[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Presidential Documents]
[Pages 6725-6729]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-02439]


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  Federal Register / Vol. 85 , No. 24 / Wednesday, February 5, 2020 / 
Presidential Documents  

[[Page 6725]]


                Executive Order 13904 of January 31, 2020

                
Ensuring Safe and Lawful E-Commerce for United 
                States Consumers, Businesses, Government Supply Chains, 
                and Intellectual Property Rights Holders

                By the authority vested in me as President by the 
                Constitution and the laws of the United States of 
                America, it is hereby ordered as follows:

                Section 1. Policy. E-commerce, including transactions 
                involving smaller express-carrier or international mail 
                packages, is being exploited by traffickers to 
                introduce contraband into the United States, and by 
                foreign exporters and United States importers to avoid 
                applicable customs duties, taxes, and fees.

                It is the policy of the United States Government to 
                protect consumers, intellectual property rights 
                holders, businesses, and workers from counterfeit 
                goods, narcotics (including synthetic opioids such as 
                fentanyl), and other contraband now being introduced 
                into the United States as a result of the recent growth 
                in e-commerce. The United States Government must also 
                protect the revenue of the United States from 
                individuals and entities who evade customs duties, 
                taxes, and fees.

                It is the policy of the United States Government that 
                any person who knowingly, or with gross negligence, 
                imports, or facilitates the importation of, merchandise 
                into the United States in material violation of Federal 
                law evidences conduct of so serious and compelling a 
                nature that it should be referred to U.S. Customs and 
                Border Protection (CBP) of the Department of Homeland 
                Security for a determination whether such conduct 
                affects that person's present responsibility to 
                participate in transactions with the Federal 
                Government.

                It is the policy of the United States Government, as 
                reflected in Executive Order 12549 of February 18, 1986 
                (Debarment and Suspension), and elsewhere, to protect 
                the public interest and ensure the integrity of Federal 
                programs by transacting only with presently responsible 
                persons. In furtherance of this policy, the 
                nonprocurement debarment and suspension system enables 
                executive departments and agencies to exclude from 
                Federal programs persons who are not presently 
                responsible. CBP implements this system by suspending 
                and debarring persons who flout the customs laws, among 
                other persons who lack present responsibility. To 
                achieve the policy goals stated herein, the United 
                States Government shall consider all appropriate 
                actions that it can take to ensure that persons that 
                CBP suspends or debars are excluded from participating 
                in the importation of merchandise into the United 
                States.

                It is the policy of the United States Government that 
                express consignment operators, carriers, hub 
                facilities, international posts, customs brokers, and 
                other entities, including e-commerce platform 
                operators, should not facilitate importation involving 
                persons who are suspended or debarred by CBP.

                It is the policy of the United States Government to 
                ensure that parcels containing contraband be kept 
                outside of the United States to the greatest extent 
                possible and that all parties who participate in the 
                introduction or attempted introduction of such parcels 
                into the United States be held accountable under the 
                laws of the United States.

                Sec. 2. Criteria for the Importer of Record Program, 
                Including Exclusion of Trade Violators. (a) The 
                Secretary of Homeland Security shall issue a

[[Page 6726]]

                notice of proposed rulemaking to establish criteria 
                importers must meet in order to obtain an importer of 
                record number.

                    (b) Such criteria shall include a criterion 
                providing that any person debarred or suspended by CBP 
                for lack of present responsibility for reasons related 
                to importation or trade shall be ineligible to obtain 
                an importer of record number for the duration of such 
                person's suspension or debarment by CBP.

                Sec. 3. Responsibilities of Express Consignment 
                Operators, Carriers, Hub Facilities, and Licensed 
                Customs Brokers. (a) Consistent with applicable law, 
                the Secretary of Homeland Security, through the 
                Commissioner of CBP, shall take steps to ensure that, 
                within 60 days of the publication in the System for 
                Award Management by CBP of the name of any debarred or 
                suspended person, express consignment operators, 
                carriers, hub facilities, and licensed customs brokers 
                notify CBP of any attempt, of which they know or have 
                reason to believe, by any persons who may not obtain an 
                importer of record number based on any criteria 
                established by the Secretary under section 2 of this 
                order, to re-establish business activity requiring an 
                importer of record number through a different name or 
                address associated with the debarred or suspended 
                person.

                    (b) The Secretary of Homeland Security, through the 
                Commissioner of CBP, shall consider appropriate 
                measures, consistent with applicable law, to ensure 
                that express consignment operators, carriers, hub 
                facilities, and licensed customs brokers cease to 
                facilitate business activity that requires an importer 
                of record number by any person who may not obtain an 
                importer of record number, as provided by any criteria 
                established by the Secretary under section 2 of this 
                order. Depending on the criteria established, such 
                consideration shall include whether CBP may take any of 
                the following measures: limiting an express consignment 
                operator's, carrier's, or hub facility's participation 
                in any CBP trusted trader programs; taking appropriate 
                action with regard to an express consignment 
                operator's, carrier's, or hub facility's operating 
                privileges; or suspending or revoking a customs 
                broker's license.

                Sec. 4. Items Sent to the United States through the 
                International Postal Network. (a) The United States 
                Postal Service (USPS) should collaborate with the 
                Secretary of State to notify the international postal 
                network, via circular or the functional equivalent, of 
                the policy of the United States Government set forth in 
                section 1 of this order and the key provisions of this 
                order. USPS should make all reasonable efforts to 
                include provisions regarding any criteria for 
                participating in the importer of record program 
                established under section 2 of this order in any new 
                contractual instruments it executes with international 
                posts.

                    (b) Within 90 days from the date of this order, the 
                Secretary of Homeland Security, through the 
                Commissioner of CBP, and in consultation with USPS, 
                shall submit to the President a report on any 
                appropriate measures the Federal Government could take, 
                including negotiating with international posts, to 
                prevent the importation or attempted importation into 
                the United States through the international postal 
                network of shipments containing goods, when such 
                importation or attempted importation is known to have 
                been facilitated by any person who may not obtain an 
                importer of record number under any criteria 
                established by the Secretary under section 2 of this 
                order.

                Sec. 5. Non-Compliant International Posts. (a) The 
                Secretary of Homeland Security, through the 
                Commissioner of CBP, and in consultation with the 
                United States Trade Representative, shall develop an 
                International Mail Non-Compliance metric, based on 
                relevant factors, to formulate an overall compliance 
                score for each international post. This score shall 
                take into account rates of trafficking of counterfeit 
                goods, narcotics (including synthetic opioids such as 
                fentanyl), and other contraband through a particular 
                international post, effectiveness of the international 
                post in reducing such trafficking, including 
                cooperation with CBP, as well as such other factors the 
                Secretary, through the Commissioner, determines 
                advisable. The Secretary shall update

[[Page 6727]]

                overall compliance scores on a quarterly basis. The 
                Secretary shall determine a minimum threshold 
                compliance score for each quarter and shall deem non-
                compliant any international post that scores below such 
                threshold in that quarter.

                    (b) The Secretary of Homeland Security shall 
                prioritize targeted inspection of imports into the 
                United States from any international post that for two 
                or more consecutive quarters is deemed a non-compliant 
                international post.
                    (c) Consistent with applicable law, the Secretary 
                of Homeland Security, through the Commissioner of CBP, 
                in consultation with USPS, may require additional 
                information for any shipment from any international 
                post that for six or more consecutive quarters is 
                deemed a non-compliant international post. The 
                Secretary of Homeland Security, through the 
                Commissioner of CBP, shall, to the extent consistent 
                with applicable law and international agreements, 
                implement all appropriate measures to prevent 
                importation into the United States of any shipments 
                dispatched from any international post that is deemed a 
                non-compliant international post for six or more 
                consecutive quarters and for which the additional 
                information required consistent with this subsection is 
                not promptly provided. USPS should collaborate with CBP 
                in implementing these measures.
                    (d) The Secretary of Homeland Security, through the 
                Commissioner of CBP, and in consultation with USPS, 
                shall, to the maximum extent permitted by applicable 
                law, take measures to protect the United States from 
                shipments from any international post that for eight or 
                more consecutive quarters is deemed a non-compliant 
                international post. To the extent consistent with 
                applicable law and as appropriate, such measures might 
                include preventing the importation into the United 
                States of shipments dispatched from such posts, 
                regardless of whether additional information required 
                by CBP is provided. Within 90 days of the date of this 
                order, the Secretary of Homeland Security, through the 
                Commissioner of CBP, and in consultation with USPS, 
                shall submit a report to the President analyzing what 
                measures CBP may take consistent with its existing 
                authorities.
                    (e) Within 90 days of the date of this order, the 
                Secretary of Homeland Security, through the 
                Commissioner of CBP, shall publish and regularly update 
                appropriate guidance related to CBP's implementation of 
                this section, including the process by which an 
                international post is deemed a non-compliant 
                international post and the process by which an 
                international post is removed from the list of non-
                compliant international posts.

                Sec. 6. Publication of Violation Information; Enhanced 
                Enforcement Efforts. (a) On a periodic basis, and 
                consistent with Federal law and executive branch policy 
                reflecting non-disclosure of sensitive information, the 
                Secretary of Homeland Security, through the 
                Commissioner of CBP and the Director of United States 
                Immigration and Customs Enforcement, shall publish 
                information about seizures arising in the international 
                mail and express consignment environments that involve 
                intellectual property rights violations, illegal drugs 
                and other contraband, incorrect country of origin, 
                under-valuation, or other violations of law of 
                particular concern. In determining which information to 
                publish, the Secretary shall give greatest 
                consideration to repeat offenses affecting priority 
                trade issues as defined in 19 U.S.C. 4322.

                    (b) Within 60 days of the date of this order, the 
                Attorney General shall assign appropriate resources to 
                ensure that Federal prosecutors accord a high priority 
                to prosecuting offenses related to import violations as 
                described in this order, including, as appropriate and 
                within existing appropriations, increasing the number 
                of Department of Justice officials who will enforce 
                criminal or civil laws, as appropriate, related to the 
                importation of merchandise.

                Sec. 7. Report on Sufficiency of Fees. Within 210 days 
                of the date of this order, the Secretary of Homeland 
                Security, in coordination with the heads of other 
                executive departments and agencies, as appropriate, 
                shall submit a report to the President, through the 
                Director of the Office of Management and Budget:

[[Page 6728]]

                    (a) analyzing whether the fees collected by CBP are 
                currently set at a sufficient level to reimburse the 
                Federal Government's costs associated with processing, 
                inspecting, and collecting duties, taxes, and fees for 
                parcels; and
                    (b) providing recommendations, consistent with 
                applicable law, regarding any fee adjustments that are 
                necessary to reimburse the Federal Government's costs 
                associated with processing, inspecting, and collecting 
                duties, taxes, and fees for parcels.

                Sec. 8. Definitions. For the purposes of this order:

                    (a) ``Customs broker'' has the meaning given to 
                that term in 19 U.S.C. 1641(a)(1).
                    (b) ``Express consignment operator, carrier, or hub 
                facility'' has the meaning given to those terms in 19 
                CFR 128.1.
                    (c) ``International post'' means any foreign public 
                or private entity providing various types of postal 
                services, including mailing and delivery services.
                    (d) ``Contraband'' has the meaning given to that 
                term in 49 U.S.C. 80302(a), and also means any goods or 
                merchandise otherwise prohibited from importation or 
                entry under the Tariff Act of 1930, as amended.
                    (e) ``E-commerce platform'' means any web-based 
                platform that includes features primarily designed for 
                arranging the sale, purchase, payment, or shipping of 
                goods, or that enables sellers not directly affiliated 
                with an operator of a web-based platform to sell 
                physical goods through the web to consumers located in 
                the United States.
                    (f) ``Person'' means any individual, corporation, 
                partnership, association, or legal entity, however 
                organized.

                Sec. 9. General Provisions. (a) Nothing in this order 
                shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or 
the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget 
relating to budgetary, administrative, or legislative proposals.

                    (b) This order shall be implemented consistent with 
                applicable law and subject to the availability of 
                appropriations.

[[Page 6729]]

                    (c) This order is not intended to, and does not, 
                create any right or benefit, substantive or procedural, 
                enforceable at law or in equity by any party against 
                the United States, its departments, agencies, or 
                entities, its officers, employees, or agents, or any 
                other person.
                
                
                    (Presidential Sig.)

                THE WHITE HOUSE,

                    January 31, 2020.

[FR Doc. 2020-02439
Filed 2-4-20; 11:15 am]
Billing code 3295-F0-P