:
 
       ..............      Trousers,       ..................  .....................  ......................
                           breeches and
                           shorts:
 
       6203.41.01          Trousers,       7.6%                Free (AU, BH, CA, CL,  52.9 cents/kg + 58.5%
                            breeches,                           CO,IL, JO,KR, MA,MX,
                            containing                          P, PA, PE,SG)
                            elastomeric                        2.2% (OM)
                            fiber, water
                            resistant,
                            without belt
                            loops,
                            weighing more
                            than 9 kg per
                            dozen........
 
       ..............      Other:          ..................  .....................  ......................
 

[[Page H9141]]

 
       6203.41.03           Trousers of    41.9 cents/kg +     Free (AU, BH, CA, CL,  52.9 cents/kg +58.5%
                             worsted wool   16.3%               CO,IL, JO,KR, MA,MX,
                             fabric, made                       P, PA, PE,SG)
                             of wool yarn                      12.5 cents/kg + 4.8%
                             having an                          (OM)
                             average
                             fiber
                             diameter of
                             18.5 microns
                             or less.....
 
       6203.41.06           Other........  41.9 cents/kg +     Free (AU, BH, CA, CL,  52.9 cents/kg + 58.5%
                                            16.3%               CO,IL, JO,KR, MA,MX,
                                                                P, PA, PE,SG)
                                                                12.5 cents/kg + 4.8%
                                                                (OM)
 
       6203.41.08         Bib and brace    8.5%                Free (AU, BH, CA, CL,  63%
                           overalls......                       CO,IL, JO,KR, MA,MX,
                                                                P, PA, PE, SG)
                                                               2.5% (OM)
 
       ..............    Other:            ..................  .....................  ......................
 
       ..............     Trousers,        ..................  .....................  ......................
                           breeches and
                           shorts:
 
       6203.41.25          Trousers and    7.6%                Free (AU, BH, CA, CL,  52.9 cents/kg +58.5%
                            breeches,                           CO,IL, JO,KR, MA,MX,
                            containing                          P, PA, PE,SG)
                            elastomeric                        2.2% (OM)
                            fiber, water
                            resistant,
                            without belt
                            loops,
                            weighing more
                            than 9 kg per
                            dozen........
 
       ..............      Other:          ..................  .....................  ......................
 
       6203.41.30           Trousers of    41.9 cents/kg       Free (AU, BH, CA, CL,  52.9 cents/kg +58.5%
                             worsted wool   +16.3%              CO,IL, JO,KR, MA,MX,
                             fabric, made                       P, PA, PE,SG)
                             of wool yarn                      12.5 cents/kg + 4.8%
                             having an                          (OM)
                             average
                             fiber
                             diameter of
                             18.5 microns
                             or less.....
 
       6203.41.60           Other........  41.9 cents/kg       Free (AU, BH, CA, CL,  52.9 cents/kg +58.5%
                                            +16.3%              CO,IL, JO,KR, MA,MX,
                                                                P, PA, PE,SG)
                                                               12.5 cents/kg + 4.8%
                                                                (OM)
 
       6203.41.80         Bib and brace    8.5%                Free (AU, BH, CA, CL,  63%                     ''
                           overalls......                       CO,IL, JO,KR, MA,MX,                           .
                                                                P, PA, PE,SG)
                                                               2.5% (OM)
 

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.41.05 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6203.41.01 and 
     6203.41.25 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (C) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.41.12 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6203.41.03 and 6203.41.30 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (D) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.41.18 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6203.41.06 and 6203.41.60 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (E) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.41.20 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6203.41.08 and 6203.41.80 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (10)(A) By striking subheadings 6203.42.10 through 
     6203.42.40 and inserting the following, with the superior 
     text to subheading 6203.42.03 having the same degree of 
     indentation as the article description for subheading 
     6203.42.10 (as in effect on the day before the effective date 
     of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6203.42.03         Containing 15      Free                 .....................  60%
                            percent or more
                            by weight of
                            down and
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        6203.42.05          Bib and brace     10.3%                Free (AU,BH, CA,       90%
                             overalls.......                        CL,CO, IL, JO,KR,
                                                                    MA,MX,OM, P, PA,PE,
                                                                    SG)
 

[[Page H9142]]

 
        6203.42.07          Other...........  16.6%                Free (AU,BH, CA,       90%
                                                                    CL,CO, IL, JO,
                                                                    MA,MX,OM, P, PA,PE,
                                                                    SG)
                                                                   9.9% (KR)
 
        ...............  Other:               ...................  .....................  ..................
 
        6203.42.17         Containing 15      Free                 .....................  60%
                            percent or more
                            by weight of
                            down and
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        6203.42.25          Bib and brace     10.3%                Free (AU,BH, CA,       90%
                             overalls.......                        CL,CO, IL, JO,KR,
                                                                    MA,MX,OM, P, PA,PE,
                                                                    SG)
 
        6203.42.45          Other...........  16.6%                Free (AU,BH, CA,       90%                 ''
                                                                    CL,CO, IL, JO, MA,                         .
                                                                    MX, OM, P, PA,PE,
                                                                    SG)
                                                                   9.9% (KR)


       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.42.40 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6203.42.07 and 
     6203.42.45 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (11)(A) By striking subheadings 6203.43.10 through 
     6203.43.40 and inserting the following, with the superior 
     text to subheading 6203.43.01 having the same degree of 
     indentation as the article description for subheading 
     6203.43.10 (as in effect on the day before the effective date 
     of this section):


``     ..............  Recreational        ..................  .....................  ......................
                        performance
                        outerwear:
 
       6203.43.01        Containing 15     Free                .....................  60%
                          percent or more
                          by weight of
                          down and
                          waterfowl
                          plumage and of
                          which down
                          comprises 35
                          percent or more
                          by weight;
                          containing 10
                          percent or more
                          by weight of
                          down...........
 
       ..............    Other:            ..................  .....................  ......................
 
       ..............     Bib and brace    ..................  .....................  ......................
                           overalls:.....
 
       6203.43.03          Water           7.1%                Free (AU,BH, CA, CL,   65%
                            resistant....                       CO, IL, JO, KR,
                                                                MA,MX,OM, P,
                                                                PA,PE,SG)
 
       6203.43.05          Other.........  14.9%               Free (AU,BH, CA, CL,   76%
                                                                CO, IL, JO, KR, MA,
                                                                MX,OM, P, PA, PE,SG)
 
       ..............     Other:           ..................  .....................  ......................
 
       6203.43.09          Containing 36   49.6 cents/kg +     Free (AU,BH, CA, CL,   52.9 cents/kg + 58.5%
                            percent or      19.7%               CO, IL, JO, KR, MA,
                            more by                             MX,OM, P, PA,PE,SG)
                            weight of
                            wool or fine
                            animal hair..
 
       ..............      Other:          ..................  .....................  ......................
 
       6203.43.11           Water          7.1%                Free (AU,BH, CA, CL,   65%
                             resistant                          CO, IL, JO, MA,
                             trousers or                        MX,OM, P, PA,PE,SG)
                             breeches....                      1.4% (KR)
 
       6203.43.13           Other........  27.9%               Free (AU,BH, CA, CL,   90%
                                                                CO, IL, JO, MA,
                                                                MX,OM, P, PA, PE,SG)
                                                               5.5% (KR)
 
       ..............  Other:              ..................  .....................  ......................
 
       6203.43.45        Containing 15     Free                .....................  60%
                          percent or more
                          by weight of
                          down and
                          waterfowl
                          plumage and of
                          which down
                          comprises 35
                          percent or more
                          by weight;
                          containing 10
                          percent or more
                          by weight of
                          down...........
 
       ..............    Other:            ..................  .....................  ......................
 
       ..............     Bib and brace    ..................  .....................  ......................
                           overalls:.....
 

[[Page H9143]]

 
       6203.43.55          Water           7.1%                Free (AU,BH, CA, CL,   65%
                            resistant....                       CO, IL, JO, KR, MA,
                                                                MX,OM, P, PA, PE,SG)
 
       6203.43.60          Other.........  14.9%               Free (AU,BH, CA, CL,   76%
                                                                CO,IL,JO, KR, MA,
                                                                MX,OM, P, PA, PE,SG)
 
       ..............     Other:           ..................  .....................  ......................
 
       6203.43.65          Certified hand- 12.2%               Free (AU,BH, CA, CL,   76%
                            loomed and                          CO, IL, JO, KR, MA,
                            folklore                            MX,OM, P, PA, PE,SG)
                            products.....
 
       ..............      Other:          ..................  .....................  ......................
 
       6203.43.70           Containing 36  49.6 cents/kg +     Free (AU,BH, CA, CL,   52.9 cents/kg + 58.5%
                             percent or     19.7%               CO, IL, JO, KR, MA,
                             more by                            MX,OM, P, PA, PE,SG)
                             weight of
                             wool or fine
                             animal hair.
 
       ..............       Other:         ..................  .....................  ......................
 
       6203.43.75            Water         7.1%                Free (AU,BH, CA, CL,   65%
                              resistant                         CO, IL, JO, MA,
                              trousers or                       MX,OM, P, PA,PE,SG)
                              breeches...                      1.4% (KR)
 
       6203.43.90            Other.......  27.9%               Free (AU,BH, CA, CL,   90%                     ''
                                                                CO, IL, JO, MA,                                .
                                                                MX,OM, P, PA, PE,SG)
                                                                5.5% (KR)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.43.35 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6203.43.11 and 
     6203.43.75 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (C) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.43.40 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6203.43.13 and 6203.43.90 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (12)(A) By striking subheadings 6203.49.10 through 
     6203.49.80 and the immediate superior text to subheading 
     6203.49.10, and inserting the following, with the superior 
     text to subheading 6203.49.01 having the same degree of 
     indentation as the article description for subheading 
     6203.49.10 (as in effect on the day before the effective date 
     of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        ...............    Of artificial      ...................  .....................  ..................
                            fibers:
 
        6203.49.01          Bib and brace     8.5%                 Free (AU,BH, CA, CL,   76%
                             overalls.......                        CO, IL,JO, KR, MA,
                                                                    MX,OM, P, PA,PE, SG)
 
        6203.49.05          Trousers,         27.9%                Free (AU,BH, CA, CL,   90%
                             breeches and                           CO, IL,JO, KR, MA,
                             shorts.........                        MX,OM, P,PA,PE, SG)
 
        ...............    Of other textile   ...................  .....................  ..................
                            materials:......
 
        6203.49.07          Containing 70     Free                 .....................  35%
                             percent or more
                             by weight of
                             silk or silk
                             waste..........
 
        6203.49.09          Other...........  2.8%                 Free (AU,BH, CA, CL,   35%
                                                                    CO, E*, IL, JO,MA,
                                                                    MX,OM, P, PA,PE, SG)
                                                                   0.5% (KR)
 
        ...............  Other:               ...................  .....................  ..................
 
        ...............    Of artificial      ...................  .....................  ..................
                            fibers:
 
        6203.49.25          Bib and brace     8.5%                 Free (AU,BH, CA, CL,   76%
                             overalls.......                        CO, IL,JO, KR, MA,
                                                                    MX,OM, P, PA,PE, SG)
 
        ...............     Trousers,         ...................  .....................  ..................
                             breeches and
                             shorts:
 

[[Page H9144]]

 
        6203.49.35           Certified hand-  12.2%                Free (AU,BH, CA, CL,   76%
                              loomed and                            CO, IL,JO, KR, MA,
                              folklore                              MX,OM, P,PA,PE, SG)
                              products......
 
        6203.49.50           Other..........  27.9%                Free (AU,BH, CA, CL,   90%
                                                                    CO, IL,JO, KR, MA,
                                                                    MX,OM, P,PA,PE, SG)
 
        ...............    Of other textile   ...................  .....................  ..................
                            materials:......
 
        6203.49.60          Containing 70     Free                 .....................  35%
                             percent or more
                             by weight of
                             silk or silk
                             waste..........
 
        6203.49.90          Other...........  2.8%                 Free (AU,BH, CA, CL,   35%                 ''
                                                                    CO, E*, IL, JO,MA,                         .
                                                                    MX,OM, P,PA,PE, SG)
                                                                   0.5% (KR)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6203.49.80 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6203.49.09 and 
     6203.49.90 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (13)(A) By striking subheadings 6204.61.10 through 
     6204.61.90 and inserting the following, with the superior 
     text to subheading 6204.61.05 having the same degree of 
     indentation as the article description for subheading 
     6204.61.10 (as in effect on the day before the effective date 
     of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6204.61.05         Trousers and       7.6%                 Free (AU,BH, CA, CL,   58.5%
                            breeches,                               CO, IL,JO, KR, MA,
                            containing                              MX, P, PA, PE, SG)
                            elastomeric                            2.2% (OM)
                            fiber, water
                            resistant,
                            without belt
                            loops, weighing
                            more than 6 kg
                            per dozen.......
 
        6204.61.15         Other............  13.6%                Free (AU,BH, CA, CL,   58.5%
                                                                    CO, IL,JO, KR, MA,
                                                                    MX, P, PA, PE, SG)
                                                                   4% (OM)
 
        ...............  Other:               ...................  .....................  ..................
 
        6204.61.60         Trousers and       7.6%                 Free (AU,BH, CA, CL,   58.5%
                            breeches,                               CO, IL,JO, KR, MA,
                            containing                              MX, P, PA, PE, SG)
                            elastomeric                            2.2% (OM)
                            fiber, water
                            resistant,
                            without belt
                            loops, weighing
                            more than 6 kg
                            per dozen.......
 
        6204.61.80         Other............  13.6%                Free (AU,BH, CA, CL,   58.5%               ''
                                                                    CO, IL,JO, KR, MA,                         .
                                                                    MX, P, PA, PE, SG)
                                                                    4% (OM)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6204.61.10 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6204.61.05 and 
     6204.61.60 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (C) The staged reductions in the special rate of duty 
     proclaimed for subheading 6204.61.90 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6204.61.15 and 6204.61.80 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (14)(A) By striking subheadings 6204.62.10 through 
     6204.62.40 and inserting the following, with the superior 
     text to subheading 6204.62.03 having the same degree of 
     indentation as the article description for subheading 
     6204.62.10 (as in effect on the day before the effective date 
     of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6204.62.03         Containing 15      Free                 .....................  60%
                            percent or more
                            by weight of
                            down and
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        6204.62.05          Bib and brace     8.9%                 Free (AU,BH, CA,       90%
                             overalls.......                        CL,CO, IL, JO,KR,
                                                                    MA,MX, OM, P, PA,
                                                                    PE, SG)
 

[[Page H9145]]

 
        6204.62.15          Other...........  16.6%                Free (AU,BH, CA,       90%
                                                                    CL,CO, IL, JO, MA,
                                                                    MX,OM, P, PA,PE, SG)
                                                                   9.9% (KR)
 
        ...............  Other:               ...................  .....................  ..................
 
        6204.62.50         Containing 15      Free                 .....................  60%
                            percent or more
                            by weight of
                            down and
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        6204.62.60          Bib and brace     8.9%                 Free (AU,BH, CA,       90%
                             overalls.......                        CL,CO, IL, JO,KR,
                                                                    MA,MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............     Other:            ...................  .....................  ..................
 
        6204.62.70           Certified hand-  7.1%                 Free (AU,BH, CA,       37.5%
                              loomed and                            CL,CO, E, IL, JO,KR,
                              folklore                              MA,MX, OM, P, PA,
                              products......                        PE, SG)
 
        6204.62.80           Other..........  16.6%                Free (AU,BH, CA,       90%                 ''
                                                                    CL,CO, IL, JO, MA,                         .
                                                                    MX,OM, P, PA,PE, SG)
                                                                   9.9% (KR)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6204.62.40 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6204.62.15 and 
     6204.62.80 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (15)(A) By striking subheadings 6204.63.10 through 
     6204.63.35 and inserting the following, with the superior 
     text to subheading 6204.63.01 having the same degree of 
     indentation as the article description for subheading 
     6204.63.10 (as in effect on the day before the effective date 
     of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6204.63.01         Containing 15      Free                 .....................  60%
                            percent or more
                            by weight of
                            down and
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 
        ...............     Bib and brace     ...................  .....................  ..................
                             overalls:
 
        6204.63.02           Water resistant  7.1%                 Free (AU, BH, CA, CL,  65%
                                                                    CO,IL, JO,KR, MA,MX,
                                                                    OM,P, PA,PE, SG)
 
        6204.63.03           Other..........  14.9%                Free (AU, BH, CA, CL,  76%
                                                                    CO,IL, JO,KR, MA,MX,
                                                                    OM,P, PA,PE, SG)
 
        ...............     Other:            ...................  .....................  ..................
 
        6204.63.08           Containing 36    13.6%                Free (AU, BH, CA, CL,  58.5%
                              percent or                            CO,IL, JO,KR, MA,
                              more by weight                        MX, OM, P, PA,PE,
                              of wool or                            SG)
                              fine animal
                              hair..........
 
        ...............      Other:           ...................  .....................  ..................
 
        6204.63.09            Water           7.1%                 Free (AU, BH, CA, CL,  65%
                               resistant                            CO,IL, JO,KR,
                               trousers or                          MA,MX,OM,P, PA,PE,
                               breeches.....                        SG)
 
        6204.63.11            Other.........  28.6%                Free (AU,BH,CA,        90%
                                                                    CL,CO, IL,JO,
                                                                    MA,MX,OM,P, PA,PE,
                                                                    SG)
                                                                   5.7% (KR)
 
        ...............  Other:               ...................  .....................  ..................
 
        6204.63.50         Containing 15      Free                 .....................  60%
                            percent or more
                            by weight of
                            down and
                            waterfowl
                            plumage and of
                            which down
                            comprises 35
                            percent or more
                            by weight;
                            containing 10
                            percent or more
                            by weight of
                            down............
 
        ...............    Other:             ...................  .....................  ..................
 

[[Page H9146]]

 
        ...............     Bib and brace     ...................  .....................  ..................
                             overalls:
 
        6204.63.55           Water resistant  7.1%                 Free (AU, BH, CA, CL,  65%
                                                                    CO,IL, JO,KR, MA,MX,
                                                                    OM,P, PA,PE, SG)
 
        6204.63.60           Other..........  14.9%                Free (AU, BH, CA, CL,  76%
                                                                    CO,IL, JO,KR, MA,MX,
                                                                    OM,P, PA,PE, SG)
 
        6204.63.65          Certified hand-   11.3%                Free (AU, BH, CA, CL,  76%
                             loomed and                             CO, E, IL, JO,KR,
                             folklore                               MA,MX,OM,P, PA,PE,
                             products.......                        SG)
 
        ...............     Other:            ...................  .....................  ..................
 
        6204.63.70           Containing 36    13.6%                Free (AU, BH, CA, CL,  58.5%
                              percent or                            CO,IL, JO,KR, MA,MX,
                              more by weight                        OM,P, PA,PE, SG)
                              of wool or
                              fine animal
                              hair..........
 
        ...............      Other:           ...................  .....................  ..................
 
        6204.63.75            Water           7.1%                 Free (AU, BH, CA, CL,  65%
                               resistant                            CO,IL, JO,KR, MA,MX,
                               trousers or                          OM,P, PA,PE, SG)
                               breeches.....
 
        6204.63.90            Other.........  28.6%                Free (AU, BH, CA, CL,  90%                 ''
                                                                    CO,IL, JO, MA,                             .
                                                                    MX,OM, P, PA, PE,SG)
                                                                   5.7% (KR)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6204.63.35 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6204.63.11 and 
     6204.63.90 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (16) By striking subheadings 6204.69.10 through 6204.69.90 
     and the immediate superior text to subheading 6204.69.10, and 
     inserting the following, with the first superior text having 
     the same degree of indentation as the article description of 
     subheading 6204.69.10 (as in effect on the day before the 
     date of enactment of this Act):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        ...............    Of artificial      ...................  .....................  ..................
                            fibers:
 
        6204.69.01          Bib and brace     13.6%                Free (AU, BH, CA, CL,  76%
                             overalls.......                        CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        ...............     Trousers,         ...................  .....................  ..................
                             breeches and
                             shorts:........
 
        6204.69.02           Containing 36    13.6%                Free (AU,BH, CA,       58.5%
                              percent or                            CL,CO, IL, JO,KR,
                              more by weight                        MA, MX, OM, P, PA,
                              of wool or                            PE, SG)
                              fine animal
                              hair..........
 
        6204.69.03           Other..........  28.6%                Free (AU,BH, CA,       90%
                                                                    CL,CO, IL, JO,KR,
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............    Of silk or silk    ...................  .....................  ..................
                            waste:
 
        6204.69.04          Containing 70     1.1%                 Free (AU, BH, CA, CL,  65%
                             percent or more                        CO, E, IL, JO, KR,
                             by weight of                           MA, MX, OM, P, PA,
                             silk or silk                           PE, SG)
                             waste..........
 
        6204.69.05          Other...........  7.1%                 Free (AU,BH, CA,       65%
                                                                    CL,CO, E*, IL, JO,
                                                                    KR,MA,MX, OM, P,PA,
                                                                    PE, SG)
 

[[Page H9147]]

 
        6204.69.06         Other............  2.8%                 Free (AU, BH, CA, CL,  35%
                                                                    CO, E*, IL, JO, KR,
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............  Other:               ...................  .....................  ..................
 
        ...............    Of artificial      ...................  .....................  ..................
                            fibers:
 
        6204.69.15          Bib and brace     13.6%                Free (AU,BH, CA,       76%
                             overalls.......                        CL,CO, IL, JO,KR,
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............     Trousers,         ...................  .....................  ..................
                             breeches and
                             shorts:........
 
        6204.69.22           Containing 36    13.6%                Free (AU,BH, CA,       58.5%
                              percent or                            CL,CO, IL, JO,KR,
                              more by weight                        MA, MX, OM, P, PA,
                              of wool or                            PE, SG)
                              fine animal
                              hair..........
 
        6204.69.28           Other..........  28.6%                Free (AU,BH, CA,       90%
                                                                    CL,CO, IL, JO,KR,
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............    Of silk or silk    ...................  .....................  ..................
                            waste:
 
        6204.69.45          Containing 70     1.1%                 Free (AU,BH, CA,       65%
                             percent or more                        CL,CO, E, IL, JO,
                             by weight of                           KR, MA, MX, OM,
                             silk or silk                           P,PA, PE, SG)
                             waste..........
 
        6204.69.65          Other...........  7.1%                 Free (AU,BH, CA,       65%
                                                                    CL,CO, E*,IL, JO,
                                                                    KR,MA,MX, OM, P,PA,
                                                                    PE, SG)
 
        6204.69.80         Other............  2.8%                 Free (AU,BH, CA,       35%                 ''
                                                                    CL,CO, E*, IL, JO,                         .
                                                                    KR,MA,MX, OM, P,PA,
                                                                    PE, SG)

       (17) By striking subheadings 6210.40.30 through 6210.40.90 
     and the immediate superior text to subheading 6210.40.30, and 
     inserting the following, with the first superior text having 
     the same degree of indentation as the immediate superior text 
     to subheading 6210.40.30 (as in effect on the day before the 
     effective date of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        ...............    Of man-made        ...................  .....................  ..................
                            fibers:
 
        6210.40.15          Having an outer   3.8%                 Free (AU, BH, CA, CL,  65%
                             surface                                CO,IL, JO,KR, MA,MX,
                             impregnated,                           OM,P, PA,PE, SG)
                             coated, covered
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.40.25          Other...........  7.1%                 Free (AU, BH, CA, CL,  65%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        ...............    Other:             ...................  .....................  ..................
 
        6210.40.28          Having an outer   3.3%                 Free (AU, BH, CA, CL,  37.5%
                             surface                                CO, E, IL, JO, KR,
                             impregnated,                           MA, MX, OM, P, PA,
                             coated, covered                        PE, SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.40.29          Other...........  6.2%                 Free (AU, BH, CA, CL,  37.5%
                                                                    CO, E*, IL, JO, KR,
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)
 
        ...............  Other:               ...................  .....................  ..................
 
        ...............    Of man-made        ...................  .....................  ..................
                            fibers:
 

[[Page H9148]]

 
        6210.40.35          Having an outer   3.8%                 Free (AU, BH, CA, CL,  65%
                             surface                                CO, IL, JO, KR, MA,
                             impregnated,                           MX, OM, P, PA, PE,
                             coated, covered                        SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.40.55          Other...........  7.1%                 Free (AU, BH, CA, CL,  65%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
 
        ...............    Other:             ...................  .....................  ..................
 
        6210.40.75          Having an outer   3.3%                 Free (AU, BH, CA, CL,  37.5%
                             surface                                CO, E, IL, JO, KR,
                             impregnated,                           MA, MX, OM, P, PA,
                             coated, covered                        PE, SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.40.80          Other...........  6.2%                 Free (AU, BH, CA, CL,  37.5%               ''
                                                                    CO, E*, IL, JO, KR,                        .
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)

       (18) By striking subheadings 6210.50.30 through 6210.50.90 
     and the immediate superior text to subheading 6210.50.30, and 
     inserting the following, with the first superior text having 
     the same degree of indentation as the immediate superior text 
     to subheading 6210.50.30 (as in effect on the day before the 
     effective date of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        ...............    Of man-made        ...................  .....................  ..................
                            fibers:
 
        6210.50.03          Having an outer   3.8%                 Free (AU, BH, CA, CL,  65%
                             surface                                CO, IL, JO, KR, MA,
                             impregnated,                           MX, OM,P, PA, PE,
                             coated, covered                        SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.50.05          Other...........  7.1%                 Free (AU, BH, CA, CL,  65%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM,P, PA, PE,
                                                                    SG)
 
        ...............    Other:             ...................  .....................  ..................
 
        6210.50.12          Having an outer   3.3%                 Free (AU, BH, CA, CL,  37.5%
                             surface                                CO, E, IL, JO, KR,
                             impregnated,                           MA, MX, OM, P,
                             coated, covered                        PA,PE, SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.50.22          Other...........  6.2%                 Free (AU, BH, CA, CL,  37.5%
                                                                    CO, E*, IL, JO, KR,
                                                                    MA, MX, OM, P,PA,
                                                                    PE, SG)
 
        ...............  Other:               ...................  .....................  ..................
 
        ...............    Of man-made        ...................  .....................  ..................
                            fibers:
 
        6210.50.35          Having an outer   3.8%                 Free (AU, BH, CA, CL,  65%
                             surface                                CO, IL, JO, KR, MA,
                             impregnated,                           MX, OM,P, PA, PE,
                             coated, covered                        SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.50.55          Other...........  7.1%                 Free (AU, BH, CA, CL,  65%
                                                                    CO, IL, JO, KR, MA,
                                                                    MX, OM,P, PA, PE,
                                                                    SG)
 
        ...............    Other:             ...................  .....................  ..................
 

[[Page H9149]]

 
        6210.50.75          Having an outer   3.3%                 Free (AU, BH, CA, CL,  37.5%
                             surface                                CO, E, IL, JO, KR,
                             impregnated,                           MA, MX, OM, P, PA,
                             coated, covered                        PE, SG)
                             or laminated
                             with rubber or
                             plastics
                             material which
                             completely
                             obscures the
                             underlying
                             fabric.........
 
        6210.50.80          Other...........  6.2%                 Free (AU, BH, CA, CL,  37.5%               ''
                                                                    CO, E*, IL, JO, KR,                        .
                                                                    MA, MX, OM, P, PA,
                                                                    PE, SG)

       (19) By striking subheading 6211.32.00 and inserting the 
     following, with the article description for subheading 
     6211.32 having the same degree of indentation as the article 
     description for subheading 6211.32.00 (as in effect on the 
     day before the effective date of this section):


``      6211.32          Of cotton:           ...................  .....................  ..................
 
        6211.32.50         Recreational       8.1%                 Free (AU, BH, CA, CL,  90%
                            performance                             CO, IL, JO, KR, MA,
                            outerwear.......                        MX, OM, P, PA, PE,
                                                                    SG)
 
        6211.32.90         Other............  8.1%                 Free (AU, BH, CA, CL,  90%                 ''
                                                                    CO, IL, JO, KR, MA,                        .
                                                                    MX, OM, P, PA, PE,
                                                                    SG)

       (20)(A) By striking subheading 6211.33.00 and inserting the 
     following, with the article description for subheading 
     6211.33 having the same degree of indentation as the article 
     description for subheading 6211.33.00 (as in effect on the 
     day before the effective date of this section):


``      6211.33          Of man-made fibers:  ...................  .....................  ..................
 
        6211.33.50         Recreational       16%                  Free (AU, BH, CA, CL,  76%
                            performance                             CO, IL, JO, KR, MA,
                            outerwear.......                        MX, P, PA ,PE, SG)
                                                                   4.8% (OM)
 
        6211.33.90         Other............  16%                  Free (AU, BH, CA, CL,  76%                 ''
                                                                    CO, IL, JO, KR, MA,                        .
                                                                    MX, P, PA, PE, SG)
                                                                   4.8% (OM)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6211.33.00 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6211.33.50 and 
     6211.33.90 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (21)(A) By striking subheadings 6211.39.05 through 
     6211.39.90 and inserting the following, with the first 
     superior text having the same degree of indentation as the 
     article description for subheading 6211.39.05 (as in effect 
     on the day before the effective date of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6211.39.03         Of wool or fine    12%                  Free (AU, BH, CA, CL,  58.5%
                            animal hair.....                        CO, IL, JO, KR, MA,
                                                                    MX, P, PA, PE, SG)
                                                                   3.6% (OM)
 
        6211.39.07         Containing 70      0.5%                 Free (AU, BH, CA, CL,  35%
                            percent or more                         CO, E, IL, JO, KR,
                            by weight of                            MA, MX, OM, P, PA,
                            silk or silk                            PE, SG)
                            waste...........
 
        6211.39.15         Other............  2.8%                 Free (AU, BH, CA, CL,  35%
                                                                    CO, E*, IL, JO, KR,
                                                                    MA, MX, OM, P, PE,
                                                                    SG)
 
        ...............  Other:               ...................  .....................  ..................
 
        6211.39.30         Of wool or fine    12%                  Free (AU, BH, CA, CL,  58.5%
                            animal hair.....                        CO, IL, JO, KR, MA,
                                                                    MX, P, PA, PE, SG)
                                                                   3.6% (OM)
 

[[Page H9150]]

 
        6211.39.60         Containing 70      0.5%                 Free (AU, BH, CA, CL,  35%
                            percent or more                         CO, E, IL, JO, KR,
                            by weight of                            MA, MX, OM, P, PA,
                            silk or silk                            PE, SG)
                            waste...........
 
        6211.39.80         Other............  2.8%                 Free (AU, BH, CA, CL,  35%                 ''
                                                                    CO, E*, IL, JO, KR,                        .
                                                                    MA, MX, OM, P, PE,
                                                                    SG)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6211.39.05 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6211.39.03 and 
     6211.39.30 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (22) By striking subheading 6211.42.00 and inserting the 
     following, with the article description for subheading 
     6211.42 having the same degree of indentation as the article 
     description for subheading 6211.42.00 (as in effect on the 
     day before the effective date of this section):


``      6211.42          Of cotton:           ...................  .....................  ..................
 
        6211.42.05         Recreational       8.1%                 Free (AU, BH, CA, CL,  90%
                            performance                             CO, IL, JO, KR, MA,
                            outerwear.......                        MX, OM, P, PA, PE,
                                                                    SG)
 
        6211.42.10         Other............  8.1%                 Free (AU, BH, CA, CL,  90%                 ''
                                                                    CO, IL, JO, KR, MA,                        .
                                                                    MX, OM, P, PA, PE,
                                                                    SG)

       (23)(A) By striking subheading 6211.43.00 and inserting the 
     following, with the article description for subheading 
     6211.43 having the same degree of indentation as the article 
     description for subheading 6211.43.00 (as in effect on the 
     day before the effective date of this section):


``      6211.43          Of man-made fibers:  ...................  .....................  ..................
 
        6211.43.05         Recreational       16%                  Free (AU, BH, CA, CL,  90%
                            performance                             CO, IL, JO, KR, MA,
                            outerwear.......                        MX, P, PA, PE, SG)
                                                                   4.8% (OM)
 
        6211.43.10         Other............  16%                  Free (AU, BH, CA, CL,  90%                 ''
                                                                    CO, IL, JO, KR, MA,                        .
                                                                    MX, P, PA, PE, SG)
                                                                   4.8% (OM)


       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6211.43.00 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6211.43.05 and 
     6211.43.10 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (24)(A) By striking subheadings 6211.49.10 through 
     6211.49.90 and inserting the following, with the first 
     superior text having the same degree of indentation as the 
     article description for subheading 6211.49.90 (as in effect 
     on the day before the effective date of this section):


``      ...............  Recreational         ...................  .....................  ..................
                          performance
                          outerwear:
 
        6211.49.03         Containing 70      1.2%                 Free (AU, BH, CA, CL,  35%
                            percent or more                         CO, E, IL, JO, KR,
                            by weight of                            MA, MX, OM, P,
                            silk or silk                            PA,PE, SG)
                            waste...........
 
        6211.49.15         Of wool or fine    12%                  Free (AU, BH, CA, CL,  58.5%
                            animal hair.....                        CO, IL, JO, KR, MA
                                                                    ,MX, P, PA, PE, SG)
                                                                   3.6% (OM)
 
        6211.49.25         Other............  7.3%                 Free (AU, BH, CA, CL,  35%
                                                                    CO, E, IL, JO, MA,
                                                                    MX, OM, P, PA, PE,
                                                                    SG)
                                                                    1.4% (KR)
 
        ...............  Other:               ...................  .....................  ..................
 
        6211.49.50         Containing 70      1.2%                 Free (AU, BH, CA, CL,  35%
                            percent or more                         CO, E, IL, JO, KR,
                            by weight of                            MA, MX, OM, P, PA,
                            silk or silk                            PE, SG)
                            waste...........
 

[[Page H9151]]

 
        6211.49.60         Of wool or fine    12%                  Free (AU, BH, CA, CL,  58.5%
                            animal hair.....                        CO, IL, JO, KR, MA,
                                                                    MX, P, PA, PE,SG)
                                                                   3.6% (OM)
 
        6211.49.80         Other............  7.3%                 Free (AU, BH, CA, CL,  35%                 ''
                                                                    CO, E, IL, JO, MA,                         .
                                                                    MX,OM, P, PA, PE,
                                                                    SG)
                                                                   1.4% (KR)

       (B) The staged reductions in the special rate of duty 
     proclaimed for subheading 6211.49.41 of the Harmonized Tariff 
     Schedule of the United States before the effective date of 
     this section shall apply to subheadings 6211.49.15 and 
     6211.49.60 of such Schedule, as added by subparagraph (A), on 
     and after such effective date.
       (C) The staged reductions in the special rate of duty 
     proclaimed for subheading 6211.49.90 of such Schedule before 
     the effective date of this section shall apply to subheadings 
     6211.49.25 and 6211.49.80 of such Schedule, as added by 
     subparagraph (A), on and after such effective date.
       (d) Effective Date.--
       (1) In general.--Except as provided in paragraph (2), this 
     section and the amendments made by this section--
       (A) shall take effect on the 180th day after the date of 
     the enactment of this Act; and
       (B) shall apply to articles entered, or withdrawn from 
     warehouse for consumption, on or after such 180th day.
       (2) Subsection (a).--Subsection (a) shall take effect on 
     the date of the enactment of this Act.

     SEC. 913. MODIFICATIONS TO DUTY TREATMENT OF PROTECTIVE 
                   ACTIVE FOOTWEAR.

       (a) In General.--Chapter 64 of the Harmonized Tariff 
     Schedule of the United States is amended--
       (1) by redesignating the Additional U.S. Note added by 
     section 602(a) of the Trade Preferences Extension Act of 2015 
     (Public Law 114-27; 129 Stat. 413) as Additional U.S. Note 6;
       (2) in subheading 6402.91.42, by striking the matter in the 
     column 1 special rate of duty column and inserting the 
     following: ``Free (AU, BH, CA, CL, D, IL, JO, MA, MX, P, R, 
     SG) 1%(PA) 6%(OM) 6%(PE) 12%(CO) 20%(KR)''; and
       (3) in subheading 6402.99.32, by striking the matter in the 
     column 1 special rate of duty column and inserting the 
     following: ``Free (AU, BH, CA, CL, D, IL, JO, MA, MX, P, R, 
     SG) 1%(PA) 6%(OM) 6%(PE) 12%(CO) 20%(KR)''.
       (b) Staged Rate Reductions.--Section 602(c) of the Trade 
     Preferences Extension Act of 2015 (Public Law 114-27; 129 
     Stat. 414) is amended to read as follows:
       ``(c) Staged Rate Reductions.--Beginning in calendar year 
     2016, the staged reductions in special rates of duty 
     proclaimed before the date of the enactment of this Act--
       ``(1) for subheading 6402.91.90 of the Harmonized Tariff 
     Schedule of the United States shall be applied to subheading 
     6402.91.42 of such Schedule, as added by subsection (b)(1); 
     and
       ``(2) for subheading 6402.99.90 of such Schedule shall be 
     applied to subheading 6402.99.32 of such Schedule, as added 
     by subsection (b)(2).''.
       (c) Effective Date.--
       (1) In general.--The amendments made by this section shall 
     take effect as if included in the enactment of the Trade 
     Preferences Extension Act of 2015 (Public Law 114-27; 129 
     Stat. 362).
       (2) Retroactive application for certain liquidations and 
     reliquidations.--
       (A) In general.--Notwithstanding section 514 of the Tariff 
     Act of 1930 (19 U.S.C. 1514) or any other provision of law 
     and subject to subparagraph (B), any entry of an article 
     classified under subheading 6402.91.42 or 6402.99.32 of the 
     Harmonized Tariff Schedule of the United States, that--
       (i) was made--

       (I) after the effective date specified in section 602(d) of 
     the Trade Preferences Extension Act of 2015 (Public Law 114-
     27; 129 Stat. 414), and
       (II) before the date of the enactment of this Act, and

       (ii) to which a lower rate of duty would be applicable if 
     the entry were made after such date of enactment,
     shall be liquidated or reliquidated as though such entry 
     occurred on such date of enactment.
       (B) Requests.--A liquidation or reliquidation may be made 
     under subparagraph (A) with respect to an entry only if a 
     request therefor is filed with U.S. Customs and Border 
     Protection not later than 180 days after the date of the 
     enactment of this Act that contains sufficient information to 
     enable U.S. Customs and Border Protection--
       (i) to locate the entry; or
       (ii) to reconstruct the entry if it cannot be located.
       (C) Payment of amounts owed.--Any amounts owed by the 
     United States pursuant to the liquidation or reliquidation of 
     an entry of an article under subparagraph (A) shall be paid, 
     without interest, not later than 90 days after the date of 
     the liquidation or reliquidation (as the case may be).

     SEC. 914. 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 (Public Law 114-26; 19 U.S.C. 
     4201(a)) 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) Greenhouse Gas Emissions Measures.--Section 102(a) of 
     the Bipartisan Congressional Trade Priorities and 
     Accountability Act of 2015 (Public Law 114-26; 19 U.S.C. 
     4201(a)), as amended by subsection (a) of this section, is 
     further 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 establish 
     obligations for the United States regarding greenhouse gas 
     emissions measures, including obligations that require 
     changes to United States laws or regulations or that would 
     affect the implementation of such laws or regulations, other 
     than those fulfilling the other negotiating objectives in 
     this section.''.
       (c) Fisheries Negotiations.--Section 102(b) of the 
     Bipartisan Congressional Trade Priorities and Accountability 
     Act of 2015 (Public Law 114-26; 19 U.S.C. 4201(b)) 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--
       ``(A) 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 nontariff barriers;
       ``(B) to eliminate fisheries subsidies that distort trade, 
     including subsidies of the type referred to in paragraph 9 of 
     Annex D to the Ministerial Declaration adopted by the World 
     Trade Organization at the Sixth Ministerial Conference at 
     Hong Kong, China on December 18, 2005;
       ``(C) to pursue transparency in fisheries subsidies 
     programs; and
       ``(D) to address illegal, unreported, and unregulated 
     fishing.''.
       (d) Accreditation.--Section 104 of the Bipartisan 
     Congressional Trade Priorities and Accountability Act of 2015 
     (Public Law 114-26; 19 U.S.C. 4203) is amended--
       (1) in subsection (b)(3), by striking ``an official'' and 
     inserting ``a delegate and official''; and
       (2) in subsection (c)(2)(C)--
       (A) by striking ``an official'' each place it appears and 
     inserting ``a delegate and official''; and
       (B) by inserting after the first sentence the following: 
     ``In addition, the chairmen 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 and official advisers to the United 
     States delegation in negotiations for any trade agreement to 
     which this title applies.''.
       (e) Trafficking in Persons.--
       (1) In general.--Section 106(b)(6) of the Bipartisan 
     Congressional Trade Priorities and Accountability Act of 2015 
     (Public Law 114-26; 19 U.S.C. 4205(b)(6)) is amended by 
     striking subparagraph (B) and inserting 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, the prohibition under subparagraph 
     (A) shall not apply with respect to a trade agreement or 
     trade 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);
       ``(II) be accompanied by supporting documentation providing 
     credible evidence of each such concrete action, including 
     copies of relevant laws or regulations adopted or modified, 
     and any enforcement actions taken, by that country, where 
     appropriate; and

[[Page H9152]]

       ``(III) be made available to the public.

       ``(C) Special rule for changes in certain determinations.--
     If a country is listed as a tier 3 country in an annual 
     report on trafficking in persons submitted in calendar year 
     2014 or any calendar year thereafter and, in the annual 
     report on trafficking in persons submitted in the next 
     calendar year, is listed on the tier 2 watch list, the 
     President shall submit a detailed description of the credible 
     evidence supporting the change in listing of the country, 
     accompanied by copies of documents providing such evidence, 
     where appropriate, to the appropriate congressional 
     committees--
       ``(i) in the case of a change in listing reflected in the 
     annual report on trafficking in persons submitted in calendar 
     year 2015, not later than 90 days after the date of the 
     enactment of the Trade Facilitation and Trade Enforcement Act 
     of 2015; and
       ``(ii) in the case of a change in listing reflected in an 
     annual report on trafficking in persons submitted in calendar 
     year 2016 or any calendar year thereafter, not later than 90 
     days after the submission of that report.
       ``(D) Sense of congress.--It is the sense of Congress that 
     the integrity of the process for making the determinations in 
     the annual report on trafficking in persons, including 
     determinations with respect to country rankings and the 
     substance of the assessments in the report, should be 
     respected and not affected by unrelated considerations.
       ``(E) Definitions.--In this paragraph:
       ``(i) Annual report on trafficking in persons.--The term 
     `annual report on trafficking in persons' means the annual 
     report on trafficking in persons required under section 
     110(b)(1) of the Trafficking Victims Protection Act of 2000 
     (22 U.S.C. 7107(b)(1)).
       ``(ii) Appropriate congressional committees.--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.

       ``(iii) Tier 2 watch list.--The term `tier 2 watch list' 
     means the list of countries required under section 
     110(b)(2)(A)(iii) of the Trafficking Victims Protection Act 
     of 2000 (22 U.S.C. 7107(b)(2)(A)(iii)).
       ``(iv) Tier 3 country.--The term `tier 3 country' means a 
     country on the list of countries required under section 
     110(b)(1)(C) of the Trafficking Victims Protection Act of 
     2000 (22 U.S.C. 7107(b)(1)(C)).''.
       (2) Conforming amendment.--Section 106(b)(6)(A) of the 
     Bipartisan Congressional Trade Priorities and Accountability 
     Act of 2015 (Public Law 114-26; 19 U.S.C. 4205(b)(6)(A)) is 
     amended by striking ``to which the minimum'' and all that 
     follows through ``7107(b)(1))'' and inserting ``listed as a 
     tier 3 country in the most recent annual report on 
     trafficking in persons''.
       (f) Technical Amendments.--The Bipartisan Congressional 
     Trade Priorities and Accountability Act of 2015 is amended--
       (1) in section 105(b)(3) (Public Law 114-26; 129 Stat. 346; 
     19 U.S.C. 4204(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) (Public Law 114-26; 129 Stat. 354; 
     19 U.S.C. 4205(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 (Public Law 114-26; 129 Stat. 320; 19 U.S.C. 4201 
     et seq.).

     SEC. 915. TRADE PREFERENCES FOR NEPAL.

       (a) Findings.--Congress makes the following findings:
       (1) Nepal is among the least developed countries in the 
     world, with a per capita gross national income of $730 in 
     2014.
       (2) Nepal suffered a devastating earthquake in April 2015, 
     with subsequent aftershocks. More than 9,000 people died and 
     approximately 23,000 people were injured.
       (b) Eligibility Requirements.--
       (1) In general.--The President may authorize the provision 
     of preferential treatment under this section to articles that 
     are imported directly from Nepal into the customs territory 
     of the United States pursuant to subsection (c) if the 
     President determines--
       (A) that Nepal meets the requirements set forth in 
     paragraphs (1), (2), and (3) of section 104(a) of the African 
     Growth and Opportunity Act (19 U.S.C. 3703(a)); and
       (B) after taking into account the factors set forth in 
     paragraphs (1) through (7) of subsection (c) of section 502 
     of the Trade Act of 1974 (19 U.S.C. 2462), that Nepal meets 
     the eligibility requirements of such section 502.
       (2) Withdrawal, suspension, or limitation of preferential 
     treatment; mandatory graduation.--The provisions of 
     subsections (d) and (e) of section 502 of the Trade Act of 
     1974 (19 U.S.C. 2462) shall apply with respect to Nepal to 
     the same extent and in the same manner as such provisions 
     apply with respect to beneficiary developing countries under 
     title V of that Act (19 U.S.C. 2461 et seq.).
       (c) Eligible Articles.--
       (1) In general.--An article described in paragraph (2) may 
     enter the customs territory of the United States free of 
     duty.
       (2) Articles described.--
       (A) In general.--An article is described in this paragraph 
     if--
       (i)(I) the article is the growth, product, or manufacture 
     of Nepal; and
       (II) in the case of a textile or apparel article, Nepal is 
     the country of origin of the article, as determined under 
     section 102.21 of title 19, Code of Federal Regulations (as 
     in effect on the day before the date of the enactment of this 
     Act);
       (ii) the article is imported directly from Nepal into the 
     customs territory of the United States;
       (iii) the article is classified under any of the following 
     subheadings of the Harmonized Tariff Schedule of the United 
     States (as in effect on the day before the date of the 
     enactment of this Act):


4202.11.00............................  4202.22.60...................  4202.92.08
4202.12.20............................  4202.22.70...................  4202.92.15
4202.12.40............................  4202.22.80...................  4202.92.20
4202.12.60............................  4202.29.50...................  4202.92.30
4202.12.80............................  4202.29.90...................  4202.92.45
4202.21.60............................  4202.31.60...................  4202.92.60
4202.21.90............................  4202.32.40...................  4202.92.90
4202.22.15............................  4202.32.80...................  4202.99.90
4202.22.40............................  4202.32.95...................  4203.29.50
4202.22.45............................  4202.91.00                     .........................................
                                                                       .........................................
5701.10.90............................  5702.91.30...................  5703.10.80
5702.31.20............................  5702.91.40...................  5703.90.00
5702.49.20............................  5702.92.90...................  5705.00.20
5702.50.40............................  5702.99.15                     .........................................
5702.50.59............................  5703.10.20                     .........................................
                                                                       .........................................
6117.10.60............................  6214.20.00...................  6217.10.85
6117.80.85............................  6214.40.00...................  6301.90.00
6214.10.10............................  6214.90.00...................  6308.00.00
6214.10.20............................  6216.00.80                     .........................................
                                                                       .........................................
6504.00.90............................  6505.00.30...................  6505.00.90
6505.00.08............................  6505.00.40...................  6506.99.30
6505.00.15............................  6505.00.50...................  6506.99.60
6505.00.20............................  6505.00.60                     .........................................
6505.00.25............................  6505.00.80                     .........................................
 

       (iv) the President determines, after receiving the advice 
     of the United States International Trade Commission in 
     accordance with section 503(e) of the Trade Act of 1974 (19 
     U.S.C. 2463(e)), that the article is not import-sensitive in 
     the context of imports from Nepal; and
       (v) subject to subparagraph (C), the sum of the cost or 
     value of the materials produced in, and the direct costs of 
     processing operations performed in, Nepal or the customs 
     territory of the United States is not less than 35 percent of 
     the appraised value of the article at the time it is entered.
       (B) Exclusions.--An article shall not be treated as the 
     growth, product, or manufacture of Nepal for purposes of 
     subparagraph (A)(i)(I) by virtue of having merely undergone--
       (i) simple combining or packaging operations; or
       (ii) mere dilution with water or mere dilution with another 
     substance that does not materially alter the characteristics 
     of the article.
       (C) Limitation on united states cost.--For purposes of 
     subparagraph (A)(v), the cost or value of materials produced 
     in, and the direct costs of processing operations performed 
     in, the customs territory of the United States and attributed 
     to the 35-percent requirement under that subparagraph may not 
     exceed 15 percent of

[[Page H9153]]

     the appraised value of the article at the time it is entered.
       (3) Verification with respect to transshipment for textile 
     and apparel articles.--
       (A) In general.--Not later than January 1, April 1, July 1, 
     and October 1 of each calendar year, the Commissioner shall 
     verify that textile and apparel articles imported from Nepal 
     to which preferential treatment is extended under this 
     section are not being unlawfully transshipped into the United 
     States.
       (B) Report to president.--If the Commissioner determines 
     under subparagraph (A) that textile and apparel articles 
     imported from Nepal to which preferential treatment is 
     extended under this section are being unlawfully transshipped 
     into the United States, the Commissioner shall report that 
     determination to the President.
       (d) Trade Facilitation and Capacity Building.--
       (1) Findings.--Congress makes the following findings:
       (A) As a land-locked least-developed country, Nepal has 
     severe challenges reaching markets and developing capacity to 
     export goods. As of 2015, exports from Nepal are 
     approximately $800,000,000 per year, with India the major 
     market at $450,000,000 annually. The United States imports 
     about $80,000,000 worth of goods from Nepal, or 10 percent of 
     the total goods exported from Nepal.
       (B) The World Bank has found evidence that the overall 
     export competitiveness of Nepal has been declining since 
     2005. Indices compiled by the World Bank and the Organization 
     for Economic Co-operation and Development found that export 
     costs in Nepal are high with respect to both air cargo and 
     container shipments relative to other low-income countries. 
     Such indices also identify particular weaknesses in Nepal 
     with respect to automation of customs and other trade 
     functions, involvement of local exporters and importers in 
     preparing regulations and trade rules, and export finance.
       (C) Implementation by Nepal of the Agreement on Trade 
     Facilitation of the World Trade Organization could directly 
     address some of the weaknesses described in subparagraph (B).
       (2) Establishment of trade facilitation and capacity 
     building program.--Not later than 180 days after the date of 
     the enactment of this Act, the President shall, in 
     consultation with the Government of Nepal, establish a trade 
     facilitation and capacity building program for Nepal--
       (A) to enhance the central export promotion agency of Nepal 
     to support successful exporters and to build awareness among 
     potential exporters in Nepal about opportunities abroad and 
     ways to manage trade documentation and regulations in the 
     United States and other countries;
       (B) to provide export finance training for financial 
     institutions in Nepal and the Government of Nepal;
       (C) to assist the Government of Nepal in maintaining 
     publication on the Internet of all trade regulations, forms 
     for exporters and importers, tax and tariff rates, and other 
     documentation relating to exporting goods and developing a 
     robust public-private dialogue, through its National Trade 
     Facilitation Committee, for Nepal to identify timelines for 
     implementation of key reforms and solutions, as provided for 
     under the Agreement on Trade Facilitation of the World Trade 
     Organization; and
       (D) to increase access to guides for importers and 
     exporters, through publication of such guides on the 
     Internet, including rules and documentation for United States 
     tariff preference programs.
       (e) Reporting Requirement.--Not later than one year after 
     the date of the enactment of this Act, and annually 
     thereafter, the President shall monitor, review, and report 
     to Congress on the implementation of this section, the 
     compliance of Nepal with subsection (b)(1), and the trade and 
     investment policy of the United States with respect to Nepal.
       (f) Termination of Preferential Treatment.--No preferential 
     treatment extended under this section shall remain in effect 
     after December 31, 2025.
       (g) Effective Date.--The provisions of this section shall 
     take effect on the date that is 30 days after the date of the 
     enactment of this Act.

     SEC. 916. AGREEMENT BY ASIA-PACIFIC ECONOMIC COOPERATION 
                   MEMBERS TO REDUCE RATES OF DUTY ON CERTAIN 
                   ENVIRONMENTAL GOODS.

       Section 107 of the Bipartisan Congressional Trade 
     Priorities and Accountability Act of 2015 (Public Law 114-26; 
     19 U.S.C. 4206) is amended by adding at the end the 
     following:
       ``(c) Agreement by Asia-Pacific Economic Cooperation 
     Members to Reduce Rates of Duty on Certain Environmental 
     Goods.--Notwithstanding the notification requirement 
     described in section 103(a)(2), the President may exercise 
     the proclamation authority provided for in section 
     103(a)(1)(B) to implement an agreement by members of the 
     Asia-Pacific Economic Cooperation (APEC) to reduce any rate 
     of duty on certain environmental goods included in Annex C of 
     the APEC Leaders Declaration issued on September 9, 2012, if 
     (and only if) the President, as soon as feasible after the 
     date of the enactment of the Trade Facilitation and Trade 
     Enforcement Act of 2015, and before exercising proclamation 
     authority under section 103(a)(1)(B), notifies Congress of 
     the negotiations relating to the agreement and the specific 
     United States objectives in the negotiations.''.

     SEC. 917. 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. 918. 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)(A) 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.
       ``(B) The President shall notify the Committee on Ways and 
     Means of the House of Representatives and the Committee on 
     Finance of the Senate not less than 30 days prior to making 
     any change to the responsibilities of any Deputy United 
     States Trade Representative included in a submission under 
     subparagraph (A), including the reason for that change.''.

     SEC. 919. SENSE OF CONGRESS ON THE NEED FOR A MISCELLANEOUS 
                   TARIFF BILL PROCESS.

       (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 would be in the interests of the United States if 
     the Harmonized Tariff Schedule were updated regularly and 
     predictably to eliminate such artificial distortions by 
     suspending or reducing duties on such goods.
       (4) The manufacturing competitiveness of the United States 
     around the world would be enhanced if the Harmonized Tariff 
     Schedule were updated regularly and predictably 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 
     manufacturers and consumers resulting from the imposition of 
     such duties and to promote the competitiveness of United 
     States manufacturers, the Committee on Finance of the Senate 
     and the Committee on Ways and Means of the House of 
     Representatives are urged to advance, as soon as possible, 
     after consultation with the public and Members of the Senate 
     and the House of Representatives, a regular and predictable 
     legislative process for the temporary suspension and 
     reduction of duties that is consistent with the rules of the 
     Senate and the House.

     SEC. 920. 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--
       (1) in subparagraph (A), by striking ``July 7, 2025'' and 
     inserting ``September 30, 2025''; and
       (2) by striking subparagraph (D).
       (b) Rate for Merchandise Processing Fees.--Section 503 of 
     the United States-Korea Free Trade Agreement Implementation 
     Act (Public Law 112-41; 19 U.S.C. 3805 note) is amended--
       (1) by striking ``June 30, 2025'' and inserting ``September 
     30, 2025''; and
       (2) by striking subsection (c).

     SEC. 921. 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.

     SEC. 922. PERMANENT MORATORIUM ON INTERNET ACCESS TAXES AND 
                   ON MULTIPLE AND DISCRIMINATORY TAXES ON 
                   ELECTRONIC COMMERCE.

       (a) Permanent Moratorium.--Section 1101(a) of the Internet 
     Tax Freedom Act (47 U.S.C. 151 note) is amended by striking 
     ``during the period beginning November 1, 2003, and ending 
     October 1, 2015''.
       (b) Temporary Extension.--Section 1104(a)(2)(A) of the 
     Internet Tax Freedom Act (47 U.S.C. 151 note) is amended by 
     striking ``October 1, 2015'' and inserting ``June 30, 2020''.

  And the House agree to the same.
     Kevin Brady,
     David Reichert,
     Pat Tiberi,
                                Managers on the Part of the House.

     Orrin Hatch,
     John Cornyn,
     John Thune,
     Johnny Isakson,
     Ron Wyden,
     Debbie Stabenow,
                               Managers on the Part of the Senate.

[[Page H9154]]

  


       JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

       The managers on the part of the House and the Senate at the 
     conference on the disagreeing votes of the two Houses on the 
     amendment of the House to the amendment of the Senate to the 
     bill (H.R. 644), to reauthorize trade facilitation and trade 
     enforcement functions and activities, and for other purposes, 
     submit the following joint statement to the House and the 
     Senate in explanation of the effect of the action agreed upon 
     by the managers and recommended in the accompanying 
     conference report:
       The Senate amendment struck all of the House bill after the 
     enacting clause and inserted a substitute text.
       The House amendment struck all of the Senate amendment 
     after the enacting clause and inserted a substitute text.
       The Senate recedes from its disagreement to the amendment 
     of the House with an amendment that is a substitute for the 
     House amendment and the Senate amendment. The differences 
     between the Senate amendment, the House amendment, and the 
     substitute agreed to in conference are noted below, except 
     for clerical corrections, conforming changes made necessary 
     by agreements reached by the conferees, and minor drafting 
     and clarifying changes.

    DIVISION A--TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015

           Title I--Trade Facilitation and Trade Enforcement


              SECTION 101. IMPROVING PARTNERSHIP PROGRAMS

     Present Law
       The Customs-Trade Partnership Against Terrorism (C-TPAT), 
     codified in the Security and Accountability for Every Port 
     Act (SAFE Port Act) of 2006 (6 U.S.C. 961 et seq.), is a 
     voluntary trade partnership program in which Customs and 
     Border Protection (CBP) and members of the trade community 
     work together to secure and facilitate the movement of 
     legitimate trade. Companies that are members of C-TPAT are 
     considered low-risk, which expedites cargo clearance based on 
     the company's security profile and compliance history.
     House Amendment
       Section 101 requires the Commissioner of CBP to work with 
     the private sector and other Federal agencies to ensure that 
     all CBP partnership programs provide trade benefits to 
     participants. This would apply to partnership programs 
     established before enactment of this bill, and any programs 
     established after enactment. It establishes elements for the 
     development and operation of any such partnership programs, 
     which require the Commissioner to: 1) consult with private 
     sector entities, the public, and other Federal agencies when 
     appropriate, to ensure that participants receive commercially 
     significant and measurable trade benefits; 2) ensure an 
     integrated and transparent system of trade benefits and 
     compliance requirements for all CBP partnership programs; 3) 
     consider consolidating partnership programs in situations in 
     which doing so would support the objectives of such programs, 
     increase participation, enhance trade benefits, and enhance 
     the allocation of resources of CBP; 4) coordinate with the 
     Director of ICE, and other Federal agencies with authority to 
     detain and release merchandise; and 5) ensure that trade 
     benefits are provided to participants in partnership 
     programs.
       It further requires the Commissioner to submit to the 
     Committee on Finance and the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Ways and Means and the Committee on Homeland Security of the 
     House of Representatives a report that: 1) identifies each 
     partnership program; 2) for each program, identifies the 
     requirements for participation, benefits provided to 
     participants, the number of participants, and 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 program; 
     4) assesses the effectiveness of each program in advancing 
     the security, trade enforcement, and trade facilitation 
     missions of CBP; 5) summarizes CBP's efforts to work with 
     other Federal agencies to detain and release merchandise 
     entering the United States to ensure that partnership 
     programs of those agencies are compatible with CBP 
     partnership programs; 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 
     CBP efforts to work with the private sector and the public to 
     develop partnership programs; 8) describes measures taken by 
     CBP to make the private sector aware of trade benefits 
     available to participants in partnership programs; and 9) 
     summarizes CBP's plans, targets, and goals with respect to 
     partnership programs for the two years following submission 
     of the report.
     Senate Amendment
       Section 101 of the Senate amendment is the same as section 
     101 of the House amendment with the exception of a difference 
     in the recipients of the report required in this section.
     Conference Agreement
       The conference agreement follows the House amendment.


  SECTION 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES

     Present Law
       No provision.
     House Amendment
       Section 102(a) requires the Comptroller General of the 
     United States to submit a report on the effectiveness of 
     trade enforcement activities of CBP to the Committee on 
     Finance and the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on Ways 
     and Means and the Committee on Homeland Security of the House 
     of Representatives, no later than one year after the date of 
     enactment of the bill.
       Section 102(b) establishes that the report shall include: 
     1) a description of the use of resources, results of audits 
     and verifications, targeting, organization, and training of 
     CBP personnel; and 2) a description of trade enforcement 
     activities to address undervaluation, transshipment, 
     legitimacy of entities making entry, protection of revenue, 
     fraud prevention and detection, and penalties, including 
     intentional misclassification, inadequate bonding, and other 
     misrepresentations.
     Senate Amendment
       Section 102 of the Senate amendment is the same as section 
     102 of the House amendment with the exception of the 
     following provisions. In addition to the reporting 
     requirements in section 102(b) of the House amendment, the 
     Senate amendment requires a description of trade enforcement 
     activities with respect to the priority trade issues, 
     including methodologies used in such enforcement of 
     actives, recommendations for improving such enforcement 
     activities, and a description of the implementation of 
     previous recommendations for improving such enforcement 
     activities. The amendments also differ in the recipients 
     of the required report.
     Conference Agreement
       The conference agreement follows the Senate amendment with 
     a modification. The Conferees agree to modify section 102(a) 
     of the Senate amendment to include the Committee on Finance 
     and the Committee on Homeland Security and Governmental 
     Affairs of the Senate and the Committee on Ways and Means and 
     the Committee on Homeland Security of the House of 
     Representatives as recipients of the required report.


     section 103. priorities and performance standards for customs 
modernization, trade facilitation, and trade enforcement functions and 
                                programs

     Present Law
       No provision.
     House Amendment
       Section 103(a) directs the Commissioner of Customs to 
     consult with the Committee on Finance and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Ways and Means and the Committee on Homeland 
     Security of the House of Representatives to establish 
     priorities and performance standards to measure the 
     development and levels of achievement of the customs 
     modernization, trade facilitation, and trade enforcement 
     functions of the programs described in section 103(b). The 
     amendment requires that the priorities and performance 
     standards shall, at a minimum, include priorities and 
     performance standards relating to efficiency, outcome, 
     output, and other types of applicable measures.
       Section 103(b) establishes the functions and programs to 
     which section 103(a) applies: 1) the Automated Commercial 
     Environment; 2) each of the priority trade issues described 
     in section 111(a) of the House amendment (section 117 of the 
     conference report); 3) the Centers of Excellence and 
     Expertise; 4) drawback; 5) transactions relating to imported 
     merchandise in bond; 6) the collection of antidumping and 
     countervailing duties assessed; 7) the expedited clearance of 
     cargo; 8) the issuance of regulations and rulings; and 9) the 
     issuance of Regulatory Audit Reports.
       Section 103(c) requires that the consultations with the 
     Committee on Finance and the Committee on Homeland Security 
     and Governmental Affairs of the Senate and the Committee on 
     Ways and Means and the Committee on Homeland Security of the 
     House of Representatives occur, at a minimum, on an annual 
     basis, and requires the Commissioner to notify the Committees 
     of any changes to the priorities referred to in section 
     103(a) no later than 30 days before such changes are to take 
     effect.
     Senate Amendment
       Section 103 of the Senate amendment is the same as section 
     103 of the House amendment with the exception of a difference 
     in the recipients of the report and consultations required in 
     this section.
     Conference Agreement
       The conference agreement follows the House amendment.


 section 104. educational seminars to improve efforts to classify and 
appraise imported articles to improve trade enforcement efforts, and to 
          otherwise facilitate legitimate international trade

     Present Law
       No provision.
     House Amendment
       Section 104(a) requires the Commissioner of CBP and the 
     Director of ICE to establish and carry out educational 
     seminars for CBP

[[Page H9155]]

     port personnel and ICE agents to improve their ability to 
     classify and appraise imported articles, improve trade 
     enforcement efforts, and otherwise improve the ability and 
     effectiveness of CBP and ICE to facilitate legitimate trade.
       Section 104(b) establishes that these seminars shall 
     include instruction on conducting physical inspections of 
     articles, including testing of samples; reviewing the 
     manifest and accompanying documentation to determine country 
     of origin; customs valuation; industry supply chains; 
     collection of antidumping and countervailing duties; 
     addressing evasion of duties on imports of textiles; 
     protection of intellectual property rights; and the 
     enforcement of child labor laws.
       Section 104(c) directs the Commissioner to establish a 
     process to solicit, evaluate and select interested parties in 
     the private sector to assist in providing instruction.
       Section 104(d) directs the Commissioner to give special 
     consideration to carrying out educational seminars dedicated 
     to improving the ability of CBP to enforce antidumping and 
     countervailing duty orders upon the request of a petitioner.
       Section 104(e) requires the Commissioner and the Director 
     to establish performance standards to measure the development 
     and level of achievement of educational seminars under this 
     section.
       Section 104(f) requires the Commissioner and the Director 
     to submit an annual report to the Committee on Finance and 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate and the Committee on Ways and Means and the 
     Committee on Homeland Security of the House of 
     Representatives on the effectiveness of the educational 
     seminars.
     Senate Amendment
       Section 104 of the Senate amendment is the same as section 
     104 of the House amendment except for a difference in the 
     recipients of the report required in this section.
     Conference Agreement
       The conference agreement follows the House amendment.


                   section 105. joint strategic plan

     Present Law
       No provision.
     House Amendment
       Section 105(a) requires the Commissioner of CBP and the 
     Director of ICE to create and submit to the Committee on 
     Finance and the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on Ways 
     and Means and the Committee on Homeland Security of the House 
     of Representatives a biennial joint strategic plan on trade 
     facilitation and trade enforcement.
       Section 105(b) requires the joint strategic plan to contain 
     a comprehensive plan for trade facilitation and trade 
     enforcement that includes: 1) a summary of the actions taken 
     during the 2-year period preceding submission of the plan to 
     improve trade facilitation and trade enforcement; 2) a 
     statement of objectives and plans for further improving trade 
     facilitation and trade enforcement; 3) a specific 
     identification of priority trade issues that can be addressed 
     to enhance trade enforcement and trade facilitation; 4) a 
     description of efforts made to improve consultation and 
     coordination among and within Federal agencies; 5) a 
     description of training that has occurred within CBP and ICE 
     to improve trade enforcement and trade facilitation; 6) a 
     description of efforts to work with the World Customs 
     Organization and other international organizations with 
     respect to enhancing trade facilitation and trade 
     enforcement; 7) a description of CBP 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 facilitation and 
     trade enforcements; and 10) a description of efforts to 
     improve consultation and coordination with the private sector 
     to enhance trade facilitation and trade enforcement.
       Section 105(c) requires the Commissioner and the Director 
     to consult with the appropriate Federal agencies and 
     appropriate officials from relevant law enforcement agencies, 
     international organizations, and interested parties in the 
     private sector.
     Senate Amendment
       Section 105 of the Senate amendment is the same as section 
     105 of the House amendment with exception the following 
     provisions. In addition to the reporting requirements 
     contained in section 105(b) of the House amendment, the 
     Senate amendment requires a description of trade enforcement 
     activities with respect to priority trade issues, including 
     methodologies used in enforcement activities, recommendations 
     for improving enforcement activities, and a description of 
     the implementation of previous recommendations for improving 
     enforcement activities. The amendments also differ in the 
     recipients of the required report.
     Conference Agreement
       The conference agreement follows the Senate amendment with 
     a modification. The Conferees agree to modify section 105(a) 
     to include the Committee on Finance and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Ways and Means and the Committee on Homeland 
     Security of the House of Representatives as recipients of the 
     required joint strategic plan.


             section 106. automated commercial environment

     Present Law
       Section 411 of the Tariff Act of 1930 requires the 
     Secretary of Treasury to establish the National Customs 
     Automation Program, an automated and electronic system for 
     processing commercial importations.
       Section 13031(f)(4)(B) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 provides an authorization for 
     appropriations from the Customs Commercial and Homeland 
     Security Automation Account in fiscal years 2003 through 2005 
     such amounts as are available in that Account for the 
     development, establishment, and implementation of the 
     Automated Commercial Environment (ACE) computer system for 
     the processing of merchandise that is entered or released and 
     for other purposes related to the functions of the Department 
     of Homeland Security.
       Section 311(b)(3) of the Customs Border Security Act of 
     2002 requires the Commissioner of Customs to prepare and 
     submit to the Committee on Ways and Means of the House of 
     Representatives and the Committee on Finance of the Senate a 
     report demonstrating that the development and establishment 
     of the Automated Commercial Environment computer system is 
     being carried out in a cost-effective manner and meets the 
     modernization requirements of title VI of the North American 
     Free Trade Agreement Implementation Act.
     House Amendment
       Section 106(a) amends section 13031(f)(4)(B) of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 to 
     update fiscal years 2003 through 2005 to fiscal years 2016 
     through 2018, to update the amount to be allocated to ACE to 
     ``not less than $153,736,000,'' and to make clear that these 
     funds shall be used to complete the development and 
     implementation of ACE.
       Section 106(b) amends section 311(b)(3) of the Customs 
     Border Security Act of 2002 to require two reports from the 
     Commissioner in regards to ACE. The Commissioner is required 
     to submit a report no later than December 31, 2016, to the 
     Senate Appropriations Committee and Finance Committee, and 
     the House of Representatives Appropriations Committee and 
     Ways and Means Committee, updates on the implementation of 
     ACE, incorporation of all core trade processing capabilities, 
     components that have not been implemented, and additional 
     components needed to realize the full implementation and 
     operation of the program. The Commissioner is required to 
     submit a second report no later than September 30, 2017, 
     providing updates to the relevant Congressional committees 
     from the prior report, as well as evaluations on the 
     effectiveness of implementation of ACE and details of the 
     percentage of trade processed in ACE every month since 
     September 30, 2016.
       Section 106(c) directs the Comptroller General of the 
     United States to submit a report to the Senate Appropriations 
     Committee and Finance Committee, and House of Representatives 
     Appropriations Committee and Ways and Means Committee, 
     assessing the progress of other Federal agencies in accessing 
     and utilizing ACE and identifying potential cost savings to 
     the U.S. government, importers, and exporters upon full 
     implementation and utilization of ACE.
     Senate Amendment
       Section 106 of the Senate amendment is the same as section 
     106 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


              section 107. international trade data system

     Present Law
       Section 411(d) of the Tariff Act of 1930 requires the 
     Secretary of the Treasury to oversee the establishment of an 
     electronic trade data interchange system, known as the 
     International Trade Data System (ITDS). It further requires 
     ITDS to be implemented no later than the date that ACE is 
     fully implemented and mandates the participation of all 
     federal agencies that require documentation for clearing or 
     licensing cargo imports or exports.
     House Amendment
       Section 107 amends section 411(d) of the Tariff Act of 1930 
     to require the Secretary of Homeland Security to work with 
     the head of each Federal agency participating in ITDS and the 
     Interagency Steering Committee to ensure that each agency: 1) 
     develops and maintains the necessary information technology 
     infrastructure to support the operation of ITDS and to submit 
     all data to ITDS electronically; 2) enters into a memorandum 
     of understanding to provide information sharing between the 
     agency and CBP for the operation and maintenance of ITDS; 3) 
     identifies and transmits admissibility criteria and data 
     elements required by the agency to authorize the release of 
     cargo by CBP for incorporation into ACE, no later than June 
     30, 2016; and 4) utilizes ITDS as the primary means of 
     receiving the standard set of data and other relevant 
     documentation from users, no later than December 31, 2016.
     Senate Amendment
       Section 107 of the Senate amendment is the same as section 
     107 of the House amendment.

[[Page H9156]]

  

     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


     section 108. consultations with respect to mutual recognition 
                              arrangements

     Present Law
       No provision.
     House Amendment
       Section 108(a) requires the Secretary of Homeland Security 
     to consult with the Committee on Finance and the Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Ways and Means and the Committee on Homeland 
     Security of the House of Representatives at least thirty days 
     before the initiation of mutual recognition arrangement 
     negotiations and at least thirty days before entering into 
     any mutual recognition arrangement.
       Section 108(b) requires that the United States have as a 
     negotiating objective in any negotiation for a mutual 
     recognition arrangement with a foreign country on partnership 
     programs to seek to ensure the compatibility of the foreign 
     country's partnership program with the partnership programs 
     of CBP in order to enhance security, trade facilitation, and 
     trade enforcement.
     Senate Amendment
       Section 108 of the Senate amendment is the same as section 
     108 of the House bill, except that the Senate amendment does 
     not include as a negotiating objective an enhancement of 
     security when CBP seeks to ensure the compatibility of 
     partnership programs of foreign countries. The amendments 
     also differ in the recipients of the required report.
     Conference Agreement
       The conference agreement follows the House amendment.


     section 109. commercial customs operations advisory committee

     Present Law
       The Advisory Committee on Commercial Operations (COAC) of 
     the United States Customs Service was established in the 
     Omnibus Budget Reconciliation Act of 1987. The Department of 
     the Treasury Order No. 100-16, effective May 23, 2003, 
     specified that COAC would be administered jointly by the 
     Department of the Treasury and Department of Homeland 
     Security.
     House Amendment
       Section 109(a) requires the Secretary of the Treasury and 
     the Secretary of Homeland Security to jointly establish a 
     Commercial Customs Operations Advisory Committee (COAC).
       Section 109(b) requires that COAC be comprised of 20 
     appointed individuals from the private sector, appointed 
     without regard to political affiliation; the Commissioner of 
     CBP and the Assistant Secretary of Treasury for Tax Policy, 
     who shall co-chair meetings; and the Assistant Secretary for 
     Policy of the Department of Homeland Security and the ICE 
     Director, who shall serve as deputy co-chairs of meetings. 
     Section 109(b) further requires that appointed private sector 
     individuals be representative of individuals and firms 
     affected by the commercial operations of CBP, and provides 
     that individuals may be appointed to multiple 3-year terms 
     but cannot serve more than two terms sequentially. The 
     Secretaries of the Treasury and Homeland Security are 
     authorized to transfer members to the COAC who are currently 
     serving on the Advisory Committee on Commercial Operations of 
     the United States Customs Service.
       Section 109(c) establishes the duties of COAC, which shall 
     be to: 1) advise the Secretaries of the Treasury and Homeland 
     Security on all matters involving the commercial operations 
     of CBP and the investigations of ICE; 2) provide 
     recommendations to the Secretaries on improvements that CBP 
     and ICE should make to their commercial operations and 
     investigations; 3) collaborate in developing the agenda for 
     COAC meetings; and 4) perform other functions relating to the 
     commercial operations of CBP and the investigations of ICE as 
     prescribed by law or as directed by the Secretaries.
       Section 109(d) establishes that: 1) COAC shall meet at the 
     call of the Secretary of the Treasury, the Secretary of 
     Homeland Security, or two-thirds of the membership of COAC; 
     2) COAC shall meet at least four times each calendar year; 
     and 3) that COAC 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 CBP of the 
     operations or investigations of ICE.
       Section 109(e) requires COAC to submit an annual report to 
     the Senate Committee on Finance and the House Committee on 
     Ways and Means that describes the activities of COAC during 
     the preceding fiscal year and sets forth any recommendations 
     of COAC regarding the commercial operations of CBP.
       Section 109(f) establishes that 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 
     COAC.
     Senate Amendment
       Section 109 of the Senate amendment is the same as section 
     109 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment with a modification. The Conferees have 
     agreed to strike Section 109(d)(2). The Conferees believe 
     that COAC meetings should normally be open to the public. The 
     Conferees recognize the need to close COAC meetings, in 
     portion or in whole, when a meeting will include matters the 
     disclosure of which would compromise the development of 
     policies, priorities, or negotiating objectives or positions 
     that could impact the operations of CBP or the operations or 
     investigations of ICE. The Conferees agree, however, that the 
     current procedures in the Federal Advisory Committee Act (5 
     U.S.C. App.) are sufficient to close COAC meetings, in 
     portion or in whole, when necessary.


           section 110. centers for excellence and expertise

     Present Law
       No provision.
     House Amendment
       Section 110(a) requires the Commissioner to develop and 
     implement, in consultation with the Committee on Finance and 
     the Committee on Homeland Security and Governmental Affairs 
     of the Senate and the Committee on Ways and Means and the 
     Committee on Homeland Security of the House of 
     Representatives, and the COAC established by section 109(a), 
     Centers of Excellence and Expertise (CEE) throughout CBP 
     that: 1) enhance the economic competitiveness of the United 
     States; 2) improve enforcement efforts; 3) build upon CBP 
     expertise in particular industry operations, supply chains, 
     and compliance requirements; 4) promote the uniform 
     implementation at each port of entry of policies and 
     regulations relating to imports; 5) centralize the trade 
     enforcement and trade facilitation efforts of CBP; 6) 
     formalize an account-based approach to the importation of 
     merchandise into the United States; 7) foster partnerships 
     through the expansion of trade programs and other trusted 
     trader programs; 8) develop applicable performance measures 
     to meet internal efficiency and effectiveness goals; and 9) 
     when feasible, facilitate a more efficient flow of 
     information between Federal agencies.
       Section 110(b) requires the Commissioner to submit a report 
     to the Committee on Finance and the Committee on Homeland 
     Security and Governmental Affairs of the Senate and the 
     Committee on Ways and Means and the Committee on Homeland 
     Security of the House of Representatives no later than 
     December 31, 2016 describing the scope, functions and 
     structure of the CEEs; the effectiveness of the CEEs in 
     improving enforcement efforts; the benefits to the trade 
     community; applicable performance measurements; the 
     performance of each CEE in facilitating trade; and any 
     planned changes to the CEEs.
     Senate Amendment
       Section 110 of the Senate amendment is similar to section 
     110 of the House amendment except the House amendment 
     requires the CEEs to use targeting information from the 
     National Targeting Center at CBP, while the Senate amendment 
     requires the CEEs to use targeting information from the 
     Commercial Targeting Division established in the amendment. 
     The amendments also differ in the recipients of the required 
     report.
     Conference Agreement
       The conference agreement follows the House amendment.


   section 111. commercial risk assessment targeting and trade alerts

     Present Law
       No provision.
     House Amendment
       Section 111(a) requires National Targeting Center (NTC) to 
     establish methodologies for assessing the risk that imports 
     may violate U.S. customs and trade laws and to issue trade 
     alerts when the NTC determines cargo may violate such laws; 
     assess the risk of cargo based on all information available 
     to CBP through the Automated Targeting System, ACE, the 
     Automated Entry System, ITDS, and TECS (formerly known as the 
     ``Treasury Enforcement Communications System'') or any 
     successor systems, publicly available information, and 
     information made available to the NTC by private sector 
     entities; and, provide for the receipt and transmission to 
     appropriate CBP offices of allegations from interested 
     parties in the private sector of violations of the customs 
     and trade laws of the United States relating to the priority 
     trade issues described in section 111(a) of the House 
     amendment (section 117 of the conference report).
       Section 111(b) authorizes the Executive Director of the NTC 
     to issue trade alerts to port directors when such person 
     determines cargo may violate U.S. customs and trade laws. 
     The trade alert may direct further inspection or physical 
     examination or testing of specific merchandise by the port 
     personnel. A port director may determine not to carry out 
     the direction of the trade alerts if the port director 
     finds security interests justify such determination, and 
     the port director notifies the Assistant Commissioner of 
     the Office of Field Operations of such determination. The 
     Assistant Commissioner of the Office of Field Operations 
     must compile an annual report of all determinations by 
     port directors to not implement trade alerts and include 
     an evaluation of the utilization of trade alerts. This 
     report must be submitted to Committee on Finance and the

[[Page H9157]]

     Committee on Homeland Security and Governmental Affairs of 
     the Senate and the Committee on Ways and Means and the 
     Committee on Homeland Security of the House of 
     Representatives not later than December 31 each year. 
     Section 111(b) further defines ``inspection'' as the 
     comprehensive evaluation process used by CBP, 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 the purposes of assessing duties, identifying 
     restricted or prohibited items, and ensuring compliance 
     with all applicable customs and trade laws and regulations 
     administered by CBP.
       Section 111(c) amends section 343(a)(3)(F) of the Trade Act 
     of 2002 to establish that the information collected pursuant 
     to regulations shall be used exclusively for ensuring cargo 
     safety and security, prevent smuggling, and commercial risk 
     assessment targeting, and shall not be used for any 
     commercial enforcement purposes, including for determining 
     merchandise entry.
     Senate Amendment
       Section 111(a) of the Senate amendment establishes a 
     Commercial Targeting Division (CTD) at CBP by amending 
     section 2(d) of the Act of March 3, 1927 (19 U.S.C. 2072(d)). 
     The section requires the Secretary of Homeland Security to 
     establish and maintain a Commercial Targeting Division (CTD) 
     within CBP's Office of International Trade at CBP. The CTD 
     shall be comprised of headquarters staff led by an Executive 
     Director, and individual National Targeting and Analysis 
     Groups (NTAGs) led by Directors reporting to the Executive 
     Director. The CTD shall develop and conduct commercial 
     targeting with respect to cargo destined for the United 
     States and issue trade alerts.
       Section 111(a) requires the establishment of an NTAG for, 
     at a minimum, each of the following priority trade issues 
     (PTIs): 1) agricultural programs; 2) antidumping and 
     countervailing duties; 3) import safety; 4) intellectual 
     property rights; 5) revenue; 6) textiles and wearing apparel; 
     and 7) trade agreements and preference programs. The 
     Commissioner may alter the PTIs in consultation with the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House of Representatives.
       The duties of each NTAG include: 1) directing the trade 
     enforcement and compliance assessment activities of CBP as 
     they relate to the each NTAG's PTI; 2) facilitating, 
     promoting, and coordinating cooperation and the exchange of 
     information between CBP, ICE, and other relevant Federal 
     departments and agencies regarding each NTAG's PTI; and 3) 
     serving as the primary liaison between CBP and the public 
     regarding United States Government activities related to each 
     NTAG's PTI.
       Section 111(a) also requires the CTD to establish 
     methodologies for assessing the risk that cargo destined for 
     the United States may violate U.S. customs and trade laws and 
     for issuing Trade Alerts. The CTD should assess the risk of 
     cargo based on all information available to CBP through the 
     Automated Targeting System, ACE, the Automated Commercial 
     System, the Automated Export System, ITDS, and TECS (formerly 
     known as the ``Treasury Enforcement Communications System''), 
     the case management system of ICE or any successor systems, 
     and publicly available information. The CTD should also use 
     information provided by private sector entities and 
     coordinate targeting efforts with other Federal agencies.
       The section authorizes the CTD Executive Director and NTAG 
     Directors to issue Trade Alerts to port directors to ensure 
     compliance with U.S. customs and trade laws. The Trade Alert 
     may direct further inspection or physical examination or 
     testing of merchandise by port personnel if certain risk-
     assessment thresholds are met. A port director may determine 
     not to carry out the direction of the Trade Alerts if the 
     port director finds such a determination is justified by 
     security interests and the port director notifies the 
     Assistant Commissioners of the Office of Field Operations and 
     the Office of International Trade of such a determination. 
     The Assistant Commissioner of the Office of Field Operations 
     must compile an annual report of all determinations by port 
     directors to override Trade Alerts and evaluate the 
     utilization of Trade Alerts.
       Section 111(b) amends section 343(a)(3)(F) of the Trade Act 
     of 2002 (19 U.S.C. 2071 note), to indicate that 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.
     Conference Agreement
       The conference agreement follows the House amendment with 
     modifications. It requires the NTC to coordinate with the CBP 
     Office of Trade, as appropriate, in carrying out its duties 
     under this section and to notify each interested party in the 
     private sector that has submitted an allegation of any 
     violation of the customs and trade laws of the United States 
     or any civil or criminal action taken by CBP or any other 
     agency resulting from the allegation. It also provides that 
     the first report under Section 111(b)(3) is due December 31, 
     2016.


section 112. report on oversight of revenue protection and enforcement 
                                measures

     Present Law
       No provision.
     House Amendment
       Section 112(a) requires the Inspector General of the 
     Department of the Treasury to submit a report, not later than 
     March 31, 2016 and biennially thereafter, to the Senate 
     Committee on Finance and the House Committee on Ways and 
     Means that assesses the effectives of the measures taken by 
     CBP with respect to protection of the revenue and to measure 
     accountability and performance with respect to protection of 
     the revenue.
       Section 112(b) establishes that each report required by 
     section 112(a) shall cover the period of two fiscal years 
     ending on September 30 of the calendar year preceding the 
     submission of the report.
     Senate Amendment
       Section 112 of the Senate amendment is the same as section 
     112 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment except that it provides an additional 
     three months for the issuance of the first report required 
     under Section 112(a).


 section 113. report on security and revenue measures with respect to 
                    merchandise transported in bond

     Present Law
       No provision.
     House Amendment
       Section 113(a) requires the Secretaries of Homeland 
     Security and the Treasury to jointly submit a report to the 
     Senate Committee on Finance and the House Committee on Ways 
     and Means on efforts undertaken by CBP 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. The 
     report must be submitted no later than December 31 of 2016, 
     2017, and 2018.
       Section 113(b) requires that each report required by 
     section 113(a) shall include 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 arrival of such merchandise are 
     generated; 3) the average time taken to reconcile such 
     records with the records at the final destination of 
     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 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 merchandise has changed; and 
     7) the number of entries that remain unreconciled.
     Senate Amendment
       Section 113 of the Senate amendment is the same as section 
     113 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


                SECTION 114. IMPORTER OF RECORD PROGRAM

     Present Law
       No provision.
     House Amendment
       Section 114(a) requires the Secretary of Homeland Security 
     to establish an importer of record program to assign and 
     maintain importer of record numbers.
       Section 114(b) requires the Secretary to ensure that CBP 
     develops criteria that importers must meet in order to obtain 
     an importer of record number, provides a process by which 
     importers are assigned importer of record numbers, maintains 
     a centralized database of importer of record numbers, 
     evaluates and maintains accuracy of the database if importer 
     information changes, and takes measures to ensure that 
     duplicate importer of record numbers are not issued.
       Section 114(c) requires the Secretary of Homeland Security 
     to submit a report to the Senate Committee on Finance and the 
     House Committee on Ways and Means on the establishment of the 
     importer of record program no later than one year after 
     enactment of the Trade Facilitation and Trade Enforcement Act 
     of 2015.
     Senate Amendment
       Section 114 of the Senate amendment is the same as section 
     114 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


     SECTION 115. ESTABLISHMENT OF IMPORTER RISK ASSESSMENT PROGRAM

     Present Law
       No provision.
     House Amendment
       Section 115(a) requires the Commissioner to establish a new 
     importer program that directs CBP to adjust bond amounts for 
     new

[[Page H9158]]

     importers based on the level of risk assessed by CBP for 
     revenue protection.
       In establishing this program, section 115(b) requires CBP 
     to: 1) develop risk-based criteria to assess new importers; 
     2) develop risk assessment guidelines for new importers to 
     determine if and to what extent to adjust the bond amounts 
     and increase screening of imports of new importers; 3) 
     develop procedures to ensure increased oversight of imported 
     products of new importers relating to the enforcement of 
     priority trade issues; 4) develop procedures to ensure 
     increased oversight by Centers of Excellence and Expertise; 
     and 5) establish a centralized database of new importers to 
     ensure the accuracy of information provided by new importers 
     pursuant to the requirements of this section.
     Senate Amendment
       Section 115 of the Senate amendment is the same as section 
     115 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment except that the Commissioner is required 
     to establish a program that directs CBP to adjust bond 
     amounts for importers, including new importers and non-
     resident importers, based on the level of risk assessed by 
     CBP for revenue protection.
       In establishing this program, CBP is required to: 1) 
     develop risk-based guidelines to determine if and to what 
     extent to adjust bond amounts and screen imported products of 
     importers, including new and non-resident importers; 2) 
     develop procedures to ensure increased oversight of imported 
     products of new importers, including new non-resident 
     importers, relating to the enforcement of the priority trade 
     issues; 3) develop procedures to ensure increased oversight 
     of imported products of new importers, including new non-
     resident importers, by Centers of Excellence and Expertise; 
     and 4) establish a centralized database of new importers, 
     including new non-resident importers, to ensure the accuracy 
     of information provided by such importers pursuant to the 
     requirements of this section. The requirements of this 
     section shall not apply to any importer that 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.).
       No later than two years after the enactment of this Act, 
     the Inspector General of the Department of 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 detailing: 1) the risk assessment guidelines required 
     by this section; 2) the procedures developed to ensure 
     increased oversight of imported products of new importers, 
     including new non-resident importers, relating to the 
     enforcement of priority trade issues; 3) the procedures 
     developed to ensure increased oversight of imported products 
     of new importers, including new non-resident importers, by 
     Centers of Excellence and Expertise; and 4) the number of 
     bonds adjusted based on the risk assessment guidelines 
     required by this section.


        SECTION 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS

     Present Law
       Section 641 of the Tariff Act of 1930 establishes 
     requirements and procedures for customs brokers in acquiring 
     a license or permit, disciplinary proceedings, and judicial 
     appeals of revocation or suspension of a broker's license.
     House Amendment
       Section 116(a) amends section 641 of the Tariff Act of 1930 
     by inserting a new provision that requires the Secretary of 
     Homeland Security to prescribe regulations setting minimum 
     standards for customs brokers and importers regarding the 
     identity of the importer. The regulations shall, at a 
     minimum, require customs brokers and importers, upon adequate 
     notice, to comply with procedures for collecting the identity 
     of importers, including nonresident importers, seeking to 
     import merchandise into the United States, and maintain 
     records of the information used to substantiate a person's 
     identity. This section further provides that a customs broker 
     will be penalized, at the discretion of the Secretary, in an 
     amount not exceeding $10,000 for each violation of the 
     regulations concerning the collection and maintenance of 
     importer's identity and identifying information, and the 
     broker's license or permit will be subject to revocation or 
     suspension, pursuant to procedures established in section 
     641(d) of the Tariff Act of 1930.
       Section 116(b) requires the Commissioner to submit a report 
     to Congress no later than 180 days after enactment of this 
     bill containing recommendations for 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), and for 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.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment except 
     that the regulations shall, at a minimum: 1) identify the 
     information that an importer, including a nonresident 
     importer, must submit to a broker in order to verify the 
     identity of the importer; 2) identify the reasonable 
     procedures that a broker must perform to verify the 
     authenticity of the information collected from the 
     importer; and 3) require the broker to maintain records of 
     the information collected to verify an importer's 
     identity. Further, the penalties required under this 
     section shall be assessed in the same manner and under the 
     same procedures as the monetary penalties provided for in 
     19 U.S.C. 1641(d)(2)(A).


                   SECTION 117. PRIORITY TRADE ISSUES

     Present Law
       No provision.
     House Amendment
       Section 118(a) requires the Commissioner to establish the 
     following as priority trade issues within CBP: 1) agriculture 
     programs; 2) antidumping and countervailing duties; 3) import 
     safety; 4) intellectual property rights; 5) revenue; 6) 
     textiles and wearing apparel; and 7) trade agreements and 
     preference programs.
       Section 118(b) authorizes the Commissioner to establish new 
     priority trade issues and eliminate, consolidate or otherwise 
     modify them upon the determination that it is necessary and 
     appropriate to do so with notification to the Committee on 
     Finance and the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on Ways 
     and Means and the Committee on Homeland Security of the House 
     of Representatives no later than 60 days before such changes 
     are to take effect.
     Senate Amendment
       Section 111 of the Senate amendment includes a list of 
     priority trade issues (PTI) that is the same as the PTIs 
     identified in section 118 of the House amendment. The Senate 
     amendment, however, requires notification by CBP not later 
     than 30 days after the establishment of a new PTI. The 
     amendments also differ in the recipients of the required 
     report.
     Conference Agreement
       The conference agreement follows the House amendment and 
     requires the Commissioner to notify the committees of 1) new 
     PTIs no later than 30 days after the establishment of the new 
     PTI, and 2) a summary of proposals to eliminate, consolidate 
     or otherwise modify existing PTIs no later than 60 days 
     before such changes are to take effect.


       SECTION 118. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED

     Present Law
       No provision.
     House Amendment
       Section 119 defines the term ``appropriate congressional 
     committees,'' as used in title I of the Trade Facilitation 
     and Trade Enforcement Act of 2015, as the Committee on 
     Finance and the Committee on Homeland Security and 
     Governmental Affairs of the Senate and the Committee on Ways 
     and Means and the Committee on Homeland Security of the House 
     of Representatives.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.

                   Title II--Import Health and Safety


          SECTION 201. INTERAGENCY IMPORT SAFETY WORKING GROUP

     Present Law
       No provision.
     House Amendment
       Section 201(a) establishes an Interagency Import Safety 
     Working Group.
       Section 201(b) sets forth the membership of the Working 
     Group and designates the Secretary of Homeland Security as 
     the Chair and the Secretary of Health and Human Services as 
     the Vice-Chair. The membership of the Working Group also 
     shall include the Secretaries of the Treasury, Commerce and 
     Agriculture; the United States Trade Representative; the 
     Director of the Office of Management and Budget; the 
     Commissioners of CBP and the Food and Drug Administration; 
     the Chairman of the Consumer Product Safety Commission; the 
     Director of ICE; and the head of any other Federal agency 
     designated by the President to participate.
       Section 201(c) requires the Working Group to 1) consult on 
     the development of a joint import safety rapid response plan 
     required under section 202; 2) evaluate federal government 
     and agency resources, plans, and practices to ensure the 
     safety of U.S. imports and the expeditious entry of such 
     merchandise; 3) review the engagement and cooperation of 
     foreign governments and foreign manufacturers; 4) identify 
     best practices, in consultation with the private sector, to 
     assist U.S. importers in ensuring import health and safety of 
     imported merchandise; 5) identify best practices to improve 
     Federal, state, and local coordination in responding to 
     import health and safety threats; and 6) identify appropriate 
     steps to improve domestic accountability and foreign 
     government engagement with respect to imports.
     Senate Amendment
       Section 201 of the Senate amendment is the same as section 
     201 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.

[[Page H9159]]

  



          SECTION 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN

     Present Law
       No provision.
     House Amendment
       Section 202(a) requires the Secretary of Homeland Security, 
     in consultation with the Working Group, to develop a joint 
     import safety rapid response plan (the Plan) that establishes 
     protocols and practices CBP should use when responding to 
     cargo that poses a threat to the health or safety of U.S. 
     consumers.
       Section 202(b) sets forth the contents of the Plan, which 
     must define 1) the authorities and responsibilities of CBP 
     and other Federal agencies in responding to an import health 
     or safety threat; 2) the protocols and practices used in 
     responding to such threats; 3) the mitigation measures CBP 
     and other agencies must take when responding to such threats 
     after the incident to ensure the resumption of the entry of 
     merchandise into the United States; and 4) exercises CBP 
     should take with Federal, State, and local agencies as well 
     as the private sector to simulate responses to such threats.
       Section 202(c) requires the Secretary of Homeland Security 
     to review and update the joint import safety rapid response 
     plan, as appropriate, after conducting exercises under 
     subsection (d).
       Section 202(d) requires the Commissioner, in conjunction 
     with Federal, State, and local agencies, to conduct exercises 
     to test and evaluate the Plan. When conducting exercises, the 
     Commissioner must make allowances for the specific needs of 
     the port where the exercise is occurring, base evaluations on 
     current import risk assessments, and ensure that the 
     exercises are conducted consistent with other national 
     preparedness plans. The Secretary of Homeland Security and 
     Commissioner must ensure that the testing and evaluations use 
     performance measures in order to identify best practices and 
     recommendations in responding to import health and safety 
     threats and develop metrics with respect to the resumption of 
     the entry of merchandise into the United States. Best 
     practices and recommendations should then be shared among 
     relevant stakeholders and incorporated into the Plan.
     Senate Amendment
       Section 202 of the Senate amendment is the same as section 
     202 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


                         SECTION 203. TRAINING

     Present Law
       No provision.
     House Amendment
       Section 203 requires the Commissioner to ensure that CBP 
     port personnel are trained to effectively enforce U.S. import 
     health and safety laws.
     Senate Amendment
       Section 203 of the Senate amendment is the same as section 
     203 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.

  Title III--Import-Related Protection of Intellectual Property Rights


        SECTION 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS

     Present Law
       No provision.
     House Amendment
       Section 301 defines ``intellectual property rights,'' as 
     used in this title, as copyrights, trademarks, and other 
     forms of intellectual property rights that are enforced by 
     CBP and ICE.
     Senate Amendment
       Section 301 of the Senate amendment is the same as section 
     301 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


   SECTION 302. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT

     Present Law
       Section 818(g) of the 2012 National Defense Authorization 
     Act (NDAA) authorizes, but does not require, CBP to share 
     unredacted images and samples with right holders if CBP 
     suspects a product of infringing a trademark.
     House Amendment
       Section 302 amends the Tariff Act of 1930 to create section 
     628A, which requires CBP to share certain information about 
     merchandise suspected of violating intellectual property 
     rights (IPR) prior to seizure if CBP determines that 
     examination or testing of the merchandise by the right holder 
     would assist in determining if there is a violation, except 
     in such cases as would compromise an ongoing law enforcement 
     investigation or national security. Section 302 supersedes 
     section 818(g) of the 2012 NDAA.
     Senate Amendment
       Section 302 of the Senate amendment is the same as section 
     302 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


             SECTION 303. SEIZURE OF CIRCUMVENTION DEVICES

     Present Law
       Section 596(c)(2) of the Tariff Act of 1930 specifies a 
     number of items that are to be seized by CBP when presented 
     for importation, including ``merchandise or packaging in 
     which copyright, trademark, or trade name protection 
     violations are involved.''
     House Amendment
       Section 303(a) expands CBP's seizure and forfeiture 
     authority to explicitly include unlawful circumvention 
     devices, as defined under subsection (a)(2) or (b)(1) of 
     section 1201 of title 17, United States Code.
       Section 303(b) directs CBP to disclose certain information 
     to right holders about the seized merchandise within 30 days 
     of seizure, if the right holder is included on a list 
     maintained by CBP. The information that must be provided is 
     the same information provided to copyright owners under CBP 
     regulations for merchandise seized under copyright laws. CBP 
     must prescribe regulations establishing procedures that 
     implement this process within one year of the date of 
     enactment of this bill.
     Senate Amendment
       Section 303 of the Senate amendment is the same as section 
     303 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


SECTION 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION OF WORKS 
             FOR WHICH A COPYRIGHT REGISTRATION IS PENDING

     Present Law
       No provision.
     House Amendment
       Section 304 directs the Secretary of Homeland Security to 
     establish a process for the enforcement of copyrights for 
     which the owner has submitted an application for registration 
     with the U.S. Copyright Office to the same extent and in the 
     same manner as if the copyright were registered with the 
     Copyright Office.
     Senate Amendment
       Section 304 of the Senate amendment is the same as section 
     304 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


 SECTION 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER

     Present Law
       No provision.
     House Amendment
       Section 305(a) establishes within ICE the National 
     Intellectual Property Rights Coordination Center (IPR 
     Center), which shall be headed by an Assistant Director.
       Section 305(b) assigns the Assistant Director duties, 
     including: 1) coordinating the investigation of sources of 
     merchandise that infringes intellectual property rights 
     (IPR); 2) conducting and coordinating training with other 
     domestic and international law enforcement agencies to 
     improve IPR enforcement; 3) coordinating, with CBP, U.S. 
     activities to prevent the importation or exportation of IPR 
     infringing merchandise; 4) supporting the international 
     interdiction of merchandise destined for the U.S. that 
     infringe IPR; 5) collecting and integrating information 
     regarding infringements; 6) developing a means to receive and 
     organize information regarding infringement of IPR; 7) 
     disseminating information regarding infringement of IPR to 
     other Federal agencies; 8) developing risk-based alert 
     systems in coordination with CBP; and 9) coordinating with 
     U.S. Attorneys' offices to investigate and prosecute IPR 
     crime.
       Section 305(c) requires the Assistant Director to 
     coordinate with federal, state, local and international law 
     enforcement, intellectual property, and trade agencies, as 
     appropriate, in carrying out the IPR Center's duties.
       Section 305(d) requires the Assistant Director to: 1) 
     conduct outreach to the private sector to determine trends in 
     and methods of infringing IPR; and 2) coordinate public and 
     private-sector efforts to combat the infringement of IPR.
     Senate Amendment
       Section 305 of the Senate amendment is the same as section 
     305 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


 SECTION 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL 
                            PROPERTY RIGHTS

     Present Law
       No provision.
     House Amendment
       Section 306 requires the Commissioner and Director to 
     include in the joint strategic

[[Page H9160]]

     plan on trade facilitation and enforcement required under 
     section 105 of the amendment the following: 1) a description 
     of DHS's IPR enforcement efforts; 2) a list of the top 10 
     ports, by volume and value, where CBP seized IPR infringing 
     goods in the preceding two years; and 3) a recommendation of 
     the optimal allocation of personnel to ensure CBP and ICE are 
     effectively enforcing IPR.
     Senate Amendment
       Section 306 of the Senate amendment is the same as section 
     306 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


  SECTION 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL 
                            PROPERTY RIGHTS

     Present Law
       No provision.
     House Amendment
       Section 307(a) requires the Commissioner to ensure 
     sufficient personnel are assigned throughout CBP with 
     responsibility to enforce intellectual property rights with 
     respect to U.S. imports.
       Section 307(b) requires the Commissioner to assign at least 
     three full-time CBP employees to the IPR Coordination Center 
     established under section 305 and to ensure that sufficient 
     personnel are assigned to U.S. ports of entry to carry out 
     the directives of the IPR Coordination Center established 
     under section 305.
     Senate Amendment
       Section 307 of the Senate amendment is the same as section 
     307 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


 SECTION 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL 
                            PROPERTY RIGHTS

     Present Law
       No provision.
     House Amendment
       Section 308(a) requires the Commissioner to effectively 
     train CBP port personnel to detect and identify IPR 
     infringing imported goods.
       Section 308(b) requires the Commissioner to work with the 
     private sector to identify opportunities for collaboration 
     with respect to training for officers of the agency to 
     enforce IPR.
       Section 308(c) requires the Commissioner to consult with 
     private sector entities to identify technologies which can 
     cost-effectively identify infringing merchandise, and to 
     provide for cost-effective training for CBP officers with 
     regard to the use of such technologies.
       Section 308(d) permits CBP to receive donations of 
     technology to improve IPR enforcement.
     Senate Amendment
       Section 308 of the Senate amendment is the same as section 
     308 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


     SECTION 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING

     Present Law
       Section 628 of the Tariff Act of 1930 permits CBP to 
     exchange information or documents with foreign customs and 
     law enforcement agencies if the Secretary of the Treasury 
     reasonably believes the exchange of information is necessary 
     to comply with CBP laws and regulations, to enforce a trade 
     agreement to which the United States is a party, to assist in 
     investigative, judicial and quasi-judicial proceedings in the 
     United States, or for any similar action undertaken by a 
     foreign law enforcement agency in a foreign country.
     House Amendment
       Section 309 requires the Secretary of Homeland Security to 
     coordinate with competent foreign law enforcement agencies to 
     enhance IPR enforcement, including by information sharing and 
     technical assistance, and requires the Commissioner and the 
     Director of ICE to lead interagency efforts to collaborate 
     with law enforcement and customs authorities of foreign 
     countries.
     Senate Amendment
       Section 309 of the Senate amendment is the same as section 
     309 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


    SECTION 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT

     Present Law
       No provision.
     House Amendment
       Requires the Commissioner of CBP and the Director of ICE to 
     jointly submit to the Committee on Finance and Committee on 
     Homeland Security and Governmental Affairs of the Senate and 
     the Committee on Ways and Means and Committee on Homeland 
     Security of the House of Representatives a report that 
     includes: 1) information regarding the number, and a 
     description of, certain efforts to investigate and prosecute 
     IPR infringements; 2) an estimate of the average time 
     required by the CBP Office of International Trade to respond 
     to a request from port personnel for advice with respect to 
     whether merchandise detained by the Agency infringed IPR, 
     distinguished by types of IPR infringed; 3) a summary of the 
     outreach efforts of CBP and ICE with respect to interdiction, 
     investigation and information sharing between certain 
     agencies related to the infringement of IPR, collaboration 
     with the private sector, and coordination with foreign 
     governments; 4) a summary of the efforts of CBP and ICE to 
     address the challenges with respect to the enforcement of IPR 
     presented by Internet commerce and the transit of small 
     packages and an identification of the volume, value, and type 
     of merchandise seized for infringing IPR as a result of such 
     efforts; and 5) a summary of training relating to the 
     enforcement of IPR conducted under section 308 and 
     expenditures for such training.
     Senate Amendment
       Section 310 of the Senate amendment is the same as section 
     310 of the House amendment with the exception of a difference 
     in the recipients of the report required in this section.
     Conference Agreement
       The conference agreement follows the House amendment, 
     except that it changes the due date of the report to 
     September 30th of each year.


    SECTION 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF 
                      INTELLECTUAL PROPERTY RIGHTS

     Present Law
       No provision.
     House Amendment
       Section 311(a) requires the Secretary of Homeland Security 
     to develop and implement an educational campaign for 
     travelers entering or departing the United States on the 
     legal, economic, and public health and safety implications of 
     importing IPR infringing goods into the United States.
       Section 311(b) requires the Commissioner to ensure that all 
     versions, including the electronic versions, of CBP Form 
     6059B (customs declaration), or a successor form, include a 
     written warning to inform travelers arriving in the United 
     States that importation of merchandise that infringes IPR may 
     subject travelers to civil or criminal penalties and may pose 
     serious risks to health and safety.
     Senate Amendment
       Section 311 of the Senate amendment is the same as section 
     311 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.

Title IV--Prevention of Evasion of Antidumping and Countervailing Duty 
                                 Orders


                        SECTION 401. SHORT TITLE

     Present Law
       No provision.
     House Amendment
       Section 401 sets forth the short title as the ``Preventing 
     Recurring Trade Evasion and Circumvention Act.''
     Senate Amendment
       Section 401 of the Senate amendment sets forth the short 
     title as the ``Enforcing Orders and Reducing Customs Evasion 
     Act of 2015.''
     Conference Agreement
       The conference agreement sets forth the short title as the 
     ``Enforce and Protect Act of 2015.''


                        SECTION 402. DEFINITIONS

     Present Law
       No provision.
     House Amendment
       Section 402 establishes the applicable definitions for this 
     title.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.


             SECTION 403. APPLICATION TO CANADA AND MEXICO

     Present Law
       Article 1902 of the North American Free Trade Agreement 
     (NAFTA) (19 U.S.C. 3438) states that any amendments to title 
     VII of the Tariff Act of 1930, or to any other statute which 
     provides for judicial review of determinations under that 
     title or the standard of review to be applied, shall apply to 
     goods from a NAFTA country only to the extent specified in 
     the amendment.
     House Amendment
       Section 403 provides that this title applies to goods from 
     Canada and Mexico, the current members of NAFTA.
     Senate Amendment
       Section 402(e) of the Senate amendment is the same as 
     section 403 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.

[[Page H9161]]

  


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


           SECTION 411. TRADE REMEDY LAW ENFORCEMENT DIVISION

     Present Law
       No provision.
     House Amendment
       Section 411(a) establishes within the Office of 
     International Trade of CBP a Trade Law Remedy Enforcement 
     Division. The Trade Law Remedy Division's duties are to: 
     develop and administer policies to prevent and counter 
     evasion; direct enforcement and compliance assessment 
     activities concerning evasion; develop and conduct commercial 
     risk assessment targeting with respect to potentially evading 
     cargo destined for the United States; issuing Trade Alerts 
     regarding evading imports; and develop policies for the 
     application of single entry and continuous bonds to 
     sufficiently protect the collection of antidumping and 
     countervailing duties.
       Section 411(b) establishes the Director of the Trade Law 
     Remedy Enforcement Division responsible for: directing the 
     trade enforcement and compliance assessment activities of CBP 
     regarding evasion; improving cooperation and the exchange of 
     information between CBP, ICE, and other relevant agencies 
     regarding evasion; notifying the Department of Commerce and 
     the International Trade Commission of any findings, 
     determinations, or criminal actions taken by CBP or other 
     Federal agency regarding evasion; and serving as the primary 
     liaison between CBP and the public regarding United States 
     Government activities concerning evasion. The Director's 
     liaison responsibilities include: receiving and transmitting 
     to the appropriate CBP office parties' allegations of 
     evasion; provide information to a party that submitted an 
     allegation of evasion on the status of CBP's consideration of 
     the allegation and decision to pursue or not pursue any 
     administrative inquiries or other actions; request from the 
     party that submitted an allegation of evasion any additional 
     information that may be relevant for CBP determining whether 
     to initiate an administrative inquiry or take any other 
     action regarding the allegation; notify on a timely basis the 
     party that submitted such an allegation of the results of any 
     administrative, civil or criminal actions taken by CBP or 
     other Federal agency regarding evasion as a direct or 
     indirect result of the allegation; provide technical 
     assistance and advice to eligible small businesses to enable 
     such businesses to prepare and submit allegations of evasion; 
     develop guidelines on the types and nature of information 
     that may be provided in allegations of evasion; and regularly 
     consult with relevant parties and organizations regarding the 
     development and implementation of regulations, 
     interpretations, and policies related to countering evasion.
       Section 411(c) establishes within the Trade Remedy Law 
     Enforcement Division a National Targeting and Analysis Group 
     (NTAG) dedicated to preventing and countering evasion through 
     establishing targeted risk assessment methodologies and 
     standards.
       Section 411(d) requires the Director of the Trade Remedy 
     Law Enforcement Division to issue Trade Alerts to port 
     directors as required to inspect imported merchandise, 
     require additional bonds, and take other actions necessary to 
     prevent evasion.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment, 
     except also adding that the duties of the Trade Remedy Law 
     Enforcement Division and its director include those policies 
     and activities related to implementing section 517 of the 
     Tariff Act of 1930, as added by section 421 of this Act. The 
     conference agreement establishes the Trade Law Remedy 
     Enforcement Division in the Office of Trade, the successor 
     office to the Office of International Trade.


 SECTION 412. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS

     Present Law
       No provision.
     House Amendment
       Section 412(a) directs CBP to exercise all existing 
     information collection authorities to identify evasion and 
     authorizes CBP to issue questionnaires to collect information 
     on alleged evasion from persons who have information relevant 
     to an allegation of evasion.
       If a person fails to cooperate to provide requested 
     information, section 412(b) authorizes CBP to apply an 
     adverse inference against the interests of that party in 
     determining if evasion occurred.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment, 
     except also clarifying that an adverse inference may be used 
     with respect to a person alleged to have entered covered 
     merchandise through evasion, or a foreign producer or 
     exporter of covered merchandise alleged to have entered 
     through evasion regardless of whether another person involved 
     in the same transaction or transactions has provided 
     requested information.


                   SECTION 413. ACCESS TO INFORMATION

     Present Law
       Section 777(b)(1)(A)(ii) of the Trade Act of 1930, at 19 
     U.S.C. 1677f(b)(1)(A)(ii), authorizes the Department of 
     Commerce and the International Trade Commission to transfer 
     to CBP information that was designated proprietary by the 
     person submitting the information, for purposes of conducting 
     an investigation regarding fraud.
     House Amendment
       Section 413(a) amends section 777(b)(1)(A)(ii) of the Trade 
     Act of 1930 by allowing the Department of Commerce and the 
     International Trade Commission to transfer information 
     designated proprietary by the person submitting the 
     information to CBP for investigations of negligence and gross 
     negligence, rather than just for fraud.
       Section 413(b) authorizes the Secretary of the Treasury to 
     provide to the Department of Commerce or the International 
     Trade Commission any information that would enable the 
     Department of Commerce or the International Trade Commission 
     to assist in identifying imports evading antidumping or 
     countervailing duties.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.


 SECTION 414. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION 
                          OF TRADE REMEDY LAWS

     Present Law
       No provision.
     House Amendment
       Section 414(a) requires the negotiation of bilateral 
     agreements with other countries' customs authorities to 
     cooperate on preventing evasion. These agreements should 
     include provisions allowing the sharing of information to 
     determine if evasion occurred, verification of such 
     information, allowing officials from the importing country to 
     participate in such verifications, and, if a country refuses 
     to allow officials from an importing country to participate 
     in a verification, allowing the importing country to take 
     such lack of cooperation into account in its trade 
     enforcement and compliance activities.
       Section 414(b) allows CBP to take into account whether a 
     country is a party to a bilateral agreement regarding 
     cooperation on evasion and the extent to which that country 
     is cooperating under such an agreement for the purposes of 
     trade enforcement and compliance assessment of that country's 
     exports regarding potential evasion.
       Section 414(c) requires an annual report to Congress on the 
     status of ongoing negotiations of bilateral cooperation 
     agreements regarding evasion, the terms of any such completed 
     agreements, and any cooperation and other activities 
     conducted as a result of such agreements.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.


               section 415. trade negotiating objectives

     Present Law
       No provision.
     House Amendment
       Section 415 establishes obtaining the commitments for 
     cooperation on evasion described in section 414 as a 
     negotiating objective for current trade agreements under 
     negotiation and future agreements.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.

       Subtitle B--Investigation of Evasion of Trade Remedy Laws


section 421. procedures for investigation of evasion of antidumping and 
                       countervailing duty orders

     Present Law
       No provision.
     House Amendment
       Section 421 grants the Department of Commerce the authority 
     to administratively investigate evasion and order CBP to 
     collect or preserve for collection antidumping and 
     countervailing duties owed on evading imports. In addition to 
     defining required terms, section 421(a) excludes from these 
     investigations evasion that is the result of clerical errors 
     unless the errors reflect a pattern of negligent conduct.
       Section 421(b) establishes the procedures for evasion 
     investigations. The Department of Commerce may self-initiate 
     an evasion investigation, or may initiate an investigation as 
     a result of an adequate petition from an interested party or 
     a referral from CBP. CBP is required to refer a matter to the 
     Department of Commerce if CBP has information that evasion 
     occurred, but cannot determine if the merchandise is in fact 
     subject to an antidumping or countervailing duty order. The 
     Department of Commerce has 30 days after receiving a petition 
     or referral to determine whether to initiate an 
     investigation. The Department of Commerce is to notify CBP if 
     it initiates an evasion investigation as a result of a 
     petition from an interested party.
       CBP is required to provide documents and information 
     requested by the Department of Commerce for an evasion 
     investigation within 10 days after the request and these 
     documents and information will be available to

[[Page H9162]]

     authorized representatives of interested parties under an 
     administrative protective order. If an authorized 
     representative of an interested party has access to business 
     proprietary information from another Department of Commerce 
     proceeding under an administrative protective order issued in 
     that proceeding and this information is relevant to an 
     evasion investigation, the authorized representative may 
     submit this information on the record of the evasion 
     investigation. The Department of Commerce is authorized to 
     issue questionnaires to interested parties in an evasion 
     investigation and to make an adverse inference against a 
     party that fails to cooperate to the best of its ability.
       The Department of Commerce is to issue a preliminary 
     determination of whether there is a reasonable basis to 
     believe or suspect evasion within 90 days after initiation of 
     the investigation and a final determination of evasion within 
     300 days after initiation. If the Department of Commerce 
     makes an affirmative preliminary determination of evasion, 
     CBP is to suspend liquidation of entries of evading 
     merchandise on or after the preliminary determination and any 
     unliquidated entries before that date. A cash deposit is also 
     required for such entries reflecting the applicable rates 
     previously determined by the Department of Commerce.
       If the Department of Commerce makes an affirmative final 
     determination of evasion, CBP is to assess the applicable 
     antidumping and countervailing duties on entries of evading 
     merchandise, including such entries that were already 
     liquidated, and to review and reassess the amount of bond or 
     other security the importer must post for entries of such 
     merchandise on or after the date of the final determination. 
     The Department of Commerce may also instruct CBP to require a 
     cash deposit or bond on entries of such merchandise on or 
     after the date of the final determination in the amount of 
     antidumping and countervailing duties potentially owed on the 
     merchandise. If the Department of Commerce cannot determine 
     the amount of the applicable antidumping and countervailing 
     duty rate or cash deposit because the actual producer or 
     exporter of the merchandise is unknown, then the highest 
     amount for any producer or exporter will be applied. If the 
     Department of Commerce makes a negative final determination 
     of evasion, then any suspension of liquidation is ended and 
     any cash deposits refunded. The preliminary and final 
     determinations in an evasion investigation are to be 
     published in the Federal Register, as well as the notice of 
     initiation of such an investigation.
       If the Department of Commerce makes an affirmative 
     preliminary or final determination of evasion, it is required 
     to transmit the administrative record of the investigation to 
     CBP and any other agency that requests the administrative 
     record. After making a final determination, the Department of 
     Commerce may also provide importers information discovered in 
     an investigation that would help educate importers on 
     complying with importing merchandise in accordance with U.S. 
     laws and regulations.
       The Department of Commerce and CBP are to establish 
     procedures to maximize cooperation and communication between 
     the two agencies to quickly, efficiently, and accurately 
     investigation allegations of evasion. The Department of 
     Commerce will issue annual reports to Congress on the conduct 
     of evasion investigations.
       Section 421(b) makes a technical amendment to the table of 
     contents for title VII of the Trade Act of 1930 to reflect 
     this subtitle.
       Section 421(c) establishes that the Department of 
     Commerce's final determination in an evasion investigation is 
     subject to judicial review by the U.S. Court of International 
     Trade.
       Section 421(d) instructs the Department of Commerce and CBP 
     to issue regulations to implement this subtitle.
       Section 421(e) provides that the amendments in this 
     subtitle are effective 180 days after enactment and applies 
     to merchandise entered on or after the date of enactment.
     Senate Amendment
       Section 402 requires that if the Commissioner makes an 
     affirmative determination of evasion, the Commissioner shall: 
     1) suspend the liquidation of any unliquidated entries of the 
     covered merchandise that is the subject of the allegation 
     entered between the date of initiation and the date of the 
     determination; 2) extend the period for liquidating any 
     unliquidated entries of merchandise that entered before the 
     initiation of the investigation; 3) notify Commerce of the 
     determination and request that Commerce determine the 
     appropriate duty rates for such covered merchandise; 4) 
     require importers of such covered merchandise to post cash 
     deposits and assess duties on the covered merchandise as 
     directed by Commerce; and 5) take such additional enforcement 
     measures as the Commissioner deems appropriate, including 
     initiating proceedings for related violations of law, 
     modifying CBP's procedures for identifying future evasion, 
     requiring a deposit of estimated duties on future entries, 
     and referring the matter to ICE for civil or criminal 
     investigation. The section also requires the Department of 
     Commerce to promptly provide the Commissioner with cash 
     deposit rates and antidumping and countervailing duty rates, 
     and establishes a special rule for cases in which the 
     producer or exporter is unknown.
       Under section 402, the Commissioner must determine within 
     90 calendar days of initiation of an evasion investigation 
     whether there is a reasonable suspicion that entries of 
     covered merchandise that are the subject of the allegation 
     were entered through evasion. If the Commissioner decides 
     there is a reasonable suspicion, the Commissioner shall: 
     1) suspend the liquidation of any unliquidated entries of 
     the covered merchandise entered after the date of 
     initiation; 2) extend the period for liquidating any 
     unliquidated entries of merchandise that entered before 
     the initiation of the investigation; and 3) take any 
     additional measures necessary to protect the ability to 
     collect appropriate duties, which may include requiring a 
     single transaction bond or posting cash deposits with 
     respect to entries of covered merchandise.
       Section 402 requires that if the Commissioner makes an 
     affirmative determination of evasion, the Commissioner shall 
     (1) suspend the liquidation of any unliquidated entries of 
     the covered merchandise that is the subject of the allegation 
     entered between the date of initiation and the date of the 
     determination; (2) extend the period for liquidating any 
     unliquidated entries of merchandise that entered before the 
     initiation of the investigation; (3) notify Commerce of the 
     determination and request that Commerce determine the 
     appropriate duty rates for such covered merchandise; (4) 
     require importers of such covered merchandise to post cash 
     deposits and assess duties on the covered merchandise as 
     directed by Commerce; and (5) take such additional 
     enforcement measures as the Commissioner deems appropriate, 
     including initiating proceedings for related violations of 
     law, modifying CBP's procedures for identifying future 
     evasion, requiring a deposit of estimated duties on future 
     entries, and referring the matter to ICE for civil or 
     criminal investigation. The section also requires the 
     Department of Commerce to promptly provide the Commissioner 
     with cash deposit rates and antidumping and countervailing 
     duty rates, and establishes a special rule for cases in which 
     the producer or exporter is unknown.
       Under section 402, the Commissioner must determine within 
     90 calendar days of initiation of an evasion investigation 
     whether there is a reasonable suspicion that entries of 
     covered merchandise that are the subject of the allegation 
     were entered through evasion. If the Commissioner decides 
     there is a reasonable suspicion, the Commissioner shall (1) 
     suspend the liquidation of any unliquidated entries of the 
     covered merchandise entered after the date of initiation; (2) 
     extend the period for liquidating any unliquidated entries of 
     merchandise that entered before the initiation of the 
     investigation; and (3) take any additional measures necessary 
     to protect the ability to collect appropriate duties, which 
     may include requiring a single transaction bond or posting 
     cash deposits with respect to entries of covered merchandise.
       Section 402 provides a period of 30 business days for 
     interested party who made the allegation of evasion or the 
     importer of the covered merchandise alleged to have entered 
     the merchandise subject to the evasion determination to 
     request de novo administrative review by the Commissioner 
     after notification of a determination. Section 402 
     establishes that judicial review shall be available to the 
     interested party alleging evasion or the party found to have 
     entered merchandise subject to the investigation through 
     evasion of any administrative review of the evasion 
     determination by CBP. Section 402 also sets out a rule of 
     construction with respect to other civil and criminal 
     proceedings so that no determination under subsection (c) or 
     action taken by the Commissioner pursuant to the 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.
     Conference Agreement
       The conference agreement follows the Senate amendment 
     except for the following changes. The definition of the term 
     ``interested party'' is expanded to include a foreign 
     manufacturer, producer, or exporter, or the United States 
     importer, of covered merchandise, or a trade or business 
     association a majority of the members of which are producers, 
     exporters, or importers of such merchandise.
       The Commissioner has 15 business days after receiving an 
     evasion allegation or a referral to determine whether to 
     initiate an investigation.
       If the Commissioner is unable to determine whether the 
     merchandise at issue is covered merchandise, the Commissioner 
     shall refer the matter to the Department of Commerce to 
     determine whether the merchandise is covered merchandise. The 
     Department of Commerce is to make this determination pursuant 
     to its applicable statutory and regulatory authority, and the 
     determination shall be subject to judicial review under 19 
     U.S.C. 1516a(a)(2). The Conferees intend that such 
     determinations include whether the merchandise at issue is 
     subject merchandise under 19 U.S.C. 1677j. The time required 
     for the Department of Commerce to determine whether the 
     merchandise at issue is covered merchandise shall not be 
     counted in calculating any deadlines under the procedures 
     created by this section.
       The Commissioner has 300 calendar days after the date on 
     which an evasion investigation was initiated to make a 
     determination as to whether the covered merchandise was 
     entered through evasion. If the Commissioner concludes that 
     the investigation is extraordinarily complicated and 
     additional

[[Page H9163]]

     time is necessary to make a determination, then the 
     Commission may extend the time to make a determination by no 
     more than 60 calendar days.
       It is clarified that an adverse inference may be used with 
     respect to a person alleged to have entered covered 
     merchandise through evasion, or a foreign producer or 
     exporter of covered merchandise alleged to have entered 
     through evasion regardless of whether another person involved 
     in the same transaction or transactions has provided 
     requested information.
       The standard of review for judicial review of an 
     investigation is clarified to be whether the Commissioner 
     fully complied with all procedures in making a determination 
     and conducting an administrative review of that determination 
     and whether any determination, finding, or conclusion is 
     arbitrary, capricious, or an abuse of discretion. Other 
     technical changes were made to the judicial review provision.


          section 422. government accountability office report

     Present Law
       No provision.
     House Amendment
       Section 422 directs the Government Accountability Office to 
     submit to Congress a report on the effectiveness of the 
     provisions made by this title and the actions by the 
     Department of Commerce and CBP pursuant to this title.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement does not contain this section. 
     Under the House amendment, the Department of Commerce would 
     conduct evasion investigations, and the primary purpose of 
     the report was to monitor the cooperation of the Department 
     of Commerce and CBP in the Department of Commerce's conduct 
     of such investigations. This report is not required under the 
     Conference Agreement because the Senate amendment is being 
     followed, which has CBP conduct evasion investigations.

                       Subtitle C--Other Matters


           section 431. allocation and training of personnel

     Present Law
       No provision.
     House Amendment
       Section 431 requires CBP, to the maximum extent possible, 
     to assign sufficient personnel responsible for preventing and 
     investigating evasion and to provide adequate training for 
     such personnel.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.


section 432. annual report on prevention of evasion of antidumping and 
                       countervailing duty orders

     Present Law
       No provision.
     House Amendment
       Section 432(a) directs CBP, in consultation with the 
     Department of Commerce and ICE, to provide Congress with an 
     annual report on efforts to prevent and investigate evasion.
       The required contents of the report are described in 
     section 432(b). In addition to metrics on CBP's activities, 
     resource allocation and training regarding evasion, the 
     report must include a description of CBP's policies and 
     practices regarding evasion, any changes in such policies and 
     practices, and any recommended legislative or other changes 
     to improve the effectiveness of CBP in preventing and 
     identifying evasion.
     Senate Amendment
       Section 403 requires the Commissioner to submit to the 
     Committee on Finance of the Senate and the Committee on Ways 
     and Means of the House an annual report on the Commissioner's 
     efforts to prevent and investigate the evasion of antidumping 
     and countervailing duty orders.
     Conference Agreement
       The conference agreement follows the Senate amendment, 
     except to clarify that the report is to cover all types of 
     evasion allegations and investigations. The requirement to 
     report the number of investigations not completed within the 
     deadlines provided in section 517 of the Tariff Act of 1930, 
     as added by section 421 of this Act, is removed because the 
     Commissioner is statutorily required to meet these deadlines.


         section 433. addressing circumvention by new shippers

     Present Law
       Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 
     1675(a)(2)(B)) allows new exporters and producers to obtain 
     an individual weighted average dumping margin or individual 
     countervailing duty rate on an expedited basis. While the 
     review to determine the individual margin or duty rate is 
     being conducted, an importer of the new exporter or 
     producer's merchandise may post a bond or security instead of 
     a cash deposit for entries of that merchandise.
     House Amendment
       Section 433 strikes the ability of an importer of a new 
     exporter or producer's merchandise to post a bond or security 
     instead of a cash deposit for entries of that merchandise 
     while the Department of Commerce is determining the exporter 
     or producer's individual weighted average dumping margin or 
     individual countervailing duty rate. This section also adds 
     the requirement that the individual weighted average dumping 
     margin or individual countervailing duty rate for a new 
     exporter or producer must be based on bona fide sales in the 
     United States and sets out criteria to be considered in 
     determining if such sales were bona fide.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.

   Title V--Small Business Trade Issues and State Trade Coordination


                        section 501. short title

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement sets forth the short title as the 
     ``Small Business Trade Enhancement Act of 2015'' or the 
     ``State Trade Coordination Act.''


    section 502. outreach and input from small businesses to trade 
                          promotion authority

     Present Law
       Per section 203 of Public Law 94-305 (15 U.S.C. 1634c), the 
     Office of Advocacy within the Small Business Administration 
     is statutorily charged with receiving complaints, criticisms, 
     and suggestions concerning federal policies affecting small 
     businesses, transmitting those complaints, criticisms and 
     suggestions to the relevant federal regulatory agencies, and 
     developing proposals for changes in the policies and 
     activities of federal agencies as those relate to small 
     businesses. However, current law does not specifically 
     provide for engagement by the Office of Advocacy during the 
     negotiation of trade agreements.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The Conferees agree to amend section 203 of Public Law 94-
     305 (15 U.S.C. 634c) by adding certain provisions and 
     requirements concerning the Office of Advocacy. In 
     particular, the provision requires: 1) the Chief Counsel for 
     Advocacy to convene an Interagency Working Group (IWG) not 
     later than 30 days after the date on which the President 
     submits a notification to Congress under section 105(a) of 
     Public Law 114-26; 2) the IWG to include representation from 
     the Office of the United States Trade Representative, the 
     Department of Commerce, the Department of Agriculture, and 
     any other federal agencies deemed relevant with respect to 
     the subject of the trade agreement at issue; 3) the IWG to 
     identify a diverse group of small entities to provide to the 
     IWG the views of small businesses on the potential economic 
     effects of the trade agreement at issue; and 4) the Chief 
     Counsel for Advocacy to submit to relevant Committees of the 
     Senate and the House of Representatives a report on the 
     economic impacts of the trade agreement at issue on small 
     entities. By assigning the Office of Advocacy a role in trade 
     negotiations, the legislation will promote consideration of 
     small business interests throughout trade negotiation 
     processes.


               section 503. state trade expansion program

     Present Law
       Section 1207 of the Small Business Jobs Act of 2010 (Pub. 
     L. 111-240) created a pilot State Trade and Export Promotion 
     Grant Program to make grants to states to carry out export 
     promotion programs for small businesses. These programs 
     include a foreign trade mission, a foreign market sales trip, 
     a subscription to services provided by the Department of 
     Commerce, the payment of website translation fees, the design 
     of international marketing media, a trade show exhibition, 
     and training workshops.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The Conferees agree to rename the ``State Trade and Export 
     Promotion Grant Program'' authorized by the Small Business 
     Jobs Act of 2010 the ``State Trade Expansion Program'' 
     (STEP); to insert STEP into section 22 of the Small Business 
     Act (15 U.S.C. 652); and to authorize STEP grants at $30 
     million per year through fiscal year 2020. The Conferees also 
     agree to alter STEP to improve coordination between the 
     federal government and the states, to authorize reverse trade 
     missions and procurement of consultancy services, and to 
     require the Inspector General of the Small Business 
     Administration to provide to the Congress a report on STEP 
     within 18 months of the first grant award.


      section 504. state and federal export promotion coordination

     Present Law
       Section 2312 of the Export Enhancement Act of 1988 (Public 
     Law 100 418) created the

[[Page H9164]]

     Trade Promotion Coordinating Committee (TPCC). The TPCC 
     provides a framework to coordinate and carry out certain 
     export promotion and export financing programs of the United 
     States Government.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The Conferees agree to establish a new section 2313A of the 
     Export Enhancement Act of 1988, which establishes a State and 
     Federal Export Promotion Coordination Working Group as a 
     subcommittee of the TPCC. The subcommittee is charged with 
     coordinating export promotion and export financing activities 
     between the federal government and state and local 
     governments. The provision further requires that the Office 
     of International Trade of the Small Business Administration, 
     in coordination with other members of the TPCC, submit a 
     report to the Congress that includes recommendations to 
     improve the Internet website Export.gov.


                 section 505. state trade coordination

     Present law
       Section 2312 of the Export Enhancement Act of 1988 (Public 
     Law 100-418) created the Trade Promotion Coordinating 
     Committee (TPCC), which is charged with developing a plan to 
     carry out Federal export promotion and export financing 
     programs. The TPCC is chaired by the Department of Commerce 
     and comprised of representatives from the Office of the 
     United States Trade Representative, the Small Business 
     Administration, the Agency for International Development, the 
     Trade and Development Program, the Overseas Private 
     Investment Corporation, the Export-Import Bank of the United 
     States, and the Departments of Agriculture, Energy, State, 
     Transportation, and the Treasury. The President may appoint 
     additional departments or agencies to the TPCC.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The Conferees agree to amend section 2312 by: 1) adding to 
     the TPCC one or more new members appointed by the President 
     who are representatives of state trade promotion agencies; 2) 
     expanding the scope of the responsibilities of the TPCC to 
     add a new Federal and State Export Promotion Coordination 
     Plan, which shall develop a comprehensive plan to coordinate 
     federal and state export promotion resources and strategies; 
     and 3) requiring the TPCC to include, as part of its annual 
     report, a survey and analysis regarding the overall 
     effectiveness of Federal-state coordination and export 
     promotion goals. Further, the provision requires: 1) the 
     Department of Commerce to develop an annual Federal-state 
     export strategy for each state that provides its export 
     strategy; and 2) the Department of Commerce and the state 
     trade promotion agencies to develop a coordinated set of 
     reporting metrics on exports and to report annually to 
     Congress on the results of the coordination.

              Title VI--Additional Enforcement Provisions

                     Subtitle A--Trade Enforcement


               section 601. trade enforcement priorities

     Present Law
       No provision.
     House Amendment
       Section 601 requires the Administration to identify, in 
     close consultation with Congress, enforcement priorities and 
     to more regularly consult with Congress on the 
     Administration's enforcement strategy. This section also 
     directs the Administration to focus its enforcement actions 
     on addressing practices that, if eliminated, would likely 
     have the most significant potential to increase economic 
     growth of the United States.
     Senate Amendment
       Section 601 of the Senate amendment is the same section 601 
     of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


 section 602. exercise of wto authorization to suspend concessions or 
                other obligations under trade agreements

     Present Law
       Under section 307(c) of the Trade Act of 1974, a particular 
     action taken under section 301 of the Trade Act of 1974 
     automatically terminates after four years if neither the 
     petitioner nor any representative of the domestic industry 
     that benefits from such action has requested its continuation 
     during the last sixty days of the four-year period.
     House Amendment
       Section 602 allows the Administration, under certain 
     conditions, to reinstate a retaliatory action if such action 
     has terminated previously. To reinstate such action, the 
     Administration must receive a request from an affected 
     domestic industry and engage in a detailed analysis and 
     robust consultations with Congress and the public.
     Senate Amendment
       Section 602 of the Senate amendment is the same section 602 
     of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


                     section 603. trade monitoring

     Present Law
       No provision.
     House Amendment
       Section 603(a) requires the International Trade Commission 
     to make a web-based import monitoring tool available that 
     provides public access to data on the volume and value of 
     goods imports for the purposes of determining if such data 
     has changed over time. The data used will be from the 
     Department of Commerce and any other appropriate government 
     data, and will include data from the most recent quarter for 
     which such data are available, plus previous quarters as 
     practicable.
       This provision further requires the Department of Commerce 
     to publish on a website monitoring reports on changes in the 
     volume and value of imports and exports of goods categorized 
     based on the 6-digit subheadings of the Harmonized Tariff 
     Schedule of the United States. The Department of Commerce 
     must also notify Congress when the reports are available. 
     These reports are to published at least quarterly and have 
     data for the most recent quarter for which such data are 
     available, as well as previous quarters as practicable. The 
     Department of Commerce is required to solicit public comment 
     on the monitoring reports through the Federal Register.
       This provision is to terminate seven years after the date 
     of enactment.
       Section 603(b) makes the clerical amendment of adding the 
     title of this section to the table of contents for the Trade 
     Act of 1974 (19 U.S.C. 2101 et. seq.).
     Senate Amendment
       Section 603 of the Senate amendment is the same section 603 
     of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


       section 604. establishment of interagency center on trade 
              implementation, monitoring, and enforcement

     Present Law
       The Office of the United States Trade Representative (USTR) 
     is required to submit to Congress an Annual Report on Trade 
     Agreements Program and National Trade Policy Agenda, pursuant 
     to 19 U.S.C. 2213; a budget justification, pursuant to 31 
     U.S.C. 1105; and an agency strategic plan, pursuant to 5 
     U.S.C. 306.
     House Amendment
       Section 907 requires that, in its Annual Report on Trade 
     Agreements Program and National Trade Policy Agenda to 
     Congress, USTR must submit additional information regarding 
     USTR-led interagency programs, including the Interagency 
     Trade Enforcement Center. Specifically, the section requires 
     that USTR report on the objectives and priorities of all 
     USTR-led interagency programs; the actions proposed, or 
     anticipated, to be undertaken to achieve such objectives and 
     priorities, including actions authorized under the trade laws 
     and negotiations with foreign countries; 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; USTR's coordination of each participating Federal 
     agency to more effectively achieve such objectives and 
     priorities; any proposed legislation necessary or appropriate 
     to achieve such objectives or priorities; and prior progress 
     made in achieving such objectives and priorities and 
     coordination activities.
       The section also requires that USTR submit a report to 
     Congress, in conjunction with the President's budget, 
     regarding its annual plan to match available agency resources 
     with projected workload and provide a detailed analysis of 
     how the prior year's funds were spent; identify existing and 
     new staff necessary to support the functions and powers of 
     USTR; identify USTR and other Federal agency staff who will 
     be required to be detailed to support USTR-led interagency 
     programs; and provide detailed analysis of the budgetary 
     requirements of USTR-led interagency programs.
       In addition, the section requires that USTR submit to 
     Congress a quadrennial plan, in conjunction with agency 
     strategic plans already required under statute, with some 
     additional requirements: analyzing internal quality controls 
     and record management; identifying existing and new staff 
     necessary to support the functions and powers of USTR; 
     identifying existing USTR and other Federal agency staff who 
     will be required to be detailed to support USTR-led 
     interagency programs; providing an outline of budget 
     justifications, including salaries, expenses, and non-
     personnel administrative costs, required under the strategic 
     plan; providing an outline of budget justifications for USTR-
     led interagency programs. This quadrennial plan is required 
     in conjunction with the agency strategic plan produced at the 
     beginning of every new Presidential Administration; this 
     section requires USTR to submit the initial report 
     separately, on February 1, 2016.

[[Page H9165]]

  

     Senate Amendment
       Section 604 establishes an Interagency Trade Enforcement 
     Center (ITEC) in the Office of the United States Trade 
     Representative (USTR), and provides that the main functions 
     of the Center are to: 1) serve as the primary forum within 
     the Federal government for the USTR and other agencies to 
     coordinate the enforcement of United States trade rights 
     under international trade agreements and enforcement of 
     United States trade remedy laws; 2) coordinate the exchange 
     of information related to potential violations of 
     international trade agreements; and 3) conduct outreach to 
     United States workers, businesses, and other interested 
     persons.
       Section 604 also requires the head of the ITEC to be a 
     Director who shall be appointed from among full-time senior-
     level officials of USTR, and a Deputy Directory appointed by 
     the Secretary of Commerce from among full-time, senior-level 
     officials of Commerce. Other Federal government agencies that 
     the Center coordinates with may detail or assign employees to 
     the Center. The provision requires that funding and 
     administrative support for the ITEC be provided by USTR. The 
     Director of ITEC is required to submit an annual report to 
     the Committee on Finance of the Senate and the Committee on 
     Ways and Means of the House of Representatives on the actions 
     taken by the Center with respect to the enforcement of U.S. 
     trade rights under trade agreements in the preceding year.
     Conference Agreement
       The conference agreement establishes the Interagency Center 
     on Trade Implementation, Monitoring, and Enforcement (ICTIME) 
     in the office of the United States Trade Representative. The 
     function of ICTIME is to support the USTR in: 1) 
     investigating potential disputes to be brought at the World 
     Trade Organization; 2) investigating potential disputes to be 
     brought under U.S. bilateral and regional trade agreements; 
     3) monitoring and enforcement activities pursuant to U.S. 
     trade agreements; and 4) monitoring measures taken by parties 
     during implementation of trade agreements with the United 
     States. The director of ICTIME is to be appointed by the 
     USTR, and additional personnel may be detailed or assigned to 
     ICTIME by other Federal agencies. The conference agreement 
     requires the President to annually report to Congress 
     regarding the operations of ICTIME. The conference agreement 
     also adopts the House provision requiring USTR to submit to 
     Congress a quadrennial plan concerning quality controls and 
     records management, staffing, and budgeting, with the first 
     report due June 1, 2016. The commitments subject to ICTIME's 
     monitoring and enforcement shall include those negotiated to 
     address the interests in U.S. trade agreements of domestic 
     manufacturers, services providers, farmers, ranchers, and 
     intellectual property rightholders.


    section 605. inclusion of interest in certain distributions of 
              antidumping duties and countervailing duties

     Present Law
       No provision.
     House Amendment
       Section 913(a) directs CBP to include in all distributions 
     of collected antidumping and countervailing duties any and 
     all interest earned on such duties that is, or was, realized 
     through any payments received on or after October 1, 2014 
     under, or in connection with, any customs bond pursuant to a 
     court order or judgment, or settlement.
       Section 913(b) describes the distributions in subsection 
     (a) as all distributions made on or after enactment pursuant 
     to section 754 of the Trade Act of 1930 (19 USC 1675c) (as 
     that 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.
     Senate Amendment
       Section 609 of the Senate amendment is similar to section 
     913 of the House amendment. Senate section 609(a) provides 
     that the Secretary of Homeland Security shall deposit all 
     interest in subsection 609(c) into the special account 
     established under section 754(e) of the Tariff Act of 1930 
     for inclusion in distributions described in subsection 609(b) 
     made on or after the date of the enactment of this Act.
       Section 609(b) defines distributions as those 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 made on or before September 30, 
     2007 and that were unliquidated, not in litigation, and not 
     under an order of liquidation on December 8, 2010.
       Section 609(c) defines interest as an amount earned on 
     antidumping duties or countervailing duties distributed in 
     subsection (b) that is realized through application of a 
     payment received on or after October 1, 2014 by CBP or in 
     connection with a customs bond pursuant to a court order or a 
     settlement for any such bond. It further provides that the 
     types of interest include interest accrued under section 778 
     or 505(d) of the Trade Act of 1930, or equitable interest 
     under common law, or interest under section 963 of the 
     Revised Statutes awarded by a court against a surety under 
     its bond for late payment of antidumping duties, 
     countervailing duties, or other interest.
     Conference Agreement
       The conference agreement follows the Senate amendment with 
     a modification. The Conferees agree to describe interest in 
     section 609(c) as an amount earned on antidumping duties or 
     countervailing duties in subsection (b) that is realized 
     through application of a payment received on or after October 
     1, 2014 by CBP under, or in connection with, a customs bond 
     pursuant to a court order or judgment, or a settlement with 
     respect to a customs bond, including any payment to CBP with 
     respect to that bond by a surety.


   SECTION 606. ILLICITLY IMPORTED, EXPORTED, OR TRAFFICKED CULTURAL 
PROPERTY, ARCHAEOLOGICAL OR ETHNOLOGICAL MATERIALS, AND FISH, WILDLIFE, 
                               AND PLANTS

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       Section 610 of the Senate amendment requires the 
     Commissioner and Director of ICE to ensure that appropriate 
     personnel are trained in the detection, identification, 
     detention, seizure, and forfeiture of cultural property and 
     archaeological or ethnological materials, and fish, wildlife 
     and plants, the importation, exportation, or trafficking of 
     which violates the laws of the United States.
     Conference Agreement
       The conference agreement follows the Senate amendment.


SECTION 607. ENFORCEMENT UNDER TITLE III OF THE TRADE ACT OF 1974 WITH 
            RESPECT TO CERTAIN ACTS, POLICIES, AND PRACTICES

     Present Law
       Section 301 of the Trade Act of 1974 establishes procedures 
     and timetables for addressing certain violations of U.S. 
     rights under a trade agreement and unreasonable or 
     discriminatory practices that burden or restrict U.S. 
     commerce.
     House Amendment
       No provision.
     Senate Amendment
       Section 606 of the Senate amendment amends section 
     301(d)(3)(B) of the Trade Act of 1974 to include, among the 
     conduct that is unreasonable for purposes of taking 
     discretionary action under 301(b), a persistent pattern of 
     conduct by a foreign country that: 1) fails to effectively 
     enforce the environmental laws of the foreign country; 2) 
     waives or otherwise derogates from the environmental laws of 
     the foreign country or weakens the protections afforded by 
     such laws; 3) fails to provide for the judicial or 
     administrative proceedings giving access to remedies for 
     violations of the environmental laws of the foreign country; 
     4) fails to provide appropriate and effective sanctions or 
     remedies for violations of the environmental laws of the 
     foreign country; or 5) fails to effectively enforce 
     environmental commitments under agreements to which the 
     foreign country and the United States are a part.
     Conference Agreement
       The conference agreement includes modifications to amend 
     section 301(d)(3)(B) of the Trade Act of 1974 to include, 
     among the types of conduct that are unreasonable for purposes 
     of taking discretionary action under 301(b), actions that 
     constitute a persistent pattern of conduct by the government 
     of the foreign country under which that government fails to 
     effectively enforce commitments under agreements including 
     with respect to trade in goods, trade in services, trade in 
     agriculture, foreign investment, intellectual property, 
     digital trade in goods and services and cross-border data 
     flows, regulatory practices, state-owned and state-controlled 
     enterprises, localization barriers to trade, labor and the 
     environment, anti-corruption, trade remedy laws, textiles, 
     and commercial partnerships to which the foreign country and 
     the United States are a party.


                    SECTION 608. HONEY TRANSSHIPMENT

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       Section 608(a) requires the Commissioner of CBP to direct 
     appropriate personnel and resources to address concerns that 
     honey is being imported into the United States in violation 
     of U.S. customs and trade laws.
       Section 608(b) requires CBP to compile a database of the 
     individual characteristics of foreign honey to facilitate the 
     verification of country of origin markings, and to seek to 
     work with foreign governments, industry, and the Food and 
     Drug Administration in compiling the database.
       Section 608(c) requires the Commissioner to submit a report 
     to Congress within 180 days after enactment of the Act that 
     describes and assesses the limitations in existing analysis 
     capabilities of laboratories with respect to determining the 
     country of origin of honey and includes any recommendation of 
     the Commissioner for improving such capabilities.
       Section 608(d) expresses the sense of Congress that the 
     Commissioner of Food and Drugs should promptly establish a 
     honey national identification standard to ensure that honey 
     imports are classified appropriately for duty assessment; and 
     are denied entry to the United States if such imports pose a 
     threat to the health or safety of consumers.
     Conference Agreement
       The conference agreement follows the Senate amendment. The 
     agreement of the conference on establishment of a database 
     pertaining to honey transshipment reflects the

[[Page H9166]]

     unique geographical characteristics of honey, particularly 
     unique regional pollens, that allow CBP to discern the 
     country of origin of honey imported into the United States 
     through currently available, cost-effective scientific 
     methods, and also the importation of honey in sufficient 
     quantity and with historical patterns of duty evasion to 
     justify establishing and maintaining such a database.


    SECTION 609. ESTABLISHMENT OF CHIEF INNOVATION AND INTELLECTUAL 
                          PROPERTY NEGOTIATOR

     Present Law
       Section 141 of the Trade Act of 1974 (19 U.S.C. 2171) 
     establishes the structure, functions, powers, and personnel 
     of the Office of the United States Trade Representative 
     (USTR).
     House Amendment
       No provision.
     Senate Amendment
       Section 611(a) amends section 141 of the Trade Act of 1974 
     (19 U.S.C. 2171) to establish a Chief Innovation and 
     Intellectual Property Negotiator at USTR with the rank of 
     Ambassador, who shall be appointed by the President, by and 
     with the advice and consent of the Senate, 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.
       Section 611(b) amends section 5314 of title 5, United 
     States Code, to set the pay for this position at Level III of 
     the Executive Schedule.
       Section 611(c) requires the USTR to submit an annual report 
     to the Senate Finance and Ways and Means Committees detailing 
     the enforcement actions taken by USTR to ensure the 
     protection of United States innovation and intellectual 
     property interests, and other actions taken to advance United 
     States innovation and intellectual property interests.
     Conference Agreement
       The conference agreement follows the Senate amendment.


    SECTION 610. MEASURES RELATING TO COUNTRIES THAT DENY ADEQUATE 
              PROTECTION FOR INTELLECTUAL PROPERTY RIGHTS

     Present Law
       Section 182 of the Trade Act of 1974 (19 U.S.C. 2242) 
     requires USTR to submit to the Committees a ``Special 301 
     Report'' identifying countries that deny adequate protection 
     or market access for intellectual property rights.
     House Amendment
       No provision.
     Senate Amendment
       Section 612(a) amends section 182(d)(2) of the Trade Act of 
     1974 (19 U.S.C. 2242(d)(2)) to require USTR to identify 
     foreign countries that deny adequate and effective protection 
     of trade secrets.
       Section 612(b) amends section 182 of the Trade Act of 1974 
     (19 U.S.C. 2242) to require USTR, within 90 days after 
     submitting the annual National Trade Estimate, to develop an 
     action plan for foreign countries that have spent at least 
     one year on the Priority Watch List of the Special 301 
     Report. The action plan calls for such countries to meet 
     benchmarks designed to assist them to achieve effective 
     protection of intellectual property rights, and equitable 
     market access for U.S. persons that rely upon intellectual 
     property protections. This section also authorizes the 
     President to take appropriate action with respect to foreign 
     countries that fail to meet action plan benchmarks and 
     requires USTR to transmit to the Committees a report on the 
     action plans and the progress in achieving the action plan 
     benchmarks.
     Conference Agreement
       The conference agreement follows the Senate amendment, with 
     the addition of allowing USTR to provide assistance to 
     developing countries pursuant to Section 611.


               SECTION 611. TRADE ENFORCEMENT TRUST FUND

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       Section 607 of the Senate amendment establishes a Trade 
     Enforcement Trust Fund (Trust Fund) in the Treasury of the 
     United States. The provision requires the Treasury to 
     transfer $15 million each fiscal year to the Trust Fund of 
     receipts from antidumping and countervailing duties, and the 
     aggregate money held in the Trust Fund may not exceed $30 
     million at any time. Transfers to the fund are made 
     quarterly. The provision allows the United States Trade 
     Representative to use amounts in the Trust Fund to enforce 
     the provisions of and commitments and obligations under WTO 
     Agreements and free trade agreements to which the United 
     States is a party, monitor the implementation by foreign 
     countries of the provisions and commitments and obligations 
     under free trade agreements, and investigate and respond to 
     petitions under section 302 of the Trade Act of 1974. In 
     addition, identified Federal agencies would also be 
     authorized to also use amounts in the Trust Fund to ensure 
     capacity building efforts undertaken by the United States 
     prioritize the implementation of intellectual property, 
     labor, and environmental commitments, are self-sustaining and 
     promote local ownership, include performance indicators, and 
     monitor and evaluate capacity building efforts.
       If a Federal agency uses amounts in the Trust Fund in 
     connection with the entry into force of any free trade 
     agreement, that agency must submit a report to Congress on 
     the actions taken by that agency not later than 18 months 
     after the agreement enters into force. It also requires the 
     Comptroller General to submit a report to Congress within one 
     year of enactment that contains (1) a comprehensive analysis 
     of the trade enforcement expenditures of each Federal agency 
     and (2) recommendations on the additional employees and 
     resources that each Federal agency may need to effectively 
     enforce free trade agreements that the United States is a 
     party to.
     Conference Agreement
       The conference agreement follows the Senate amendment with 
     a number of changes. The conference agreement establishes the 
     Trust Fund through 2026 and funds are transferred from the 
     general fund. It allows the United States Trade 
     Representative, on the basis of advice from the Trade Policy 
     Committee, to use amounts in the Trust Fund, only as provided 
     in appropriation acts, to enforce obligations under WTO 
     Agreements and free trade agreements to which the United 
     States is a party, monitor the implementation by foreign 
     countries of the provisions and commitments and obligations 
     under free trade agreements, investigate and respond to 
     petitions under section 302 of the Trade Act of 1974, and to 
     support capacity building efforts, including commitments and 
     obligations related to trade in goods, trade in services, 
     trade in agriculture, foreign investment, intellectual 
     property, digital trade in goods and services and cross-
     border data flows, regulatory practices, state-owned and 
     state-controlled enterprises, localization barriers to trade, 
     labor and the environment, currency, foreign currency 
     manipulation, anticorruption, trade remedy laws, textiles, 
     and commercial partnerships. Additional changes are made with 
     respect to reporting and definitions.
       The conferees are committed to work diligently and at the 
     earliest opportunity to achieve full appropriation for the 
     fund, including during the annual budget resolution process 
     to assure full appropriations to the fund.

                    Title VII--Currency Manipulation


 SECTION 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND 
  ECONOMIC POLICIES WITH CERTAIN MAJOR TRADING PARTNERS OF THE UNITED 
                                 STATES

     Present Law
       No provision.
     House Amendment
       This section strengthens and complements existing 
     requirements by requiring the Secretary of the Treasury to 
     submit to Congress a report on the macroeconomic and currency 
     exchange rate policies of each country that is a major 
     trading partner of the United States and to take specific 
     steps if it finds that a currency is undervalued. The report 
     is to include: 1) an analysis of various economic indicators 
     for each major trading partner and 2) an enhanced analysis 
     of macroeconomic and exchange rate policies for each major 
     trading partner that satisfies certain economic criteria 
     related to its bilateral trade balance, current account 
     balance, and foreign exchange interventions. The new 
     report thus strengthens existing requirements, established 
     in Section 3005 of the Omnibus Trade and Competitiveness 
     Act of 1988, regarding reporting by the Secretary to 
     Congress of international economic and exchange rate 
     policies. The provisions direct the Secretary to conduct 
     enhanced bilateral engagement with each country for which 
     an enhanced analysis of macroeconomic and currency 
     exchange rate policies is included in the report submitted 
     by the Secretary to Congress. The Secretary may determine 
     not to enhance bilateral engagement with a country if the 
     Secretary determines that commencing enhanced bilateral 
     engagement would have an adverse impact on the U.S. 
     economy greater than the benefits of such engagement or 
     would cause serious harm to the national security of the 
     United States. The provision authorizes the President to 
     take certain remedial actions regarding a country that 
     fails to adopt appropriate policies to correct the 
     identified undervaluation and surpluses, including: 1) 
     restrictions on U.S. government financing; 2) restrictions 
     on U.S. government procurement; 3) additional efforts at 
     the International Monetary Fund; or (4) by taking into 
     account such currency policies before initiating or 
     entering into any bilateral or regional trade agreement 
     negotiations.
     Senate Amendment
       The Senate Amendment is similar to the House Amendment but 
     contains certain variations, including variations related to 
     the economic criteria associated with an enhanced analysis of 
     a major trading partner, variations related to the objectives 
     of enhanced bilateral engagement, and variations related to a 
     decision by the Secretary not to enhance bilateral engagement 
     with a country.
     Conference Agreement
       The conference agreement follows the House amendment with 
     modified criteria in section 701(a)(2)(B), an additional item 
     in the list of actions in section 701(b)(1) from the Senate 
     amendment, and modified reporting requirements.

[[Page H9167]]

  



 SECTION 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY

     Present Law
       No provision.
     House Amendment
       This section creates a nine-member advisory committee to 
     advise Treasury on international exchange rates and financial 
     policies and their impact on the United States. The Senate, 
     House, and Administration each appoint members to the 
     committee.
     Senate Amendment
       Section 712 of the Senate amendment is the same as section 
     702 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.

    Title VIII--Establishment of U.S. Customs and Border Protection


                        SECTION 801. SHORT TITLE

     Present Law
       No provision.
     House Amendment
       Section 801 sets forth the short title as the ``U.S. 
     Customs and Border Protection Authorization Act.''
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment.


    SECTION 802. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION

     Present Law
       Section 401 of the Homeland Security Act of 2002 (HSA), at 
     6 U.S.C. 201, establishes the now-defunct Directorate for 
     Border and Transportation Security headed by an Under 
     Secretary for Border and Transportation Security.
       Further, section 411 of the HSA, at 6 U.S.C. 211, 
     established the now-defunct United States Customs Services 
     and it's head, the Commissioner of Customs, within the 
     Department of Homeland Security.
     House Amendment
       Section 802(a) amends section 411 of the HSA to formally 
     establish U.S. Customs and Border Protection (CBP) in title 6 
     of the United States Code. Section 802(a) also establishes 
     the Commissioner of U.S. Customs and Border Protection as the 
     head of the component, and the position of Deputy 
     Commissioner to assist the Commissioner in the management of 
     CBP.
       Additionally, section 802(a) establishes operational 
     offices within CBP. These include: U.S. Border Patrol and its 
     head, the Chief of U.S. Border Patrol; Office of Air and 
     Marine Operations and its head, the Assistant Commissioner 
     for the Office of Air and Marine Operations; the Office of 
     Field Operations and its head, the Assistant Commissioner for 
     the Office of Field Operations; the Office of Intelligence 
     and its head, the Assistant Commissioner for the Office of 
     Intelligence; the Office of International Affairs and its 
     head, the Assistant Commissioner for the Office of 
     International Affairs; and the Office of Internal Affairs and 
     its head, the Assistant Commissioner for the Office of 
     Internal Affairs.
       Finally, section 802(a) establishes certain Standard 
     Operating Procedures, audits, and reports to be carried out 
     and completed, mandates training for CBP officers and agents, 
     establishes short term detention standards, and grants the 
     Secretary additional authorities to establish additional 
     offices and Assistant Commissioners to carry out the 
     functions of CBP.
       Section 802(b) affirms that CBP shall continue to carry out 
     the functions, missions, duties, and authorities that were 
     vested in them prior to the passage of this act. Further, 
     this subsection makes clear that rules, regulations, and 
     policies issued by CBP pursuant to section 411 of the 
     Homeland Security Act prior to the passage of this act shall 
     remain in place.
       Section 802(c) clarifies that the Commissioner of CBP, as 
     well as Assistant Commissioners and other CBP officials, may 
     continue to serve in their roles after passage of this act.
       Section 802(d) amends 5 U.S.C. 5314 to include the 
     Commissioner of CBP in place of the outdated ``Commissioner 
     of Customs''' position in the Level III Executive Pay 
     Schedule.
       Section 802(e) amends the table of contents in the Homeland 
     Security Act of 2002 to reflect the changes made by this act.
       Section 802(f) repeals provisions in the HSA that are no 
     longer necessary or have already been fulfilled. These 
     include: Sec. 416, which mandated a Government Accountability 
     Office report that was completed in 2003; and section 418, 
     which required a report from the Secretary of the Treasury 
     that was completed in 2003.
       Section 802(g) amends sections of the HSA to accurately 
     reflect current titles and functions. In addition, 802(g) 
     amends the HSA to maintain the Transportation Security 
     Administration as a distinct entity within the Department of 
     Homeland Security and grants the Secretary of Homeland 
     Security the authority to discipline any employee of CBP or 
     ICE who willfully deceives Congress or DHS leadership.
       Section 802(h) amends the Act of March 3, 1927, at 19 
     U.S.C. 2071, et seq., to establish the Office of Trade within 
     CBP, and its head, the Assistant Commissioner for the Office 
     of Trade. Section 802(h) also provides for the transfer of 
     assets, functions, and personnel from the Office of 
     International Trade to the Office of Trade within CBP.
       Section 802(i) requires the Commissioner of CBP to issue a 
     report on CBP's Business Transformation Initiative, and a 
     report on personal searches conducted by CBP personnel. 
     802(i) also requires the Commissioner of CBP to conduct a 
     Port of Entry Infrastructure Needs Assessment.
       Section 802(j) prohibits the Secretary of Homeland Security 
     from entering into or renewing an agreement with a foreign 
     government for a Trusted Traveler Program administered by CBP 
     unless the Secretary certifies that the foreign government 
     routinely submits information to INTERPOL's Stolen and Lost 
     Travel Document (SLTD) database or otherwise makes such 
     information available to the United States.
       Section 802(k) provides a sense of Congress supporting 
     CBP's Foreign Language Award Program (FLAP).
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment with 
     modifications.
       The Conferees agree to modify section 802(a) to specify 
     that the Senate Committee on Finance will consider 
     nominations of individuals to fill the position of the 
     Commissioner of U.S. Customs and Border Protection. This 
     modification will ensure that the Senate Committee on Finance 
     will maintain its sole jurisdiction over the confirmation of 
     the Commissioner of U.S. Customs and Border Protection. In 
     addition, the duties of the Commissioner are expanded to 
     require the Commissioner to: 1) coordinate and integrate the 
     security, trade facilitation, and trade enforcement functions 
     of U.S. Customs and Border Protection; 2) direct and 
     administer the commercial operations of U.S. Customs and 
     Border Protection, and the enforcement of the customs and 
     trade laws of the United States; 3) ensure the overall 
     economic security of the United States is not diminished by 
     efforts, activities, and programs aimed at securing the 
     homeland; and 4) ensure that the policies and regulations of 
     U.S. Customs and Border Protection are consistent with the 
     obligations of the United States pursuant to international 
     agreements.
       The Conferees also agree to modify section 802(a) to 
     specify that the head of Air and Marine Operations and the 
     Office of Field Operations will be headed by an Executive 
     Assistant Commissioner. In addition, U.S. Border Patrol shall 
     be headed by a Chief who shall be at the level of an 
     Executive Assistant Commissioner.
       With respect to the Office of International Affairs in 
     section 802(a), the Conferees agree to expand the duties of 
     the office to require that it shall: 1) coordinate with 
     customs authorities of foreign countries with respect to 
     trade facilitation and trade enforcement; 2) advise the 
     Commissioner with respect to matters arising in the World 
     Customs Organization and other international organizations as 
     such matters relate to the policies and procedures of U.S. 
     Customs and Border Protection; and 3) advise the Commissioner 
     regarding international agreements to which the United States 
     is a party as such agreements relate to the policies and 
     regulations of U.S. Customs and Border Protection.
       Furthermore, the Conferees also agree to the following 
     changes to section 802(a): 1) Air and Marine Operations will 
     coordinate with other appropriate agencies in detecting, 
     identifying, and coordinating a response to threats to 
     national security in the air domain; 2) the Executive 
     Assistant Commissioner for the Office of Field Operations 
     shall coordinate with the Executive Assistant Commissioner 
     for the Office of Trade with respect to the trade 
     facilitation and trade enforcement activities of CBP; 3) the 
     national targeting center shall coordinate with the TSA, as 
     appropriate; 4) the annual report on staffing for the Office 
     of Field Operations may be submitted in classified form if 
     the Executive Assistant Commissioner of the Office of Field 
     Operations determines it to be appropriate and informs the 
     appropriate Congressional committees of the reasoning for 
     such; 5) the Office of Intelligence shall manage the counter-
     intelligence operations of CBP; 6) the Office of Internal 
     Affairs is renamed the Office of Professional Responsibility; 
     7) subsection (k) of section 411 of the Homeland Security Act 
     is modified to state that the Commissioner's right to 
     withhold required notifications due to national security, law 
     enforcement, or other operational interests is unreviewable; 
     and 8) the Commissioner is required to continue to submit to 
     the appropriate committees any reports that were required to 
     be submitted prior to the passage of this Act.
       Section 802(c) is modified to clarify that the individuals 
     serving as Assistant Commissioners may continue to serve as 
     Executive Assistant Commissioners, as appropriate.
       Section 802(h) is modified to specify that the head of the 
     Office Trade shall be an Executive Assistant Commissioner. In 
     addition, the provisions specifying the pay and 
     qualifications for the Executive Assistant Commissioner of 
     the Office of Trade are stricken. The Conferees have also 
     agreed to allow the transfer of assets, functions, personnel, 
     or liabilities of the Office of International Trade to 
     offices other than the Office of Trade if the appropriate 
     committees are notified with the reason for such a transfer 
     at least 90 days prior to such transfer. Furthermore, section

[[Page H9168]]

     802(h) is modified to clarify that the individual serving as 
     the Assistant Commissioner may continue to serve as the 
     Executive Assistant Commissioner.
       Lastly, the Conferees agree to require CBP to develop a 
     plan to establish an agricultural specialist career track 
     within CBP. This agreement is codified under section 802(k).

                  Subtitle B--Preclearance Operations


                        SECTION 811. SHORT TITLE

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement sets forth the short title as the 
     ``Preclearance Authorization Act of 2015.''


                        SECTION 812. DEFINITION

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement defines key terms.


         SECTION 813. ESTABLISHMENT OF PRECLEARANCE OPERATIONS

     Present Law
       Current law (19 U.S.C. 1629 and 8 U.S.C. 1103(a)(7)) 
     provides the necessary legal authority for CBP to conduct 
     customs and immigration functions (e.g., inspections, 
     seizures, searches, etc.) in foreign counties.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement authorizes CBP to operate 
     preclearance locations, provided an aviation security 
     preclearance agreement is in effect, in foreign countries: 1) 
     to prevent terrorists, instruments of terrorism, and other 
     security threats from entering the United States; 2) to 
     prevent inadmissible persons from entering the United States; 
     3) to ensure that merchandise destined for the United States 
     complies with applicable laws; 4) to ensure the prompt 
     processing of persons eligible to travel to the United 
     States; and 5) to accomplish such other objectives as the 
     Secretary determines are necessary to protect the United 
     States.


        SECTION 814. NOTIFICATION AND CERTIFICATION TO CONGRESS

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement requires DHS to provide certain 
     notifications and certifications to appropriate congressional 
     committees.
       Section 814(a) requires the Secretary to provide to the 
     appropriate congressional committees not later than 60 days 
     prior to entering into a preclearance agreement with a 
     foreign country the following: 1) a copy of the proposed 
     agreement to establish such preclearance operations, which 
     shall include the identification of the foreign country with 
     which CBP intends to enter into a preclearance agreement, the 
     location at which such preclearance operations will be 
     conducted, and the terms and conditions for CBP personnel 
     operating at the location; 2) an assessment of the impact 
     such preclearance operations will have on legitimate trade 
     and travel, including potential impacts on passengers 
     traveling to the United States; 3) an assessment of the 
     impacts such preclearance operations will have on CBP 
     domestic port of entry staffing; 4) country-specific 
     information on the anticipated homeland security benefits 
     associated with establishing such preclearance operations; 5) 
     information on potential security vulnerabilities associated 
     with commencing such preclearance operations and mitigation 
     plans to address such potential security vulnerabilities; 6) 
     a CBP staffing model for such preclearance operations and 
     plans for how such positions would be filled; 7) information 
     on the anticipated costs over the next five fiscal years 
     associated with commencing such preclearance operations; and
       Section 814(b) requires the Secretary to provide to the 
     appropriate congressional committees not later than 45 days 
     before entering into a preclearance agreement with a foreign 
     country for preclearance operations at an airport, in 
     addition to the information required in section 814(a), the 
     following: 1) an estimate of the date on which CBP intends to 
     establish preclearance operations under such agreement, 
     including any pending caveats that must be resolved before 
     preclearance operations are approved; 2) the anticipated 
     funding sources for preclearance operations under such 
     agreement, and other funding sources considered; 3) a 
     homeland security threat assessment for the country in which 
     such preclearance operations are to be established; 4) 
     information on potential economic, competitive, and job 
     impacts on United States air carriers associated with 
     establishing such preclearance operations; 5) details on 
     information sharing mechanisms to ensure that CBP has current 
     information to prevent terrorist and criminal travel; and 6) 
     other factors that the Secretary determines to be necessary 
     for Congress to comprehensively assess the appropriateness of 
     commencing such preclearance operations.
       Section 814(c) requires the Secretary to provide to the 
     appropriate congressional committees not later than 60 days 
     before entering into a preclearance agreement with a foreign 
     country for preclearance operations at an airport, in 
     addition to the information required in sections 814(a) and 
     814(b), the following: 1) a certification that preclearance 
     operations under such preclearance agreement, after 
     considering alternative options, would provide homeland 
     security benefits to the United States through the most 
     effective means possible; 2) a certification that 
     preclearance operations within such foreign country will be 
     established under such agreement only if at least one United 
     States passenger carrier operates at such airport and the 
     access of all United States passenger carriers to such 
     preclearance operations is the same as the access of any non-
     United States passenger carrier; 3) a certification that the 
     establishment of preclearance operations in such foreign 
     country will not significantly increase customs processing 
     times at United States airports; 4) a certification that 
     representatives from CBP consulted with stakeholders, 
     including providers of commercial air service in the United 
     States, employees of such providers, security experts, and 
     such other parties as the Secretary determines to be 
     appropriate; and 5) a report detailing the basis for the 
     certifications referred to in 1) through 4).
       Section 814(d) requires the Secretary to provide to the 
     appropriate congressional committees not later than 30 days 
     before entering into a substantially amended preclearance 
     agreement with a foreign country a copy of the proposed 
     agreement, as modified, and the justification for such 
     modification.
       Section 814(e) requires the Commissioner to report to the 
     appropriate congressional committees on a quarterly basis the 
     number of CBP officers, by port, assigned from domestic ports 
     of entry to preclearance operations and the number of these 
     positions that have been filled by another hired, trained, 
     and equipped CBP officer. In addition, if the CBP officer 
     positions at domestic ports of entry that were reassigned to 
     preclearance ports of entry have not been backfilled and the 
     Commissioner determines that processing times at those 
     domestic ports of entry have significantly increased, the 
     Commissioner shall submit to the appropriate congressional 
     committees not later than 60 days after such a determination 
     an implementation plan for reducing CBP processing times at 
     those domestic ports of entry. If the Commissioner fails to 
     submit the required implementation plan, the Secretary would 
     be prohibited from establishing additional preclearance 
     locations until such plan is submitted.
       Section 814(f) allows for the reporting requirement under 
     subsection (c)(5) to be submitted in classified form.


                         SECTION 815. PROTOCOLS

     Present Law
       Current law (49 U.S.C. 44901(d)(4)) requires that for 
     flights traveling to the U.S., checked baggage has been 
     screened in accordance to an aviation security preclearance 
     agreement between the U.S. and the country of departure.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement requires the TSA to rescreen 
     passengers and their baggage arriving from a foreign country 
     if the Administrator of TSA determines that the foreign 
     government has not maintained security standards and 
     protocols comparable to those at U.S. airports at the 
     airports at which preclearance operations have been 
     established.


                 SECTION 816. LOST AND STOLEN PASSPORTS

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement prohibits the establishment or 
     renewal of a preclearance location with a foreign country 
     unless the Secretary certifies to Congress that the foreign 
     country routinely provides stolen passport information to 
     INTERPOL's Stolen and Lost Travel Document database or 
     provides the information to the United States through 
     comparable reporting.


  SECTION 817. RECOVERY OF INITIAL U.S. CUSTOMS AND BORDER PROTECTION 
                     PRECLEARANCE OPERATIONS COSTS

     Present Law
       Current law, including 8 U.S.C. 1356(i) and 7 U.S.C. 
     8311(b), provides the necessary legal authority for CBP to be 
     reimbursed for immigration and agriculture inspection 
     services, and other preclearance costs.
       Current law, however, does not allow CBP to receive 
     payments prior to services being rendered.

[[Page H9169]]

  

     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement allows CBP to enter into a cost 
     sharing agreement with airport authorities in foreign 
     countries for new preclearance locations or to maintain 
     existing operations. The cost sharing agreement may provide 
     for initial preclearance operations costs. These payments may 
     be made in advance of the incurrence of the costs or on a 
     reimbursable basis.
       Initial preclearance operations costs include: 1) hiring, 
     training, and equipping new CBP officers who will be 
     stationed at U.S. ports of entry or other CBP facilities to 
     backfill CBP officers to be stationed at a preclearance 
     facility (payments would be prohibited once such officers are 
     permanently stationed domestically after being trained) and 
     2) visits to the airport authority conducted by CBP personnel 
     necessary to prepare for the establishment or maintenance of 
     preclearance operations at such airport, including the 
     compensation, travel expenses, and allowances payable to such 
     CBP personnel attributable to such visits.


    SECTION 818. COLLECTION AND DISPOSITION OF FUNDS COLLECTED FOR 
      IMMIGRATION INSPECTION SERVICES AND PRECLEARANCE ACTIVITIES

     Present Law
       Current law (8 U.S.C. 1356(i) and 7 U.S.C. 8311(b)) allows 
     the reimbursement of funds for immigration and agricultural 
     inspection services.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement allows CBP to be reimbursed in 
     advance of providing immigration and agricultural inspection 
     services for preclearance operations.


  SECTION 819. APPLICATION TO NEW AND EXISTING PRECLEARANCE OPERATIONS

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement establishes that, with the 
     exception of sections 4(d), 5, 7, and 8 of this subtitle, 
     this subtitle shall apply only to the establishment of 
     preclearance operations in a foreign country in which no 
     preclearance operations have been established as of the date 
     of the enactment of the Trade Facilitation and Trade 
     Enforcement Act of 2015.

                   Title IX--Miscellaneous Provisions


                     SECTION 901. DE MINIMIS VALUE

     Present Law
       Section 321(a)(2)(C) of the Tariff Act of 1930 provides 
     that individuals may import up to $200 in merchandise free of 
     duties into the United States.
     House Amendment
       Section 901 raises the duty-free or de minimis threshold 
     from $200 to $800.
     Senate Amendment
       Section 901 sets out findings of Congress and a sense of 
     Congress regarding thresholds for the value of articles that 
     may be entered informally and free of duty into the United 
     States and that the Unites States Trade Representative should 
     encourage foreign countries to establish commercially 
     meaningful de minimis thresholds.
       Section 901 amends section 321(a)(2)(C) of the Tariff Act 
     of 1930 to raise the de minimis threshold for the Secretary 
     of Treasury to permit the admission of articles duty free 
     from $200 to $800.
     Conference Agreement
       The conference agreement follows the Senate amendment.


    SECTION 902. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS

     Present Law
       Section 401(c) of the Safety and Accountability for Every 
     Port Act (SAFE Port) requires the Secretary of Homeland 
     Security to consult with the business community involved in 
     international trade, including the COAC, on Department 
     policies that have a significant impact on international 
     trade and customs revenue functions. Furthermore, section 
     401(c) requires that the Secretary notify the appropriate 
     congressional committees at least 30 days before finalizing 
     policies or actions that will have a major impact on 
     international trade and customs revenue functions, except if 
     it is determined that it is in the interest of national 
     security to finalize policies or actions prior to 
     consultations with the business community and appropriate 
     congressional committees.
     House Amendment
       Section 902 amends section 401(c) of the SAFE Port Act by 
     requiring the Secretary of Homeland Security to consult with 
     the business community involved in international trade at 
     least 30 days before proposing and at least 30 days before 
     finalizing any Department policies or actions that will have 
     an impact on international trade and customs revenue 
     functions. The amendment also extends the notice for 
     appropriate congressional committees by requiring the 
     Secretary of Homeland Security to provide at least 60 days 
     notification before proposing and at least 60 days before 
     finalizing Department policies or actions that have an 
     impact on international trade.
     Senate Amendment
       Section 902 of the Senate amendment is the same as section 
     902 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


               SECTION 903. PENALTIES FOR CUSTOMS BROKERS

     Present Law
       Section 641(d)(1) of the Tariff Act of 1930 authorizes the 
     Secretary of the Treasury to impose a monetary penalty or 
     revoke or suspend a license or permit of any customs broker 
     if the broker has acted contrary to law or regulations.
     House Amendment
       Section 903 amends section 641(d)(1) of the Tariff Act of 
     1930 by adding to the list of offenses as grounds for a 
     monetary penalty or removal of a broker license committing or 
     conspiring to commit an act of terrorism.
     Senate Amendment
       Section 903 of the Senate amendment is the same as section 
     903 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


SECTION 904. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE 
                          OF THE UNITED STATES

     Present Law
       U.S. Note 3 to subchapter II of Chapter 98 of the 
     Harmonized Tariff Schedule of the United States (HTS) allows 
     a partial or complete duty exemption for articles returned to 
     the United States, after having been exported to be advanced 
     in value or improved in condition by means of repairs or 
     alterations. It also allows goods to be entered duty free if 
     the goods are a product of the United States when returned 
     after having been exported, without having been advanced in 
     value or improved in condition by any process of manufacture 
     or other means while abroad.
       The article description for heading 9801.00.10 of the HTS 
     establishes that products of the United States, when returned 
     after having been exported without having been advanced in 
     value or improved in condition by any process of manufacture 
     or other means abroad, will be duty-free.
     House Amendment
       Section 904(a) amends U.S. Note 3 to subchapter II of 
     Chapter 98 of the HTS by modernizing existing inventory 
     management rules by subtracting the value of U.S. components 
     assembled into the final product that will be entered into 
     the commerce of the United States for articles exported and 
     returned after being improved abroad.
       Section 904(b) amends the article description for heading 
     9801.00.10 of the HTS by reducing record-keeping burdens on 
     goods returned to the United States without improvement 
     abroad so that duties are not assessed twice.
       Section 904(c) amends subchapter I of chapter 98 of the HTS 
     by inserting new heading 9801.00.11, which provides duty-free 
     treatment for certain U.S. government property returned to 
     the United States.
     Senate Amendment
       Section 904 of the Senate amendment is the same as section 
     904 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


SECTION 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO CONTAINED IN 
   INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY EXPORTED FROM THE 
                             UNITED STATES

     Present Law
       No provision.
     House Amendment
       Section 905 amends General Note 3(e) of the Harmonized 
     Tariff Schedule of the United States (HTS) to remove from 
     formal entry requirements residue of bulk cargo contained in 
     instruments of international traffic (IIT) previously 
     exported from the United States.
     Senate Amendment
       Section 905 of the Senate amendment is the same as section 
     905 of the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment.


                   SECTION 906. DRAWBACK AND REFUNDS

     Present Law
       Section 313 of the Tariff Act of 1930 authorizes a refund, 
     known as drawback, of certain duties, internal revenue taxes, 
     and certain fees collected upon the importation of goods. 
     Such refunds are allowed only upon the exportation or 
     destruction of goods under CBP supervision.

[[Page H9170]]

  

     House Amendment
       Section 906(a) amends section 313(a) of the Tariff Act of 
     1930 by establishing that the amount of drawback claimed must 
     be calculated pursuant to section 313(l) of the Tariff Act of 
     1930, as amended by this amendment.
       Section 906(b) amends section 313(b) of the Tariff Act of 
     1930 by allowing substitution drawback for imported 
     merchandise or merchandise classifiable under the same 8-
     digit HTS used in the manufacture or production of articles; 
     establishing that the amount of drawback claimed must be 
     calculated pursuant to section 313(l) of the Tariff Act of 
     1930, as amended by this amendment; and providing that such 
     claim must be filed within 5 years of the importation of the 
     merchandise. This subsection further allows records kept in 
     the normal course of business to be used to demonstrate the 
     transfer of merchandise, requires a drawback claimant to 
     submit a bill of materials to demonstrate the merchandise was 
     incorporated into an exported article, and provides a special 
     rule for sought chemical elements.
       Section 906(c) amends section 313(c) of the Tariff Act of 
     1930 by extending the filing deadline for drawback claims for 
     merchandise not conforming to sample or specifications to 5 
     years from the date of importation. This subsection further 
     establishes that the amount of drawback claimed must be 
     calculated pursuant to section 313(l) of the Tariff Act of 
     1930, as amended by this amendment, and allows records kept 
     in the normal course of business to be used to demonstrate 
     the transfer of merchandise.
       Section 906(d) amends section 313(i) of the Tariff Act of 
     1930 by striking the current text and replacing it with a new 
     provision requiring that a person claiming drawback based on 
     exportation shall provide proof of the exportation of the 
     article, that such proof shall fully establish the date and 
     fact of exportation and identity of the exporter, and may be 
     established either by records kept in the normal course of 
     business or through an electronic export system of the United 
     States Government.
       Section 906(e) amends section 313(j) of the Tariff Act of 
     1930 by allowing unused drawback claims for merchandise 
     classifiable under the same 8-digit HTS subheading number as 
     such imported merchandise. Merchandise may not be substituted 
     for imported merchandise for drawback purposes based on the 
     8-digit HTS if the article description for the 8-digit HTS 
     begins with the term ``other.'' In these instances, 
     merchandise may be substituted for imported merchandise if 
     such imported merchandise is classifiable under the same 10-
     digit HTS. If the 10-digit HTS begins with the term 
     ``other,'' then substitution drawback is not permissible and 
     the drawback claimant must use direct identification under 
     section 313(a) of the Tariff Act of 1930, as amended by this 
     Act. For unused merchandise that is either exported or 
     destroyed, the Department of Commerce Schedule B number may 
     be used to demonstrate that an article and merchandise are 
     classifiable under the same 8-digit HTS without regard to 
     whether or not the Schedule B number corresponds to more than 
     one 8-digit HTS number. Furthermore, this subsection amends 
     the filing deadline for drawback claims to be 5 years from 
     the date of importation and establishes that the amount of 
     drawback claimed must be calculated pursuant to section 
     313(l) of the Tariff Act of 1930, as amended by this 
     amendment.
       Section 906(f) amends section 313(k) of the Tariff Act of 
     1930 by providing that any person making a drawback claim is 
     liable for the full amount of the drawback claimed. Any 
     person claiming drawback shall be jointly and severally 
     liable with the importer for the lesser of the amount of 
     drawback claimed or the amount the importer authorized the 
     other person to claim.
       Section 906(g) amends section 313(l) of the Tariff Act of 
     1930 to require the Secretary of the Treasury to prescribe 
     regulations for claims with respect to unused merchandise 
     drawback to establish that the calculation of drawback that 
     cannot exceed 99 percent of the lesser of the amount of 
     duties, taxes, and fees paid with respect to the imported 
     merchandise or the amount of duties, taxes, and fees that 
     would apply to the exported article if the exported article 
     were imported. Section 906(g) also requires the Secretary of 
     Treasury to prescribe regulations for claims with respect to 
     manufactured articles into which substitute merchandise is 
     incorporated to establish that the calculation of drawback 
     cannot exceed 99 percent of the lesser of the amount of 
     duties, taxes, and fees paid with respect to the imported 
     merchandise or the amount of duties, taxes, and fees that 
     would apply to the substituted merchandise if the substituted 
     merchandise were imported. This section requires the 
     promulgation of the necessary regulations within 2 years. 
     Additionally, one year after the enactment of this Act, and 
     annually thereafter until the regulations required under this 
     subsection are promulgated, the Secretary shall submit to 
     Congress a report on the status of the regulations.
       Section 906(h) amends section 313(p) of the Tariff Act of 
     1930 to require evidence of transfer to be demonstrated with 
     records kept in the normal course of business.
       Section 906(i) amends section 313(q) of the Tariff Act of 
     1930 to require the amount of drawback shall be calculated 
     pursuant to section 313(l) of the Tariff Act of 1930, as 
     amended by this amendment.
       Section 906(j) amends section 313(r) of the Tariff Act of 
     1930 to establish that a drawback entry shall be filed or 
     applied for, as applicable, no later than 5 years after the 
     date on which merchandise on which drawback is claimed was 
     imported. This section also requires that all drawback claims 
     be filed electronically no later than 2 years after the date 
     of the enactment of this Act.
       Section 906(k) amends section 313(s) of the Tariff Act of 
     1930 by allowing a drawback successor to designate unused 
     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 as the basis for drawback on merchandise 
     possessed by the drawback successor after the date of 
     succession.
       Section 906(l) strikes section 313(t) of the Tariff Act of 
     1930.
       Section 906(m) amends section 313(x) of the Tariff Act of 
     1930 by requiring the amount of drawback claimed pursuant to 
     section 313(l) of the Tariff Act of 1930, as amended by this 
     amendment, to be reduced by the value of any materials 
     reclaimed during the destruction of unused merchandise.
       Section 906(n) defines key terms.
       Section 906(o) amends section 508(c)(3) of the Tariff Act 
     of 1930 by requiring records for drawback claims to be 
     maintained for 5 years after the date of liquidation.
       Section 906(p) requires the Government Accountability 
     Office (GAO) to provide the Senate Committee on Finance and 
     the House Committee on Ways and Means with a report that 
     shall include: 1) an assessment of the modernization of 
     drawback and refunds; 2) a description of drawback claims 
     that were permissible before the enactment of the bill that 
     are not permissible after, and an identification of 
     industries most affected; and 3) a description of drawback 
     claims that were not permissible before the enactment of this 
     bill that are after, and an identification of industries most 
     affected.
       Section 906(q) provides that the amendments made by this 
     section shall take effect upon enactment of this bill and 
     apply to drawback claims filed on or after the date that is 2 
     years after such enactment. This section also requires the 
     Secretary of the Treasury to submit a report to Congress, no 
     later than two years after enactment of this bill, on the 
     date on which the Automated Commercial Environment (ACE) will 
     be ready to process claims and the date on which the 
     Automated Export System (AES) will be ready to accept proof 
     of exportation. Lastly, this section provides for a one-year 
     transition for filing drawback claims under section 313 as 
     amended by this section, or under section 313 in effect 
     before the enactment of this bill.
     Senate Amendment
       Section 906 of the Senate amendment is the same as section 
     906 of the House amendment with exception the following: (1) 
     the Senate amendment permits the substitution of a 
     manufactured article that is exported or destroyed with an 
     article that is classifiable under the same 8-digit HTS 
     subheading; (2) the House amendment requires CBP to 
     promulgate separate regulations for calculating drawback for 
     unused merchandise and drawback for articles into which 
     substitute merchandise is incorporated; and (3) the Senate 
     amendment permits a delay in the effective date of this 
     section if the Automated Commercial Environment (ACE) is not 
     ready to process drawback claims within two years after the 
     enactment of this Act.
     Conference Agreement
       The conference agreement follows the House amendment with 
     technical revisions. The Conferees agree that section 906(g) 
     grants CBP the authority, in prescribing regulations for 
     determining the calculation of amounts refunded as drawback, 
     to permit the drawback claim to be based upon the average per 
     unit duties, taxes, and fees as reported on the summary line 
     item. This authority is granted to CBP solely to allow for 
     the simplification of drawback claims. It is not granted to 
     allow claimants to manipulate claims in order to maximize 
     refunds to the detriment of the revenue of the United States. 
     The Conferees grant this authority with the expectation that 
     CBP and the Department of the Treasury will study the 
     potential impact of such line item averaging in drafting 
     regulations and will forego such averaging if it is 
     determined that line item averaging will result in a 
     significant loss to the revenue of the United States.
       The Conferees further clarify that the existing treatment 
     of wine under section 313(j)(2) of the Tariff Act of 1930 is 
     preserved, and that the amendments to the statute do not 
     change this treatment. Such preservation, however, does not 
     preclude the filing of drawback claims for wine under the new 
     substitution drawback procedures, subject to the restrictions 
     in such procedures, such as the amount of drawback that may 
     be refunded when such procedures are used.
       With respect to claims for unused merchandise under section 
     906(g) (adding section 313(l)(2)(B) of the Tariff Act of 
     1930), the Conferees intend that if the exported article was 
     not imported, CBP will determine the amount of duties, taxes, 
     and fees applicable to the exported article by applying the 
     rate of duties, taxes, and fees applicable to the imported 
     merchandise by substituting the value of the imported 
     merchandise for the

[[Page H9171]]

     value of the exported article. For claims with respect to 
     manufactured articles into which imported or substitute 
     merchandise is incorporated under section 906(g) (adding 
     section 313(l)(2)(C) of the Tariff Act of 1930), the 
     Conferees intend that if the manufactured exported article 
     contains substitute merchandise that was not imported, CBP 
     will determine the amount of duties, taxes, and fees 
     applicable to the imported merchandise by substituting the 
     value of the imported merchandise for the value of the 
     substitute merchandise incorporated into the exported 
     article. The goal of the rules established in section 906(g) 
     (adding sections 313(l)(2)(B) and 313(l)(2)(C) of the Tariff 
     Act of 1930) is to prevent the refund of full duties, taxes, 
     and fees on the importation of higher value goods upon the 
     exportation of lower value goods. The Conferees do not intend 
     a scenario in which the drawback claimant would not receive a 
     refund upon the application of either rule, but rather intend 
     to limit the refund to the lesser of the import and the 
     export.
       Lastly, the Conferees agree that section 906(o), amending 
     section 508(c)(3) of the Tariff Act of 1930, shall require 
     records for drawback claims to be maintained for three years 
     after the date of liquidation.


   SECTION 907. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION 
                               AGREEMENTS

     Present Law
       Section 560 of the Department of Homeland Security 
     Appropriations Act of 2013 authorizes CBP to enter into 
     certain reimbursable fee agreements for the provision of CBP 
     services.
       Section 559 of the Department of Homeland Security 
     Appropriations Act of 2014 establishes a pilot program 
     authorizing CBP to enter into partnerships with private 
     sector and government entities at ports of entry.
     House Amendment
       Section 911 requires the Commissioner to submit to Congress 
     a detailed annual report on each reimbursable agreement and 
     public-private partnership agreement into which CBP enters. 
     Each report must include: 1) a description of the development 
     of the program; 2) a description of the type of entity with 
     which CBP entered into the agreement and the amount that 
     entity reimbursed CBP 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 CBP 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 
     CBP during that year regarding the agreement; 8) an 
     assessment of the compliance with the terms of the agreement 
     of the entity that entered into an agreement with CBP; 9) 
     recommendations with respect to how activities conducted 
     pursuant to the agreement could function more effectively or 
     better produce economic benefits; and 10) a summary of the 
     benefits to and challenges faced by CBP and the entity that 
     entered into an agreement with CBP.
     Senate Amendment
       Section 909 of the Senate amendment is the same as section 
     911 of the House amendment except with respect to the 
     recipients of the report required in this section.
     Conference Agreement
       The conference agreement follows the Senate amendment and 
     House amendment with modifications. For agreements with an 
     airport operator, the Conferees agree to require CBP to 
     include in the annual report a detailed account of revenues 
     collected by CBP to cover its operating costs at that airport 
     from fees collected under the agreement and fees collected 
     from other sources, including fees paid by passengers and 
     aircraft operators. Further, subsection (a) is modified to 
     require CBP to identify the authority under which a program 
     operates and to require the reporting of the total operating 
     expenses of a program, and subsection (b) is modified to 
     cover the program under which CBP collects a fee for the use 
     of customs services at designated facilities under 19 U.S.C. 
     58b. The conference agreement also incorporates reporting 
     related to the preclearance program established by subtitle B 
     of title VIII.


                      SECTION 908. CHARTER FLIGHTS

     Present Law
       Section 13031(e)(1) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) requires CBP 
     to provide customs services to passengers upon arrival in the 
     United States in connection with scheduled airline flights.
     House Amendment
       No provision.
     Senate Amendment
       Section 910 of the Senate amendment amends current law to 
     permit CBP employees to provide customs services for 
     passengers and baggage on charter flights that arrive at U.S. 
     ports of entry after normal operating hours, if the air 
     carrier specifically requests the services at least four 
     hours before the flight arrives and pays any overtime fees.
     Conference Agreement
       The conference agreement follows the Senate amendment.


   SECTION 909. UNITED STATES-ISRAEL TRADE AND COMMERCIAL ENHANCEMENT

     Present Law
       No provision.
     House Amendment
       This section sets out U.S. policy identifying the 
     importance of the bilateral U.S.-Israel trade relationship 
     and establishes principal trade negotiating objectives, 
     statements of policy, findings, and other provisions related 
     to trade and commercial activities affecting the United 
     States and Israel. This section: 1) states that among the 
     U.S. principal trade negotiating objectives for proposed 
     trade agreements with foreign countries is the discouragement 
     of politically motivated actions to boycott, divest from, or 
     sanction Israel (i.e., BDS actions); 2) sets forth various 
     statements of policy regarding trade with and commercial 
     activities affecting Israel, including Congress's opposition 
     to politically motivated BDS actions against Israel; 3) 
     presents various positive findings regarding the trade and 
     commercial relationship between the United States and Israel; 
     4) requires the President to report annually to Congress on 
     politically motivated BDS actions against Israel; and 5) 
     requires that no U.S. court recognize or enforce any judgment 
     by a foreign court against a U.S. person doing business in 
     Israel, or any territory controlled by Israel, if the U.S. 
     court determines that the foreign judgment is based, in whole 
     or in part, on a determination by a foreign court that the 
     U.S. person's mere conduct of business operations therein or 
     with Israeli entities constitutes a violation of law.
     Senate Amendment
       The Senate amendment contains the statements of policy 
     contained in the House amendment.
     Conference Agreement
       The conference agreement follows the House amendment with 
     the exception of section 908(b)(8) of the House amendment 
     regarding certain activities by U.S. states, which is 
     excluded from the conference agreement.


SECTION 910. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO PROHIBITION 
   ON IMPORTATION OF GOODS MADE WITH CONVICT LABOR, FORCED LABOR, OR 
                        INDENTURED LABOR; REPORT

     Present Law
       Section 307 of the Tariff Act of 1930 prohibits the 
     importation of foreign-made goods that were manufactured or 
     produced by convict, forced, or indentured labor, except in 
     such quantities as necessary to meet the consumptive demands 
     of the United States.
     House Amendment
       Section 909 eliminates the ``consumptive demand'' exception 
     to the prohibition on importing goods made by convict, 
     forced, or indentured labor, and requires the Commissioner to 
     provide an annual report to Congress that includes: 1) the 
     number of instances in which merchandise was denied entry 
     pursuant to this section during the preceding 1-year period; 
     2) a description of the merchandise denied entry pursuant to 
     this section; and 3) such other information the Commissioner 
     considers appropriate with respect to monitoring and 
     enforcing compliance with this section.
     Senate Amendment
       Section 912 of the Senate amendment is the same as section 
     909 of the House amendment.
     Conference Agreement
       The conference agreement follows the House and Senate 
     amendment.


                 SECTION 911. VOLUNTARY RELIQUIDATIONS

     Present Law
       19 U.S.C. 1501 establishes that the Customs Service may 
     reliquidate an entry, notwithstanding the filing of a 
     protest, within 90 days from the date on which notice of the 
     original liquidation is given or transmitted to the importer, 
     the importer's consignee, or the importer's agent.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The Conferees agree to amend 19 U.S.C. 1501 to establish 
     that CBP may reliquidate an entry, notwithstanding the filing 
     of a protest, within 90 days from the date of the original 
     liquidation.


    section 912. tariff classification of recreational performance 
                               outerwear

     Present Law
       No provision.
     House Amendment
       Section 914 of the House amendment requires the U.S. 
     International Trade Commission to submit to the Senate 
     Committee on Finance and House Ways and Means Committee a 
     report regarding the competitiveness of the U.S. recreational 
     performance outerwear industry no later than June 1, 2016.
     Senate Amendment
       No provision.
     Conference Agreement
       This section includes technical corrections with respect to 
     HTS subheadings for recreational performance outerwear 
     created in Pub. L. 114-27.


   section 913. modifications of duty treatment of protective active 
                                footwear

     Present Law
       Additional U.S. Note to chapter 64 of the HTS contains HTS 
     subheadings for protective active footwear, which includes 
     products

[[Page H9172]]

     such as certain water resistant hiking shoes, trekking shoes, 
     and train running shoes, and ensures they carry a 20 percent 
     duty rate. Current law requires that any staged reductions in 
     duties as may be required by U.S. free trade agreements for 
     athletic footwear will also apply to protective active 
     footwear.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       Section 913 contains technical corrections to Additional 
     U.S. Note to chapter 64.


 section 914. amendments to bipartisan congressional trade priorities 
                     and accountability act of 2015

     Present Law
       The Bipartisan Congressional Trade Priorities and 
     Accountability Act of 2015 sets forth negotiating objectives, 
     procedures for consulting with Congress, and provisions for 
     the consideration of trade agreements.
     House Amendment
       This section amends the Bipartisan Congressional Trade 
     Priorities and Accountability Act of 2015. Subsection (a) 
     ensures that trade agreements do not require changes to U.S. 
     immigration law or obligate the United States to grant access 
     or expand access to visas issued under 8 U.S.C. 1101(a)(15). 
     Subsection (b) ensures that trade agreements do not establish 
     obligations for the United States regarding greenhouse gas 
     emissions measures. Subsection (c) adds a negotiating 
     objective related to fisheries. Subsection (d) allows the 
     Chair and Ranking Member of the House and Senate Advisory 
     Groups to each send up to three personnel to serve as 
     delegates to negotiating rounds. Subsection (e) perfects the 
     negotiating objective on human trafficking to require 
     countries to take concrete steps to address trafficking. 
     Subsection (f) makes technical amendments. Subsection (g) 
     makes these amendments effective as if included in the 
     enactment of the Bipartisan Congressional Trade Priorities 
     and Accountability Act of 2015.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House Amendment, with 
     modifications to the climate change, and fisheries 
     negotiating objectives; the provisions on delegates attending 
     negotiating rounds; and human trafficking.
       With regard to section 914(b), this negotiating objective 
     reaffirms that, consistent with current practice, trade 
     agreements are not to establish obligations for the United 
     States regarding greenhouse gas emissions measures, other 
     than those fulfilling the other negotiating objectives in 
     section 102 of the Bipartisan Congressional Trade Priorities 
     and Accountability Act of 2015. This objective is not 
     intended to prevent trade agreements from including generally 
     applicable or horizontal commitments, such as those regarding 
     transparency or nondiscrimination, that may also apply to 
     such requirements, nor to prevent trade agreements from 
     including obligations consistent with other negotiating 
     objectives addressed in the Bipartisan Trade Priorities and 
     Accountability Act of 2015, including those relating to the 
     environment, the reduction of tariffs on environmental goods, 
     or fisheries as provided in this Conference Report. Were an 
     agreement to include a provision establishing obligations 
     regarding U.S. greenhouse gas emissions measures as specified 
     in the Conference Report, a bill approving the agreement 
     should be disqualified from eligibility for trade authorities 
     procedures and should be considered under regular order, just 
     like an agreement that fails to make progress in achieving 
     the negotiating objectives set forth in section 102 of the 
     Bipartisan Congressional Trade Priorities and Accountability 
     Act of 2015.
       With regard to Section 914(d), the Conference additionally 
     clarifies that Members of Congress and personnel designated 
     by the Chair and Ranking Member of the House and Senate 
     Advisory Groups shall be delegates and official advisors to 
     any trade agreement negotiating round.
       With regard to section 914(e), this provision follows the 
     House Amendment with additional changes to incorporate the 
     sense of Congress that the integrity of the annual 
     trafficking in persons report and report process should be 
     respected and should not be affected by unrelated 
     considerations, to require that the President provide 
     supporting documentation with any letter submitted pursuant 
     to the exception, and to require the President to submit a 
     detailed description of the credible evidence supporting a 
     change in designation from tier 3 to tier 2 watch list.


                section 915. trade preferences for nepal

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement creates a additional trade 
     preferences for Nepal. The program requires Nepal to satisfy 
     the eligibility criteria of the Africa Growth and Opportunity 
     Act to be eligible for duty-free treatment of certain 
     articles imported from Nepal. The provision is in response to 
     the recent natural disaster in Nepal.


section 916. agreement by asia-pacific economic cooperation members to 
          reduce rates of duty on certain environmental goods

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       Section 916 amends section 107 of the Trade Priorities and 
     Accountability Act of 2015 to allow the President to use 
     section 103(a) authorities to implement an agreement by 
     members of the Asia-Pacific Economic Cooperation (APEC) forum 
     to reduce any rate of duty on certain environmental goods 
     included in annex C of the APEC Leaders Declaration issued on 
     September 9, 2012, notwithstanding the notification 
     requirement in section 103(a)(2). Such authority may be 
     exercised only after the President notifies Congress, 
     consistent with this provision.


  section 917. amendment to tariff act of 1930 to require country of 
                   origin marking of certain castings

     Present Law
       Section 304(e) of the Tariff Act of 1930 (19 U.S.C. 
     1304(e)) requires that certain products (e.g., manhole rings) 
     have visible country of origin markings.
     House Amendment
       No provision.
     Senate Amendment
       Section 911 of the Senate amendment amends section 304(e) 
     of the Tariff Act of 1930 (19 U.S.C. 1304(e)) to include 
     inlet frames, tree and trench grates, lampposts, lamppost 
     bases, cast utility poles, bollards, hydrants, and utility 
     boxes in the list of products which must be imprinted with a 
     country of origin marking. This section also amends current 
     law by requiring the aforementioned marking to be in a 
     location such that it will remain visible after installation.
     Conference Agreement
       The conference agreement follows the Senate amendment.


    section 918. inclusion of certain information in submission of 
nomination for appointment of deputy united states trade representative

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       Section 907 of the Senate amendment requires that, 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, 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.
     Conference Agreement
       The conference agreement follows the Senate amendment with 
     additional reporting requirements.


 section 919. sense of congress on the need for a miscellaneous tariff 
                              bill process

     Present Law
       No provision.
     House Amendment
       No provision.
     Senate Amendment
       Title VIII of the Senate amendment established a process 
     for the consideration of temporary duty suspensions and 
     reductions.
     Conference Agreement
       The conference agreement states that it is the sense of 
     Congress that the Senate Finance Committee and the House Ways 
     and Means Committee are urged to advance, as soon as 
     possible, after consultation with the public and Members of 
     the Senate and the House of Representatives, a process for 
     the temporary suspension and reduction of duties that is 
     consistent with the rules of the Senate and the House.


                     section 920. customs user fees

     Present Law
       Under section 13031(a) of the Consolidated Omnibus Budget 
     Reconciliation Act of 1985, the Secretary of the Treasury is 
     authorized to charge and collect fees for the provision of 
     certain customs services. Pursuant to section 13031(j)(3), 
     the Secretary of the Treasury may not charge fees for the 
     provision of certain customs services after September 30, 
     2024.
     House Amendment
       Section 910 amends section 13031(j)(3)(A) of the 
     Consolidated Omnibus Budget Reconciliation Act of 1985 to 
     extend the period that the Secretary of the Treasury may 
     charge for certain customs services for imported goods from 
     July 8, 2025 to July 28, 2025, and extends the ad valorem 
     rate for the Merchandise Processing Fee collected by CBP that 
     offsets the costs incurred in processing and inspecting 
     imports from July 1, 2025 to July 14, 2025.
     Senate Amendment
       Section 1002 of the Senate amendment is the same as section 
     910 of the House amendment.

[[Page H9173]]

  

     Conference Agreement
       The conference agreement follows the House amendment and 
     the Senate amendment and makes technical corrections to the 
     drafting.


   section 921. increase in penalty for failure to file return of tax

     Present Law
       The Federal tax system is one of ``self-assessment,'' i.e., 
     taxpayers are required to declare their income, expenses, and 
     ultimate tax due, while the IRS has the ability to propose 
     subsequent changes. This voluntary system requires that 
     taxpayers comply with deadlines and adhere to the filing 
     requirements. While taxpayers may obtain extensions of time 
     in which to file their returns, the Federal tax system 
     consists of specific due dates of returns. In order to foster 
     compliance in meeting these deadlines, Congress has enacted a 
     penalty for the failure to timely file tax returns.\1\
---------------------------------------------------------------------------
     \1\ See United States v. Boyle, 469 U.S. 241, 245 (1985).
---------------------------------------------------------------------------
       A taxpayer who fails to file a tax return on or before its 
     due date is subject to a penalty equal to 5 percent of the 
     net amount of tax due for each month that the return is not 
     filed, up to a maximum of 25 percent of the net amount.\2\ If 
     the failure to file a return is fraudulent, the taxpayer is 
     subject to a penalty equal to 15 percent of the net amount of 
     tax due for each month the return is not filed, up to a 
     maximum of 75 percent of the net amount.\3\ The net amount of 
     tax due is the amount of tax required to be shown on the 
     return reduced by the amount of any part of the tax which is 
     paid on or before the date prescribed for payment of the tax 
     and by the amount of any credits against tax which may be 
     claimed on the return.\4\ The penalty will not apply if it is 
     shown that the failure to file was due to reasonable cause 
     and not willful neglect.\5\
---------------------------------------------------------------------------
     \2\ Sec. 6651(a)(1).
     \3\ Sec. 6651(f).
     \4\ Sec. 6651(b)(1).
     \5\ Sec. 6651(a)(1).
---------------------------------------------------------------------------
       If a return is filed more than 60 days after its due date, 
     and unless it is shown that such failure is due to reasonable 
     cause, the failure to file penalty may not be less than the 
     lesser of $135 (indexed annually for inflation) or 100 
     percent of the amount required to be shown as tax on the 
     return. If a penalty for failure to file and a penalty for 
     failure to pay tax shown on a return both apply for the same 
     month, the amount of the penalty for failure to file for such 
     month is reduced by the amount of the penalty for failure to 
     pay tax shown on a return.\6\ If a return is filed more than 
     60 days after its due date, the penalty for failure to pay 
     tax shown on a return may not reduce the penalty for failure 
     to file below the lesser of $135 or 100 percent of the amount 
     required to be shown on the return.\7\
---------------------------------------------------------------------------
     \6\ Sec. 6651(c)(1).
     \7\ Ibid.
---------------------------------------------------------------------------
       The failure to file penalty applies to all returns required 
     to be filed under subchapter A of Chapter 61 (relating to 
     income tax returns of an individual, fiduciary of an estate 
     or trust, or corporation; self-employment tax returns, and 
     estate and gift tax returns), subchapter A of chapter 51 
     (relating to distilled spirits, wines, and beer), subchapter 
     A of chapter 52 (relating to tobacco, cigars, cigarettes, and 
     cigarette papers and tubes), and subchapter A of chapter 53 
     (relating to machine guns and certain other firearms).\8\ The 
     failure to file penalty does not apply to any failure to pay 
     estimated tax required to be paid by sections 6654 or 
     6655.\9\
---------------------------------------------------------------------------
     \8\ Sec. 6651(a)(1).
     \9\ Sec. 6651(e).
---------------------------------------------------------------------------
     House Amendment
       Under the provision, if a return is filed more than 60 days 
     after its due date, then the failure to file penalty may not 
     be less than the lesser of $205 or 100 percent of the amount 
     required to be shown as tax on the return.
       Effective date.--The provision applies to returns required 
     to be filed in calendar years after 2015.
     Senate Amendment
       No provision.
     Conference Agreement
       The conference agreement follows the House amendment 
     provision.


   section 922. permanent moratorium on internet access taxes and on 
        multiple and discriminatory taxes on electronic commerce

     Present Law
       The temporary moratorium on states and localities taxing 
     Internet access or placing multiple and discriminatory taxes 
     on Internet commerce expires on December 11, 2015.
     House Amendment
       No provision.
     Senate Amendment
       No provision.
     Conference Agreement
       Section 922 makes permanent an existing moratorium on 
     states and localities taxing Internet access or placing 
     multiple and discriminatory taxes on Internet commerce. The 
     existing temporary ban was first put in place in 1998. Since 
     then, Congress has extended it multiple times with enormous 
     bipartisan support. Section 922 converts the moratorium into 
     a permanent ban--on which consumers, innovators and investors 
     can permanently rely--by simply striking the 2015 end date. 
     The original moratorium included a grandfather clause to give 
     States that were then taxing Internet access some time to 
     transition to other sources of revenue. All but six of the 
     originally grandfathered states have discontinued taxing 
     Internet access. Section 922 gives those states additional 
     time by delaying the phase-out of the grandfathers until June 
     30, 2020 which is the end of the fiscal year for states and 
     the start of a new billing cycle for Internet access 
     providers.

                             MINORITY VIEWS

       During the Senate's consideration of legislation earlier 
     this year, Finance Committee Ranking Member Ron Wyden, 
     Senator Bill Nelson (D-FL), and Senator Ben Cardin (D-MD), 
     members of the Finance Committee, expressed their support for 
     the establishment of a process whereby Congress would 
     consider the merits of an extension of certain apparel Tariff 
     Preference Levels (TPLs). It is the view of Senator Wyden 
     that these programs can offer benefits to U.S. consumers, 
     workers, and exporters, and Congress should further consider 
     the merits of an extension of the Nicaragua, Bahrain, and 
     Morocco TPLs.
     Kevin Brady,
     David Reichert,
     Pat Tiberi,
                                Managers on the Part of the House.

     Orrin Hatch,
     John Cornyn,
     John Thune,
     Johnny Isakson,
     Ron Wyden,
     Debbie Stabenow,
     Managers on the Part of the Senate.

                          ____________________