[House Report 114-376]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-376
======================================================================
TRADE FACILITATION AND TRADE ENFORCEMENT ACT OF 2015
_______
December 9, 2015.--Ordered to be printed
_______
Mr. Brady of Texas, from the committee of conference, submitted the
following
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.
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 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;
(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;
(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. 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 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:
``(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 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 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 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 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 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 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;
``(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.
``(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).
(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.''.
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.--
(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 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 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.
``(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 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. 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'';
(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--
(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 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, 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 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
``(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
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 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, 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, sleeveless 8.5% Free (AU, BH, CA, CL, 58.5%
jackets............ CO, IL, JO, KR, MA, MX,
P, PA, PE, SG) 2.5%
(OM)
6201.91.05 Other............... 49.7 cents/kg + 19.7% Free (AU,BH, CA, CL, CO, 52.9 cents/kg + 58.5%
IL, JO, KR, MA, MX, P,
PA, PE, SG) 14.9 cents/
kg +5.9% (OM)
.................. Other: ..................... ........................ ..........................
6201.91.25 Padded, sleeveless 8.5% Free (AU,BH, CA, CL, CO, 58.5%
jackets............ IL, JO, KR, MA, MX, P,
PA, PE, SG) 2.5% (OM)
6201.91.40 Other............... 49.7 cents/kg + 19.7% Free (AU,BH, CA, CL, CO, 52.9 cents/kg + 58.5% ''.
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, 60%
percent or CL, CO, IL, JO,
more by KR, MA, MX, OM,
weight of P, PA, PE, SG)
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: ................ .................. ...............
6201.92.17 Water 6.2% Free (AU, BH, CA, 37.5%
resistant... CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
6201.92.19 Other........ 9.4% Free (AU,BH, CA, 90%
CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
............ Other: ................ .................. ...............
6201.92.30 Containing 15 4.4% Free (AU, BH, CA, 60%
percent or CL, CO, IL, JO,
more by KR, MA, MX, OM,
weight of P, PA, PE, SG)
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: ................ .................. ...............
6201.92.35 Water 6.2% Free (AU, BH, CA, 37.5%
resistant... CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
6201.92.45 Other........ 9.4% Free (AU,BH, CA, 90% ''.
CL, 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 by CO, IL, JO, KR, MA, MX,
weight of down and OM, P, PA, PE, 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, sleeveless 14.9% Free (AU, BH, CA, CL, 76%
jackets........... CO, IL, JO, KR, MA, MX,
OM, P, PA, PE, SG)
.................. Other: ..................... ........................ ..........................
6201.93.45 Containing 36 49.5 cents/kg + 19.6% Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
percent or more CO, IL, JO, KR, MA, MX,
by weight of wool OM, P, PA, PE, SG)
or fine animal
hair.............
.................. Other: ..................... ........................ ..........................
6201.93.47 Water resistant.. 7.1% Free (AU, BH, CA, CL, 65%
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 by CO, IL, JO, KR, MA, MX,
weight of down and OM, P, PA, PE, 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, sleeveless 14.9% Free (AU, BH, CA, CL, 76%
jackets........... CO, IL, JO, KR, MA, MX,
OM, P, PA, PE, SG)
.................. Other: ..................... ........................ ..........................
6201.93.55 Containing 36 49.5 cents/kg + 19.6% Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
percent or more CO, IL, JO, KR, MA, MX,
by weight of wool OM, P, PA, PE, SG)
or fine animal
hair.............
.................. Other: ..................... ........................ ..........................
6201.93.60 Water resistant.. 7.1% Free (AU, BH, CA, CL, 65%
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, 35%
CL, 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, 35% ''.
CL, 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, sleeveless 14% Free (AU, BH, CA, CL, 58.5%
jackets............ CO, IL, JO, KR, MA, MX,
P, PA, PE, SG) 4.2%
(OM)
6202.91.15 Other............... 36 cents/kg + 16.3% Free (AU, BH, CA, CL, 46.3 cents/kg +58.5%
CO, IL, JO, KR, MA, MX,
P, PA, PE, SG)
10.8 cents/kg + 4.8%
(OM)...................
.................. Other: ..................... ..........................
6202.91.60 Padded, sleeveless 14% Free (AU, BH, CA, CL, 58.5%
jackets............ CO, IL, JO, KR, MA, MX,
P, PA, PE, SG)
4.2% (OM) ...........
6202.91.90 Other............... 36 cents/kg + 16.3% Free (AU, BH, CA, CL, 46.3 cents/kg + 58.5% ''.
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 on the day before
the effective date of this section):
`` ............ Recreational ................ ...............
performance
outerwear:
6202.92.03 Containing 15 4.4% Free (AU, BH, CA, 60%
percent or CL, CO, IL, JO,
more by KR, MA, MX, OM,
weight of P, PA, PE, SG)
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: ................ ...............
6202.92.05 Water 6.2% Free (AU, BH, CA, 37.5%
resistant... CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
6202.92.12 Other........ 8.9% Free (AU, BH, CA, 90%
CL, CO, IL, JO,
KR, MA, MX,OM, P,
PA,PE, SG)
............ Other: ................ ...............
6202.92.25 Containing 15 4.4% Free (AU, BH, CA, 60%
percent or CL, CO, IL, JO,
more by KR, MA, MX, OM,
weight of P, PA, PE, SG)
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: ................ ...............
6202.92.30 Water 6.2% Free (AU, BH, CA, 37.5%
resistant... CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
6202.92.90 Other........ 8.9% Free (AU, BH, CA, 90% ''.
CL, 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 by CO, IL, JO, KR, MA, MX,
weight of down and OM, P, PA, PE, 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, sleeveless 14.9% Free (AU, BH, CA, CL, 76%
jackets........... CO, IL, JO, KR, MA, MX,
OM, P, PA, PE, SG)
.................. Other: ..................... ........................ ..........................
6202.93.05 Containing 36 43.4 cents/kg + 19.7% Free (AU, BH, CA, CL, 46.3 cents/kg + 58.5%
percent or more CO, IL, JO, KR, MA, MX,
by weight of wool OM, P, PA, PE, SG)
or fine animal
hair.............
.................. Other: ..................... ........................ ..........................
6202.93.07 Water resistant.. 7.1% Free (AU, BH, CA, CL, 65%
CO, IL, JO, KR, MA, MX,
OM, P, PA, PE, SG)
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 by CO, IL, JO, KR, MA, MX,
weight of down and OM, P, PA, PE, 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, sleeveless 14.9% Free (AU, BH, CA, CL, 76%
jackets........... CO, IL, JO, KR, MA, MX,
OM, P, PA, PE, SG)
.................. Other: ..................... ........................ ..........................
6202.93.45 Containing 36 43.4 cents/kg + 19.7% Free (AU, BH, CA, CL, 46.3 cents/kg + 58.5%
percent or more CO, IL, JO, KR, MA, MX,
by weight of wool OM, P, PA, PE, SG)
or fine animal
hair.............
.................. Other: ..................... ........................ ..........................
6202.93.48 Water resistant.. 7.1% Free (AU, BH, CA, CL, 65%
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, 35%
CL, 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, 35% ''.
CL, 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, P,
containing PA, PE,SG)
elastomeric 2.2% (OM)
fiber, water
resistant,
without belt
loops, weighing
more than 9 kg
per dozen........
.................. Other: ..................... ........................ ..........................
6203.41.03 Trousers of 41.9 cents/kg + 16.3% Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
worsted wool CO,IL, JO,KR, MA,MX, P,
fabric, made of PA, PE,SG)
wool yarn having 12.5 cents/kg + 4.8%
an average fiber (OM)
diameter of 18.5
microns or less.
6203.41.06 Other............ 41.9 cents/kg + 16.3% Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
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, P,
containing 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 +16.3% Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
worsted wool CO,IL, JO,KR, MA,MX, P,
fabric, made of PA, PE,SG)
wool yarn having 12.5 cents/kg + 4.8%
an average fiber (OM)
diameter of 18.5
microns or less.
6203.41.60 Other............ 41.9 cents/kg +16.3% Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
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)
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, 65%
resistant.. CL, CO, IL, JO,
KR, MA,MX,OM, P,
PA,PE,SG)
6203.43.05 Other....... 14.9% Free (AU,BH, CA, 76%
CL, CO, IL, JO,
KR, MA, MX,OM, P,
PA, PE,SG)
............ Other: ................ .................. ...............
6203.43.09 Containing 49.6 cents/kg + Free (AU,BH, CA, 52.9 cents/kg +
36 percent 19.7% CL, CO, IL, JO, 58.5%
or more by KR, MA, MX,OM, P,
weight of PA,PE,SG)
wool or
fine animal
hair.......
............ Other: ................ .................. ...............
6203.43.11 Water 7.1% Free (AU,BH, CA, 65%
resistant CL, CO, IL, JO,
trousers MA, MX,OM, P,
or PA,PE,SG)
breeches.. 1.4% (KR)
6203.43.13 Other...... 27.9% Free (AU,BH, CA, 90%
CL, 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:...
6203.43.55 Water 7.1% Free (AU,BH, CA, 65%
resistant.. CL, CO, IL, JO,
KR, MA, MX,OM, P,
PA, PE,SG)
6203.43.60 Other....... 14.9% Free (AU,BH, CA, 76%
CL, CO,IL,JO, KR,
MA, MX,OM, P, PA,
PE,SG)
............ Other: ................ .................. ...............
6203.43.65 Certified 12.2% Free (AU,BH, CA, 76%
hand-loomed CL, CO, IL, JO,
and KR, MA, MX,OM, P,
folklore PA, PE,SG)
products...
............ Other: ................ .................. ...............
6203.43.70 Containing 49.6 cents/kg + Free (AU,BH, CA, 52.9 cents/kg +
36 percent 19.7% CL, CO, IL, JO, 58.5%
or more by KR, MA, MX,OM, P,
weight of PA, PE,SG)
wool or
fine
animal
hair......
............ Other: ................ .................. ...............
6203.43.75 Water 7.1% Free (AU,BH, CA, 65%
resistant CL, CO, IL, JO,
trousers MA, MX,OM, P,
or PA,PE,SG)
breeches. 1.4% (KR)
6203.43.90 Other..... 27.9% Free (AU,BH, CA, 90% ''.
CL, 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, 76%
overalls.... CL, CO, IL,JO,
KR, MA, MX,OM, P,
PA,PE, SG)
6203.49.05 Trousers, 27.9% Free (AU,BH, CA, 90%
breeches and CL, CO, IL,JO,
shorts...... KR, MA, 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, 35%
CL, 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, 76%
overalls.... CL, CO, IL,JO,
KR, MA, MX,OM, P,
PA,PE, SG)
............ Trousers, ................ .................. ...............
breeches and
shorts:
6203.49.35 Certified 12.2% Free (AU,BH, CA, 76%
hand-loomed CL, CO, IL,JO,
and KR, MA, MX,OM,
folklore P,PA,PE, SG)
products...
6203.49.50 Other....... 27.9% Free (AU,BH, CA, 90%
CL, 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, 35% ''.
CL, 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, 58.5%
breeches, CL, CO, IL,JO,
containing KR, MA, MX, P,
elastomeric PA, PE, SG)
fiber, water 2.2% (OM)
resistant,
without belt
loops,
weighing more
than 6 kg per
dozen........
6204.61.15 Other......... 13.6% Free (AU,BH, CA, 58.5%
CL, CO, IL,JO,
KR, MA, MX, P,
PA, PE, SG)
4% (OM)
............ Other: ................ .................. ...............
6204.61.60 Trousers and 7.6% Free (AU,BH, CA, 58.5%
breeches, CL, CO, IL,JO,
containing KR, MA, MX, P,
elastomeric PA, PE, SG)
fiber, water 2.2% (OM)
resistant,
without belt
loops,
weighing more
than 6 kg per
dozen........
6204.61.80 Other......... 13.6% Free (AU,BH, CA, 58.5% ''.
CL, 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)
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 7.1% Free (AU,BH, CA, 37.5%
hand-loomed CL,CO, E, IL,
and JO,KR, MA,MX, OM,
folklore P, PA, PE, SG)
products...
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 7.1% Free (AU, BH, CA, 65%
resistant.. CL, CO,IL, JO,KR,
MA,MX, OM,P,
PA,PE, SG)
6204.63.03 Other....... 14.9% Free (AU, BH, CA, 76%
CL, CO,IL, JO,KR,
MA,MX, OM,P,
PA,PE, SG)
............ Other: ................ .................. ...............
6204.63.08 Containing 13.6% Free (AU, BH, CA, 58.5%
36 percent CL, CO,IL, JO,KR,
or more by MA, MX, OM, P,
weight of PA,PE, SG)
wool or
fine animal
hair.......
............ Other: ................ .................. ...............
6204.63.09 Water 7.1% Free (AU, BH, CA, 65%
resistant CL, CO,IL, JO,KR,
trousers MA,MX,OM,P,
or PA,PE, SG)
breeches..
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: ................ .................. ...............
............ Bib and brace ................ .................. ...............
overalls:
6204.63.55 Water 7.1% Free (AU, BH, CA, 65%
resistant.. CL, CO,IL, JO,KR,
MA,MX, OM,P,
PA,PE, SG)
6204.63.60 Other....... 14.9% Free (AU, BH, CA, 76%
CL, CO,IL, JO,KR,
MA,MX, OM,P,
PA,PE, SG)
6204.63.65 Certified 11.3% Free (AU, BH, CA, 76%
hand-loomed CL, CO, E, IL,
and folklore JO,KR,
products.... MA,MX,OM,P,
PA,PE, SG)
............ Other: ................ .................. ...............
6204.63.70 Containing 13.6% Free (AU, BH, CA, 58.5%
36 percent CL, CO,IL, JO,KR,
or more by MA,MX, OM,P,
weight of PA,PE, SG)
wool or
fine animal
hair.......
............ Other: ................ .................. ...............
6204.63.75 Water 7.1% Free (AU, BH, CA, 65%
resistant CL, CO,IL, JO,KR,
trousers MA,MX, OM,P,
or PA,PE, SG)
breeches..
6204.63.90 Other...... 28.6% Free (AU, BH, CA, 90% ''.
CL, 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, 76%
overalls.... CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
............ Trousers, ................ .................. ...............
breeches and
shorts:.....
6204.69.02 Containing 13.6% Free (AU,BH, CA, 58.5%
36 percent CL,CO, IL, JO,KR,
or more by MA, MX, OM, P,
weight of PA, PE, SG)
wool or
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, 65%
percent or CL, CO, E, IL,
more by JO, KR, MA, MX,
weight of OM, P, PA, PE,
silk or silk 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)
6204.69.06 Other......... 2.8% Free (AU, BH, CA, 35%
CL, 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 13.6% Free (AU,BH, CA, 58.5%
36 percent CL,CO, IL, JO,KR,
or more by MA, MX, OM, P,
weight of PA, PE, SG)
wool or
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 CL,CO, E, IL, JO,
more by KR, MA, MX, OM,
weight of P,PA, PE, SG)
silk or silk
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 3.8% Free (AU, BH, CA, 65%
outer CL, CO,IL, JO,KR,
surface MA,MX, OM,P,
impregnated, 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, 65%
CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
............ Other: ................ .................. ...............
6210.40.28 Having an 3.3% Free (AU, BH, CA, 37.5%
outer CL, CO, E, IL,
surface JO, KR, MA, MX,
impregnated, OM, P, PA, PE,
coated, SG)
covered or
laminated
with rubber
or plastics
material
which
completely
obscures the
underlying
fabric......
6210.40.29 Other........ 6.2% Free (AU, BH, CA, 37.5%
CL, CO, E*, IL,
JO, KR, MA, MX,
OM, P, PA, PE,
SG)
............ Other: ................ .................. ...............
............ Of man-made ................ .................. ...............
fibers:
6210.40.35 Having an 3.8% Free (AU, BH, CA, 65%
outer CL, CO, IL, JO,
surface KR, MA, MX, OM,
impregnated, P, PA, PE, SG)
coated,
covered or
laminated
with rubber
or plastics
material
which
completely
obscures the
underlying
fabric......
6210.40.55 Other........ 7.1% Free (AU, BH, CA, 65%
CL, CO, IL, JO,
KR, MA, MX, OM,
P, PA, PE, SG)
............ Other: ................ .................. ...............
6210.40.75 Having an 3.3% Free (AU, BH, CA, 37.5%
outer CL, CO, E, IL,
surface JO, KR, MA, MX,
impregnated, OM, P, PA, PE,
coated, SG)
covered or
laminated
with rubber
or plastics
material
which
completely
obscures the
underlying
fabric......
6210.40.80 Other........ 6.2% Free (AU, BH, CA, 37.5% ''.
CL, 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 3.8% Free (AU, BH, CA, 65%
outer CL, CO, IL, JO,
surface KR, MA, MX, OM,P,
impregnated, PA, PE, SG)
coated,
covered or
laminated
with rubber
or plastics
material
which
completely
obscures the
underlying
fabric......
6210.50.05 Other........ 7.1% Free (AU, BH, CA, 65%
CL, CO, IL, JO,
KR, MA, MX, OM,P,
PA, PE, SG)
............ Other: ................ .................. ...............
6210.50.12 Having an 3.3% Free (AU, BH, CA, 37.5%
outer CL, CO, E, IL,
surface 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......
6210.50.22 Other........ 6.2% Free (AU, BH, CA, 37.5%
CL, CO, E*, IL,
JO, KR, MA, MX,
OM, P,PA, PE, SG)
............ Other: ................ .................. ...............
............ Of man-made ................ .................. ...............
fibers:
6210.50.35 Having an 3.8% Free (AU, BH, CA, 65%
outer CL, CO, IL, JO,
surface KR, MA, MX, OM,P,
impregnated, PA, PE, SG)
coated,
covered or
laminated
with rubber
or plastics
material
which
completely
obscures the
underlying
fabric......
6210.50.55 Other........ 7.1% Free (AU, BH, CA, 65%
CL, CO, IL, JO,
KR, MA, MX, OM,P,
PA, PE, SG)
............ Other: ................ .................. ...............
6210.50.75 Having an 3.3% Free (AU, BH, CA, 37.5%
outer CL, CO, E, IL,
surface JO, KR, MA, MX,
impregnated, OM, P, PA, PE,
coated, SG)
covered or
laminated
with rubber
or plastics
material
which
completely
obscures the
underlying
fabric......
6210.50.80 Other........ 6.2% Free (AU, BH, CA, 37.5% ''.
CL, 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, 90%
performance CL, CO, IL, JO,
outerwear.... KR, MA, MX, OM,
P, PA, PE, SG)
6211.32.90 Other......... 8.1% Free (AU, BH, CA, 90% ''.
CL, 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, 76%
performance CL, CO, IL, JO,
outerwear.... KR, MA, MX, P, PA
,PE, SG)
4.8% (OM)
6211.33.90 Other......... 16% Free (AU, BH, CA, 76% ''.
CL, 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 12% Free (AU, BH, CA, 58.5%
fine animal CL, CO, IL, JO,
hair......... KR, MA, MX, P,
PA, PE, SG)
3.6% (OM)
6211.39.07 Containing 70 0.5% Free (AU, BH, CA, 35%
percent or CL, CO, E, IL,
more by JO, KR, MA, MX,
weight of OM, P, PA, PE,
silk or silk SG)
waste........
6211.39.15 Other......... 2.8% Free (AU, BH, CA, 35%
CL, CO, E*, IL,
JO, KR, MA, MX,
OM, P, PE, SG)
............ Other: ................ .................. ...............
6211.39.30 Of wool or 12% Free (AU, BH, CA, 58.5%
fine animal CL, CO, IL, JO,
hair......... KR, MA, MX, P,
PA, PE, SG)
3.6% (OM)
6211.39.60 Containing 70 0.5% Free (AU, BH, CA, 35%
percent or CL, CO, E, IL,
more by JO, KR, MA, MX,
weight of OM, P, PA, PE,
silk or silk SG)
waste........
6211.39.80 Other......... 2.8% Free (AU, BH, CA, 35% ''.
CL, 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, 90%
performance CL, CO, IL, JO,
outerwear.... KR, MA, MX, OM,
P, PA, PE, SG)
6211.42.10 Other......... 8.1% Free (AU, BH, CA, 90% ''.
CL, 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, 90%
performance CL, CO, IL, JO,
outerwear.... KR, MA, MX, P,
PA, PE, SG)
4.8% (OM)
6211.43.10 Other......... 16% Free (AU, BH, CA, 90% ''.
CL, 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, 35%
percent or CL, CO, E, IL,
more by JO, KR, MA, MX,
weight of OM, P, PA,PE, SG)
silk or silk
waste........
6211.49.15 Of wool or 12% Free (AU, BH, CA, 58.5%
fine animal CL, CO, IL, JO,
hair......... KR, MA ,MX, P,
PA, PE, SG)
3.6% (OM)
6211.49.25 Other......... 7.3% Free (AU, BH, CA, 35%
CL, 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, 35%
percent or CL, CO, E, IL,
more by JO, KR, MA, MX,
weight of OM, P, PA, PE,
silk or silk SG)
waste........
6211.49.60 Of wool or 12% Free (AU, BH, CA, 58.5%
fine animal CL, CO, IL, JO,
hair......... KR, MA, MX, P,
PA, PE,SG)
3.6% (OM)
6211.49.80 Other......... 7.3% Free (AU, BH, CA, 35% ''.
CL, 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
``(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
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.
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 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.
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 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 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.
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 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.
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 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
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 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.
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 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.
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 of 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 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.
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.
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 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 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 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.
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\
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\1\See United States v. Boyle, 469 U.S. 241, 245 (1985).
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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\
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\2\Sec. 6651(a)(1).
\3\Sec. 6651(f).
\4\Sec. 6651(b)(1).
\5\Sec. 6651(a)(1).
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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\
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\6\Sec. 6651(c)(1).
\7\Ibid.
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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\
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\8\Sec. 6651(a)(1).
\9\Sec. 6651(e).
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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.