[House Report 114-146]
[From the U.S. Government Publishing Office]
114th Congress } { Report
HOUSE OF REPRESENTATIVES
1st Session } { 114-146
======================================================================
PROVIDING FOR CONSIDERATION OF THE SENATE AMENDMENT TO THE BILL (H.R.
1314) TO AMEND THE INTERNAL REVENUE CODE OF 1986 TO PROVIDE FOR A RIGHT
TO AN ADMINISTRATIVE APPEAL RELATING TO ADVERSE DETERMINATIONS OF TAX-
EXEMPT STATUS OF CERTAIN ORGANIZATIONS, AND PROVIDING FOR CONSIDERATION
OF THE SENATE AMENDMENTS TO THE BILL (H.R. 644) TO AMEND THE INTERNAL
REVENUE CODE OF 1986 TO PERMANENTLY EXTEND AND EXPAND THE CHARITABLE
DEDUCTION FOR CONTRIBUTIONS OF FOOD INVENTORY
_______
June 11 (legislative day, June 10), 2015.--Referred to the House
Calendar and ordered to be printed
_______
Mr. Sessions, from the Committee on Rules,
submitted the following
R E P O R T
[To accompany H. Res. 305]
The Committee on Rules, having had under consideration
House Resolution 305, by a record vote of 9 to 4, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for the consideration of the Senate
amendment to H.R. 1314, the Trade Act of 2015. The resolution
makes in order a motion offered by the chair of the Committee
on Ways and Means or his designee that the House concur in the
Senate amendment to H.R. 1314. The resolution waives all points
of order against consideration of the motion. The resolution
provides that the Senate amendment and the motion shall be
considered as read. The resolution provides one hour of debate
on the motion equally divided and controlled by the chair and
ranking minority member of the Committee on Ways and Means. The
resolution provides that the question on adoption of the motion
shall be divided as follows: (1) concurring in section 212 of
the Senate amendment; (2) concurring in the matter comprising
the remainder of title II of the Senate amendment; and (3)
concurring in the matter preceding title II of the Senate
amendment. The resolution provides that the first portion of
the divided question shall be considered as adopted. The
resolution provides that if any remaining portion of the
divided question fails, then the House shall be considered to
have made no disposition of the Senate amendment.
Section 2 of the resolution provides for the consideration
of the Senate amendments to H.R. 644. The resolution makes in
order a single motion offered by the chair of the Committee on
Ways and Means or his designee that the House: (1) concur in
the Senate amendment to the title; and (2) concur in the Senate
amendment to the text with the amendment printed in part A of
this report modified by the amendment printed in part B of this
report. The resolution waives all points of order against
consideration of the motion and provides that the motion is not
subject to a demand for division of the question. The
resolution provides that the Senate amendments and the motion
shall be considered as read. The resolution provides one hour
of debate on the motion equally divided and controlled by the
chair and ranking minority member of the Committee on Ways and
Means. The resolution provides that if the motion is adopted,
the chair of the Committee on Ways and Means or his designee is
then authorized to move that the House insist on its amendment
to the Senate amendment to the text of H.R. 644 and request a
conference with the Senate thereon.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the motion related to H.R. 1314 includes a waiver of section
306 of the Congressional Budget Act of 1974, which prohibits
consideration of legislation within the jurisdiction of the
Committee on the Budget unless referred to or reported by the
Budget Committee.
Although the resolution waives all points of order against
consideration of the motion related to H.R. 644, the Committee
is not aware of any points of order. The waiver is prophylactic
in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 64
Motion by Ms. Slaughter to make in order and provide the
appropriate waivers for amendment #18 to H.R. 1314, offered by
Rep. Slaughter (NY), Rep. Pascrell Jr. (NJ), Rep. Edwards (MD),
Rep. DeFazio (OR), and Rep. DeLauro (CT), which prohibits fast
track for trade agreements that permit the import of food,
feed, or food ingredients or products that do not meet or
exceed U.S. standards with respect to food safety, pesticides,
inspections, packaging, and labeling into the United States
from a country that is a party to the trade agreement.
Defeated: 4-9
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Cole........................................ Nay Mr. McGovern...................... Yea
Mr. Woodall..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Burgess..................................... Nay Mr. Polis......................... Yea
Mr. Stivers..................................... Nay
Mr. Collins..................................... Nay
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 65
Motion by Mr. McGovern to amend the rule so that the Ryan
amendments to H.R. 644 and H.R. 1295, as well as the Senate
amendment to H.R. 1314, are all subject to amendment on the
floor, and considered under an open process. Defeated: 4-9
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Cole........................................ Nay Mr. McGovern...................... Yea
Mr. Woodall..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Burgess..................................... Nay Mr. Polis......................... Yea
Mr. Stivers..................................... Nay
Mr. Collins..................................... Nay
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 66
Motion by Mr. McGovern to make in order and provide the
appropriate waivers for amendments to H.R. 1314: amendment #20,
offered by Rep. Doggett (TX), which ensures maximum
accessibility to trade texts; amendment #21, offered by Rep.
Doggett (TX), which strips fast track authority from any
agreement that fails to improve the investor state dispute
settlement system; and amendment #22, offered by Rep. Doggett
(TX) and Rep. Tonko (NY), which strips fast track authority
from an agreement that fails to require the parties to adopt,
maintain, and implement all seven multilateral environmental
agreements. Defeated: 4-9
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Cole........................................ Nay Mr. McGovern...................... Yea
Mr. Woodall..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Burgess..................................... Nay Mr. Polis......................... Yea
Mr. Stivers..................................... Nay
Mr. Collins..................................... Nay
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 67
Motion by Mr. Hastings of Florida to make in order and
provide the appropriate waivers for amendments to H.R. 1314:
amendment #1, offered by Rep. Pocan (WI), Rep. Slaughter (NY),
and Rep. DeFazio (OR), which prevents fast-track procedures in
the underlying bill from applying to trade deals that include
Investor-State Dispute Settlements (ISDS) provisions, which
allow foreign companies to challenge U.S. laws and undermine
U.S. sovereignty; amendment #9, offered by Rep. Lipinski (IL)
and Rep. Jones (NC), which provides that protecting Buy
American, Buy America, and Buy Local provisions are negotiating
objectives for the United States Trade Representative as it
negotiates free trade agreements under this bill; amendment
#16, offered by Rep. Levin (MI), which ensures that fast track
procedures only apply to the Trans-Pacific Partnership if,
among other things, Congress determines that the final
agreement satisfies detailed negotiating instructions regarding
the outstanding issues in the negotiations; amendment #24,
offered by Rep. Tonko (NY), which adds climate change
mitigation to the labor and environment negotiating objectives;
amendment #25, offered by Rep. Cicilline (RI), Rep. Maloney
(NY), Rep. Pocan (WI), Rep. Sanchez (CA), and Rep. Lynch (MA),
which prohibits the President from entering into trade
agreements under this act with countries that have an
established penal code that legalizes violence,
criminalization, or execution of lesbian, gay, bisexual and
transgendered individuals by reason of their actual or
perceived sexual orientation or gender identity; amendment #27,
offered by Rep. Lewis (GA) and Rep. Edwards (MD), which
provides instructions on labor and human rights and add a
procedure where, if appropriate, human rights legislation may
be added to an implementing bill; and amendment #61, offered by
Rep. Becerra (CA), which provides that fast track procedures
will not apply to a trade agreement that does not include
explicit protections for government health policies and
programs, such as Medicare and Medicaid, from investment
disputes. Defeated: 4-9
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Cole........................................ Nay Mr. McGovern...................... Yea
Mr. Woodall..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Burgess..................................... Nay Mr. Polis......................... Yea
Mr. Stivers..................................... Nay
Mr. Collins..................................... Nay
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 68
Motion by Mr. Hastings of Florida to make in order and
provide the appropriate waivers for amendment #26 to H.R. 1314,
offered by Rep. Clawson (FL), Rep. Mulvaney (SC), Rep. Maloney
(NY), Rep. Norcross (NJ), Rep. Tonko (NY), Rep. Pocan (WI),
Rep. Perry (PA), Rep. Sensenbrenner Jr. (WI), Rep. Kaptur (OH),
Rep. Dingell (MI), Rep. Walberg (MI), Rep. Duncan (SC), Rep.
Slaughter (NY), Rep. Jones (NC), Rep. Brat (VA), Rep. Posey
(FL), Rep. Brooks (AL), Rep. Kennedy (MA), Rep. Lawrence (MI),
Rep. Franks (AZ), Rep. Kelly (IL), and Rep. Kildee (MI), which
addresses the practice of currency manipulation in trade
agreements. Defeated: 4-9
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Cole........................................ Nay Mr. McGovern...................... Yea
Mr. Woodall..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Burgess..................................... Nay Mr. Polis......................... Yea
Mr. Stivers..................................... Nay
Mr. Collins..................................... Nay
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 69
Motion by Mr. Polis to make in order and provide the
appropriate waivers for amendments to H.R. 1314: amendment #3,
offered by Rep. Polis (CO), which sets out limitations and
exceptions to exclusive rights as principal negotiating
objectives with regard to trade-related intellectual property;
amendment #4, offered by Rep. Polis (CO), which amends the
underlying bill to include the prohibition of illegal trade in
wildlife, timber, and marine resources as a negotiating
objective; amendment #5, offered by Rep. Polis (CO), which
requires the President to study the impacts of any new free
trade agreement on global greenhouse gas emissions; amendment
#7, offered by Rep. Polis (CO), which clarifies that foreign
investors do not receive greater rights than domestic investors
in trade agreements; and amendment #8, offered by Rep. Polis
(CO), which clarifies that no foreign corporation has the right
to repeal state, federal or local laws, including laws
pertaining to public health and safety; as well as amendment #5
to H.R. 644, offered by Rep. Polis (CO), which expresses the
sense of congress that the U.S. Trade Representative (USTR)
should encourage other nations to follow the lead of the U.S.
by increasing de minimis values to a commercially meaningful
level. Defeated: 4-9
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Nay Ms. Slaughter..................... Yea
Mr. Cole........................................ Nay Mr. McGovern...................... Yea
Mr. Woodall..................................... Nay Mr. Hastings of Florida........... Yea
Mr. Burgess..................................... Nay Mr. Polis......................... Yea
Mr. Stivers..................................... Nay
Mr. Collins..................................... Nay
Mr. Byrne....................................... Nay
Mr. Newhouse.................................... Nay
Mr. Sessions, Chairman.......................... Nay
----------------------------------------------------------------------------------------------------------------
Rules Committee record vote No. 70
Motion by Ms. Foxx to report the rule. Adopted: 9-4
----------------------------------------------------------------------------------------------------------------
Majority Members Vote Minority Members Vote
----------------------------------------------------------------------------------------------------------------
Ms. Foxx........................................ Yea Ms. Slaughter..................... Nay
Mr. Cole........................................ Yea Mr. McGovern...................... Nay
Mr. Woodall..................................... Yea Mr. Hastings of Florida........... Nay
Mr. Burgess..................................... Yea Mr. Polis......................... Nay
Mr. Stivers..................................... Yea
Mr. Collins..................................... Yea
Mr. Byrne....................................... Yea
Mr. Newhouse.................................... Yea
Mr. Sessions, Chairman.......................... Yea
----------------------------------------------------------------------------------------------------------------
SUMMARY OF THE HOUSE AMENDMENT IN PART A TO THE SENATE AMENDMENT TO THE
TEXT OF H.R. 644
Establishes U.S. Customs and Border Protection (CBP),
provides tools to streamline and facilitate legitimate trade,
improve trade enforcement, and measure progress within CBP.
Strengthens Trade Promotion Authority (TPA) legislation and
bolsters U.S.-Israel trade and commercial ties.
SUMMARY OF THE MODIFICATION IN PART B TO THE HOUSE AMENDMENT
Improves the currency title by reducing the
Administration's discretion and clearly directing action by the
Administration to address unfair currency practices. Requires
the Administration to issue clear guidance on how it intends to
assess the objective criteria within 90 days of the Amendment's
enactment.
PART A--TEXT OF THE HOUSE AMENDMENT TO THE SENATE AMENDMENT TO THE TEXT
OF H.R. 644
In lieu of the matter proposed to be inserted by the
amendment of the Senate to the text of the bill, insert the
following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Trade
Facilitation and Trade Enforcement Act of 2015''.
(b) Table of Contents.--The table of contents for this Act is
as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT
Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs
modernization, trade facilitation, and trade enforcement
functions and programs.
Sec. 104. Educational seminars to improve efforts to classify and
appraise imported articles, to improve trade enforcement
efforts, and to otherwise facilitate legitimate international
trade.
Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial risk assessment targeting and trade alerts.
Sec. 112. Report on oversight of revenue protection and enforcement
measures.
Sec. 113. Report on security and revenue measures with respect to
merchandise transported in bond.
Sec. 114. Importer of record program.
Sec. 115. Establishment of new importer program.
Sec. 116. Customs broker identification of importers.
Sec. 117. Requirements applicable to non-resident importers.
Sec. 118. Priority trade issues.
Sec. 119. Appropriate congressional committees defined.
TITLE II--IMPORT HEALTH AND SAFETY
Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works for
which copyright registration is pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual
property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual
property rights.
Sec. 308. Training with respect to the enforcement of intellectual
property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of intellectual
property rights.
TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Application to Canada and Mexico.
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
Sec. 411. Trade remedy law enforcement division.
Sec. 412. Collection of information on evasion of trade remedy laws.
Sec. 413. Access to information.
Sec. 414. Cooperation with foreign countries on preventing evasion of
trade remedy laws.
Sec. 415. Trade negotiating objectives.
Subtitle B--Investigation of Evasion of Trade Remedy Laws
Sec. 421. Procedures for investigation of evasion of antidumping and
countervailing duty orders.
Sec. 422. Government Accountability Office report.
Subtitle C--Other Matters
Sec. 431. Allocation and training of personnel.
Sec. 432. Annual report on prevention of evasion of antidumping and
countervailing duty orders.
Sec. 433. Addressing circumvention by new shippers.
TITLE V--IMPROVEMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS
Sec. 501. Short title.
Sec. 502. Consequences of failure to cooperate with a request for
information in a proceeding.
Sec. 503. Definition of material injury.
Sec. 504. Particular market situation.
Sec. 505. Distortion of prices or costs.
Sec. 506. Reduction in burden on Department of Commerce by reducing the
number of voluntary respondents.
Sec. 507. Application to Canada and Mexico.
TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS
Sec. 601. Trade enforcement priorities.
Sec. 602. Exercise of WTO authorization to suspend concessions or other
obligations under trade agreements.
Sec. 603. Trade monitoring.
TITLE VII--CURRENCY MANIPULATION
Sec. 701. Enhancement of engagement on currency exchange rate and
economic policies with certain major trading partners of the
United States.
Sec. 702. Advisory Committee on International Exchange Rate Policy.
TITLE VIII--ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION
Sec. 801. Short title.
Sec. 802. Establishment of U.S. Customs and Border Protection.
TITLE IX--MISCELLANEOUS PROVISIONS
Sec. 901. De minimis value.
Sec. 902. Consultation on trade and customs revenue functions.
Sec. 903. Penalties for customs brokers.
Sec. 904. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
Sec. 905. Exemption from duty of residue of bulk cargo contained in
instruments of international traffic previously exported from
the United States.
Sec. 906. Drawback and refunds.
Sec. 907. Office of the United States Trade Representative.
Sec. 908. United States-Israel Trade and Commercial Enhancement.
Sec. 909. Elimination of consumptive demand exception to prohibition on
importation of goods made with convict labor, forced labor, or
indentured labor; report.
Sec. 910. Customs user fees.
Sec. 911. Report on certain U.S. Customs and Border Protection
agreements.
Sec. 912. Amendments to Bipartisan Congressional Trade Priorities and
Accountability Act of 2015.
Sec. 913. Certain interest to be included in distributions under
Continued Dumping and Subsidy Offset Act of 2000.
Sec. 914. Report on competitiveness of U.S. recreational performance
outerwear industry.
Sec. 915. Increase in penalty for failure to file return of tax.
SEC. 2. DEFINITIONS.
In this Act:
(1) Automated commercial environment.--The term
``Automated Commercial Environment'' means the
Automated Commercial Environment computer system
authorized under section 13031(f)(4) of the
Consolidated Omnibus Budget Reconciliation Act of 1985
(19 U.S.C. 58c(f)(4)).
(2) Commissioner.--The term ``Commissioner'' means
the Commissioner of U.S. Customs and Border Protection,
as described in section 411(b) of the Homeland Security
Act of 2002, as added by section 802(a) of this Act.
(3) Customs and trade laws of the united states.--The
term ``customs and trade laws of the United States''
includes the following:
(A) The Tariff Act of 1930 (19 U.S.C. 1202 et
seq.).
(B) Section 249 of the Revised Statutes (19
U.S.C. 3).
(C) Section 2 of the Act of March 4, 1923 (42
Stat. 1453, chapter 251; 19 U.S.C. 6).
(D) The Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2071 et seq.).
(E) Section 13031 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (19 U.S.C.
58c).
(F) Section 251 of the Revised Statutes (19
U.S.C. 66).
(G) Section 1 of the Act of June 26, 1930 (46
Stat. 817, chapter 617; 19 U.S.C. 68).
(H) The Foreign Trade Zones Act (19 U.S.C.
81a et seq.).
(I) Section 1 of the Act of March 2, 1911 (36
Stat. 965, chapter 191; 19 U.S.C. 198).
(J) The Trade Act of 1974 (19 U.S.C. 2102 et
seq.).
(K) The Trade Agreements Act of 1979 (19
U.S.C. 2501 et seq.).
(L) The North American Free Trade Agreement
Implementation Act (19 U.S.C. 3301 et seq.).
(M) The Uruguay Round Agreements Act (19
U.S.C. 3501 et seq.).
(N) The Caribbean Basin Economic Recovery Act
(19 U.S.C. 2701 et seq.).
(O) The Andean Trade Preference Act (19
U.S.C. 3201 et seq.).
(P) The African Growth and Opportunity Act
(19 U.S.C. 3701 et seq.).
(Q) The Customs Enforcement Act of 1986
(Public Law 99-570; 100 Stat. 3207-79).
(R) The Customs and Trade Act of 1990 (Public
Law 101-382; 104 Stat. 629).
(S) The Customs Procedural Reform and
Simplification Act of 1978 (Public Law 95-410;
92 Stat. 888).
(T) The Trade Act of 2002 (Public Law 107-
210; 116 Stat. 933).
(U) The Convention on Cultural Property
Implementation Act (19 U.S.C. 2601 et seq.).
(V) The Act of March 28, 1928 (45 Stat. 374,
chapter 266; 19 U.S.C. 2077 et seq.).
(W) The Act of August 7, 1939 (53 Stat. 1263,
chapter 566).
(X) Any other provision of law implementing a
trade agreement.
(Y) Any other provision of law vesting
customs revenue functions in the Secretary of
the Treasury.
(Z) Any other provision of law relating to
trade facilitation or trade enforcement that is
administered by U.S. Customs and Border
Protection on behalf of any Federal agency that
is required to participate in the International
Trade Data System.
(AA) Any other provision of customs or trade
law administered by U.S. Customs and Border
Protection or U.S. Immigration and Customs
Enforcement.
(4) Private sector entity.--The term ``private sector
entity'' means--
(A) an importer;
(B) an exporter;
(C) a forwarder;
(D) an air, sea, or land carrier or shipper;
(E) a contract logistics provider;
(F) a customs broker; or
(G) any other person (other than an employee
of a government) affected by the implementation
of the customs and trade laws of the United
States.
(5) Trade enforcement.--The term ``trade
enforcement'' means the enforcement of the customs and
trade laws of the United States.
(6) Trade facilitation.--The term ``trade
facilitation'' refers to policies and activities of
U.S. Customs and Border Protection with respect to
facilitating the movement of merchandise into and out
of the United States in a manner that complies with the
customs and trade laws of the United States.
TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT
SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.
(a) In General.--In order to advance the security, trade
enforcement, and trade facilitation missions of U.S. Customs
and Border Protection, the Commissioner shall ensure that
partnership programs of U.S. Customs and Border Protection
established before the date of the enactment of this Act, such
as the Customs-Trade Partnership Against Terrorism established
under subtitle B of title II of the Security and Accountability
for Every Port Act of 2006 (6 U.S.C. 961 et seq.), and
partnership programs of U.S. Customs and Border Protection
established on or after such date of enactment, provide trade
benefits to private sector entities that meet the requirements
for participation in those programs established by the
Commissioner under this section.
(b) Elements.--In developing and operating partnership
programs under subsection (a), the Commissioner shall--
(1) consult with private sector entities, the public,
and other Federal agencies when appropriate, to ensure
that participants in those programs receive
commercially significant and measurable trade benefits,
including providing pre-clearance of merchandise for
qualified persons that demonstrate the highest levels
of compliance with the customs and trade laws of the
United States, regulations of U.S. Customs and Border
Protection, and other requirements the Commissioner
determines to be necessary;
(2) ensure an integrated and transparent system of
trade benefits and compliance requirements for all
partnership programs of U.S. Customs and Border
Protection;
(3) consider consolidating partnership programs in
situations in which doing so would support the
objectives of such programs, increase participation in
such programs, enhance the trade benefits provided to
participants in such programs, and enhance the
allocation of the resources of U.S. Customs and Border
Protection;
(4) coordinate with the Director of U.S. Immigration
and Customs Enforcement, and other Federal agencies
with authority to detain and release merchandise
entering the United States--
(A) to ensure coordination in the release of
such merchandise through the Automated
Commercial Environment, or its predecessor, and
the International Trade Data System;
(B) to ensure that the partnership programs
of those agencies are compatible with the
partnership programs of U.S. Customs and Border
Protection;
(C) to develop criteria for authorizing the
release, on an expedited basis, of merchandise
for which documentation is required from one or
more of those agencies to clear or license the
merchandise for entry into the United States;
and
(D) to create pathways, within and among the
appropriate Federal agencies, for qualified
persons that demonstrate the highest levels of
compliance with the customs and trade laws of
the United States to receive immediate
clearance absent information that a transaction
may pose a national security or compliance
threat; and
(5) ensure that trade benefits are provided to
participants in partnership programs.
(c) Report Required.--Not later than the date that is 180
days after the date of the enactment of this Act, and not later
than December 31 of each calendar year thereafter, the
Commissioner shall submit to the appropriate congressional
committees a report that--
(1) identifies each partnership program referred to
in subsection (a);
(2) for each such program, identifies--
(A) the requirements for participants in the
program;
(B) the commercially significant and
measurable trade benefits provided to
participants in the program;
(C) the number of participants in the
program; and
(D) in the case of a program that provides
for participation at multiple tiers, the number
of participants at each such tier;
(3) identifies the number of participants enrolled in
more than one such partnership program;
(4) assesses the effectiveness of each such
partnership program in advancing the security, trade
enforcement, and trade facilitation missions of U.S.
Customs and Border Protection, based on historical
developments, the level of participation in the
program, and the evolution of benefits provided to
participants in the program;
(5) summarizes the efforts of U.S. Customs and Border
Protection to work with other Federal agencies with
authority to detain and release merchandise entering
the United States to ensure that partnership programs
of those agencies are compatible with partnership
programs of U.S. Customs and Border Protection;
(6) summarizes criteria developed with those agencies
for authorizing the release, on an expedited basis, of
merchandise for which documentation is required from
one or more of those agencies to clear or license the
merchandise for entry into the United States;
(7) summarizes the efforts of U.S. Customs and Border
Protection to work with private sector entities and the
public to develop and improve partnership programs
referred to in subsection (a);
(8) describes measures taken by U.S. Customs and
Border Protection to make private sector entities aware
of the trade benefits available to participants in such
programs; and
(9) summarizes the plans, targets, and goals of U.S.
Customs and Border Protection with respect to such
programs for the 2 years following the submission of
the report.
SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES.
(a) In General.--Not later than one year after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit to the appropriate congressional
committees a report on the effectiveness of trade enforcement
activities of U.S. Customs and Border Protection.
(b) Contents.--The report required by subsection (a) shall
include--
(1) a description of the use of resources, results of
audits and verifications, targeting, organization, and
training of personnel of U.S. Customs and Border
Protection; and
(2) a description of trade enforcement activities to
address undervaluation, transshipment, legitimacy of
entities making entry, protection of revenues, fraud
prevention and detection, and penalties, including
intentional misclassification, inadequate bonding, and
other misrepresentations.
SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS
MODERNIZATION, TRADE FACILITATION, AND TRADE
ENFORCEMENT FUNCTIONS AND PROGRAMS.
(a) Priorities and Performance Standards.--
(1) In general.--The Commissioner, in consultation
with the appropriate congressional committees, shall
establish priorities and performance standards to
measure the development and levels of achievement of
the customs modernization, trade facilitation, and
trade enforcement functions and programs described in
subsection (b).
(2) Minimum priorities and standards.--Such
priorities and performance standards shall, at a
minimum, include priorities and standards relating to
efficiency, outcome, output, and other types of
applicable measures.
(b) Functions and Programs Described.--The functions and
programs referred to in subsection (a) are the following:
(1) The Automated Commercial Environment.
(2) Each of the priority trade issues described in
section 118.
(3) The Centers of Excellence and Expertise described
in section 110.
(4) Drawback for exported merchandise under section
313 of the Tariff Act of 1930 (19 U.S.C. 1313), as
amended by section 906 of this Act.
(5) Transactions relating to imported merchandise in
bond.
(6) Collection of countervailing duties assessed
under subtitle A of title VII of the Tariff Act of 1930
(19 U.S.C. 1671 et seq.) and antidumping duties
assessed under subtitle B of title VII of the Tariff
Act of 1930 (19 U.S.C. 1673 et seq.).
(7) The expedited clearance of cargo.
(8) The issuance of regulations and rulings.
(9) The issuance of Regulatory Audit Reports.
(c) Consultations and Notification.--
(1) Consultations.--The consultations required by
subsection (a)(1) shall occur, at a minimum, on an
annual basis.
(2) Notification.--The Commissioner shall notify the
appropriate congressional committees of any changes to
the priorities referred to in subsection (a) not later
than 30 days before such changes are to take effect.
SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY AND
APPRAISE IMPORTED ARTICLES, TO IMPROVE TRADE
ENFORCEMENT EFFORTS, AND TO OTHERWISE FACILITATE
LEGITIMATE INTERNATIONAL TRADE.
(a) In General.--
(1) Establishment.--The Commissioner and the Director
shall establish and carry out on a fiscal year basis
educational seminars to--
(A) improve the ability of U.S. Customs and
Border Protection personnel to classify and
appraise articles imported into the United
States in accordance with the customs and trade
laws of the United States;
(B) improve the trade enforcement efforts of
U.S. Customs and Border Protection personnel
and U.S. Immigration and Customs Enforcement
personnel; and
(C) otherwise improve the ability and
effectiveness of U.S. Customs and Border
Protection personnel and U.S. Immigration and
Customs Enforcement personnel to facilitate
legitimate international trade.
(b) Content.--
(1) Classifying and appraising imported articles.--In
carrying out subsection (a)(1)(A), the Commissioner,
the Director, and interested parties in the private
sector selected under subsection (c) shall provide
instruction and related instructional materials at each
educational seminar under this section to U.S. Customs
and Border Protection personnel and, as appropriate, to
U.S. Immigration and Customs Enforcement personnel on
the following:
(A) Conducting a physical inspection of an
article imported into the United States,
including testing of samples of the article, to
determine if the article is mislabeled in the
manifest or other accompanying documentation.
(B) Reviewing the manifest and other
accompanying documentation of an article
imported into the United States to determine if
the country of origin of the article listed in
the manifest or other accompanying
documentation is accurate.
(C) Customs valuation.
(D) Industry supply chains and other related
matters as determined to be appropriate by the
Commissioner.
(2) Trade enforcement efforts.--In carrying out
subsection (a)(1)(B), the Commissioner, the Director,
and interested parties in the private sector selected
under subsection (c) shall provide instruction and
related instructional materials at each educational
seminar under this section to U.S. Customs and Border
Protection personnel and, as appropriate, to U.S.
Immigration and Customs Enforcement personnel to
identify opportunities to enhance enforcement of the
following:
(A) Collection of countervailing duties
assessed under subtitle A of title VII of the
Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and
antidumping duties assessed under subtitle B of
title VII of the Tariff Act of 1930 (19 U.S.C.
1673 et seq.).
(B) Addressing evasion of duties on imports
of textiles.
(C) Protection of intellectual property
rights.
(D) Enforcement of child labor laws.
(3) Approval of commissioner and director.--The
instruction and related instructional materials at each
educational seminar under this section shall be subject
to the approval of the Commissioner and the Director.
(c) Selection Process.--
(1) In general.--The Commissioner shall establish a
process to solicit, evaluate, and select interested
parties in the private sector for purposes of assisting
in providing instruction and related instructional
materials described in subsection (b) at each
educational seminar under this section.
(2) Criteria.--The Commissioner shall evaluate and
select interested parties in the private sector under
the process established under paragraph (1) based on--
(A) availability and usefulness;
(B) the volume, value, and incidence of
mislabeling or misidentification of origin of
imported articles; and
(C) other appropriate criteria established by
the Commissioner.
(3) Public availability.--The Commissioner and the
Director shall publish in the Federal Register a
detailed description of the process established under
paragraph (1) and the criteria established under
paragraph (2).
(d) Special Rule for Antidumping and Countervailing Duty
Orders.--
(1) In general.--The Commissioner shall give due
consideration to carrying out an educational seminar
under this section in whole or in part to improve the
ability of U.S. Customs and Border Protection personnel
to enforce a countervailing or antidumping duty order
issued under section 706 or 736 of the Tariff Act of
1930 (19 U.S.C. 1671e or 1673e) upon the request of a
petitioner in an action underlying such countervailing
or antidumping duty order.
(2) Interested party.--A petitioner described in
paragraph (1) shall be treated as an interested party
in the private sector for purposes of the requirements
of this section.
(e) Performance Standards.--The Commissioner and the Director
shall establish performance standards to measure the
development and level of achievement of educational seminars
under this section.
(f) Reporting.--Beginning September 30, 2016, the
Commissioner and the Director shall submit to the appropriate
congressional committees an annual report on the effectiveness
of educational seminars under this section.
(g) Definitions.--In this section:
(1) Director.--The term ``Director'' means the
Director of U.S. Immigration and Customs Enforcement.
(2) United states.--The term ``United States'' means
the customs territory of the United States, as defined
in General Note 2 to the Harmonized Tariff Schedule of
the United States.
(3) U.S. customs and border protection personnel.--
The term ``U.S. Customs and Border Protection
personnel'' means import specialists, auditors, and
other appropriate employees of the U.S. Customs and
Border Protection.
(4) U.S. immigration and customs enforcement
personnel.--The term ``U.S. Immigration and Customs
Enforcement personnel'' means Homeland Security
Investigations Directorate personnel and other
appropriate employees of U.S. Immigration and Customs
Enforcement.
SEC. 105. JOINT STRATEGIC PLAN.
(a) In General.--Not later than one year after the date of
the enactment of this Act, and every 2 years thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall jointly develop and submit to the appropriate
congressional committees a joint strategic plan.
(b) Contents.--The joint strategic plan required under this
section shall be comprised of a comprehensive multi-year plan
for trade enforcement and trade facilitation, and shall
include--
(1) a summary of actions taken during the 2-year
period preceding the submission of the plan to improve
trade enforcement and trade facilitation, including a
description and analysis of specific performance
measures to evaluate the progress of U.S. Customs and
Border Protection and U.S. Immigration and Customs
Enforcement in meeting each such responsibility;
(2) a statement of objectives and plans for further
improving trade enforcement and trade facilitation;
(3) a specific identification of the priority trade
issues described in section 118, that can be addressed
in order to enhance trade enforcement and trade
facilitation, and a description of strategies and plans
for addressing each such issue;
(4) a description of efforts made to improve
consultation and coordination among and within Federal
agencies, and in particular between U.S. Customs and
Border Protection and U.S. Immigration and Customs
Enforcement, regarding trade enforcement and trade
facilitation;
(5) a description of the training that has occurred
to date within U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement to improve
trade enforcement and trade facilitation, including
training under section 104;
(6) a description of efforts to work with the World
Customs Organization and other international
organizations, in consultation with other Federal
agencies as appropriate, with respect to enhancing
trade enforcement and trade facilitation;
(7) a description of U.S. Custom and Border
Protection organizational benchmarks for optimizing
staffing and wait times at ports of entry;
(8) a specific identification of any domestic or
international best practices that may further improve
trade enforcement and trade facilitation;
(9) any legislative recommendations to further
improve trade enforcement and trade facilitation; and
(10) a description of efforts made to improve
consultation and coordination with the private sector
to enhance trade enforcement and trade facilitation.
(c) Consultations.--
(1) In general.--In developing the joint strategic
plan required under this section, the Commissioner and
the Director of U.S. Immigration and Customs
Enforcement shall consult with--
(A) appropriate officials from the relevant
Federal agencies, including--
(i) the Department of the Treasury;
(ii) the Department of Agriculture;
(iii) the Department of Commerce;
(iv) the Department of Justice;
(v) the Department of the Interior;
(vi) the Department of Health and
Human Services;
(vii) the Food and Drug
Administration;
(viii) the Consumer Product Safety
Commission; and
(ix) the Office of the United States
Trade Representative; and
(B) the Commercial Customs Operations
Advisory Committee established by section 109.
(2) Other consultations.--In developing the joint
strategic plan required under this section, the
Commissioner and the Director shall seek to consult
with--
(A) appropriate officials from relevant
foreign law enforcement agencies and
international organizations, including the
World Customs Organization; and
(B) interested parties in the private sector.
SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.
(a) Funding.--Section 13031(f)(4)(B) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(f)(4)(B)) is amended--
(1) by striking ``2003 through 2005'' and inserting
``2016 through 2018'';
(2) by striking ``such amounts as are available in
that Account'' and inserting ``not less than
$153,736,000''; and
(3) by striking ``for the development'' and inserting
``to complete the development and implementation''.
(b) Report.--Section 311(b)(3) of the Customs Border Security
Act of 2002 (19 U.S.C. 2075 note) is amended to read as
follows:
``(3) Report.--
``(A) In general.--Not later than December
31, 2016, the Commissioner of U.S. Customs and
Border Protection shall submit to the Committee
on Appropriations and the Committee on Finance
of the Senate and the Committee on
Appropriations and the Committee on Ways and
Means of the House of Representatives a report
detailing--
``(i) U.S. Customs and Border
Protection's incorporation of all core
trade processing capabilities,
including cargo release, entry summary,
cargo manifest, cargo financial data,
and export data elements into the
Automated Commercial Environment
computer system authorized under
section 13031(f)(4) of the Consolidated
Omnibus Budget and Reconciliation Act
of 1985 (19 U.S.C. 58c(f)(4)) not later
than September 30, 2016, to conform
with the admissibility criteria of
agencies participating in the
International Trade Data System
identified pursuant to section
411(d)(4)(A)(iii) of the Tariff Act of
1930;
``(ii) U.S. Customs and Border
Protection's remaining priorities for
processing entry summary data elements,
cargo manifest data elements, cargo
financial data elements, and export
elements in the Automated Commercial
Environment computer system, and the
objectives and plans for implementing
these remaining priorities;
``(iii) the components of the
National Customs Automation Program
specified in subsection (a)(2) of
section 411 of the Tariff Act of 1930
that have not been implemented; and
``(iv) any additional components of
the National Customs Automation Program
initiated by the Commissioner to
complete the development,
establishment, and implementation of
the Automated Commercial Environment
computer system.
``(B) Update of reports.--Not later than
September 30, 2017, the Commissioner shall
submit to the Committee on Appropriations and
the Committee on Finance of the Senate and the
Committee on Appropriations and the Committee
on Ways and Means of the House of
Representatives an updated report addressing
each of the matters referred to in subparagraph
(A), and--
``(i) evaluating the effectiveness of
the implementation of the Automated
Commercial Environment computer system;
and
``(ii) detailing the percentage of
trade processed in the Automated
Commercial Environment every month
since September 30, 2016.''.
(c) Government Accountability Office Report.--Not later than
December 31, 2017, the Comptroller General of the United States
shall submit to the Committee on Appropriations and the
Committee on Finance of the Senate and the Committee on
Appropriations and the Committee on Ways and Means of the House
of Representatives a report--
(1) assessing the progress of other Federal agencies
in accessing and utilizing the Automated Commercial
Environment; and
(2) assessing the potential cost savings to the
United States Government and importers and exporters
and the potential benefits to enforcement of the
customs and trade laws of the United States if the
elements identified in clauses (i) through (iv) of
section 311(b)(3)(A) of the Customs Border Security Act
of 2002, as amended by subsection (b) of this section,
are implemented.
SEC. 107. INTERNATIONAL TRADE DATA SYSTEM.
Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d))
is amended--
(1) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(2) by inserting after paragraph (3) the following:
``(4) Information technology infrastructure.--
``(A) In general.--The Secretary shall work
with the head of each agency participating in
the ITDS and the Interagency Steering Committee
to ensure that each agency--
``(i) develops and maintains the
necessary information technology
infrastructure to support the operation
of the ITDS and to submit all data to
the ITDS electronically;
``(ii) enters into a memorandum of
understanding, or takes such other
action as is necessary, to provide for
the information sharing between the
agency and U.S. Customs and Border
Protection necessary for the operation
and maintenance of the ITDS;
``(iii) not later than June 30, 2016,
identifies and transmits to the
Commissioner of U.S. Customs and Border
Protection the admissibility criteria
and data elements required by the
agency to authorize the release of
cargo by U.S. Customs and Border
Protection for incorporation into the
operational functionality of the
Automated Commercial Environment
computer system authorized under
section 13031(f)(4) of the Consolidated
Omnibus Budget and Reconciliation Act
of 1985 (19 U.S.C. 58c(f)(4)); and
``(iv) not later than December 31,
2016, utilizes the ITDS as the primary
means of receiving from users the
standard set of data and other relevant
documentation, exclusive of
applications for permits, licenses, or
certifications required for the release
of imported cargo and clearance of
cargo for export.
``(B) Rule of construction.--Nothing in this
paragraph shall be construed to require any
action to be taken that would compromise an
ongoing law enforcement investigation or
national security.''; and
(3) in paragraph (8), as redesignated, by striking
``section 9503(c) of the Omnibus Budget Reconciliation
Act of 1987 (19 U.S.C. 2071 note)'' and inserting
``section 109 of the Trade Facilitation and Trade
Enforcement Act of 2015''.
SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION
ARRANGEMENTS.
(a) Consultations.--The Secretary of Homeland Security, with
respect to any proposed mutual recognition arrangement or
similar agreement between the United States and a foreign
government providing for mutual recognition of supply chain
security programs and customs revenue functions, shall
consult--
(1) not later than 30 days before initiating
negotiations to enter into any such arrangement or
similar agreement, with the appropriate congressional
committees; and
(2) not later than 30 days before entering into any
such arrangement or similar agreement, with the
appropriate congressional committees.
(b) Negotiating Objective.--It shall be a negotiating
objective of the United States in any negotiation for a mutual
recognition arrangement with a foreign country on partnership
programs, such as the Customs-Trade Partnership Against
Terrorism established under subtitle B of title II of the
Security and Accountability for Every Port Act of 2006 (6
U.S.C. 961 et seq.), to seek to ensure the compatibility of the
partnership programs of that country with the partnership
programs of U.S. Customs and Border Protection to enhance
security, trade facilitation, and trade enforcement.
SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.
(a) Establishment.--Not later than the date that is 60 days
after the date of the enactment of this Act, the Secretary of
the Treasury and the Secretary of Homeland Security shall
jointly establish a Commercial Customs Operations Advisory
Committee (in this section referred to as the ``Advisory
Committee'').
(b) Membership.--
(1) In general.--The Advisory Committee shall be
comprised of--
(A) 20 individuals appointed under paragraph
(2);
(B) the Assistant Secretary for Tax Policy of
the Department of the Treasury and the
Commissioner, who shall jointly co-chair
meetings of the Advisory Committee; and
(C) the Assistant Secretary for Policy and
the Director of U.S. Immigration and Customs
Enforcement of the Department of Homeland
Security, who shall serve as deputy co-chairs
of meetings of the Advisory Committee.
(2) Appointment.--
(A) In general.--The Secretary of the
Treasury and the Secretary of Homeland Security
shall jointly appoint 20 individuals from the
private sector to the Advisory Committee.
(B) Requirements.--In making appointments
under subparagraph (A), the Secretary of the
Treasury and the Secretary of Homeland Security
shall appoint members--
(i) to ensure that the membership of
the Advisory Committee is
representative of the individuals and
firms affected by the commercial
operations of U.S. Customs and Border
Protection; and
(ii) without regard to political
affiliation.
(C) Terms.--Each individual appointed to the
Advisory Committee under this paragraph shall
be appointed for a term of not more than 3
years, and may be reappointed to subsequent
terms, but may not serve more than 2 terms
sequentially.
(3) Transfer of membership.--The Secretary of the
Treasury and the Secretary of Homeland Security may
transfer members serving on the Advisory Committee on
Commercial Operations of the United States Customs
Service established under section 9503(c) of the
Omnibus Budget Reconciliation Act of 1987 (19 U.S.C.
2071 note) on the day before the date of the enactment
of this Act to the Advisory Committee established under
subsection (a).
(c) Duties.--The Advisory Committee established under
subsection (a) shall--
(1) advise the Secretary of the Treasury and the
Secretary of Homeland Security on all matters involving
the commercial operations of U.S. Customs and Border
Protection, including advising with respect to
significant changes that are proposed with respect to
regulations, policies, or practices of U.S. Customs and
Border Protection;
(2) provide recommendations to the Secretary of the
Treasury and the Secretary of Homeland Security on
improvements to the commercial operations of U.S.
Customs and Border Protection;
(3) collaborate in developing the agenda for Advisory
Committee meetings; and
(4) perform such other functions relating to the
commercial operations of U.S. Customs and Border
Protection as prescribed by law or as the Secretary of
the Treasury and the Secretary of Homeland Security
jointly direct.
(d) Meetings.--
(1) In general.--The Advisory Committee shall meet at
the call of the Secretary of the Treasury and the
Secretary of Homeland Security, or at the call of not
less than \2/3\ of the membership of the Advisory
Committee. The Advisory Committee shall meet at least 4
times each calendar year.
(2) Open meetings.--Notwithstanding section 10(a) of
the Federal Advisory Committee Act (5 U.S.C. App.), the
Advisory Committee meetings shall be open to the public
unless the Secretary of the Treasury or the Secretary
of Homeland Security determines that the meeting will
include matters the disclosure of which would
compromise the development of policies, priorities, or
negotiating objectives or positions that could impact
the commercial operations of U.S. Customs and Border
Protection or the operations or investigations of U.S.
Immigration and Customs Enforcement.
(e) Annual Report.--Not later than December 31, 2016, and
annually thereafter, the Advisory Committee shall submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report that--
(1) describes the activities of the Advisory
Committee during the preceding fiscal year; and
(2) sets forth any recommendations of the Advisory
Committee regarding the commercial operations of U.S.
Customs and Border Protection.
(f) Termination.--Section 14(a)(2) of the Federal Advisory
Committee Act (5 U.S.C. App.; relating to the termination of
advisory committees) shall not apply to the Advisory Committee.
(g) Conforming Amendment.--
(1) In general.--Effective on the date on which the
Advisory Committee is established under subsection (a),
section 9503(c) of the Omnibus Budget Reconciliation
Act of 1987 (19 U.S.C. 2071 note) is repealed.
(2) Reference.--Any reference in law to the Advisory
Committee on Commercial Operations of the United States
Customs Service established under section 9503(c) of
the Omnibus Budget Reconciliation Act of 1987 (19
U.S.C. 2071 note) made on or after the date on which
the Advisory Committee is established under subsection
(a), shall be deemed a reference to the Commercial
Customs Operations Advisory Committee established under
subsection (a).
SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE.
(a) In General.--The Commissioner shall, in consultation with
the appropriate congressional committees and the Commercial
Customs Operations Advisory Committee established by section
109, develop and implement Centers of Excellence and Expertise
throughout U.S. Customs and Border Protection that--
(1) enhance the economic competitiveness of the
United States by consistently enforcing the laws and
regulations of the United States at all ports of entry
of the United States and by facilitating the flow of
legitimate trade through increasing industry-based
knowledge;
(2) improve enforcement efforts, including
enforcement of priority trade issues described in
section 118, in specific industry sectors through the
application of targeting information from the National
Targeting Center under section 111 and from other means
of verification;
(3) build upon the expertise of U.S. Customs and
Border Protection in particular industry operations,
supply chains, and compliance requirements;
(4) promote the uniform implementation at each port
of entry of the United States of policies and
regulations relating to imports;
(5) centralize the trade enforcement and trade
facilitation efforts of U.S. Customs and Border
Protection;
(6) formalize an account-based approach to apply, as
the Commissioner determines appropriate, to the
importation of merchandise into the United States;
(7) foster partnerships though the expansion of trade
programs and other trusted partner programs;
(8) develop applicable performance measurements to
meet internal efficiency and effectiveness goals; and
(9) whenever feasible, facilitate a more efficient
flow of information between Federal agencies.
(b) Report.--Not later than December 31, 2016, the
Commissioner shall submit to the appropriate congressional
committees a report describing--
(1) the scope, functions, and structure of each
Center of Excellence and Expertise developed and
implemented under subsection (a);
(2) the effectiveness of each such Center of
Excellence and Expertise in improving enforcement
efforts, including enforcement of priority trade issues
described in section 118, and facilitating legitimate
trade;
(3) the quantitative and qualitative benefits of each
such Center of Excellence and Expertise to the trade
community, including through fostering partnerships
through the expansion of trade programs such as the
Importer Self Assessment program and other trusted
partner programs;
(4) all applicable performance measurements with
respect to each such Center of Excellence and
Expertise, including performance measures with respect
to meeting internal efficiency and effectiveness goals;
(5) the performance of each such Center of Excellence
and Expertise in increasing the accuracy and
completeness of data with respect to international
trade and facilitating a more efficient flow of
information between Federal agencies; and
(6) any planned changes in the number, scope,
functions or any other aspect of the Centers of
Excellence and Expertise developed and implemented
under subsection (a).
SEC. 111. COMMERCIAL RISK ASSESSMENT TARGETING AND TRADE ALERTS.
(a) Commercial Risk Assessment Targeting.--In carrying out
its duties under section 411(g)(4) of the Homeland Security Act
of 2002, as added by section 802(a) of this Act, the National
Targeting Center shall--
(1) establish targeted risk assessment methodologies
and standards--
(A) for evaluating the risk that cargo
destined for the United States may violate the
customs and trade laws of the United States,
particularly those laws applicable to
merchandise subject to the priority trade
issues described in section 118; and
(B) for issuing, as appropriate, Trade Alerts
described in subsection (b);
(2) to the extent practicable and otherwise
authorized by law, use, to administer the methodologies
and standards established under paragraph (1)--
(A) publicly available information;
(B) information available from the Automated
Commercial System, the Automated Commercial
Environment computer system, the Automated
Targeting System, the Automated Export System,
the International Trade Data System, the TECS
(formerly known as the ``Treasury Enforcement
Communications System''), the case management
system of U.S. Immigration and Customs
Enforcement, and any successor systems; and
(C) information made available to the
National Targeting Center, including
information provided by private sector
entities; and
(3) provide for the receipt and transmission to the
appropriate U.S. Customs and Border Protection offices
of allegations from interested parties in the private
sector of violations of customs and trade laws of the
United States of merchandise relating to the priority
trade issues described in section 118.
(b) Trade Alerts.--
(1) Issuance.--In carrying out its duties under
section 411(g)(4) of the Homeland Security Act of 2002,
as added by section 802(a) of this Act, and based upon
the application of the targeted risk assessment
methodologies and standards established under
subsection (a), the Executive Director of the National
Targeting Center may issue Trade Alerts to directors of
United States ports of entry directing further
inspection, or physical examination or testing, of
specific merchandise to ensure compliance with all
applicable customs and trade laws and regulations
administered by U.S. Customs and Border Protection.
(2) Determinations not to implement trade alerts.--
The director of a United States port of entry may
determine not to conduct further inspections, or
physical examination or testing, pursuant to a Trade
Alert issued under paragraph (1) if--
(A) the director finds that such a
determination is justified by port security
interests; and
(B) not later than 48 hours after making the
determination, notifies the Assistant
Commissioner of the Office of Field Operations
of U.S. Customs and Border Protection of the
determination and the reasons for the
determination.
(3) Summary of determinations not to implement.--The
Assistant Commissioner of the Office of Field
Operations of U.S. Customs and Border Protection
shall--
(A) compile an annual public summary of all
determinations by directors of United States
ports of entry under paragraph (2) and the
reasons for those determinations;
(B) conduct an evaluation of the utilization
of Trade Alerts issued under paragraph (1); and
(C) not later than December 31 of each year,
submit the summary to the appropriate
congressional committees.
(4) Inspection defined.--In this subsection, the term
``inspection'' means the comprehensive evaluation
process used by U.S. Customs and Border Protection,
other than physical examination or testing, to permit
the entry of merchandise into the United States, or the
clearance of merchandise for transportation in bond
through the United States, for purposes of--
(A) assessing duties;
(B) identifying restricted or prohibited
items; and
(C) ensuring compliance with all applicable
customs and trade laws and regulations
administered by U.S. Customs and Border
Protection.
(c) Use of Trade Data for Commercial Enforcement Purposes.--
Section 343(a)(3)(F) of the Trade Act of 2002 (19 U.S.C. 2071
note) is amended to read as follows:
``(F) The information collected pursuant to
the regulations shall be used exclusively for
ensuring cargo safety and security, preventing
smuggling, and commercial risk assessment
targeting, and shall not be used for any
commercial enforcement purposes, including for
determining merchandise entry. Notwithstanding
the preceding sentence, nothing in this section
shall be treated as amending, repealing, or
otherwise modifying title IV of the Tariff Act
of 1930 or regulations promulgated
thereunder.''.
SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND ENFORCEMENT
MEASURES.
(a) In General.--Not later the March 31, 2016, and not later
than March 31 of each second year thereafter, the Inspector
General of the Department of the Treasury shall submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report assessing,
with respect to the period covered by the report, as specified
in subsection (b), the following:
(1) The effectiveness of the measures taken by U.S.
Customs and Border Protection with respect to
protection of revenue, including--
(A) the collection of countervailing duties
assessed under subtitle A of title VII of the
Tariff Act of 1930 (19 U.S.C. 1671 et seq.) and
antidumping duties assessed under subtitle B of
title VII of the Tariff Act of 1930 (19 U.S.C.
1673 et seq.);
(B) the assessment, collection, and
mitigation of commercial fines and penalties;
(C) the use of bonds, including continuous
and single transaction bonds, to secure that
revenue; and
(D) the adequacy of the policies of U.S.
Customs and Border Protection with respect to
the monitoring and tracking of merchandise
transported in bond and collecting duties, as
appropriate.
(2) The effectiveness of actions taken by U.S.
Customs and Border Protection to measure accountability
and performance with respect to protection of revenue.
(3) The number and outcome of investigations
instituted by U.S. Customs and Border Protection with
respect to the underpayment of duties.
(4) The effectiveness of training with respect to the
collection of duties provided for personnel of U.S.
Customs and Border Protection.
(b) Period Covered by Report.--Each report required by
subsection (a) shall cover the period of 2 fiscal years ending
on September 30 of the calendar year preceding the submission
of the report.
SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH RESPECT TO
MERCHANDISE TRANSPORTED IN BOND.
(a) In General.--Not later than December 31 of 2016, 2017,
and 2018, the Secretary of Homeland Security and the Secretary
of the Treasury shall jointly submit to the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives a report on efforts undertaken by
U.S. Customs and Border Protection to ensure the secure
transportation of merchandise in bond through the United States
and the collection of revenue owed upon the entry of such
merchandise into the United States for consumption.
(b) Elements.--Each report required by subsection (a) shall
include, for the fiscal year preceding the submission of the
report, information on--
(1) the overall number of entries of merchandise for
transportation in bond through the United States;
(2) the ports at which merchandise arrives in the
United States for transportation in bond and at which
records of the arrival of such merchandise are
generated;
(3) the average time taken to reconcile such records
with the records at the final destination of the
merchandise in the United States to demonstrate that
the merchandise reaches its final destination or is re-
exported;
(4) the average time taken to transport merchandise
in bond from the port at which the merchandise arrives
in the United States to its final destination in the
United States;
(5) the total amount of duties, taxes, and fees owed
with respect to shipments of merchandise transported in
bond and the total amount of such duties, taxes, and
fees paid;
(6) the total number of notifications by carriers of
merchandise being transported in bond that the
destination of the merchandise has changed; and
(7) the number of entries that remain unreconciled.
SEC. 114. IMPORTER OF RECORD PROGRAM.
(a) Establishment.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Secretary of
Homeland Security shall establish an importer of record program
to assign and maintain importer of record numbers.
(b) Requirements.--The Secretary shall ensure that, as part
of the importer of record program, U.S. Customs and Border
Protection--
(1) develops criteria that importers must meet in
order to obtain an importer of record number,
including--
(A) criteria to ensure sufficient information
is collected to allow U.S. Customs and Border
Protection to verify the existence of the
importer requesting the importer of record
number;
(B) criteria to ensure sufficient information
is collected to allow U.S. Customs and Border
Protection to identify linkages or other
affiliations between importers that are
requesting or have been assigned importer of
record numbers; and
(C) criteria to ensure sufficient information
is collected to allow U.S. Customs and Border
Protection to identify changes in address and
corporate structure of importers;
(2) provides a process by which importers are
assigned importer of record numbers;
(3) maintains a centralized database of importer of
record numbers, including a history of importer of
record numbers associated with each importer, and the
information described in subparagraphs (A), (B), and
(C) of paragraph (1);
(4) evaluates and maintains the accuracy of the
database if such information changes; and
(5) takes measures to ensure that duplicate importer
of record numbers are not issued.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report on the
importer of record program established under subsection (a).
(d) Number Defined.--In this subsection, the term ``number'',
with respect to an importer of record, means a filing
identification number described in section 24.5 of title 19,
Code of Federal Regulations (or any corresponding similar
regulation) that fully supports the requirements of subsection
(b) with respect to the collection and maintenance of
information.
SEC. 115. ESTABLISHMENT OF NEW IMPORTER PROGRAM.
(a) In General.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Commissioner
shall establish a new importer program that directs U.S.
Customs and Border Protection to adjust bond amounts for new
importers based on the level of risk assessed by U.S. Customs
and Border Protection for protection of revenue of the Federal
Government.
(b) Requirements.--The Commissioner shall ensure that, as
part of the new importer program established under subsection
(a), U.S. Customs and Border Protection--
(1) develops risk-based criteria for determining
which importers are considered to be new importers for
the purposes of this subsection;
(2) develops risk assessment guidelines for new
importers to determine if and to what extent--
(A) to adjust bond amounts of imported
products of new importers; and
(B) to increase screening of imported
products of new importers;
(3) develops procedures to ensure increased oversight
of imported products of new importers relating to the
enforcement of the priority trade issues described in
section 118;
(4) develops procedures to ensure increased oversight
of imported products of new importers by Centers of
Excellence and Expertise established under section 110;
and
(5) establishes a centralized database of new
importers to ensure accuracy of information that is
required to be provided by new importers to U.S.
Customs and Border Protection.
SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.
(a) In General.--Section 641 of the Tariff Act of 1930 (19
U.S.C. 1641) is amended by adding at the end the following:
``(i) Identification of Importers.--
``(1) In general.--The Secretary shall prescribe
regulations setting forth the minimum standards for
customs brokers and importers, including nonresident
importers, regarding the identity of the importer that
shall apply in connection with the importation of
merchandise into the United States.
``(2) Minimum requirements.--The regulations shall,
at a minimum, require customs brokers to implement, and
importers (after being given adequate notice) to comply
with, reasonable procedures for--
``(A) collecting the identity of importers,
including nonresident importers, seeking to
import merchandise into the United States to
the extent reasonable and practicable; and
``(B) maintaining records of the information
used to substantiate a person's identity,
including name, address, and other identifying
information.
``(3) Penalties.--Any customs broker who fails to
collect information required under the regulations
prescribed under this subsection shall be liable to the
United States, at the discretion of the Secretary, for
a monetary penalty not to exceed $10,000 for each
violation of those regulations and subject to
revocation or suspension of a license or permit of the
customs broker pursuant to the procedures set forth in
subsection (d).
``(4) Definitions.--In this subsection--
``(A) the term `importer' means one of the
parties qualifying as an importer of record
under section 484(a)(2)(B); and
``(B) the term `nonresident importer' means
an importer who is--
``(i) an individual who is not a
citizen of the United States or an
alien lawfully admitted for permanent
residence in the United States; or
``(ii) a partnership, corporation, or
other commercial entity that is not
organized under the laws of a
jurisdiction within the customs
territory of the United States (as such
term is defined in General Note 2 of
the Harmonized Tariff Schedule of the
United States) or in the Virgin Islands
of the United States.''.
(b) Study and Report Required.--Not later than 180 days after
the date of enactment of this Act, the Commissioner shall
submit to Congress a report containing recommendations for--
(1) determining the most timely and effective way to
require foreign nationals to provide customs brokers
with appropriate and accurate information, comparable
to that which is required of United States nationals,
concerning the identity, address, and other related
information relating to such foreign nationals
necessary to enable customs brokers to comply with the
requirements of section 641(i) of the Tariff Act of
1930 (as added by subsection (a) of this section); and
(2) establishing a system for customs brokers to
review information maintained by relevant Federal
agencies for purposes of verifying the identities of
importers, including nonresident importers, seeking to
import merchandise into the United States.
SEC. 117. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.
(a) In General.--Part III of title IV of the Tariff Act of
1930 (19 U.S.C. 1481 et seq.) is amended by inserting after
section 484b the following new section:
``SEC. 484C. REQUIREMENTS APPLICABLE TO NON-RESIDENT IMPORTERS.
``(a) In General.--Except as provided in subsection (c), if
an importer of record under section 484 is not a resident of
the United States, the Commissioner of U.S. Customs and Border
Protection shall require the non-resident importer to designate
a resident agent in the United States subject to the
requirements described in subsection (b).
``(b) Requirements.--The requirements described in this
subsection are the following:
``(1) The resident agent shall be authorized to
accept service of process against the non-resident
importer in connection with the importation of
merchandise.
``(2) The Commissioner of U.S. Customs and Border
Protection shall require the non-resident importer to
establish a power of attorney with the resident agent
in connection with the importation of merchandise.
``(c) Non-applicability.--The requirements of this section
shall not apply with respect to a non-resident importer who is
a validated Tier 2 or Tier 3 participant in the Customs-Trade
Partnership Against Terrorism program established under
subtitle B of title II of the SAFE Port Act (6 U.S.C. 961 et
seq.).
``(d) Penalties.--
``(1) In general.--It shall be unlawful for any
person to import into the United States any merchandise
in violation of this section.
``(2) Civil penalties.--Any person who violates
paragraph (1) shall be liable for a civil penalty of
$50,000 for each such violation.
``(3) Other penalties.--In addition to the penalties
specified in paragraph (2), any violation of this
section that violates any other customs and trade laws
of the United States shall be subject to any applicable
civil and criminal penalty, including seizure and
forfeiture, that may be imposed under such customs or
trade law or title 18, United States Code, with respect
to the importation of merchandise.
``(4) Definition.--In this subsection, the term
`customs and trade laws of the United States' has the
meaning given such term in section 2 of the Trade
Facilitation and Trade Enforcement Act of 2015.''.
(b) Effective Date.--Section 484c of the Tariff Act of 1930,
as added by subsection (a), takes effect on the date of the
enactment of this Act and applies with respect to the
importation, on or after the date that is 180 days after such
date of enactment, of merchandise of an importer of record
under section 484 of the Tariff Act of 1930 who is not a
resident of the United States.
SEC. 118. PRIORITY TRADE ISSUES.
(a) In General.--The Commissioner shall establish the
following as priority trade issues:
(1) Agriculture programs.
(2) Antidumping and countervailing duties.
(3) Import safety.
(4) Intellectual property rights.
(5) Revenue.
(6) Textiles and wearing apparel.
(7) Trade agreements and preference programs.
(b) Modification.--The Commissioner is authorized to
establish new priority trade issues and eliminate, consolidate,
or otherwise modify the priority trade issues described in
subsection (a) if the Commissioner--
(1) determines it necessary and appropriate to do so;
and
(2) submits to the appropriate congressional
committees a summary of the proposed changes to the
priority trade issues not later than 60 days before
such changes are to take effect.
SEC. 119. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.
In this title, the term ``appropriate congressional
committees'' means--
(1) the Committee on Finance and the Committee on
Homeland Security and Government Affairs of the Senate;
and
(2) the Committee on Ways and Means and the Committee
on Homeland Security of the House of Representatives.
TITLE II--IMPORT HEALTH AND SAFETY
SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.
(a) Establishment.--There is established an interagency
Import Safety Working Group.
(b) Membership.--The interagency Import Safety Working Group
shall consist of the following officials or their designees:
(1) The Secretary of Homeland Security, who shall
serve as the Chair.
(2) The Secretary of Health and Human Services, who
shall serve as the Vice Chair.
(3) The Secretary of the Treasury.
(4) The Secretary of Commerce.
(5) The Secretary of Agriculture.
(6) The United States Trade Representative.
(7) The Director of the Office of Management and
Budget.
(8) The Commissioner of Food and Drugs.
(9) The Commissioner of U.S. Customs and Border
Protection.
(10) The Chairman of the Consumer Product Safety
Commission.
(11) The Director of U.S. Immigration and Customs
Enforcement.
(12) The head of any other Federal agency designated
by the President to participate in the interagency
Import Safety Working Group, as appropriate.
(c) Duties.--The duties of the interagency Import Safety
Working Group shall include--
(1) consulting on the development of the joint import
safety rapid response plan required by section 202;
(2) periodically evaluating the adequacy of the
plans, practices, and resources of the Federal
Government dedicated to ensuring the safety of
merchandise imported in the United States and the
expeditious entry of such merchandise, including--
(A) minimizing the duplication of efforts
among agencies the heads of which are members
of the interagency Import Safety Working Group
and ensuring the compatibility of the policies
and regulations of those agencies; and
(B) recommending additional administrative
actions, as appropriate, designed to ensure the
safety of merchandise imported into the United
States and the expeditious entry of such
merchandise and considering the impact of those
actions on private sector entities;
(3) reviewing the engagement and cooperation of
foreign governments and foreign manufacturers in
facilitating the inspection and certification, as
appropriate, of such merchandise to be imported into
the United States and the facilities producing such
merchandise to ensure the safety of the merchandise and
the expeditious entry of the merchandise into the
United States;
(4) identifying best practices, in consultation with
private sector entities as appropriate, to assist
United States importers in taking all appropriate steps
to ensure the safety of merchandise imported into the
United States, including with respect to--
(A) the inspection of manufacturing
facilities in foreign countries;
(B) the inspection of merchandise destined
for the United States before exportation from a
foreign country or before distribution in the
United States; and
(C) the protection of the international
supply chain (as defined in section 2 of the
Security and Accountability For Every Port Act
of 2006 (6 U.S.C. 901));
(5) identifying best practices to assist Federal,
State, and local governments and agencies, and port
authorities, to improve communication and coordination
among such agencies and authorities with respect to
ensuring the safety of merchandise imported into the
United States and the expeditious entry of such
merchandise; and
(6) otherwise identifying appropriate steps to
increase the accountability of United States importers
and the engagement of foreign government agencies with
respect to ensuring the safety of merchandise imported
into the United States and the expeditious entry of
such merchandise.
SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.
(a) In General.--Not later than December 31, 2016, the
Secretary of Homeland Security, in consultation with the
interagency Import Safety Working Group established under
section 201, shall develop a plan (to be known as the ``joint
import safety rapid response plan'') that sets forth protocols
and defines practices for U.S. Customs and Border Protection to
use--
(1) in taking action in response to, and coordinating
Federal responses to, an incident in which cargo
destined for or merchandise entering the United States
has been identified as posing a threat to the health or
safety of consumers in the United States; and
(2) in recovering from or mitigating the effects of
actions and responses to an incident described in
paragraph (1).
(b) Contents.--The joint import safety rapid response plan
shall address--
(1) the statutory and regulatory authorities and
responsibilities of U.S. Customs and Border Protection
and other Federal agencies in responding to an incident
described in subsection (a)(1);
(2) the protocols and practices to be used by U.S.
Customs and Border Protection when taking action in
response to, and coordinating Federal responses to,
such an incident;
(3) the measures to be taken by U.S. Customs and
Border Protection and other Federal agencies in
recovering from or mitigating the effects of actions
taken in response to such an incident after the
incident to ensure the resumption of the entry of
merchandise into the United States; and
(4) exercises that U.S. Customs and Border Protection
may conduct in conjunction with Federal, State, and
local agencies, and private sector entities, to
simulate responses to such an incident.
(c) Updates of Plan.--The Secretary of Homeland Security
shall review and update the joint import safety rapid response
plan, as appropriate, after conducting exercises under
subsection (d).
(d) Import Health and Safety Exercises.--
(1) In general.--The Secretary of Homeland Security
and the Commissioner shall periodically engage in the
exercises referred to in subsection (b)(4), in
conjunction with Federal, State, and local agencies and
private sector entities, as appropriate, to test and
evaluate the protocols and practices identified in the
joint import safety rapid response plan at United
States ports of entry.
(2) Requirements for exercises.--In conducting
exercises under paragraph (1), the Secretary and the
Commissioner shall--
(A) make allowance for the resources, needs,
and constraints of United States ports of entry
of different sizes in representative geographic
locations across the United States;
(B) base evaluations on current risk
assessments of merchandise entering the United
States at representative United States ports of
entry located across the United States;
(C) ensure that such exercises are conducted
in a manner consistent with the National
Incident Management System, the National
Response Plan, the National Infrastructure
Protection Plan, the National Preparedness
Guidelines, the Maritime Transportation System
Security Plan, and other such national
initiatives of the Department of Homeland
Security, as appropriate; and
(D) develop metrics with respect to the
resumption of the entry of merchandise into the
United States after an incident described in
subsection (a)(1).
(3) Requirements for testing and evaluation.--The
Secretary and the Commissioner shall ensure that the
testing and evaluation carried out in conducting
exercises under paragraph (1)--
(A) are performed using clear and objective
performance measures; and
(B) result in the identification of specific
recommendations or best practices for
responding to an incident described in
subsection (a)(1).
(4) Dissemination of recommendations and best
practices.--The Secretary and the Commissioner shall--
(A) share the recommendations or best
practices identified under paragraph (3)(B)
among the members of the interagency Import
Safety Working Group established under section
201 and with, as appropriate--
(i) State, local, and tribal
governments;
(ii) foreign governments; and
(iii) private sector entities; and
(B) use such recommendations and best
practices to update the joint import safety
rapid response plan.
SEC. 203. TRAINING.
The Commissioner shall ensure that personnel of U.S. Customs
and Border Protection assigned to United States ports of entry
are trained to effectively administer the provisions of this
title and to otherwise assist in ensuring the safety of
merchandise imported into the United States and the expeditious
entry of such merchandise.
TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS
SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.
In this title, the term ``intellectual property rights''
refers to copyrights, trademarks, and other forms of
intellectual property rights that are enforced by U.S. Customs
and Border Protection or U.S. Immigration and Customs
Enforcement.
SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.
(a) In General.--The Tariff Act of 1930 is amended by
inserting after section 628 (19 U.S.C. 1628) the following new
section:
``SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT.
``(a) In General.--Subject to subsections (c) and (d), if the
Commissioner of U.S. Customs and Border Protection suspects
that merchandise is being imported into the United States in
violation of section 526 of this Act or section 602,
1201(a)(2), or 1201(b)(1) of title 17, United States Code, and
determines that the examination or testing of the merchandise
by a person described in subsection (b) would assist the
Commissioner in determining if the merchandise is being
imported in violation of that section, the Commissioner, to
permit the person to conduct the examination and testing--
``(1) shall provide to the person information that
appears on the merchandise and its packaging and
labels, including unredacted images of the merchandise
and its packaging and labels; and
``(2) may, subject to any applicable bonding
requirements, provide to the person unredacted samples
of the merchandise.
``(b) Person Described.--A person described in this
subsection is--
``(1) in the case of merchandise suspected of being
imported in violation of section 526, the owner of the
trademark suspected of being copied or simulated by the
merchandise;
``(2) in the case of merchandise suspected of being
imported in violation of section 602 of title 17,
United States Code, the owner of the copyright
suspected of being infringed by the merchandise;
``(3) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing a technological measure that effectively
controls access to a work protected under that title,
and being imported in violation of section 1201(a)(2)
of that title, the owner of a copyright in the work;
and
``(4) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing protection afforded by a technological
measure that effectively protects a right of an owner
of a copyright in a work or a portion of a work, and
being imported in violation of section 1201(b)(1) of
that title, the owner of the copyright.
``(c) Limitation.--Subsection (a) applies only with respect
to merchandise suspected of infringing a trademark or copyright
that is recorded with U.S. Customs and Border Protection.
``(d) Exception.--The Commissioner may not provide under
subsection (a) information, photographs, or samples to a person
described in subsection (b) if providing such information,
photographs, or samples would compromise an ongoing law
enforcement investigation or national security.''.
(b) Termination of Previous Authority.--Notwithstanding
paragraph (2) of section 818(g) of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81; 125
Stat. 1496; 10 U.S.C. 2302 note), paragraph (1) of that section
shall have no force or effect on or after the date of the
enactment of this Act.
SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.
(a) In General.--Section 596(c)(2) of the Tariff Act of 1930
(19 U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'';
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) U.S. Customs and Border Protection
determines it is a technology, product,
service, device, component, or part thereof the
importation of which is prohibited under
subsection (a)(2) or (b)(1) of section 1201 of
title 17, United States Code.''.
(b) Notification of Persons Injured.--
(1) In general.--Not later than the date that is 30
business days after seizing merchandise pursuant to
subparagraph (G) of section 596(c)(2) of the Tariff Act
of 1930, as added by subsection (a), the Commissioner
shall provide to any person identified under paragraph
(2) information regarding the merchandise seized that
is equivalent to information provided to copyright
owners under regulations of U.S. Customs and Border
Protection for merchandise seized for violation of the
copyright laws.
(2) Persons to be provided information.--Any person
injured by the violation of (a)(2) or (b)(1) of section
1201 of title 17, United States Code, that resulted in
the seizure of the merchandise shall be provided
information under paragraph (1), if that person is
included on a list maintained by the Commissioner that
is revised annually through publication in the Federal
Register.
(3) Regulations.--Not later than one year after the
date of the enactment of this Act, the Secretary of the
Treasury shall prescribe regulations establishing
procedures that implement this subsection.
SEC. 304. ENFORCEMENT BY U.S. CUSTOMS AND BORDER PROTECTION OF WORKS
FOR WHICH COPYRIGHT REGISTRATION IS PENDING.
Not later than the date that is 180 days after the date of
the enactment of this Act, the Secretary of Homeland Security
shall authorize a process pursuant to which the Commissioner
shall enforce a copyright for which the owner has submitted an
application for registration under title 17, United States
Code, with the United States Copyright Office, to the same
extent and in the same manner as if the copyright were
registered with the Copyright Office, including by sharing
information, images, and samples of merchandise suspected of
infringing the copyright under section 628A of the Tariff Act
of 1930, as added by section 302.
SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER.
(a) Establishment.--The Secretary of Homeland Security
shall--
(1) establish within U.S. Immigration and Customs
Enforcement a National Intellectual Property Rights
Coordination Center; and
(2) appoint an Assistant Director to head the
National Intellectual Property Rights Coordination
Center.
(b) Duties.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall--
(1) coordinate the investigation of sources of
merchandise that infringe intellectual property rights
to identify organizations and individuals that produce,
smuggle, or distribute such merchandise;
(2) conduct and coordinate training with other
domestic and international law enforcement agencies on
investigative best practices--
(A) to develop and expand the capability of
such agencies to enforce intellectual property
rights; and
(B) to develop metrics to assess whether the
training improved enforcement of intellectual
property rights;
(3) coordinate, with U.S. Customs and Border
Protection, activities conducted by the United States
to prevent the importation or exportation of
merchandise that infringes intellectual property
rights;
(4) support the international interdiction of
merchandise destined for the United States that
infringes intellectual property rights;
(5) collect and integrate information regarding
infringement of intellectual property rights from
domestic and international law enforcement agencies and
other non-Federal sources;
(6) develop a means to receive and organize
information regarding infringement of intellectual
property rights from such agencies and other sources;
(7) disseminate information regarding infringement of
intellectual property rights to other Federal agencies,
as appropriate;
(8) develop and implement risk-based alert systems,
in coordination with U.S. Customs and Border
Protection, to improve the targeting of persons that
repeatedly infringe intellectual property rights;
(9) coordinate with the offices of United States
attorneys in order to develop expertise in, and assist
with the investigation and prosecution of, crimes
relating to the infringement of intellectual property
rights; and
(10) carry out such other duties as the Secretary of
Homeland Security may assign.
(c) Coordination With Other Agencies.--In carrying out the
duties described in subsection (b), the Assistant Director of
the National Intellectual Property Rights Coordination Center
shall coordinate with--
(1) U.S. Customs and Border Protection;
(2) the Food and Drug Administration;
(3) the Department of Justice;
(4) the Department of Commerce, including the United
States Patent and Trademark Office;
(5) the United States Postal Inspection Service;
(6) the Office of the United States Trade
Representative;
(7) any Federal, State, local, or international law
enforcement agencies that the Director of U.S.
Immigration and Customs Enforcement considers
appropriate; and
(8) any other entities that the Director considers
appropriate.
(d) Private Sector Outreach.--
(1) In general.--The Assistant Director of the
National Intellectual Property Rights Coordination
Center shall work with U.S. Customs and Border
Protection and other Federal agencies to conduct
outreach to private sector entities in order to
determine trends in and methods of infringing
intellectual property rights.
(2) Information sharing.--The Assistant Director
shall share information and best practices with respect
to the enforcement of intellectual property rights with
private sector entities, as appropriate, in order to
coordinate public and private sector efforts to combat
the infringement of intellectual property rights.
SEC. 306. JOINT STRATEGIC PLAN FOR THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS.
The Commissioner and the Director of U.S. Immigration and
Customs Enforcement shall include in the joint strategic plan
required by section 105--
(1) a description of the efforts of the Department of
Homeland Security to enforce intellectual property
rights;
(2) a list of the 10 United States ports of entry at
which U.S. Customs and Border Protection has seized the
most merchandise, both by volume and by value, that
infringes intellectual property rights during the most
recent 2-year period for which data are available; and
(3) a recommendation for the optimal allocation of
personnel, resources, and technology to ensure that
U.S. Customs and Border Protection and U.S. Immigration
and Customs Enforcement are adequately enforcing
intellectual property rights.
SEC. 307. PERSONNEL DEDICATED TO THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS.
(a) Personnel of U.S. Customs and Border Protection.--The
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall ensure that sufficient personnel are assigned
throughout U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement, respectively, who have
responsibility for preventing the importation into the United
States of merchandise that infringes intellectual property
rights.
(b) Staffing of National Intellectual Property Rights
Coordination Center.--The Commissioner shall--
(1) assign not fewer than 3 full-time employees of
U.S. Customs and Border Protection to the National
Intellectual Property Rights Coordination Center
established under section 305; and
(2) ensure that sufficient personnel are assigned to
United States ports of entry to carry out the
directives of the Center.
SEC. 308. TRAINING WITH RESPECT TO THE ENFORCEMENT OF INTELLECTUAL
PROPERTY RIGHTS.
(a) Training.--The Commissioner shall ensure that officers of
U.S. Customs and Border Protection are trained to effectively
detect and identify merchandise destined for the United States
that infringes intellectual property rights, including through
the use of technologies identified under subsection (c).
(b) Consultation With Private Sector.--The Commissioner shall
consult with private sector entities to better identify
opportunities for collaboration between U.S. Customs and Border
Protection and such entities with respect to training for
officers of U.S. Customs and Border Protection in enforcing
intellectual property rights.
(c) Identification of New Technologies.--In consultation with
private sector entities, the Commissioner shall identify--
(1) technologies with the cost-effective capability
to detect and identify merchandise at United States
ports of entry that infringes intellectual property
rights; and
(2) cost-effective programs for training officers of
U.S. Customs and Border Protection to use such
technologies.
(d) Donations of Technology.--Not later than the date that is
180 days after the date of the enactment of this Act, the
Commissioner shall prescribe regulations to enable U.S. Customs
and Border Protection to receive donations of hardware,
software, equipment, and similar technologies, and to accept
training and other support services, from private sector
entities, for the purpose of enforcing intellectual property
rights.
SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.
(a) Cooperation.--The Secretary of Homeland Security shall
coordinate with the competent law enforcement and customs
authorities of foreign countries, including by sharing
information relevant to enforcement actions, to enhance the
efforts of the United States and such authorities to enforce
intellectual property rights.
(b) Technical Assistance.--The Secretary of Homeland Security
shall provide technical assistance to competent law enforcement
and customs authorities of foreign countries to enhance the
ability of such authorities to enforce intellectual property
rights.
(c) Interagency Collaboration.--The Commissioner and the
Director of U.S. Immigration and Customs Enforcement shall lead
interagency efforts to collaborate with law enforcement and
customs authorities of foreign countries to enforce
intellectual property rights.
SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.
Not later than June 30, 2016, and annually thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall jointly submit to the Committee on Finance of
the Senate, the Committee on Ways and Means of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Committee on
Homeland Security of the House of Representatives a report that
contains the following:
(1) With respect to the enforcement of intellectual
property rights, the following:
(A) The number of referrals, during the
preceding year, from U.S. Customs and Border
Protection to U.S. Immigration and Customs
Enforcement relating to infringement of
intellectual property rights .
(B) The number of investigations relating to
the infringement of intellectual property
rights referred by U.S. Immigration and Customs
Enforcement to a United States attorney for
prosecution and the United States attorneys to
which those investigations were referred.
(C) The number of such investigations
accepted by each such United States attorney
and the status or outcome of each such
investigation.
(D) The number of such investigations that
resulted in the imposition of civil or criminal
penalties.
(E) A description of the efforts of U.S.
Custom and Border Protection and U.S.
Immigration and Customs Enforcement to improve
the success rates of investigations and
prosecutions relating to the infringement of
intellectual property rights.
(2) An estimate of the average time required by the
Office of International Trade of U.S. Customs and
Border Protection to respond to a request from port
personnel for advice with respect to whether
merchandise detained by U.S. Customs and Border
Protection infringed intellectual property rights,
distinguished by types of intellectual property rights
infringed.
(3) A summary of the outreach efforts of U.S. Customs
and Border Protection and U.S. Immigration and Customs
Enforcement with respect to--
(A) the interdiction and investigation of,
and the sharing of information between those
agencies and other Federal agencies to prevent,
the infringement of intellectual property
rights;
(B) collaboration with private sector
entities--
(i) to identify trends in the
infringement of, and technologies that
infringe, intellectual property rights;
(ii) to identify opportunities for
enhanced training of officers of U.S.
Customs and Border Protection and U.S.
Immigration and Customs Enforcement;
and
(iii) to develop best practices to
enforce intellectual property rights;
and
(C) coordination with foreign governments and
international organizations with respect to the
enforcement of intellectual property rights.
(4) A summary of the efforts of U.S. Customs and
Border Protection and U.S. Immigration and Customs
Enforcement to address the challenges with respect to
the enforcement of intellectual property rights
presented by Internet commerce and the transit of small
packages and an identification of the volume, value,
and type of merchandise seized for infringing
intellectual property rights as a result of such
efforts.
(5) A summary of training relating to the enforcement
of intellectual property rights conducted under section
308 and expenditures for such training.
SEC. 311. INFORMATION FOR TRAVELERS REGARDING VIOLATIONS OF
INTELLECTUAL PROPERTY RIGHTS.
(a) In General.--The Secretary of Homeland Security shall
develop and carry out an educational campaign to inform
travelers entering or leaving the United States about the
legal, economic, and public health and safety implications of
acquiring merchandise that infringes intellectual property
rights outside the United States and importing such merchandise
into the United States in violation of United States law.
(b) Declaration Forms.--The Commissioner shall ensure that
all versions of Declaration Form 6059B of U.S. Customs and
Border Protection, or a successor form, including any
electronic equivalent of Declaration Form 6059B or a successor
form, printed or displayed on or after the date that is 30 days
after the date of the enactment of this Act include a written
warning to inform travelers arriving in the United States that
importation of merchandise into the United States that
infringes intellectual property rights may subject travelers to
civil or criminal penalties and may pose serious risks to
safety or health.
TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS
SEC. 401. SHORT TITLE.
This title may be cited as the ``Preventing Recurring Trade
Evasion and Circumvention Act'' or ``PROTECT Act''.
SEC. 402. DEFINITIONS.
In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Finance and the
Committee on Appropriations of the Senate; and
(B) the Committee on Ways and Means and the
Committee on Appropriations of the House of
Representatives.
(2) Covered merchandise.--The term ``covered
merchandise'' means merchandise that is subject to--
(A) a countervailing duty order issued under
section 706 of the Tariff Act of 1930; or
(B) an antidumping duty order issued under
section 736 of the Tariff Act of 1930.
(3) Eligible small business.--
(A) In general.--The term ``eligible small
business'' means any business concern which, in
the Commissioner's judgment, due to its small
size, has neither adequate internal resources
nor financial ability to obtain qualified
outside assistance in preparing and submitting
for consideration allegations of evasion.
(B) Nonreviewability.--Any agency decision
regarding whether a business concern is an
eligible small business for purposes of section
411(b)(4)(E) is not reviewable by any other
agency or by any court.
(4) Enter; entry.--The terms ``enter'' and ``entry''
refer to the entry, or withdrawal from warehouse for
consumption, in the customs territory of the United
States.
(5) Evade; evasion.--The terms ``evade'' and
``evasion'' refer to entering covered merchandise into
the customs territory of the United States by means of
any document or electronically transmitted data or
information, written or oral statement, or act that is
material and false, or any omission that is material,
and that results in any cash deposit or other security
or any amount of applicable antidumping or
countervailing duties being reduced or not being
applied with respect to the merchandise.
(6) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
(7) Trade remedy laws.--The term ``trade remedy
laws'' means title VII of the Tariff Act of 1930.
SEC. 403. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade
Agreement and section 408 of the North American Free Trade
Agreement Implementation Act (19 U.S.C. 3438), this title and
the amendments made by this title shall apply with respect to
goods from Canada and Mexico.
Subtitle A--Actions Relating to Enforcement of Trade Remedy Laws
SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION.
(a) Establishment.--
(1) In general.--The Secretary of Homeland Security
shall establish and maintain within the Office of
International Trade of U.S. Customs and Border
Protection, established under section 2(d) of the Act
of March 3, 1927 (44 Stat. 1381, chapter 348; 19 U.S.C.
2072(d)), a Trade Remedy Law Enforcement Division.
(2) Composition.--The Trade Law Remedy Enforcement
Division shall be composed of--
(A) headquarters personnel led by a Director,
who shall report to the Assistant Commissioner
of the Office of International Trade; and
(B) a National Targeting and Analysis Group
dedicated to preventing and countering evasion.
(3) Duties.--The Trade Remedy Law Enforcement
Division shall be dedicated--
(A) to the development and administration of
policies to prevent and counter evasion;
(B) to direct enforcement and compliance
assessment activities concerning evasion;
(C) to the development and conduct of
commercial risk assessment targeting with
respect to cargo destined for the United States
in accordance with subsection (c);
(D) to issuing Trade Alerts described in
subsection (d); and
(E) to the development of policies for the
application of single entry and continuous
bonds for entries of covered merchandise to
sufficiently protect the collection of
antidumping and countervailing duties
commensurate with the level of risk of
noncollection.
(b) Duties of Director.--The duties of the Director of the
Trade Remedy Law Enforcement Division shall include--
(1) directing the trade enforcement and compliance
assessment activities of U.S. Customs and Border
Protection that concern evasion;
(2) facilitating, promoting, and coordinating
cooperation and the exchange of information between
U.S. Customs and Border Protection, U.S. Immigration
and Customs Enforcement, and other relevant agencies
regarding evasion;
(3) notifying on a timely basis the administering
authority (as defined in section 771(1) of the Tariff
Act of 1930 (19 U.S.C. 1677(1))) and the Commission (as
defined in section 771(2) of the Tariff Act of 1930 (19
U.S.C. 1677(2))) of any finding, determination, civil
action, or criminal action taken by U.S. Customs and
Border Protection or other Federal agency regarding
evasion;
(4) serving as the primary liaison between U.S.
Customs and Border Protection and the public regarding
United States Government activities concerning evasion,
including--
(A) receive and transmit to the appropriate
U.S. Customs and Border Protection office
allegations from parties of evasion;
(B) upon request by the party or parties that
submitted an allegation of evasion, provide
information to such party or parties on the
status of U.S. Customs and Border Protection's
consideration of the allegation and decision to
pursue or not pursue any administrative
inquiries or other actions, such as changes in
policies, procedures, or resource allocation as
a result of the allegation;
(C) as needed, request from the party or
parties that submitted an allegation of evasion
any additional information that may be relevant
for U.S. Customs and Border Protection
determining whether to initiate an
administrative inquiry or take any other action
regarding the allegation;
(D) notify on a timely basis the party or
parties that submitted such an allegation of
the results of any administrative, civil or
criminal actions taken by U.S. Customs and
Border Protection or other Federal agency
regarding evasion as a direct or indirect
result of the allegation;
(E) upon request, provide technical
assistance and advice to eligible small
businesses to enable such businesses to prepare
and submit allegations of evasion, except that
the Director may deny assistance if the
Director concludes that the allegation, if
submitted, would not lead to the initiation of
an administrative inquiry or any other action
to address the allegation;
(F) in cooperation with the public, the
Commercial Customs Operations Advisory
Committee, the Trade Support Network, and any
other relevant parties and organizations,
develop guidelines on the types and nature of
information that may be provided in allegations
of evasion; and
(G) regularly consult with the public, the
Commercial Customs Operations Advisory
Committee, the Trade Support Network, and any
other relevant parties and organizations
regarding the development and implementation of
regulations, interpretations, and policies
related to countering evasion.
(c) Preventing and Countering Evasion of the Trade Remedy
Laws.--In carrying out its duties with respect to preventing
and countering evasion, the National Targeting and Analysis
Group dedicated to preventing and countering evasion shall--
(1) establish targeted risk assessment methodologies
and standards--
(A) for evaluating the risk that cargo
destined for the United States may constitute
evading covered merchandise; and
(B) for issuing, as appropriate, Trade Alerts
described in subsection (d); and
(2) to the extent practicable and otherwise
authorized by law, use information available from the
Automated Commercial System, the Automated Commercial
Environment computer system, the Automated Targeting
System, the Automated Export System, the International
Trade Data System, and the TECS, and any similar and
successor systems, to administer the methodologies and
standards established under paragraph (1).
(d) Trade Alerts.--Based upon the application of the targeted
risk assessment methodologies and standards established under
subsection (c), the Director of the Trade Remedy Law
Enforcement Division shall issue Trade Alerts or other such
means of notification to directors of United States ports of
entry directing further inspection, physical examination, or
testing of merchandise to ensure compliance with the trade
remedy laws and to require additional bonds, cash deposits, or
other security to ensure collection of any duties, taxes and
fees owed.
SEC. 412. COLLECTION OF INFORMATION ON EVASION OF TRADE REMEDY LAWS.
(a) Authority to Collect Information.--To determine whether
covered merchandise is being entered into the customs territory
of the United States through evasion, the Secretary, acting
through the Commissioner--
(1) shall exercise all existing authorities to
collect information needed to make the determination;
and
(2) may collect such additional information as is
necessary to make the determination through such
methods as the Commissioner considers appropriate,
including by issuing questionnaires with respect to the
entry or entries at issue to--
(A) a person who filed an allegation with
respect to the covered merchandise;
(B) a person who is alleged to have entered
the covered merchandise into the customs
territory of the United States through evasion;
or
(C) any other person who is determined to
have information relevant to the allegation of
entry of covered merchandise into the customs
territory of the United States through evasion.
(b) Adverse Inference.--
(1) In general.--If the Secretary finds that a person
who filed an allegation, a person alleged to have
entered covered merchandise into the customs territory
of the United States through evasion, or a foreign
producer or exporter of covered merchandise that is
alleged to have entered into the customs territory of
the United States through evasion, has failed to
cooperate by not acting to the best of the person's
ability to comply with a request for information, the
Secretary may, in making a determination whether an
entry or entries of covered merchandise may constitute
merchandise that is entered into the customs territory
of the United States through evasion, use an inference
that is adverse to the interests of that person in
selecting from among the facts otherwise available to
determine whether evasion has occurred.
(2) Adverse inference described.--An adverse
inference used under paragraph (1) may include reliance
on information derived from--
(A) the allegation of evasion of the trade
remedy laws, if any, submitted to U.S. Customs
and Border Protection;
(B) a determination by the Commissioner in
another investigation, proceeding, or other
action regarding evasion of the unfair trade
laws; or
(C) any other available information.
SEC. 413. ACCESS TO INFORMATION.
(a) In General.--Section 777(b)(1)(A)(ii) of the Tariff Act
of 1930 (19 U.S.C. 1677f(b)(1)(A)(ii)) is amended by inserting
``negligence, gross negligence, or'' after ``regarding''.
(b) Additional Information.--Notwithstanding any other
provision of law, the Secretary is authorized to provide to the
Secretary of Commerce or the United States International Trade
Commission any information that is necessary to enable the
Secretary of Commerce or the United States International Trade
Commission to assist the Secretary to identify, through risk
assessment targeting or otherwise, covered merchandise that is
entered into the customs territory of the United States through
evasion.
SEC. 414. COOPERATION WITH FOREIGN COUNTRIES ON PREVENTING EVASION OF
TRADE REMEDY LAWS.
(a) Bilateral Agreements.--
(1) In general.--The Secretary shall seek to
negotiate and enter into bilateral agreements with the
customs authorities or other appropriate authorities of
foreign countries for purposes of cooperation on
preventing evasion of the trade remedy laws of the
United States and the trade remedy laws of the other
country.
(2) Provisions and authorities.--The Secretary shall
seek to include in each such bilateral agreement the
following provisions and authorities:
(A) On the request of the importing country,
the exporting country shall provide, consistent
with its laws, regulations, and procedures,
production, trade, and transit documents and
other information necessary to determine
whether an entry or entries exported from the
exporting country are subject to the importing
country's trade remedy laws.
(B) On the written request of the importing
country, the exporting country shall conduct a
verification for purposes of enabling the
importing country to make a determination
described in subparagraph (A).
(C) The exporting country may allow the
importing country to participate in a
verification described in subparagraph (B),
including through a site visit.
(D) If the exporting country does not allow
participation of the importing country in a
verification described in subparagraph (B), the
importing country may take this fact into
consideration in its trade enforcement and
compliance assessment activities regarding the
compliance of the exporting country's exports
with the importing country's trade remedy laws.
(b) Consideration.--The Commissioner is authorized to take
into consideration whether a country is a signatory to a
bilateral agreement described in subsection (a) and the extent
to which the country is cooperating under the bilateral
agreement for purposes of trade enforcement and compliance
assessment activities of U.S. Customs and Border Protection
that concern evasion by such country's exports.
(c) Report.--Not later than December 31 of each year
beginning after the date of the enactment of this Act, the
Secretary shall submit to the appropriate congressional
committees a report summarizing--
(1) the status of any ongoing negotiations of
bilateral agreements described in subsection (a),
including the identities of the countries involved in
such negotiations;
(2) the terms of any completed bilateral agreements
described in subsection (a); and
(3) bilateral cooperation and other activities
conducted pursuant to or enabled by any completed
bilateral agreements described in subsection (a).
SEC. 415. TRADE NEGOTIATING OBJECTIVES.
The principal negotiating objectives of the United States
shall include obtaining the objectives of the bilateral
agreements described under section 414(a) for any trade
agreements under negotiation as of the date of the enactment of
this Act or future trade agreement negotiations.
Subtitle B--Investigation of Evasion of Trade Remedy Laws
SEC. 421. PROCEDURES FOR INVESTIGATION OF EVASION OF ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS.
(a) In General.--Title VII of the Tariff Act of 1930 (19
U.S.C. 1671 et seq.) is amended by inserting after section 781
the following:
``SEC. 781A. PROCEDURES FOR PREVENTION OF EVASION OF ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS.
``(a) Definitions.--In this section:
``(1) Administering authority.--The term
`administering authority' has the meaning given that
term in section 771.
``(2) Commissioner.--The term `Commissioner' means
the Commissioner of U.S. Customs and Border Protection.
``(3) Covered merchandise.--The term `covered
merchandise' means merchandise that is subject to--
``(A) a countervailing duty order issued
under section 706; or
``(B) an antidumping duty order issued under
section 736.
``(4) Evasion.--
``(A) In general.--Except as provided in
subparagraph (B), the term `evasion' refers to
entering covered merchandise into the customs
territory of the United States by means of any
document or electronically transmitted data or
information, written or oral statement, or act
that is material and false, or any omission
that is material, and that results in any cash
deposit or other security or any amount of
applicable antidumping or countervailing duties
being reduced or not being applied with respect
to the merchandise.
``(B) Exception for clerical error.--
``(i) In general.--Except as provided
in clause (ii), the term `evasion' does
not include entering covered
merchandise into the customs territory
of the United States by means of--
``(I) a document or
electronically transmitted data
or information, written or oral
statement, or act that is false
as a result of a clerical
error; or
``(II) an omission that
results from a clerical error.
``(ii) Patterns of negligent
conduct.--If the administering
authority determines that a person has
entered covered merchandise into the
customs territory of the United States
by means of a clerical error referred
to in subclause (I) or (II) of clause
(i) and that the clerical error is part
of a pattern of negligent conduct on
the part of that person, the
administering authority may determine,
notwithstanding clause (i), that the
person has entered such covered
merchandise into the customs territory
of the United States by means of
evasion.
``(iii) Electronic repetition of
errors.--For purposes of clause (ii),
the mere unintentional repetition by an
electronic system of an initial
clerical error does not constitute a
pattern of negligent conduct.
``(iv) Rule of construction.--A
determination by the administering
authority that a person has entered
covered merchandise into the customs
territory of the United States by means
of a clerical error referred to in
subclause (I) or (II) of clause (i)
rather than by means of evasion shall
not be construed to excuse that person
from the payment of any duties
applicable to the merchandise.
``(b) Investigation by Administering Authority.--
``(1) Procedures for initiating investigations.--
``(A) Initiation by administering
authority.--An investigation under this
subsection shall be initiated with respect to
merchandise imported into the United States
whenever the administering authority
determines, from information available to the
administering authority, that an investigation
is warranted with respect to whether the
merchandise is covered merchandise that has
entered into the customs territory of the
United States by means of evasion.
``(B) Initiation by petition or referral.--
``(i) In general.--The administering
authority shall determine whether to
initiate an investigation under this
subparagraph not later than 30 days
after the date on which the
administering authority receives a
petition described in clause (ii) or a
referral described in clause (iii).
``(ii) Petition described.--A
petition described in this clause is a
petition that--
``(I) is filed with the
administering authority by an
interested party specified in
subparagraph (A), (C), (D),
(E), (F), or (G) of section
771(9);
``(II) alleges that
merchandise imported into the
United States is covered
merchandise that has entered
into the customs territory of
the United States by means of
evasion; and
``(III) is accompanied by
information reasonably
available to the petitioner
supporting those allegations.
``(iii) Referral described.--A
referral described in this clause is a
referral made by the Commissioner
pursuant to subsection (c)(1).
``(2) Time limits for determinations.--
``(A) Preliminary determination.--
``(i) In general.--Not later than 90
days after the administering authority
initiates an investigation under
paragraph (1) with respect to
merchandise, the administering
authority shall issue a preliminary
determination, based on information
available to the administering
authority at the time of the
determination, with respect to whether
there is a reasonable basis to believe
or suspect that the merchandise is
covered merchandise that has entered
into the customs territory of the
United States by means of evasion.
``(ii) Expedited procedures.--If the
administering authority determines that
expedited action is warranted with
respect to an investigation initiated
under paragraph (1), the administering
authority may publish the notice of
initiation of the investigation and the
notice of the preliminary determination
in the Federal Register at the same
time.
``(B) Final determination by the
administering authority.--Not later than 300
days after the date on which the administering
authority initiates an investigation under
paragraph (1) with respect to merchandise, the
administering authority shall issue a final
determination with respect to whether the
merchandise is covered merchandise that has
entered into the customs territory of the
United States by means of evasion.
``(3) Access to information.--
``(A) Entry documents, records, and other
information.--Not later than 10 days after
receiving a request from the administering
authority with respect to merchandise that is
the subject of an investigation under paragraph
(1), the Commissioner shall transmit to the
administering authority copies of the
documentation and information required by
section 484(a)(1) with respect to the entry of
the merchandise, as well as any other
documentation or information requested by the
administering authority.
``(B) Access of interested parties.--Not
later than 10 business days after the date on
which the administering authority initiates an
investigation under paragraph (1) with respect
to merchandise, the administering authority
shall provide to the authorized representative
of each interested party that filed a petition
under paragraph (1) or otherwise participates
in a proceeding, pursuant to a protective
order, the copies of the entry documentation
and any other information received by the
administering authority under subparagraph (A).
``(C) Business proprietary information from
prior segments.--If an authorized
representative of an interested party
participating in an investigation under
paragraph (1) has access to business
proprietary information released pursuant to an
administrative protective order in a proceeding
under subtitle A, B, or C of title VII of the
Tariff Act of 1930 that is relevant to the
investigation conducted under paragraph (1),
that authorized representative may submit such
information to the administering authority for
its consideration in the context of the
investigation conducted under paragraph (1).
``(4) Authority to collect and verify additional
information.--In making a determination under paragraph
(2) with respect to covered merchandise, the
administering authority may collect such additional
information as is necessary to make the determination
through such methods as the administering authority
considers appropriate, including by--
``(A) issuing a questionnaire with respect to
such covered merchandise to--
``(i) a person that filed an
allegation under paragraph (1)(B)(ii)
that resulted in the initiation of an
investigation under paragraph (1)(A)
with respect to such covered
merchandise;
``(ii) a person alleged to have
entered such covered merchandise into
the customs territory of the United
States by means of evasion;
``(iii) a person that is a foreign
producer or exporter of such covered
merchandise; or
``(iv) the government of a country
from which such covered merchandise was
exported;
``(B) conducting verifications, including on-
site verifications, of any relevant
information; and
``(C) requesting--
``(i) that the Commissioner provide
any information and data available to
U.S. Customs and Border Protection, and
``(ii) that the Commissioner gather
additional necessary information from
the importer of covered merchandise and
other relevant parties.
``(5) Adverse inference.--If the administering
authority finds that a person described in clause (i),
(ii), or (iii) of paragraph (4)(A) has failed to
cooperate by not acting to the best of the person's
ability to comply with a request for information, the
administering authority may, in making a determination
under paragraph (2), use an inference that is adverse
to the interests of that person in selecting from among
the facts otherwise available to make the
determination.
``(6) Effect of affirmative preliminary
determination.--If the administering authority makes a
preliminary determination under paragraph (2)(A) that
merchandise is covered merchandise that has entered
into the customs territory of the United States by
means of evasion, the administering authority shall
instruct U.S. Customs and Border Protection--
``(A) to suspend liquidation of each entry of
the merchandise that--
``(i) enters on or after the date of
the preliminary determination; or
``(ii) enters before that date, if
the liquidation of the entry is not
final on that date; and
``(B) to require the posting of a cash
deposit for each entry of the merchandise in an
amount determined pursuant to the order, or
administrative review conducted under section
751, that applies to the merchandise.
``(7) Effect of affirmative final determination.--
``(A) In general.--If the administering
authority makes a final determination under
paragraph (2)(B) that merchandise is covered
merchandise that has entered into the customs
territory of the United States by means of
evasion, the administering authority shall
instruct U.S. Customs and Border Protection--
``(i) to assess duties on the
merchandise in an amount determined
pursuant to the order, or
administrative review conducted under
section 751, that applies to the
merchandise;
``(ii) notwithstanding section 501,
to reliquidate, in accordance with such
order or administrative review, each
entry of the merchandise that was
liquidated and is determined to include
covered merchandise; and
``(iii) to review and reassess the
amount of bond or other security the
importer is required to post for such
merchandise entered on or after the
date of the final determination to
ensure the protection of revenue and
compliance with the law.
``(B) Additional authority.--If the
administering authority makes a final
determination under paragraph (2)(B) that
merchandise is covered merchandise that has
entered into the customs territory of the
United States by means of evasion, the
administering authority may instruct U.S.
Customs and Border Protection to require the
importer of the merchandise to post a cash
deposit or bond on such merchandise entered on
or after the date of the final determination in
an amount the administering authority
determines in the final determination to be
owed with respect to the merchandise.
``(8) Effect of negative final determination.--If the
administering authority makes a final determination
under paragraph (2)(B) that merchandise is not covered
merchandise that has entered into the customs territory
of the United States by means of evasion, the
administering authority shall terminate the suspension
of liquidation and refund any cash deposit imposed
pursuant to paragraph (6) with respect to the
merchandise.
``(9) Notification.--Not later than 5 business days
after making a determination under paragraph (2) with
respect to covered merchandise, the administering
authority may provide to importers, in such manner as
the administering authority determines appropriate,
information discovered in the investigation that the
administering authority determines will help educate
importers with respect to importing merchandise into
the customs territory of the United States in
accordance with all applicable laws and regulations.
``(10) Special rule for cases in which the producer
or exporter is unknown.--If the administering authority
is unable to determine the actual producer or exporter
of the merchandise with respect to which the
administering authority initiated an investigation
under paragraph (1), the administering authority shall,
in requiring the posting of a cash deposit under
paragraph (6) or assessing duties pursuant to paragraph
(7)(A), impose the cash deposit or duties (as the case
may be) in the highest amount applicable to any
producer or exporter of the merchandise pursuant to any
order, or any administrative review conducted under
section 751.
``(11) Publication of determinations.--The
administering authority shall publish in the Federal
Register each notice of initiation of an investigation
made under paragraph (1)(A), each preliminary
determination made under paragraph (2)(A), and each
final determination made under paragraph (2)(B).
``(12) Referrals to other agencies.--
``(A) After preliminary determination.--
Notwithstanding section 777 and subject to
subparagraph (C), when the administering
authority makes an affirmative preliminary
determination under paragraph (2)(A), the
administering authority shall--
``(i) transmit the administrative
record to the Commissioner for such
additional action as the Commissioner
determines appropriate, including
proceedings under section 592; and
``(ii) at the request of the head of
another agency, transmit the
administrative record to the head of
that agency.
``(B) After final determination.--
Notwithstanding section 777 and subject to
subparagraph (C), when the administering
authority makes an affirmative final
determination under paragraph (2)(B), the
administering authority shall--
``(i) transmit the complete
administrative record to the
Commissioner; and
``(ii) at the request of the head of
another agency, transmit the complete
administrative record to the head of
that agency.
``(c) Referral by U.S. Customs and Border Protection.--In the
event the Commissioner receives information that a person has
entered covered merchandise into the customs territory of the
United States through evasion, but is not able to determine
whether the merchandise is in fact covered merchandise, the
Commissioner shall--
``(1) refer the matter to the administering authority
for additional proceedings under subsection (b); and
``(2) transmit to the administering authority--
``(A) copies of the entry documents and
information required by section 484(a)(1)
relating to the merchandise; and
``(B) any additional records or information
that the Commissioner considers appropriate.
``(d) Cooperation Between U.S. Customs and Border Protection
and the Department of Commerce.--
``(1) Notification of investigations.--Upon receiving
a petition and upon initiating an investigation under
subsection (b), the administering authority shall
notify the Commissioner.
``(2) Procedures for cooperation.--Not later than 180
days after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, the
Commissioner and the administering authority shall
establish procedures to ensure maximum cooperation and
communication between U.S. Customs and Border
Protection and the administering authority in order to
quickly, efficiently, and accurately investigate
allegations of evasion of antidumping and
countervailing duty orders.
``(e) Annual Report on Preventing Evasion of Antidumping and
Countervailing Duty Orders.--
``(1) In general.--Not later than February 28 of each
year beginning in 2016, the Under Secretary for
International Trade of the Department of Commerce shall
submit to the Committee on Finance and the Committee on
Appropriations of the Senate and the Committee on Ways
and Means and the Committee on Appropriations of the
House of Representatives a report on the efforts being
taken under subsection (b) to prevent evasion of
antidumping and countervailing duty orders.
``(2) Contents.--Each report required by paragraph
(1) shall include, for the calendar year preceding the
submission of the report--
``(A)(i) the number of investigations
initiated pursuant to subsection (b); and
``(ii) a description of such investigations,
including--
``(I) the results of such
investigations; and
``(II) the amount of antidumping and
countervailing duties collected as a
result of such investigations; and
``(B) the number of referrals made by the
Commissioner pursuant to subsection (c).''.
(b) Technical Amendment.--The table of contents for title VII
of the Tariff Act of 1930 is amended by inserting after the
item relating to section 781 the following:
``Sec. 781A. Procedures for prevention of evasion of antidumping and
countervailing duty orders.''.
(c) Judicial Review.--Section 516A(a)(2) of the Tariff Act of
1930 (19 U.S.C. 1516a(a)(2)) is amended--
(1) in subparagraph (A)(i)(I), by striking ``or
(viii)'' and inserting ``(viii), or (ix)''; and
(2) in subparagraph (B), by inserting at the end the
following:
``(ix) A determination by the
administering authority under section
781A.''.
(d) Regulations.--Not later than 180 days after the date of
the enactment of this Act--
(1) the Secretary of Commerce shall prescribe such
regulations as may be necessary to carry out subsection
(b) of section 781A of the Tariff Act of 1930 (as added
by subsection (a) of this section); and
(2) the Commissioner shall prescribe such regulations
as may be necessary to carry out subsection (c) of such
section 781A.
(e) Effective Date.--The amendments made by this section
shall--
(1) take effect on the date that is 180 days after
the date of the enactment of this Act; and
(2) apply with respect to merchandise entered on or
after such date of enactment.
SEC. 422. GOVERNMENT ACCOUNTABILITY OFFICE REPORT.
Not later than 2 years after the date of the enactment of
this Act, the Comptroller General of the United States shall
submit to the Committee on Finance and the Committee on
Appropriations of the Senate and the Committee on Ways and
Means and the Committee on Appropriations of the House of
Representatives a report assessing the effectiveness of--
(1) the provisions of, and amendments made by, this
subtitle; and
(2) the actions taken and procedures developed by the
Secretary of Commerce and the Commissioner pursuant to
such provisions and amendments to prevent evasion of
antidumping and countervailing duty orders under title
VII of the Tariff Act of 1930 (19 U.S.C. 1671 et seq.).
Subtitle C--Other Matters
SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL.
The Commissioner shall, to the maximum extent possible,
ensure that U.S. Customs and Border Protection--
(1) employs sufficient personnel who have expertise
in, and responsibility for, preventing and
investigating the entry of covered merchandise into the
customs territory of the United States through evasion;
(2) on the basis of risk assessment metrics, assigns
sufficient personnel with primary responsibility for
preventing the entry of covered merchandise into the
customs territory of the United States through evasion
to the ports of entry in the United States at which the
Commissioner determines potential evasion presents the
most substantial threats to the revenue of the United
States; and
(3) provides adequate training to relevant personnel
to increase expertise and effectiveness in the
prevention and identification of entries of covered
merchandise into the customs territory of the United
States through evasion.
SEC. 432. ANNUAL REPORT ON PREVENTION OF EVASION OF ANTIDUMPING AND
COUNTERVAILING DUTY ORDERS.
(a) In General.--Not later than February 28 of each year,
beginning in 2016, the Commissioner, in consultation with the
Secretary of Commerce and the Director of U.S. Immigration and
Customs Enforcement, shall submit to the appropriate
congressional committees a report on the efforts being taken to
prevent and investigate evasion.
(b) Contents.--Each report required under subsection (a)
shall include--
(1) for the calendar year preceding the submission of
the report--
(A) a summary of the efforts of U.S. Customs
and Border Protection to prevent and identify
evasion;
(B) the number of allegations of evasion
received and the number of allegations of
evasion resulting in any administrative, civil,
or criminal actions by U.S. Customs and Border
Protection or any other agency;
(C) a summary of the completed administrative
inquiries of evasion, including the number and
nature of the inquiries initiated, conducted,
or completed, as well as their resolution;
(D) with respect to inquiries that lead to
issuance of a penalty notice, the penalty
amounts;
(E) the amounts of antidumping and
countervailing duties collected as a result of
any actions by U.S. Customs and Border
Protection or any other agency;
(F) a description of the allocation of
personnel and other resources of U.S. Customs
and Border Protection and U.S. Immigration and
Customs Enforcement to prevent, identify, and
investigate evasion, including any assessments
conducted regarding the allocation of such
personnel and resources; and
(G) a description of training conducted to
increase expertise and effectiveness in the
prevention, identification, and investigation
of evasion; and
(2) a description of U.S. Customs and Border
Protection processes and procedures to prevent and
identify evasion, including--
(A) the specific guidelines, policies, and
practices used by U.S. Customs and Border
Protection to ensure that allegations of
evasion are promptly evaluated and acted upon
in a timely manner;
(B) an evaluation of the efficacy of such
existing guidelines, policies, and practices;
(C) identification of any changes since the
last report that have materially improved or
reduced the effectiveness of U.S. Customs and
Border Protection to prevent and identify
evasion;
(D) a description of the development and
implementation of policies for the application
of single entry and continuous bonds for
entries of covered merchandise to sufficiently
protect the collection of antidumping and
countervailing duties commensurate with the
level of risk on noncollection;
(E) the processes and procedures for
increased cooperation and information sharing
with the Department of Commerce, U.S.
Immigration and Customs Enforcement, and any
other relevant Federal agencies to prevent and
identify evasion; and
(F) identification of any recommended policy
changes of other Federal agencies or
legislative changes to improve the
effectiveness of U.S. Customs and Border
Protection to prevent and identify evasion.
SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.
Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1675(a)(2)(B)) is amended--
(1) by striking clause (iii);
(2) by redesignating clause (iv) as clause (iii); and
(3) inserting after clause (iii), as redesignated by
paragraph (2) of this section, the following:
``(iv) Determinations based on
bonafide sales.--Any weighted average
dumping margin or individual
countervailing duty rate determined for
an exporter or producer in a review
conducted under clause (i) shall be
based solely on the bona fide United
States sales of an exporter or
producer, as the case may be, made
during the period covered by the
review. In determining whether the
United States sales of an exporter or
producer made during the period covered
by the review were bona fide, the
administering authority shall consider,
depending on the circumstances
surrounding such sales--
``(I) the prices of such
sales;
``(II) whether such sales
were made in commercial
quantities;
``(III) the timing of such
sales;
``(IV) the expenses arising
from such sales;
``(V) whether the subject
merchandise involved in such
sales was resold in the United
States at a profit;
``(VI) whether such sales
were made on an arms-length
basis; and
``(VII) any other factor the
administering authority
determines to be relevant as to
whether such sales are, or are
not, likely to be typical of
those the exporter or producer
will make after completion of
the review.''.
TITLE V--IMPROVEMENTS TO ANTIDUMPING AND COUNTERVAILING DUTY LAWS
SEC. 501. SHORT TITLE.
This title may be cited as the ``American Trade Enforcement
Effectiveness Act''.
SEC. 502. CONSEQUENCES OF FAILURE TO COOPERATE WITH A REQUEST FOR
INFORMATION IN A PROCEEDING.
Section 776 of the Tariff Act of 1930 (19 U.S.C. 1677e) is
amended--
(1) in subsection (b)--
(A) by redesignating paragraphs (1) through
(4) as subparagraphs (A) through (D),
respectively, and by moving such subparagraphs,
as so redesignated, 2 ems to the right;
(B) by striking ``Adverse Inferences.--If''
and inserting the following: ``Adverse
Inferences.--
``(1) In general.--If'';
(C) by striking ``under this title, may use''
and inserting the following: ``under this
title--
``(A) may use''; and
(D) by striking ``facts otherwise available.
Such adverse inference may include'' and
inserting the following: ``facts otherwise
available; and
``(B) is not required to determine, or make
any adjustments to, a countervailable subsidy
rate or weighted average dumping margin based
on any assumptions about information the
interested party would have provided if the
interested party had complied with the request
for information.
``(2) Potential sources of information for adverse
inferences.--An adverse inference under paragraph
(1)(A) may include'';
(2) in subsection (c)--
(A) by striking ``Corroboration of Secondary
Information.--When the'' and inserting the
following: ``Corroboration of Secondary
Information.--
``(1) In general.--Except as provided in paragraph
(2), when the''; and
(B) by adding at the end the following:
``(2) Exception.--The administrative authority and
the Commission shall not be required to corroborate any
dumping margin or countervailing duty applied in a
separate segment of the same proceeding.''; and
(3) by adding at the end the following:
``(d) Subsidy Rates and Dumping Margins in Adverse Inference
Determinations.--
``(1) In general.--If the administering authority
uses an inference that is adverse to the interests of a
party under subsection (b)(1)(A) in selecting among the
facts otherwise available, the administering authority
may--
``(A) in the case of a countervailing duty
proceeding--
``(i) use a countervailable subsidy
rate applied for the same or similar
program in a countervailing duty
proceeding involving the same country,
or
``(ii) if there is no same or similar
program, use a countervailable subsidy
rate for a subsidy program from a
proceeding that the administering
authority considers reasonable to use,
and
``(B) in the case of an antidumping duty
proceeding, use any dumping margin from any
segment of the proceeding under the applicable
antidumping order.
``(2) Discretion to apply highest rate.--In carrying
out paragraph (1), the administering authority may
apply any of the countervailable subsidy rates or
dumping margins specified under that paragraph,
including the highest such rate or margin, based on the
evaluation by the administering authority of the
situation that resulted in the administering authority
using an adverse inference in selecting among the facts
otherwise available.
``(3) No obligation to make certain estimates or
address certain claims.--If the administering authority
uses an adverse inference under subsection (b)(1)(A) in
selecting among the facts otherwise available, the
administering authority is not required, for purposes
of subsection (c) or for any other purpose--
``(A) to estimate what the countervailable
subsidy rate or dumping margin would have been
if the interested party found to have failed to
cooperate under subsection (b)(1) had
cooperated, or
``(B) to demonstrate that the countervailable
subsidy rate or dumping margin used by the
administering authority reflects an alleged
commercial reality of the interested party.''.
SEC. 503. DEFINITION OF MATERIAL INJURY.
(a) Effect of Profitability of Domestic Industries.--Section
771(7) of the Tariff Act of 1930 (19 U.S.C. 1677(7)) is amended
by adding at the end the following:
``(J) Effect of profitability.--The
Commission may not determine that there is no
material injury or threat of material injury to
an industry in the United States merely because
that industry is profitable or because the
performance of that industry has recently
improved.''.
(b) Evaluation of Impact on Domestic Industry in
Determination of Material Injury.--Subclause (I) of section
771(7)(C)(iii) of the Tariff Act of 1930 (19 U.S.C.
1677(7)(C)(iii)) is amended to read as follows:
``(I) actual and potential
decline in output, sales,
market share, gross profits,
operating profits, net profits,
ability to service debt,
productivity, return on
investments, return on assets,
and utilization of capacity,''.
(c) Captive Production.--Section 771(7)(C)(iv) of the Tariff
Act of 1930 (19 U.S.C. 1677(7)(C)(iv)) is amended--
(1) in subclause (I), by striking the comma and
inserting ``, and'';
(2) in subclause (II), by striking ``, and'' and
inserting a comma; and
(3) by striking subclause (III).
SEC. 504. PARTICULAR MARKET SITUATION.
(a) Definition of Ordinary Course of Trade.--Section 771(15)
of the Tariff Act of 1930 (19 U.S.C. 1677(15)) is amended by
adding at the end the following:
``(C) Situations in which the administering
authority determines that the particular market
situation prevents a proper comparison with the
export price or constructed export price.''.
(b) Definition of Normal Value.--Section
773(a)(1)(B)(ii)(III) of the Tariff Act of 1930 (19 U.S.C.
1677b(a)(1)(B)(ii)(III)) is amended by striking ``in such other
country.''.
(c) Definition of Constructed Value.--Section 773(e) of the
Tariff Act of 1930 (19 U.S.C. 1677b(e)) is amended--
(1) in paragraph (1), by striking ``business'' and
inserting ``trade''; and
(2) by striking the flush text at the end and
inserting the following:
``For purposes of paragraph (1), if a particular market
situation exists such that the cost of materials and
fabrication or other processing of any kind does not accurately
reflect the cost of production in the ordinary course of trade,
the administering authority may use another calculation
methodology under this subtitle or any other calculation
methodology. For purposes of paragraph (1), the cost of
materials shall be determined without regard to any internal
tax in the exporting country imposed on such materials or their
disposition that is remitted or refunded upon exportation of
the subject merchandise produced from such materials.''.
SEC. 505. DISTORTION OF PRICES OR COSTS.
(a) Investigation of Below-cost Sales.--Section 773(b)(2) of
the Tariff Act of 1930 (19 U.S.C. 1677b(b)(2)) is amended by
striking subparagraph (A) and inserting the following:
``(A) Reasonable grounds to believe or
suspect.--
``(i) Review.--In a review conducted
under section 751 involving a specific
exporter, there are reasonable grounds
to believe or suspect that sales of the
foreign like product have been made at
prices that are less than the cost of
production of the product if the
administering authority disregarded
some or all of the exporter's sales
pursuant to paragraph (1) in the
investigation or, if a review has been
completed, in the most recently
completed review.
``(ii) Requests for information.--In
an investigation initiated under
section 732 or a review conducted under
section 751, the administering
authority shall request information
necessary to calculate the constructed
value and cost of production under
subsections (e) and (f) to determine
whether there are reasonable grounds to
believe or suspect that sales of the
foreign like product have been made at
prices that represent less than the
cost of production of the product.''.
(b) Prices and Costs in Nonmarket Economies.--Section 773(c)
of the Tariff Act of 1930 (19 U.S.C. 1677b(c)) is amended by
adding at the end the following:
``(5) Discretion to disregard certain price or cost
values.--In valuing the factors of production under
paragraph (1) for the subject merchandise, the
administering authority may disregard price or cost
values without further investigation if the
administering authority has determined that broadly
available export subsidies existed or particular
instances of subsidization occurred with respect to
those price or cost values or if those price or cost
values were subject to an antidumping order.''.
SEC. 506. REDUCTION IN BURDEN ON DEPARTMENT OF COMMERCE BY REDUCING THE
NUMBER OF VOLUNTARY RESPONDENTS.
Section 782(a) of the Tariff Act of 1930 (19 U.S.C. 1677m(a))
is amended--
(1) in paragraph (1), by redesignating subparagraphs
(A) and (B) as clauses (i) and (ii), respectively, and
by moving such clauses, as so redesignated, 2 ems to
the right;
(2) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and by moving
such subparagraphs, as so redesignated, 2 ems to the
right;
(3) by striking ``Investigations and Reviews.--In''
and inserting the following: ``Investigations and
Reviews.--
``(1) In general.--In'';
(4) in paragraph (1), as designated by paragraph (3),
by amending subparagraph (B), as redesignated by
paragraph (2), to read as follows:
``(B) the number of exporters or producers
subject to the investigation or review is not
so large that any additional individual
examination of such exporters or producers
would be unduly burdensome to the administering
authority and inhibit the timely completion of
the investigation or review.''; and
(5) by adding at the end the following:
``(2) Determination of unduly burdensome.--In
determining if an individual examination under
paragraph (1)(B) would be unduly burdensome, the
administering authority may consider the following:
``(A) The complexity of the issues or
information presented in the proceeding,
including questionnaires and any responses
thereto.
``(B) Any prior experience of the
administering authority in the same or similar
proceeding.
``(C) The total number of investigations
under subtitle A or B and reviews under section
751 being conducted by the administering
authority as of the date of the determination.
``(D) Such other factors relating to the
timely completion of each such investigation
and review as the administering authority
considers appropriate.''.
SEC. 507. APPLICATION TO CANADA AND MEXICO.
Pursuant to article 1902 of the North American Free Trade
Agreement and section 408 of the North American Free Trade
Agreement Implementation Act (19 U.S.C. 3438), the amendments
made by this title shall apply with respect to goods from
Canada and Mexico.
TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS
SEC. 601. TRADE ENFORCEMENT PRIORITIES.
(a) In General.--Section 310 of the Trade Act of 1974 (19
U.S.C. 2420) is amended to read as follows:
``SEC. 310. TRADE ENFORCEMENT PRIORITIES.
``(a) Trade Enforcement Priorities, Consultations, and
Report.--
``(1) Trade enforcement priorities consultations.--
Not later than May 31 of each calendar year that begins
after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, the
United States Trade Representative (in this section
referred to as the `Trade Representative') shall
consult with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives with respect to the prioritization of
acts, policies, or practices of foreign governments
that raise concerns with respect to obligations under
the WTO Agreements or any other trade agreement to
which the United States is a party, or otherwise create
or maintain barriers to United States goods, services,
or investment.
``(2) Identification of trade enforcement
priorities.--In identifying acts, policies, or
practices of foreign governments as trade enforcement
priorities under this subsection, the United States
Trade Representative shall focus on those acts,
policies, and practices the elimination of which is
likely to have the most significant potential to
increase United States economic growth, and take into
account all relevant factors, including--
``(A) the economic significance of any
potential inconsistency between an obligation
assumed by a foreign government pursuant to a
trade agreement to which both the foreign
government and the United States are parties
and the acts, policies, or practices of that
government;
``(B) the impact of the acts, policies, or
practices of a foreign government on
maintaining and creating United States jobs and
productive capacity;
``(C) the major barriers and trade distorting
practices described in the most recent National
Trade Estimate required under section 181(b);
``(D) the major barriers and trade distorting
practices described in other relevant reports
addressing international trade and investment
barriers prepared by a Federal agency or
congressional commission during the 12 months
preceding the date of the most recent report
under paragraph (3);
``(E) a foreign government's compliance with
its obligations under any trade agreements to
which both the foreign government and the
United States are parties;
``(F) the implications of a foreign
government's procurement plans and policies;
and
``(G) the international competitive position
and export potential of United States products
and services.
``(3) Report on trade enforcement priorities and
actions taken to address.--
``(A) In general.--Not later than July 31 of
each calendar year that begins after the date
of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015, the Trade
Representative shall submit to the Committee on
Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a
report on acts, policies, or practices of
foreign governments identified as trade
enforcement priorities based on the
consultations under paragraph (1) and the
criteria set forth in paragraph (2).
``(B) Report in subsequent years.--The Trade
Representative shall include, when reporting
under subparagraph (A) in any calendar year
after the calendar year that begins after the
date of the enactment of the Trade Facilitation
and Trade Enforcement Act of 2015, a
description of actions taken to address any
acts, policies, or practices of foreign
governments identified as trade enforcement
priorities under this subsection in the
calendar year preceding that report and, as
relevant, any year before that calendar year.
``(b) Semi-annual Enforcement Consultations.--
``(1) In general.--At the same time as the reporting
under subsection (a)(3), and not later than January 31
of each following year, the Trade Representative shall
consult with the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives with respect to the identification,
prioritization, investigation, and resolution of acts,
policies, or practices of foreign governments of
concern with respect to obligations under the WTO
Agreements or any other trade agreement to which the
United States is a party, or that otherwise create or
maintain trade barriers.
``(2) Acts, policies, or practices of concern.--The
semi-annual enforcement consultations required by
paragraph (1) shall address acts, policies, or
practices of foreign governments that raise concerns
with respect to obligations under the WTO Agreements or
any other trade agreement to which the United States is
a party, or otherwise create or maintain trade
barriers, including--
``(A) engagement with relevant trading
partners;
``(B) strategies for addressing such
concerns;
``(C) availability and deployment of
resources to be used in the investigation or
resolution of such concerns;
``(D) the merits of any potential dispute
resolution proceeding under the WTO Agreements
or any other trade agreement to which the
United States is a party relating to such
concerns; and
``(E) any other aspects of such concerns.
``(3) Active investigations.--The semi-annual
enforcement consultations required by paragraph (1)
shall address acts, policies, or practices that the
Trade Representative is actively investigating with
respect to obligations under the WTO Agreements or any
other trade agreement to which the United States is a
party, including--
``(A) strategies for addressing concerns
raised by such acts, policies, or practices;
``(B) any relevant timeline with respect to
investigation of such acts, policies, or
practices;
``(C) the merits of any potential dispute
resolution proceeding under the WTO Agreements
or any other trade agreement to which the
United States is a party with respect to such
acts, policies, or practices;
``(D) barriers to the advancement of the
investigation of such acts, policies, or
practices; and
``(E) any other matters relating to the
investigation of such acts, policies, or
practices.
``(4) Ongoing enforcement actions.--The semi-annual
enforcement consultations required by paragraph (1)
shall address all ongoing enforcement actions taken by
or against the United States with respect to
obligations under the WTO Agreements or any other trade
agreement to which the United States is a party,
including--
``(A) any relevant timeline with respect to
such actions;
``(B) the merits of such actions;
``(C) any prospective implementation actions;
``(D) potential implications for any law or
regulation of the United States;
``(E) potential implications for United
States stakeholders, domestic competitors, and
exporters; and
``(F) other issues relating to such actions.
``(5) Enforcement resources.--The semi-annual
enforcement consultations required by paragraph (1)
shall address the availability and deployment of
enforcement resources, resource constraints on
monitoring and enforcement activities, and strategies
to address those constraints, including the use of
available resources of other Federal agencies to
enhance monitoring and enforcement capabilities.
``(c) Investigation and Resolution.--In the case of any acts,
policies, or practices of a foreign government identified as a
trade enforcement priority under subsection (a), the Trade
Representative shall, not later than the date of the first
semi-annual enforcement consultations held under subsection (b)
after the identification of the priority, take appropriate
action to address that priority, including--
``(1) engagement with the foreign government to
resolve concerns raised by such acts, policies, or
practices;
``(2) initiation of an investigation under section
302(b)(1) with respect to such acts, policies, or
practices;
``(3) initiation of negotiations for a bilateral
agreement that provides for resolution of concerns
raised by such acts, policies, or practices; or
``(4) initiation of dispute settlement proceedings
under the WTO Agreements or any other trade agreement
to which the United States is a party with respect to
such acts, policies, or practices.
``(d) Enforcement Notifications and Consultation.--
``(1) Initiation of enforcement action.--The Trade
Representative shall notify and consult with the
Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives in
advance of initiation of any formal trade dispute by or
against the United States taken in regard to an
obligation under the WTO Agreements or any other trade
agreement to which the United States is a party. With
respect to a formal trade dispute against the United
States, if advance notification and consultation are
not possible, the Trade Representative shall notify and
consult at the earliest practicable opportunity after
initiation of the dispute.
``(2) Circulation of reports.--The Trade
Representative shall notify and consult with the
Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives in
advance of the announced or anticipated circulation of
any report of a dispute settlement panel or the
Appellate Body of the World Trade Organization or of a
dispute settlement panel under any other trade
agreement to which the United States is a party with
respect to a formal trade dispute by or against the
United States.
``(e) Definitions.--In this section:
``(1) WTO.--The term `WTO' means the World Trade
Organization.
``(2) WTO agreement.--The term `WTO Agreement' has
the meaning given that term in section 2(9) of the
Uruguay Round Agreements Act (19 U.S.C. 3501(9)).
``(3) WTO agreements.--The term `WTO Agreements'
means the WTO Agreement and agreements annexed to that
Agreement.''.
(b) Clerical Amendment.--The table of contents for the Trade
Act of 1974 is amended by striking the item relating to section
310 and inserting the following:''.
``Sec. 310. Trade enforcement priorities.''.
SEC. 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND CONCESSIONS OR OTHER
OBLIGATIONS UNDER TRADE AGREEMENTS.
(a) In General.--Section 306 of the Trade Act of 1974 (19
U.S.C. 2416) is amended--
(1) by redesignating subsection (c) as subsection
(d); and
(2) by inserting after subsection (b) the following:
``(c) Exercise of WTO Authorization to Suspend Concessions or
Other Obligations.--If--
``(1) action has terminated pursuant to section
307(c),
``(2) the petitioner or any representative of the
domestic industry that would benefit from reinstatement
of action has submitted to the Trade Representative a
written request for reinstatement of action, and
``(3) the Trade Representatives has completed the
requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take
action under section 301(c) to exercise an authorization to
suspend concessions or other obligations under Article 22 of
the Understanding on Rules and Procedures Governing the
Settlement of Disputes (referred to in section 101(d)(16) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(16))).''.
(b) Conforming Amendments.--Chapter 1 of title III of the
Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended--
(1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in
the matter preceding subparagraph (A), by inserting
``or section 306(c)'' after ``subsection (a) or (b)'';
(2) in section 306(b) (19 U.S.C. 2416(b)), in the
subsection heading, by striking ``Further Action'' and
inserting ``Action on the Basis of Monitoring'';
(3) in section 306(d) (19 U.S.C. 2416(d)), as
redesignated by subsection (a)(1), by inserting ``or
(c)'' after ``subsection (b)''; and
(4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by
inserting ``or if a request is submitted to the Trade
Representative under section 306(c)(2) to reinstate
action,'' after ``under section 301,''.
SEC. 603. TRADE MONITORING.
(a) In General.--Chapter 1 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.) is amended by adding at the end
the following:
``SEC. 205. TRADE MONITORING.
``(a) Monitoring Tool for Imports.--
``(1) In general.--Not later than 180 days after the
date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015, the United States
International Trade Commission shall make available on
a website of the Commission an import monitoring tool
to allow the public access to data on the volume and
value of goods imported to the United States for the
purpose of assessing whether such data has changed with
respect to such goods over a period of time.
``(2) Data described.--For purposes of the monitoring
tool under paragraph (1), the Commission shall use data
compiled by the Department of Commerce and such other
government data as the Commission considers
appropriate.
``(3) Periods of time.--The Commission shall ensure
that data accessed through the monitoring tool under
paragraph (1) includes data for the most recent quarter
for which such data are available and previous quarters
as the Commission considers practicable.
``(b) Monitoring Reports.--
``(1) In general.--Not later than 270 days after the
date of the enactment of this section, and not less
frequently than quarterly thereafter, the Secretary of
Commerce shall publish on a website of the Department
of Commerce, and notify the Committee on Finance of the
Senate and the Committee on Ways and Means of the House
of Representatives of the availability of, a monitoring
report on changes in the volume and value of trade with
respect to imports and exports of goods categorized
based on the 6-digit subheading number of the goods
under the Harmonized Tariff Schedule of the United
States during the most recent quarter for which such
data are available and previous quarters as the
Secretary considers practicable.
``(2) Requests for comment.--Not later than one year
after the date of the enactment of this section, the
Secretary of Commerce shall solicit through the Federal
Register public comment on the monitoring reports
described in paragraph (1).
``(c) Sunset.--The requirements under this section terminate
on the date that is seven years after the date of the enactment
of this section.''.
(b) Clerical Amendment.--The table of contents for the Trade
Act of 1974 (19 U.S.C. 2101 et seq.) is amended by inserting
after the item relating to section 204 the following:
``Sec. 205. Trade monitoring.''.
TITLE VII--CURRENCY MANIPULATION
SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND
ECONOMIC POLICIES WITH CERTAIN MAJOR TRADING
PARTNERS OF THE UNITED STATES.
(a) Major Trading Partner Report.--
(1) In general.--Not later than 180 days after the
date of the enactment of this Act, and not less
frequently than once every 180 days thereafter, the
Secretary shall submit to the appropriate committees of
Congress a report on the macroeconomic and currency
exchange rate policies of each country that is a major
trading partner of the United States.
(2) Elements.--
(A) In general.--Each report submitted under
paragraph (1) shall contain--
(i) for each country that is a major
trading partner of the United States--
(I) that country's bilateral
trade balance with the United
States;
(II) that country's current
account balance as a percentage
of its gross domestic product;
(III) the change in that
country's current account
balance as a percentage of its
gross domestic product during
the 3-year period preceding the
submission of the report;
(IV) that country's foreign
exchange reserves as a
percentage of its short-term
debt; and
(V) that country's foreign
exchange reserves as a
percentage of its gross
domestic product; and
(ii) an enhanced analysis of
macroeconomic and exchange rate
policies for each country--
(I) that is a major trading
partner of the United States;
(II) the currency of which is
persistently and substantially
undervalued;
(III) that has--
(aa) a significant
bilateral trade surplus
with the United States;
and
(bb) a material
global current account
surplus; and
(IV) that has engaged in
persistent one-sided
intervention in the foreign
exchange market.
(B) Enhanced analysis.--Each enhanced
analysis under subparagraph (A)(ii) shall
include, for each country with respect to which
an analysis is made under that subparagraph--
(i) a description of developments in
the currency markets of that country,
including, to the greatest extent
feasible, developments with respect to
currency interventions;
(ii) a description of trends in the
real effective exchange rate of the
currency of that country and in the
degree of undervaluation of that
currency;
(iii) an analysis of changes in the
capital controls and trade restrictions
of that country; and
(iv) patterns in the reserve
accumulation of that country.
(b) Engagement on Exchange Rate and Economic Policies.--
(1) In general.--Except as provided in paragraph (2),
the President, through the Secretary, shall commence
enhanced bilateral engagement with each country for
which an enhanced analysis of macroeconomic and
currency exchange rate policies is included in the
report submitted under subsection (a), in order to--
(A) urge implementation of policies to
address the causes of the undervaluation of its
currency, its bilateral trade surplus with the
United States, and its material global current
account surplus, including undervaluation and
surpluses relating to exchange rate management;
(B) express the concern of the United States
with respect to the adverse trade and economic
effects of that undervaluation and those
surpluses;
(C) develop measurable objectives for
addressing that undervaluation and those
surpluses; and
(D) advise that country of the ability of the
President to take action under subsection (c).
(2) Exception.--The Secretary may determine not to
enhance bilateral engagement with a country under
paragraph (1) for which an enhanced analysis of
macroeconomic and exchange rate policies is included in
the report submitted under subsection (a) if the
Secretary submits to the appropriate committees of
Congress a report that describes how the currency and
other macroeconomic policies of that country are
addressing the undervaluation and surpluses specified
in paragraph (1)(A) with respect to that country,
including undervaluation and surpluses relating to
exchange rate management.
(c) Remedial Action.--
(1) In general.--If, on the date that is one year
after the commencement of enhanced bilateral engagement
by the President with respect to a country under
subsection (b)(1), the country has failed to adopt
appropriate policies to correct the undervaluation and
surpluses described in subsection (b)(1)(A) with
respect to that country, the President may take one or
more of the following actions:
(A) Prohibit the Overseas Private Investment
Corporation from approving, on and after such
date, any new financing (including any
insurance, reinsurance, or guarantee) with
respect to a project located in that country.
(B) Except as provided in paragraph (2), and
pursuant to paragraph (3), prohibit the Federal
Government from procuring, or entering into any
contract for the procurement of, goods or
services from that country on and after such
date.
(C) Instruct the United States Executive
Director of the International Monetary Fund to
use the voice and vote of the United States to
call for additional rigorous surveillance of
the macroeconomic and exchange rate policies of
that country and, as appropriate, formal
consultations on findings of currency
manipulation.
(D) Instruct the United States Trade
Representative to take into account, in
consultation with the Secretary, in assessing
whether to enter into a bilateral or regional
trade agreement with that country or to
initiate or participate in negotiations with
respect to a bilateral or regional trade
agreement with that country, the extent to
which that country has failed to adopt
appropriate policies to correct the
undervaluation and surpluses described in
subsection (b)(1)(A).
(2) Exception.--The President may not apply a
prohibition under paragraph (1)(B) with respect to a
country that is a party to the Agreement on Government
Procurement or a free trade agreement to which the
United States is a party.
(3) Consultations.--
(A) Office of management and budget.--Before
applying a prohibition under paragraph (1)(B),
the President shall consult with the Director
of the Office of Management and Budget to
determine whether such prohibition would
subject the taxpayers of the United States to
unreasonable cost.
(B) Congress.--The President shall consult
with the appropriate committees of Congress
with respect to any action the President takes
under paragraph (1)(B), including whether the
President has consulted as required under
subparagraph (A).
(d) Definitions.--In this section:
(1) Agreement on government procurement.--The term
``Agreement on Government Procurement'' means the
agreement referred to in section 101(d)(17) of the
Uruguay Round Agreements Act (19 U.S.C. 3511(d)(17)).
(2) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Banking, Housing, and
Urban Affairs and the Committee on Finance of
the Senate; and
(B) the Committee on Financial Services and
the Committee on Ways and Means of the House of
Representatives.
(3) Country.--The term ``country'' means a foreign
country, dependent territory, or possession of a
foreign country, and may include an association of 2 or
more foreign countries, dependent territories, or
possessions of countries into a customs union outside
the United States.
(4) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of
bilateral exchange rates, expressed in price-adjusted
terms.
(5) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
SEC. 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 may be employees of
the Federal Government:
(A) Three members shall be appointed by the
President pro tempore of the Senate, upon the
recommendation of the chairmen and ranking
members of the Committee on Banking, Housing,
and Urban Affairs and the Committee on Finance
of the Senate.
(B) Three members shall be appointed by the
Speaker of the House of Representatives upon
the recommendation of the chairmen and ranking
members of the Committee on Financial Services
and the Committee on Ways and Means of the
House of Representatives.
(C) Three members shall be appointed by the
President.
(2) Qualifications.--Members shall be selected under
paragraph (1) on the basis of their objectivity and
demonstrated expertise in finance, economics, or
currency exchange.
(3) Terms.--
(A) In general.--Members shall be appointed
for a term of 2 years or until the Committee
terminates.
(B) Reappointment.--A member may be
reappointed to the Committee for additional
terms.
(4) Vacancies.--Any vacancy in the Committee shall
not affect its powers, but shall be filled in the same
manner as the original appointment.
(c) Duration of Committee.--
(1) In general.--The Committee shall terminate on the
date that is 2 years after the date of the enactment of
this Act unless renewed by the President for a
subsequent 2-year period.
(2) Continued renewal.--The President may continue to
renew the Committee for successive 2-year periods by
taking appropriate action to renew the Committee prior
to the date on which the Committee would otherwise
terminate.
(d) Meetings.--The Committee shall hold not less than 2
meetings each calendar year.
(e) Chairperson.--
(1) In general.--The Committee shall elect from among
its members a chairperson for a term of 2 years or
until the Committee terminates.
(2) Reelection; subsequent terms.--A chairperson of
the Committee may be reelected chairperson but is
ineligible to serve consecutive terms as chairperson.
(f) Staff.--The Secretary of the Treasury shall make
available to the Committee such staff, information, personnel,
administrative services, and assistance as the Committee may
reasonably require to carry out the activities of the
Committee.
(g) Application of the Federal Advisory Committee Act.--
(1) In general.--Except as provided in paragraph (2),
the provisions of the Federal Advisory Committee Act (5
U.S.C. App.) shall apply to the Committee.
(2) Exception.--Meetings of the Committee shall be
exempt from the requirements of subsections (a) and (b)
of section 10 and section 11 of the Federal Advisory
Committee Act (relating to open meetings, public
notice, public participation, and public availability
of documents), whenever and to the extent it is
determined by the President or the Secretary of the
Treasury that such meetings will be concerned with
matters the disclosure of which--
(A) would seriously compromise the
development by the Government of the United
States of monetary or financial policy; or
(B) is likely to--
(i) lead to significant financial
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--ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION
SEC. 801. SHORT TITLE.
This title may be cited as the ``U.S. Customs and Border
Protection Authorization Act''.
SEC. 802. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION.
(a) In General.--Section 411 of the Homeland Security Act of
2002 (6 U.S.C. 211) is amended to read as follows:
``SEC. 411. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER PROTECTION;
COMMISSIONER, DEPUTY COMMISSIONER, AND OPERATIONAL
OFFICES.
``(a) In General.--There is established in the Department an
agency to be known as U.S. Customs and Border Protection.
``(b) Commissioner of U.S. Customs and Border Protection.--
There shall be at the head of U.S. Customs and Border
Protection a Commissioner of U.S. Customs and Border Protection
(in this section referred to as the `Commissioner'), who shall
be appointed by the President, by and with the advice and
consent of the Senate.
``(c) Duties.--The Commissioner shall--
``(1) ensure the interdiction of persons and goods
illegally entering or exiting the United States;
``(2) facilitate and expedite the flow of legitimate
travelers and trade;
``(3) detect, respond to, and interdict terrorists,
drug smugglers and traffickers, human smugglers and
traffickers, and other persons who may undermine the
security of the United States, in cases in which such
persons are entering, or have recently entered, the
United States;
``(4) safeguard the borders of the United States to
protect against the entry of dangerous goods;
``(5) oversee the functions of the Office of Trade
established under section 802(h) of the Trade
Facilitation and Trade Enforcement Act of 2015;
``(6) enforce and administer all customs laws of the
United States, including the Tariff Act of 1930;
``(7) enforce and administer all immigration laws, as
such term is defined in paragraph (17) of section
101(a) of the Immigration and Nationality Act (8 U.S.C.
1101(a)), as necessary for the inspection, processing,
and admission of persons who seek to enter or depart
the United States, and as necessary to ensure the
detection, interdiction, removal, departure from the
United States, short-term detention, and transfer of
persons unlawfully entering, or who have recently
unlawfully entered, the United States, in coordination
with U.S. Immigration and Customs Enforcement and
United States Citizenship and Immigration Services;
``(8) develop and implement screening and targeting
capabilities, including the screening, reviewing,
identifying, and prioritizing of passengers and cargo
across all international modes of transportation, both
inbound and outbound;
``(9) in coordination with the Secretary, deploy
technology to collect the data necessary for the
Secretary to administer the biometric entry and exit
data system pursuant to section 7208 of the
Intelligence Reform and Terrorism Prevention Act of
2004 (8 U.S.C. 1365b);
``(10) enforce and administer the laws relating to
agricultural import and entry inspection referred to in
section 421;
``(11) in coordination with the Under Secretary for
Management of the Department, ensure U.S. Customs and
Border Protection complies with Federal law, the
Federal Acquisition Regulation, and the Department's
acquisition management directives for major acquisition
programs of U.S. Customs and Border Protection;
``(12) enforce and administer--
``(A) the Container Security Initiative
program under section 205 of the Security and
Accountability for Every Port Act of 2006 (6
U.S.C. 945; Public Law 109-347); and
``(B) the Customs-Trade Partnership Against
Terrorism program under sections 211 through
223 of such Act (6 U.S.C. 961-973);
``(13) conduct polygraph examinations in accordance
with section 3(1) of the Anti-Border Corruption Act of
2010 (Public Law 111-376);
``(14) establish the standard operating procedures
described in subsection (k);
``(15) carry out the training required under
subsection (l); and
``(16) carry out other duties and powers prescribed
by law or delegated by the Secretary.
``(d) Deputy Commissioner.--There shall be in U.S. Customs
and Border Protection a Deputy Commissioner who shall assist
the Commissioner in the management of U.S. Customs and Border
Protection.
``(e) U.S. Border Patrol.--
``(1) In general.--There is established in U.S.
Customs and Border Protection the U.S. Border Patrol.
``(2) Chief.--There shall be at the head of the U.S.
Border Patrol a Chief, who shall report to the
Commissioner.
``(3) Duties.--The U.S. Border Patrol shall--
``(A) serve as the law enforcement office of
U.S. Customs and Border Protection with primary
responsibility for interdicting persons
attempting to illegally enter or exit the
United States or goods being illegally imported
into or exported from the United States at a
place other than a designated port of entry;
``(B) deter and prevent illegal entry of
terrorists, terrorist weapons, persons, and
contraband; and
``(C) carry out other duties and powers
prescribed by the Commissioner.
``(f) Office of Air and Marine Operations.--
``(1) In general.--There is established in U.S.
Customs and Border Protection an Office of Air and
Marine Operations.
``(2) Assistant commissioner.--There shall be at the
head of the Office of Air and Marine Operations an
Assistant Commissioner, who shall report to the
Commissioner.
``(3) Duties.--The Office of Air and Marine
Operations shall--
``(A) serve as the law enforcement office
within U.S. Customs and Border Protection with
primary responsibility to detect, interdict,
and prevent acts of terrorism and the unlawful
movement of people, illicit drugs, and other
contraband across the borders of the United
States in the air and maritime environment;
``(B) conduct joint aviation and marine
operations with U.S. Immigration and Customs
Enforcement;
``(C) conduct aviation and marine operations
with international, Federal, State, and local
law enforcement agencies, as appropriate;
``(D) administer the Air and Marine
Operations Center established under paragraph
(4); and
``(E) carry out other duties and powers
prescribed by the Commissioner.
``(4) Air and marine operations center.--
``(A) In general.--There is established in
the Office of Air and Marine Operations an Air
and Marine Operations Center.
``(B) Executive director.--There shall be at
the head of the Air and Marine Operations
Center an Executive Director, who shall report
to the Assistant Commissioner of the Office of
Air and Marine Operations.
``(C) Duties.--The Air and Marine Operations
Center shall--
``(i) manage the air and maritime
domain awareness of the Department;
``(ii) monitor and coordinate the
airspace for Unmanned Aerial Systems
operations of the Office of Air and
Marine Operations in U.S. Customs and
Border Protection;
``(iii) detect, identify, and
coordinate a response to threats to
national security in the air domain;
``(iv) provide aviation and marine
support to other Federal, State,
tribal, and local agencies; and
``(v) carry out other duties and
powers prescribed by the Assistant
Commissioner.
``(g) Office of Field Operations.--
``(1) In general.--There is established in U.S.
Customs and Border Protection an Office of Field
Operations.
``(2) Assistant commissioner.--There shall be at the
head of the Office of Field Operations an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of Field Operations shall
coordinate the enforcement activities of U.S. Customs
and Border Protection at United States air, land, and
sea ports of entry to--
``(A) deter and prevent terrorists and
terrorist weapons from entering the United
States at such ports of entry;
``(B) conduct inspections at such ports of
entry to safeguard the United States from
terrorism and illegal entry of persons;
``(C) prevent illicit drugs, agricultural
pests, and contraband from entering the United
States;
``(D) in coordination with the Commissioner,
facilitate and expedite the flow of legitimate
travelers and trade;
``(E) administer the National Targeting
Center established under paragraph (4); and
``(F) carry out other duties and powers
prescribed by the Commissioner.
``(4) National targeting center.--
``(A) In general.--There is established in
the Office of Field Operations a National
Targeting Center.
``(B) Executive director.--There shall be at
the head of the National Targeting Center an
Executive Director, who shall report to the
Assistant Commissioner of the Office of Field
Operations.
``(C) Duties.--The National Targeting Center
shall--
``(i) serve as the primary forum for
targeting operations within U.S.
Customs and Border Protection to
collect and analyze traveler and cargo
information in advance of arrival in
the United States;
``(ii) identify, review, and target
travelers and cargo for examination;
``(iii) coordinate the examination of
entry and exit of travelers and cargo;
``(iv) develop and conduct commercial
risk assessment targeting with respect
to cargo destined for the United
States;
``(v) issue Trade Alerts pursuant to
section 111 of the Trade Facilitation
and Trade Enforcement Act of 2015; and
``(vi) carry out other duties and
powers prescribed by the Assistant
Commissioner.
``(5) Annual report on staffing.--Not later than 30
days after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015 and
annually thereafter, the Assistant Commissioner shall
submit to the appropriate congressional committees a
report on the staffing model for the Office of Field
Operations, including information on how many
supervisors, front-line U.S. Customs and Border
Protection officers, and support personnel are assigned
to each Field Office and port of entry.
``(h) Office of Intelligence.--
``(1) In general.--There is established in U.S.
Customs and Border Protection an Office of
Intelligence.
``(2) Assistant commissioner.--There shall be at the
head of the Office of Intelligence an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of Intelligence shall--
``(A) develop, provide, coordinate, and
implement intelligence capabilities into a
cohesive intelligence enterprise to support the
execution of the duties and responsibilities of
U.S. Customs and Border Protection;
``(B) collect and analyze advance traveler
and cargo information;
``(C) establish, in coordination with the
Chief Intelligence Officer of the Department,
as appropriate, intelligence-sharing
relationships with Federal, State, local, and
tribal agencies and intelligence agencies;
``(D) conduct risk-based covert testing of
U.S. Customs and Border Protection operations,
including for nuclear and radiological risks;
and
``(E) carry out other duties and powers
prescribed by the Commissioner.
``(i) Office of International Affairs.--
``(1) In general.--There is established in U.S.
Customs and Border Protection an Office of
International Affairs.
``(2) Assistant commissioner.--There shall be at the
head of the Office of International Affairs an
Assistant Commissioner, who shall report to the
Commissioner.
``(3) Duties.--The Office of International Affairs,
in collaboration with the Office of Policy of the
Department, shall--
``(A) coordinate and support U.S. Customs and
Border Protection's foreign initiatives,
policies, programs, and activities;
``(B) coordinate and support U.S. Customs and
Border Protection's personnel stationed abroad;
``(C) maintain partnerships and information
sharing agreements and arrangements with
foreign governments, international
organizations, and United States agencies in
support of U.S. Customs and Border Protection
duties and responsibilities;
``(D) provide necessary capacity building,
training, and assistance to foreign border
control agencies to strengthen global supply
chain and travel security, as appropriate;
``(E) coordinate mission support services to
sustain U.S. Customs and Border Protection's
global activities;
``(F) coordinate U.S. Customs and Border
Protection's engagement in international
negotiations; and
``(G) carry out other duties and powers
prescribed by the Commissioner.
``(j) Office of Internal Affairs.--
``(1) In general.--There is established in U.S.
Customs and Border Protection an Office of Internal
Affairs.
``(2) Assistant commissioner.--There shall be at the
head of the Office of Internal Affairs an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of Internal Affairs shall--
``(A) investigate criminal and administrative
matters and misconduct by officers, agents, and
other employees of U.S. Customs and Border
Protection;
``(B) perform investigations of applicants
for employment with U.S. Customs and Border
Protection and periodic reinvestigations (in
accordance with section 3001 of the
Intelligence Reform and Terrorism Prevention
Act of 2004 (50 U.S.C. 3341; Public Law 108-
458)) of officers, agents, and other employees
of United States Custom and Border Protection,
including investigations to determine
suitability for employment and eligibility for
access to classified information;
``(C) manage integrity of U.S. Customs and
Border Protection's counter-intelligence
operations, including conduct of counter-
intelligence investigations;
``(D) conduct research and analysis regarding
misconduct of officers, agents, and other
employees of U.S. Customs and Border
Protection; and
``(E) carry out other duties and powers
prescribed by the Commissioner.
``(k) Standard Operating Procedures.--
``(1) In general.--The Commissioner shall establish--
``(A) standard operating procedures for
searching, reviewing, retaining, and sharing
information contained in communication,
electronic, or digital devices encountered by
U.S. Customs and Border Protection personnel at
United States ports of entry;
``(B) standard use of force procedures that
officers and agents of U.S. Customs and Border
Protection may employ in the execution of their
duties, including the use of deadly force;
``(C) a uniform, standardized, and
publically-available procedure for processing
and investigating complaints against officers,
agents, and employees of U.S. Customs and
Border Protection for violations of
professional conduct, including the timely
disposition of complaints and a written
notification to the complainant of the status
or outcome, as appropriate, of the related
investigation, in accordance with section 552a
of title 5, United States Code (commonly
referred to as the `Privacy Act' or the
`Privacy Act of 1974');
``(D) an internal, uniform reporting
mechanism regarding incidents involving the use
of deadly force by an officer or agent of U.S.
Customs and Border Protection, including an
evaluation of the degree to which the
procedures required under subparagraph (B) were
followed; and
``(E) standard operating procedures, acting
through the Assistant Commissioner for Air and
Marine Operations and in coordination with the
Office for Civil Rights and Civil Liberties and
the Office of Privacy of the Department, to
provide command, control, communication,
surveillance, and reconnaissance assistance
through the use of unmanned aerial systems,
including the establishment of--
``(i) a process for other Federal,
State, and local law enforcement
agencies to submit mission requests;
``(ii) a formal procedure to
determine whether to approve or deny
such a mission request;
``(iii) a formal procedure to
determine how such mission requests are
prioritized and coordinated; and
``(iv) a process regarding the
protection and privacy of data and
images collected by U.S. Customs and
Border Protection through the use of
unmanned aerial systems.
``(2) Requirements regarding certain notifications.--
The standard operating procedures established pursuant
to subparagraph (A) of paragraph (1) shall require--
``(A) in the case of a search of information
conducted on an electronic device by U.S.
Customs and Border Protection personnel, the
Commissioner to notify the individual subject
to such search of the purpose and authority for
such search, and how such individual may obtain
information on reporting concerns about such
search; and
``(B) in the case of information collected by
U.S. Customs and Border Protection through a
search of an electronic device, if such
information is transmitted to another Federal
agency for subject matter assistance,
translation, or decryption, the Commissioner to
notify the individual subject to such search of
such transmission.
``(3) Exceptions.--
``(A) In general.--The Commissioner may
withhold the notifications required under
paragraphs (1)(C) and (2) if the Commissioner
determines that such notifications would impair
national security, law enforcement, or other
operational interests.
``(B) Terrorist watch lists.--
``(i) Searches.--If the individual
subject to search of an electronic
device pursuant to subparagraph (A) of
paragraph (1) is included on a
Government-operated or Government-
maintained terrorist watch list, the
notifications required under paragraph
(2) shall not apply.
``(ii) Complaints.--If the
complainant using the process
established under subparagraph (C) of
paragraph (1) is included on a
Government-operated or Government-
maintained terrorist watch list, the
notification required under such
subparagraph shall not apply.
``(4) Update and review.--The Commissioner shall
review and update every three years the standard
operating procedures required under this subsection.
``(5) Audits.--The Inspector General of the
Department of Homeland Security shall develop and
annually administer an auditing mechanism to review
whether searches of electronic devices at or between
United States ports of entry are being conducted in
conformity with the standard operating procedures
required under subparagraph (A) of paragraph (1). Such
audits shall be submitted to the appropriate
congressional committees and shall include the
following:
``(A) A description of the activities of
officers and agents of U.S. Customs and Border
Protection with respect to such searches.
``(B) The number of such searches.
``(C) The number of instances in which
information contained in such devices that were
subjected to such searches was retained,
copied, shared, or entered in an electronic
database.
``(D) The number of such devices detained as
the result of such searches.
``(E) The number of instances in which
information collected from such device was
subjected to such searches was transmitted to
another Federal agency, including whether such
transmission resulted in a prosecution or
conviction.
``(6) Requirements regarding other notifications.--
The standard operating procedures established pursuant
to subparagraph (B) of paragraph (1) shall require--
``(A) in the case of an incident of the use
of deadly force by U.S. Customs and Border
Protection personnel, the Commissioner to
notify the appropriate congressional
committees; and
``(B) the Commissioner to provide to such
committees a copy of the evaluation pursuant to
subparagraph (D) of such paragraph not later
than 30 days after completion of such
evaluation.
``(7) Report on unmanned aerial systems.--The
Commissioner shall submit to the appropriate
congressional committees an annual report that reviews
whether the use of unmanned aerial systems are being
conducted in conformity with the standard operating
procedures required under subparagraph (E) of paragraph
(1). Such reports--
``(A) shall be submitted with the President's
annual budget;
``(B) may be submitted in classified form if
the Commissioner determines that such is
appropriate, and
``(C) shall include--
``(i) a detailed description of how,
where, and for how long data and images
collected through the use of unmanned
aerial systems by U.S. Customs and
Border Protection is collected and
stored; and
``(ii) a list of Federal, State, and
local law enforcement agencies that
submitted mission requests in the
previous year and the disposition of
such requests.
``(l) Training.--The Commissioner shall require all officers
and agents of U.S. Customs and Border Protection to participate
in a specified amount of continuing education (to be determined
by the Commissioner) to maintain an understanding of Federal
legal rulings, court decisions, and departmental policies,
procedures, and guidelines.
``(m) Short Term Detention Standards.--
``(1) Access to food and water.--The Commissioner
shall make every effort to ensure that adequate access
to food and water is provided to an individual
apprehended and detained at or between a United States
port of entry as soon as practicable following the time
of such apprehension or during subsequent short term
detention.
``(2) Access to information on detainee rights at
border patrol processing centers.--
``(A) In general.--The Commissioner shall
ensure that an individual apprehended by a U.S.
Border Patrol agent or an Office of Field
Operations officer is provided with information
concerning such individual's rights, including
the right to contact a representative of such
individual's government for purposes of United
States treaty obligations.
``(B) Form.--The information referred to in
subparagraph (A) may be provided either
verbally or in writing, and shall be posted in
the detention holding cell in which such
individual is being held. The information shall
be provided in a language understandable to
such individual.
``(3) Short term detention defined.--In this
subsection, the term `short term detention' means
detention in a U.S. Customs and Border Protection
processing center for 72 hours or less, before
repatriation to a country of nationality or last
habitual residence.
``(4) Daytime repatriation.--When practicable,
repatriations shall be limited to daylight hours and
avoid locations that are determined to have high
indices of crime and violence.
``(5) Report on procurement process and standards.--
Not later than 180 days after the date of the enactment
of this section, the Comptroller General of the United
States shall submit to the appropriate congressional
committees a report on the procurement process and
standards of entities with which U.S. Customs and
Border Protection has contracts for the transportation
and detention of individuals apprehended by agents or
officers of U.S. Customs and Border Protection. Such
report should also consider the operational efficiency
of contracting the transportation and detention of such
individuals.
``(6) Report on inspections of short-term custody
facilities.--The Commissioner shall--
``(A) annually inspect all facilities
utilized for short term detention; and
``(B) make publically available information
collected pursuant to such inspections,
including information regarding the
requirements under paragraphs (1) and (2) and,
where appropriate, issue recommendations to
improve the conditions of such facilities.
``(n) Wait Times Transparency.--
``(1) In general.--The Commissioner shall--
``(A) publish live wait times at the 20
United States airports that support the highest
volume of international travel (as determined
by available Federal flight data);
``(B) make information about such wait times
available to the public in real time through
the U.S. Customs and Border Protection Web
site;
``(C) submit to the appropriate congressional
committees quarterly reports that include
compilations of all such wait times and a
ranking of such United States airports by wait
times; and
``(D) provide adequate staffing at the U.S.
Customs and Border Protection information
center to ensure timely access for travelers
attempting to submit comments or speak with a
representative about their entry experiences.
``(2) Calculation.--The wait times referred to in
paragraph (1)(A) shall be determined by calculating the
time elapsed between an individual's entry into the
U.S. Customs and Border Protection inspection area and
such individual's clearance by a U.S. Customs and
Border Protection officer.
``(o) Other Authorities.--
``(1) In general.--The Secretary may establish such
other offices or Assistant Commissioners (or other
similar officers or officials) as the Secretary
determines necessary to carry out the missions, duties,
functions, and authorities of U.S. Customs and Border
Protection.
``(2) Notification.--If the Secretary exercises the
authority provided pursuant to paragraph (1), the
Secretary shall notify the appropriate congressional
committees not later than 30 days before exercising
such authority.
``(p) Other Federal Agencies.--Nothing in this section may be
construed as affecting in any manner the authority, existing on
the date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, of any other Federal agency, including
the Transportation Security Administration, with respect to the
duties of U.S. Customs and Border Protection described in
subsection (c).''.
(b) Special Rules.--
(1) Treatment.--Section 411 of the Homeland Security
Act of 2002, as amended by subsection (a) of this
section, shall be treated as if included in such Act as
of the date of the enactment of such Act, and, in
addition to the functions, missions, duties, and
authorities specified in such amended section 411, U.S.
Customs and Border Protection shall continue to perform
and carry out the functions, missions, duties, and
authorities under section 411 of such Act as in
existence on the day before such date of enactment, and
section 415 of such Act.
(2) Rules of construction.--
(A) Rules and regulations.--Notwithstanding
paragraph (1), nothing in this title or any
amendment made by this title may be construed
as affecting in any manner any rule or
regulation issued or promulgated pursuant to
any provision of law, including section 411 of
the Homeland Security Act of 2002 as in
existence on the day before the date of the
enactment of this Act, and any such rule or
regulation shall continue to have full force
and effect on and after such date.
(B) Other actions.--Notwithstanding paragraph
(1), nothing in this Act may be construed as
affecting in any manner any action,
determination, policy, or decision pursuant to
section 411 of the Homeland Security Act of
2002 as in existence on the day before the date
of the enactment of this Act, and any such
action, determination, policy, or decision
shall continue to have full force and effect on
and after such date.
(c) Continuation in Office.--
(1) Commissioner.--The individual serving as the
Commissioner of Customs on the day before the date of
the enactment of this Act may serve as the Commissioner
of U.S. Customs and Border Protection on and after such
date of enactment until a Commissioner of U.S. Customs
and Border Protection is appointed under section 411 of
the Homeland Security Act of 2002, as amended by
subsection (a) of this section.
(2) Other positions.--The individuals serving as
Assistant Commissioners and other officers and
officials under section 411 of the Homeland Security
Act of 2002 on the day before the date of the enactment
of this Act may serve as the appropriate Assistant
Commissioners and other officers and officials under
such section 411 as amended by subsection (a) of this
section unless the Commissioner of U.S. Customs and
Border Protection determines that another individual
should hold such position or positions.
(d) Reference.--
(1) Title 5.--Section 5314 of title 5, United States
Code, is amended by striking ``Commissioner of Customs,
Department of Homeland Security'' and inserting
``Commissioner of U.S. Customs and Border Protection,
Department of Homeland Security''.
(2) Other references.--On and after the date of the
enactment of this Act, any reference in law or
regulations to the ``Commissioner of Customs'' or the
``Commissioner of the Customs Service'' shall be deemed
to be a reference to the Commissioner of U.S. Customs
and Border Protection.
(e) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is amended by striking the item relating to section 411
and inserting the following new item:
``Sec. 411. Establishment of U.S. Customs and Border Protection;
Commissioner, Deputy Commissioner, and operational offices.''.
(f) Repeals.--Sections 416 and 418 of the Homeland Security
Act of 2002 (6 U.S.C. 216 and 218), and the items relating to
such sections in the table of contents in section 1(b) of such
Act, are repealed.
(g) Clerical and Conforming Amendments.--
(1) In general.--The Homeland Security Act of 2002 (6
U.S.C. 101 et seq.) is amended--
(A) in title I--
(i) in section 102(f)(10) (6 U.S.C.
112(f)(10)), by striking ``the
Directorate of Border and
Transportation Security'' and inserting
``the Commissioner of U.S. Customs and
Border Protection''; and
(ii) in section 103(a)(1) (6 U.S.C.
113(a)(1))--
(I) in subparagraph (C), by
striking ``An Under Secretary
for Border and Transportation
Security.'' and inserting ``A
Commissioner of U.S. Customs
and Border Protection.''; and
(II) in subparagraph (G), by
striking ``A Director of the
Office of Counternarcotics
Enforcement.'' and inserting
``A Director of U.S.
Immigration and Customs
Enforcement.''; and
(B) in title IV--
(i) by striking the title heading and
inserting ``BORDER, MARITIME, AND
TRANSPORTATION SECURITY'';
(ii) in subtitle A--
(I) by striking the subtitle
heading and inserting ``Border,
Maritime, and Transportation
Security Responsibilities and
Functions''; and
(II) in section 402 (6 U.S.C.
202)--
(aa) in the section
heading, by striking
``RESPONSIBILITIES''
and inserting ``BORDER,
MARITIME, AND
TRANSPORTATION
RESPONSIBILITIES''; and
(bb) by striking ``,
acting through the
Under Secretary for
Border and
Transportation
Security,'';
(iii) in subtitle B--
(I) by striking the subtitle
heading and inserting ``U.S.
Customs and Border
Protection'';
(II) in section 412(b) (6
U.S.C. 212), by striking ``the
United States Customs Service''
each place it appears and
inserting ``U.S. Customs and
Border Protection'';
(III) in section 413 (6
U.S.C. 213), by striking
``available to the United
States Customs Service or'';
(IV) in section 414 (6 U.S.C.
214), by striking ``the United
States Customs Service'' and
inserting ``U.S. Customs and
Border Protection''; and
(V) in section 415 (6 U.S.C.
215)--
(aa) in paragraph
(7), by inserting
before the colon the
following: ``, and of
U.S. Customs and Border
Protection on the day
before the effective
date of the U.S.
Customs and Border
Protection
Authorization Act'';
and
(bb) in paragraph
(8), by inserting
before the colon the
following: ``, and of
U.S. Customs and Border
Protection on the day
before the effective
date of the U.S.
Customs and Border
Protection
Authorization Act'';
(iv) in subtitle C--
(I) by striking section 424
(6 U.S.C. 234) and inserting
the following new section:
``SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY ADMINISTRATION AS A
DISTINCT ENTITY.
``Notwithstanding any other provision of this Act, the
Transportation Security Administration shall be maintained as a
distinct entity within the Department.''; and
(II) in section 430 (6 U.S.C.
238)--
(aa) by amending
subsection (a) to read
as follows:
``(a) Establishment.--There is established in the Department
an Office for Domestic Preparedness.'';
(bb) in subsection
(b), by striking the
second sentence; and
(cc) in subsection
(c)(7), by striking
``Directorate'' and
inserting
``Department''; and
(v) in subtitle D--
(I) in section 441 (6 U.S.C.
251)--
(aa) by striking the
section heading and
inserting ``TRANSFER OF
FUNCTIONS''; and
(bb) by striking
``Under Secretary for
Border and
Transportation
Security'' and
inserting
``Secretary'';
(II) in section 443 (6 U.S.C.
253)--
(aa) in the matter
preceding paragraph
(1), by striking
``Under Secretary for
Border and
Transportation
Security'' and
inserting
``Secretary''; and
(bb) by striking
``the Bureau of Border
Security'' and
inserting ``U.S.
Immigration and Customs
Enforcement'' each
place it appears; and
(III) by amending section 444
(6 U.S.C. 254) to read as
follows:
``SEC. 444. EMPLOYEE DISCIPLINE.
``Notwithstanding any other provision of law, the Secretary
may impose disciplinary action on any employee of U.S.
Immigration and Customs Enforcement and U.S. Customs and Border
Protection who willfully deceives Congress or agency leadership
on any matter.''.
(2) Conforming amendments.--Section 401 of the
Homeland Security Act of 2002 (6 U.S.C. 201) is
repealed.
(3) Clerical amendments.--The table of contents in
section 1(b) of the Homeland Security Act of 2002 is
amended--
(A) by striking the item relating to title IV
and inserting the following:
``TITLE IV--BORDER, MARITIME, AND TRANSPORTATION SECURITY'';
(B) by striking the item relating to subtitle
A of title IV and inserting the following:
``Subtitle A--Border, Maritime, and Transportation Security
Responsibilities and Functions'';
(C) by striking the item relating to section
401;
(D) by striking the item relating to subtitle
B of title IV and inserting the following:
``Subtitle B--U.S. Customs and Border Protection'';
(E) by striking the item relating to section
441 and inserting the following:
``Sec. 441. Transfer of functions.'';
and
(F) by striking the item relating to section
442 and inserting the following:
``Sec. 442. U.S. Immigration and Customs Enforcement.''.
(h) Office of Trade.--
(1) Trade offices and functions.--The Act of March 3,
1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et
seq.), is amended by adding at the end the following:
``SEC. 4. OFFICE OF TRADE.
``(a) In General.--There is established in U.S. Customs and
Border Protection an Office of Trade.
``(b) Assistant Commissioner.--
``(1) In general.--There shall be at the head of the
Office of Trade an Assistant Commissioner, who shall
report to the Commissioner of U.S. Customs and Border
Protection.
``(2) Qualifications.--The Assistant Commissioner
shall have a minimum of 10 years of professional
experience with the customs and trade laws of the
United States.
``(3) Senior executive service position.--The
position of Assistant Commissioner for Trade shall be a
Senior Executive Service position (as defined in
section 3132(a) of title 5, United States Code).
``(c) Duties.--The Office of Trade shall--
``(1) direct the development and implementation,
pursuant to the customs and trade laws of the United
States, of policies and regulations administered by
U.S. Customs and Border Protection;
``(2) advise the Commissioner with respect to the
impact on trade facilitation and trade enforcement of
any policy or regulation otherwise proposed or
administered by U.S. Customs and Border Protection;
``(3) coordinate and cooperate with the Assistant
Commissioner for the Office of Field Operations with
respect to the trade facilitation and trade enforcement
activities of U.S. Customs and Border Protection
carried out at the land borders and ports of entry of
the United States;
``(4) direct the development and implementation of
matters relating to the priority trade issues
identified by the Commissioner of U.S. Customs and
Border Protection in the joint strategic plan on trade
facilitation and trade enforcement required under
section 123A of the Customs and Trade Act of 1990;
``(5) otherwise advise the Commissioner of U.S.
Customs and Border Protection with respect to the
development and implementation of the joint strategic
plan;
``(6) direct the trade enforcement activities of U.S.
Customs and Border Protection;
``(7) oversee the trade modernization activities of
U.S. Customs and Border Protection, including the
development and implementation of the Automated
Commercial Environment computer system authorized under
section 13031(f)(5) of the Consolidated Omnibus Budget
and Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5))
and support for the establishment of the International
Trade Data System under the oversight of the Department
of Treasury pursuant to section 411(d) of the Tariff
Act of 1930 (19 U.S.C. 1411(d));
``(8) direct the administration of customs revenue
functions as otherwise provided by law or delegated by
the Commissioner of U.S. Customs and Border Protection;
and
``(9) prepare an annual report to be submitted to the
Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives not
later than March 1 of each calendar year that
includes--
``(A) a summary of the changes to customs
policies and regulations adopted by U.S.
Customs and Border Protection during the
preceding calendar year; and
``(B) a description of the public vetting and
interagency consultation that occurred with
respect to each such change.
``(d) Transfer of Assets, Functions, and Personnel;
Elimination of Offices.--
``(1) Office of international trade.--
``(A) Transfer.--Not later than 30 days after
the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015,
the Commissioner shall transfer the assets,
functions, personnel, and liabilities of the
Office of International Trade to the Office of
Trade established under subsection (b).
``(B) Elimination.--Not later than 30 days
after the date of enactment of the Trade
Facilitation and Trade Enforcement Act of 2015,
the Office of International Trade shall be
abolished.
``(C) Limitation on funds.--No funds
appropriated to U.S. Customs and Border
Protection or the Department of Homeland
Security may be used to transfer the assets,
functions, personnel, and liabilities of the
Office of International Trade to an office
other than the Office of Trade established
under subsection (a).
``(D) Office of international trade
defined.--In this paragraph, the term `Office
of International Trade' means the Office of
International Trade established by section 2 of
the Act of March 3, 1927 (44. Stat. 1381,
chapter 348; 19 U.S.C. 2072), as added by
section 402 of the Security and Accountability
for Every Port Act of 2006 (Public Law 109-347;
120 Stat. 1924), and as in effect on the day
before the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015.
``(2) Other transfers.--
``(A) In general.--The Commissioner is
authorized to transfer any other assets,
functions, or personnel within U.S. Customs and
Border Protection to the Office of Trade
established under subsection (d).
``(B) Congressional notification.--Not less
than 90 days prior to the transfer of assets,
functions, or personnel under subparagraph
(A)(i), the Commissioner shall notify the
Committee on Finance of the Senate, the
Committee on Homeland Security and Government
Affairs of the Senate, the Committee on Ways
and Means of the House of Representatives, and
the Committee on Homeland Security of the House
of Representatives of the specific assets,
functions, or personnel to be transferred, and
the reason for the transfer.
``(e) Definitions.--In this section, the terms `customs and
trade laws of the United States', `trade enforcement', and
`trade facilitation' have the meanings given such terms in
section 2 of the Trade Facilitation and Trade Enforcement Act
of 2015.''.
(2) Continuation in office.--The individual serving
as the Assistant Commissioner of the Office of
International Trade on the day before the date of the
enactment of this Act may serve as the Assistant
Commissioner for Trade on or after such date of
enactment, at the discretion of the Commissioner.
(3) Conforming amendments.--Section 2 of the Act of
March 3, 1927 (44. Stat. 1381, chapter 348; 19 U.S.C.
2072), as added by section 402 of the Security and
Accountability for Every Port Act of 2006 (Public Law
109-347; 120 Stat. 1924), is amended--
(A) by striking subsection (d); and
(B) by redesignating subsections (e) and (f)
as subsections (d) and (e), respectively.
(i) Reports and Assessments.--
(1) Report on business transformation initiative.--
Not later than 90 days after the date of the enactment
of this Act, the Commissioner of U.S. Customs and
Border Protection shall submit to the Committee on
Homeland Security and the Committee on Ways and Means
of the House of Representatives and the Committee on
Homeland Security and Governmental Affairs and the
Committee on Finance of the Senate a report on U.S.
Customs and Border Protection's Business Transformation
Initiative, including locations where the Initiative is
deployed, the types of equipment utilized, a
description of protocols and procedures, information on
wait times at such locations since deployment, and
information regarding the schedule for deployment at
new locations.
(2) Port of entry infrastructure needs assessments.--
Not later 180 days after the date of the enactment of
this Act, the Commissioner of U.S. Customs and Border
Protection shall assess the physical infrastructure and
technology needs at the 20 busiest land ports of entry
(as measured by U.S. Customs and Border Protection)
with a particular attention to identify ways to--
(A) improve travel and trade facilitation;
(B) reduce wait times;
(C) improve physical infrastructure and
conditions for individuals accessing pedestrian
ports of entry;
(D) enter into long-term leases with
nongovernmental and private sector entities;
(E) enter into lease-purchase agreements with
nongovernmental and private sector entities;
and
(F) achieve cost savings through leases
described in subparagraphs (D) and (E).
(3) Personal searches.--Not later than 90 days after
the date of the enactment of this Act, the Commissioner
of U.S. Customs and Border Protection shall submit to
the Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security
and Governmental Affairs of the Senate a report on
supervisor-approved personal searches conducted in the
previous year by U.S. Customs and Border Protection
personnel. Such report shall include the number of
personal searches conducted in each sector and field
office, the number of invasive personal searches
conducted in each sector and field office, whether
personal searches were conducted by Office of Field
Operations or U.S. Border Patrol personnel, and how
many personal searches resulted in the discovery of
contraband.
(j) Trusted Traveler Programs.--The Secretary of Homeland
Security may not enter into or renew an agreement with the
government of a foreign country for a trusted traveler program
administered by U.S. Customs and Border Protection unless the
Secretary certifies in writing that such government--
(1) routinely submits to INTERPOL for inclusion in
INTERPOL's Stolen and Lost Travel Documents database
information about lost and stolen passports and travel
documents of the citizens and nationals of such
country; or
(2) makes available to the United States Government
the information described in paragraph (1) through
another means of reporting.
(k) Sense of Congress Regarding the Foreign Language Award
Program.--
(1) Findings.--Congress finds the following:
(A) Congress established the Foreign Language
Award Program (FLAP) to incentivize employees
at United States ports of entry to utilize
their foreign language skills on the job by
providing a financial incentive for the use of
the foreign language for at least ten percent
of their duties after passage of competency
tests. FLAP incentivizes the use of more than
two dozen languages and has been instrumental
in identifying and utilizing U.S. Customs and
Border Protection officers and agents who are
proficient in a foreign language.
(B) In 1993, Congress provided for dedicated
funding for this program by stipulating that
certain fees collected by U.S. Customs and
Border Protection be used to fund FLAP.
(C) Through FLAP, foreign travelers are aided
by having an officer at a port of entry who
speaks their language, and U.S. Customs and
Border Protection benefits by being able to
focus its border security efforts in a more
effective manner.
(2) Sense of congress.--It is the sense of Congress
that FLAP incentivizes U.S. Customs and Border
Protection officers to attain and maintain competency
in a foreign language, thereby improving the efficiency
of operations for the functioning of U.S. Customs and
Border Protection's security mission, making the United
States a more welcoming place when foreign travelers
find officers can communicate in their language, and
helping to expedite traveler processing to reduce wait
times.
TITLE IX--MISCELLANEOUS PROVISIONS
SEC. 901. DE MINIMIS VALUE.
(a) De Minimis Value.--Section 321(a)(2)(C) of the Tariff Act
of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking
``$200'' and inserting ``$800''.
(b) Effective Date.--The amendment made by subsection (a)
shall apply with respect to articles entered, or withdrawn from
warehouse for consumption, on or after the 15th day after the
date of the enactment of this Act.
SEC. 902. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS.
Section 401(c) of the Safety and Accountability for Every
Port Act (6 U.S.C. 115(c)) is amended--
(1) in paragraph (1), by striking ``on Department
policies and actions that have'' and inserting ``not
later than 30 days after proposing, and not later than
30 days before finalizing, any Department policies,
initiatives, or actions that will have''; and
(2) in paragraph (2)(A), by striking ``not later than
30 days prior to the finalization of'' and inserting
``not later than 60 days before proposing, and not
later than 60 days before finalizing,''.
SEC. 903. PENALTIES FOR CUSTOMS BROKERS.
(a) In General.--Section 641(d)(1) of the Tariff Act of 1930
(19 U.S.C. 1641(d)(1)) is amended--
(1) in subparagraph (E), by striking ``; or'' and
inserting a semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) has been convicted of committing or
conspiring to commit an act of terrorism
described in section 2332b of title 18, United
States Code.''.
(b) Technical Amendments.--Section 641 of the Tariff Act of
1930 (19 U.S.C. 1641) is amended--
(1) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border
Protection'';
(2) in subsection (d)(2)(B), by striking ``The
Customs Service'' and inserting ``U.S. Customs and
Border Protection''; and
(3) in subsection (g)(2)(B), by striking
``Secretary's notice'' and inserting ``notice under
subparagraph (A)''.
SEC. 904. AMENDMENTS TO CHAPTER 98 OF THE HARMONIZED TARIFF SCHEDULE OF
THE UNITED STATES.
(a) Articles Exported and Returned, Advanced or Improved
Abroad.--
(1) In general.--U.S. Note 3 to subchapter II of
chapter 98 of the Harmonized Tariff Schedule of the
United States is amended by adding at the end the
following:
``(f)(1) For purposes of subheadings 9802.00.40 and
9802.00.50, fungible articles exported from the United States
for the purposes described in such subheadings--
``(A) may be commingled; and
``(B) the origin, value, and classification of such
articles may be accounted for using an inventory
management method.
``(2) If a person chooses to use an inventory management
method under this paragraph with respect to fungible articles,
the person shall use the same inventory management method for
any other articles with respect to which the person claims
fungibility under this paragraph.
``(3) For the purposes of this paragraph--
``(A) the term `fungible articles' means merchandise
or articles that, for commercial purposes, are
identical or interchangeable in all situations; and
``(B) the term `inventory management method' means
any method for managing inventory that is based on
generally accepted accounting principles.''.
(2) Effective date.--The amendment made by this
subsection applies to articles classifiable under
subheading 9802.00.40 or 9802.00.50 of the Harmonized
Tariff Schedule of the United States that are entered,
or withdrawn from warehouse for consumption, on or
after the date that is 60 days after the date of the
enactment of this Act.
(b) Modification of Provisions Relating to Returned
Property.--
(1) In general.--The article description for heading
9801.00.10 of the Harmonized Tariff Schedule of the
United States is amended by inserting after
``exported'' the following: ``, or any other products
when returned within 3 years after having been
exported''.
(2) Effective date.--The amendment made by paragraph
(1) applies to articles entered, or withdrawn from
warehouse for consumption, on or after the date that is
60 days after the date of the enactment of this Act.
(c) Duty-free Treatment for Certain United States Government
Property Returned to the United States.--
(1) In general.--Subchapter I of chapter 98 of the
Harmonized Tariff Schedule of the United States is
amended by inserting in numerical sequence the
following new heading:
`` 9801.00.11 United States Free ............ ............ ............ ''.
Government
property,
returned to the
United States
without having
been advanced
in value or
improved in
condition by
any means while
abroad, entered
by the United
States
Government or a
contractor to
the United
States
Government, and
certified by
the importer as
United States
Government
property.......
(2) Effective date.--The amendment made by paragraph
(1) applies to goods entered, or withdrawn from
warehouse for consumption, on or after the date that is
60 days after the date of the enactment of this Act.
SEC. 905. EXEMPTION FROM DUTY OF RESIDUE OF BULK CARGO CONTAINED IN
INSTRUMENTS OF INTERNATIONAL TRAFFIC PREVIOUSLY
EXPORTED FROM THE UNITED STATES.
(a) In General.--General Note 3(e) of the Harmonized Tariff
Schedule of the United States is amended--
(1) in subparagraph (v), by striking ``and'' at the
end;
(2) in subparagraph (vi), by adding ``and'' at the
end;
(3) by inserting after subparagraph (vi) (as so
amended) the following new subparagraph:
``(vii) residue of bulk cargo contained in
instruments of international traffic previously
exported from the United States,''; and
(4) by adding at the end of the flush text following
subparagraph (vii) (as so added) the following: ``For
purposes of subparagraph (vii) of this paragraph: The
term `residue' means material of bulk cargo that
remains in an instrument of international traffic after
the bulk cargo is removed, with a quantity, by weight
or volume, not exceeding 7 percent of the bulk cargo,
and with no or de minimis value. The term `bulk cargo'
means cargo that is unpackaged and is in either solid,
liquid, or gaseous form. The term `instruments of
international traffic' means containers or holders,
capable of and suitable for repeated use, such as lift
vans, cargo vans, shipping tanks, skids, pallets, caul
boards, and cores for textile fabrics, arriving
(whether loaded or empty) in use or to be used in the
shipment of merchandise in international traffic, and
any additional articles or classes of articles that the
Commissioner of U.S. Customs and Border Protection
designates as instruments of international traffic.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act and apply
with respect to residue of bulk cargo contained in instruments
of international traffic that are imported into the customs
territory of the United States on or after such date of
enactment and that previously have been exported from the
United States.
SEC. 906. DRAWBACK AND REFUNDS.
(a) Articles Made From Imported Merchandise.--Section 313(a)
of the Tariff Act of 1930 (19 U.S.C. 1313(a)) is amended by
striking ``the full amount of the duties paid upon the
merchandise so used shall be refunded as drawback, less 1 per
centum of such duties, except that such'' and inserting ``an
amount calculated pursuant to regulations prescribed by the
Secretary of the Treasury under subsection (l) shall be
refunded as drawback, except that''.
(b) Substitution for Drawback Purposes.--Section 313(b) of
the Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended--
(1) by striking ``If imported'' and inserting the
following:
``(1) In general.--If imported'';
(2) by striking ``and any other merchandise (whether
imported or domestic) of the same kind and quality
are'' and inserting ``or merchandise classifiable under
the same 8-digit HTS subheading number as such imported
merchandise is'';
(3) by striking ``three years'' and inserting ``5
years'';
(4) by striking ``the receipt of such imported
merchandise by the manufacturer or producer of such
articles'' and inserting ``the date of importation of
such imported merchandise'';
(5) by striking ``an amount of drawback equal to''
and all that follows through the end period and
inserting ``an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury
under subsection (l), but only if those articles have
not been used prior to such exportation or
destruction.''; and
(6) by adding at the end the following:
``(2) Requirements relating to transfer of
merchandise.--
``(A) Manufacturers and producers.--Drawback
shall be allowed under paragraph (1) with
respect to an article manufactured or produced
using imported merchandise or other merchandise
classifiable under the same 8-digit HTS
subheading number as such imported merchandise
only if the manufacturer or producer of the
article received such imported merchandise or
such other merchandise, directly or indirectly,
from the importer.
``(B) Exporters and destroyers.--Drawback
shall be allowed under paragraph (1) with
respect to a manufactured or produced article
that is exported or destroyed only if the
exporter or destroyer received that article,
directly or indirectly, from the manufacturer
or producer.
``(C) Evidence of transfer.--Transfers of
merchandise under subparagraph (A) and
transfers of articles under subparagraph (B)
may be evidenced by business records kept in
the normal course of business and no additional
certificates of transfer or manufacture shall
be required.
``(3) Submission of bill of materials or formula.--
``(A) In general.--Drawback shall be allowed
under paragraph (1) with respect to an article
manufactured or produced using imported
merchandise or other merchandise classifiable
under the same 8-digit HTS subheading number as
such imported merchandise only if the person
making the drawback claim submits with the
claim a bill of materials or formula
identifying the merchandise and article by the
8-digit HTS subheading number and the quantity
of the merchandise.
``(B) Bill of materials and formula
defined.--In this paragraph, the terms `bill of
materials' and `formula' mean records kept in
the normal course of business that identify
each component incorporated into a manufactured
or produced article or that identify the
quantity of each element, material, chemical,
mixture, or other substance incorporated into a
manufactured article.
``(4) Special rule for sought chemical elements.--
``(A) In general.--For purposes of paragraph
(1), a sought chemical element may be--
``(i) considered imported
merchandise, or merchandise
classifiable under the same 8-digit HTS
subheading number as such imported
merchandise, used in the manufacture or
production of an article as described
in paragraph (1); and
``(ii) substituted for source
material containing that sought
chemical element, without regard to
whether the sought chemical element and
the source material are classifiable
under the same 8-digit HTS subheading
number, and apportioned quantitatively,
as appropriate.
``(B) Sought chemical element defined.--In
this paragraph, the term `sought chemical
element' means an element listed in the
Periodic Table of Elements that is imported
into the United States or a chemical compound
consisting of those elements, either separately
in elemental form or contained in source
material.''.
(c) Merchandise Not Conforming to Sample or Specifications.--
Section 313(c) of the Tariff Act of 1930 (19 U.S.C. 1313(c)) is
amended--
(1) in paragraph (1)--
(A) in subparagraph (C)(ii), by striking
``under a certificate of delivery'' each place
it appears;
(B) in subparagraph (D)--
(i) by striking ``3'' and inserting
``5''; and
(ii) by striking ``the Customs
Service'' and inserting ``U.S. Customs
and Border Protection''; and
(C) in the flush text at the end, by striking
``the full amount of the duties paid upon such
merchandise, less 1 percent,'' and inserting
``an amount calculated pursuant to regulations
prescribed by the Secretary of the Treasury
under subsection (l)'';
(2) in paragraph (2), by striking ``the Customs
Service'' and inserting ``U.S. Customs and Border
Protection''; and
(3) by amending paragraph (3) to read as follows:
``(3) Evidence of transfers.--Transfers of
merchandise under paragraph (1) may be evidenced by
business records kept in the normal course of business
and no additional certificates of transfer shall be
required.''.
(d) Proof of Exportation.--Section 313(i) of the Tariff Act
of 1930 (19 U.S.C. 1313(i)) is amended to read as follows:
``(i) Proof of Exportation.--A person claiming drawback under
this section based on the exportation of an article shall
provide proof of the exportation of the article. Such proof of
exportation--
``(1) shall establish fully the date and fact of
exportation and the identity of the exporter; and
``(2) may be established through the use of records
kept in the normal course of business or through an
electronic export system of the United States
Government, as determined by the Commissioner of U.S.
Customs and Border Protection.''.
(e) Unused Merchandise Drawback.--Section 313(j) of the
Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), in the matter
preceding clause (i)--
(i) by striking ``3-year'' and
inserting ``5-year''; and
(ii) by inserting ``and before the
drawback claim is filed'' after ``the
date of importation''; and
(B) in the flush text at the end, by striking
``99 percent of the amount of each duty, tax,
or fee so paid'' and inserting ``an amount
calculated pursuant to regulations prescribed
by the Secretary of the Treasury under
subsection (l)'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A),
by striking ``paragraph (4)'' and inserting
``paragraphs (4), (5), and (6)'';
(B) in subparagraph (A), by striking
``commercially interchangeable with'' and
inserting ``classifiable under the same 8-digit
HTS subheading number as'';
(C) in subparagraph (B)--
(i) by striking ``3-year'' and
inserting ``5-year''; and
(ii) by inserting ``and before the
drawback claim is filed'' after ``the
imported merchandise''; and
(D) in subparagraph (C)(ii), by striking
subclause (II) and inserting the following:
``(II) received the imported
merchandise, other merchandise
classifiable under the same 8-
digit HTS subheading number as
such imported merchandise, or
any combination of such
imported merchandise and such
other merchandise, directly or
indirectly from the person who
imported and paid any duties,
taxes, and fees imposed under
Federal law upon importation or
entry and due on the imported
merchandise (and any such
transferred merchandise,
regardless of its origin, will
be treated as the imported
merchandise and any retained
merchandise will be treated as
domestic merchandise);'';
(E) in the flush text at the end--
(i) by striking ``the amount of each
such duty, tax, and fee'' and all that
follows through ``99 percent of that
duty, tax, or fee'' and inserting ``an
amount calculated pursuant to
regulations prescribed by the Secretary
of the Treasury under subsection (l)
shall be refunded as drawback''; and
(ii) by striking the last sentence
and inserting the following:
``Notwithstanding subparagraph (A),
drawback shall be allowed under this
paragraph with respect to wine if the
imported wine and the exported wine are
of the same color and the price
variation between the imported wine and
the exported wine does not exceed 50
percent. Transfers of merchandise may
be evidenced by business records kept
in the normal course of business and no
additional certificates of transfer
shall be required.''; and
(3) in paragraph (3)(B), by striking ``the
commercially interchangeable merchandise'' and
inserting ``merchandise classifiable under the same 8-
digit HTS subheading number as such imported
merchandise''; and
(4) by adding at the end the following:
``(5)(A) For purposes of paragraph (2) and except as
provided in subparagraph (B), merchandise may not be
substituted for imported merchandise for drawback
purposes based on the 8-digit HTS subheading number if
the article description for the 8-digit HTS subheading
number under which the imported merchandise is
classified begins with the term `other'.
``(B) In cases described in subparagraph (A),
merchandise may be substituted for imported merchandise
for drawback purposes if--
``(i) the other merchandise and such imported
merchandise are classifiable under the same 10-
digit HTS statistical reporting number; and
``(ii) the article description for that 10-
digit HTS statistical reporting number does not
begin with the term `other'.
``(6)(A) For purposes of paragraph (2), a drawback
claimant may use the first 8 digits of the 10-digit
Schedule B number for merchandise or an article to
determine if the merchandise or article is classifiable
under the same 8-digit HTS subheading number as the
imported merchandise, without regard to whether the
Schedule B number corresponds to more than one 8-digit
HTS subheading number.
``(B) In this paragraph, the term `Schedule B' means
the Department of Commerce Schedule B, Statistical
Classification of Domestic and Foreign Commodities
Exported from the United States.''.
(f) Liability for Drawback Claims.--Section 313(k) of the
Tariff Act of 1930 (19 U.S.C. 1313(k)) is amended to read as
follows:
``(k) Liability for Drawback Claims.--
``(1) In general.--Any person making a claim for
drawback under this section shall be liable for the
full amount of the drawback claimed.
``(2) Liability of importers.--An importer shall be
liable for any drawback claim made by another person
with respect to merchandise imported by the importer in
an amount equal to the lesser of--
``(A) the amount of duties, taxes, and fees
that the person claimed with respect to the
imported merchandise; or
``(B) the amount of duties, taxes, and fees
that the importer authorized the other person
to claim with respect to the imported
merchandise.
``(3) Joint and several liability.--Persons described
in paragraphs (1) and (2) shall be jointly and
severally liable for the amount described in paragraph
(2).''.
(g) Regulations.--Section 313(l) of the Tariff Act of 1930
(19 U.S.C. 1313(l)) is amended to read as follows:
``(l) Regulations.--
``(1) In general.--Allowance of the privileges
provided for in this section shall be subject to
compliance with such rules and regulations as the
Secretary of the Treasury shall prescribe.
``(2) Calculation of drawback.--
``(A) In general.--Not later than the date
that is 2 years after the date of the enactment
of the Trade Facilitation and Trade Enforcement
Act of 2015 (or, if later, the effective date
provided for in section 906(q)(2)(B) of that
Act), the Secretary shall prescribe regulations
for determining the calculation of amounts
refunded as drawback under this section.
``(B) Claims with respect to unused
merchandise.--The regulations required by
subparagraph (A) for determining the
calculation of amounts refunded as drawback
under this section shall provide for a refund
of equal to 99 percent of the duties, taxes,
and fees paid with respect to the imported
merchandise, except that where there is
substitution of the merchandise or article,
then--
``(i) in the case of an article that
is exported, the amount of the refund
shall be equal to 99 percent of the
lesser of--
``(I) the amount of duties,
taxes, and fees paid with
respect to the imported
merchandise; or
``(II) the amount of duties,
taxes, and fees that would
apply to the exported article
if the exported article were
imported; and
``(ii) in the case of an article that
is destroyed, the amount of the refund
shall be an amount that is--
``(I) equal to 99 percent of
the lesser of--
``(aa) the amount of
duties, taxes, and fees
paid with respect to
the imported
merchandise; and
``(bb) the amount of
duties, taxes, and fees
that would apply to the
destroyed article if
the destroyed article
were imported; and
``(II) reduced by the value
of materials recovered during
destruction as provided in
subsection (x).
``(C) Claims with respect to articles into
which substitute merchandise is incorporated.--
The regulations required by subparagraph (A)
for determining the calculation of amounts
refunded as drawback under this section shall
provide for a refund of 99 percent of the
duties, taxes, and fees paid with respect to
the imported merchandise incorporated into an
article that is exported or destroyed, except
that where there is substitution of the
imported merchandise, then--
``(i) in the case of an article that
is exported, the amount of the refund
shall be equal to 99 percent of the
lesser of--
``(I) the amount of duties,
taxes, and fees paid with
respect to the imported
merchandise; or
``(II) the amount of duties,
taxes, and fees that would
apply to the substituted
merchandise if the substituted
merchandise were imported; and
``(ii) in the case of an article that
is destroyed, the amount of the refund
shall be an amount that is--
``(I) equal to 99 percent of
the lesser of--
``(aa) the amount of
duties, taxes, and fees
paid with respect to
the imported
merchandise; and
``(bb) the amount of
duties, taxes, and fees
that would apply to the
substituted merchandise
if the substituted
merchandise were
imported; and
``(II) reduced by the value
of materials recovered during
destruction as provided in
subsection (x).
``(3) Status reports on regulations.--Not later than
the date that is one year after the date of the
enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, and annually thereafter until
the regulations required by paragraph (2) are final,
the Secretary shall submit to Congress a report on the
status of those regulations.''.
(h) Substitution of Finished Petroleum Derivatives.--Section
313(p) of the Tariff Act of 1930 (19 U.S.C. 1313(p)) is
amended--
(1) by striking ``Harmonized Tariff Schedule of the
United States'' each place it appears and inserting
``HTS''; and
(2) in paragraph (3)(A)--
(A) in clause (ii)(III), by striking ``, as
so certified in a certificate of delivery or
certificate of manufacture and delivery''; and
(B) in the flush text at the end--
(i) by striking ``, so designated on
the certificate of delivery or
certificate of manufacture and
delivery''; and
(ii) by striking the last sentence
and inserting the following: ``The
party transferring the merchandise
shall maintain records kept in the
normal course of business to
demonstrate the transfer.''.
(i) Packaging Material.--Section 313(q) of the Tariff Act of
1930 (19 U.S.C. 1313(q)) is amended--
(1) in paragraph (1), by striking ``of 99 percent of
any duty, tax, or fee imposed under Federal law on such
imported material'' and inserting ``in an amount
calculated pursuant to regulations prescribed by the
Secretary of the Treasury under subsection (l)'';
(2) in paragraph (2), by striking ``of 99 percent of
any duty, tax, or fee imposed under Federal law on the
imported or substituted merchandise used to manufacture
or produce such material'' and inserting ``in an amount
calculated pursuant to regulations prescribed by the
Secretary of the Treasury under subsection (l)''; and
(3) in paragraph (3), by striking ``they contain''
and inserting ``it contains''.
(j) Filing of Drawback Claims.--Section 313(r) of the Tariff
Act of 1930 (19 U.S.C. 1313(r)) is amended--
(1) in paragraph (1)--
(A) by striking the first sentence and
inserting the following: ``A drawback entry
shall be filed or applied for, as applicable,
not later than 5 years after the date on which
merchandise on which drawback is claimed was
imported.'';
(B) in the second sentence, by striking ``3-
year'' and inserting ``5-year''; and
(C) in the third sentence, by striking ``the
Customs Service'' and inserting ``U.S. Customs
and Border Protection'';
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in the matter preceding clause
(i), by striking ``The Customs
Service'' and inserting ``U.S. Customs
and Border Protection'';
(ii) in clauses (i) and (ii), by
striking ``the Customs Service'' each
place it appears and inserting ``U.S.
Customs and Border Protection''; and
(iii) in clause (ii)(I), by striking
``3-year'' and inserting ``5-year'';
and
(B) in subparagraph (B), by striking ``the
periods of time for retaining records set forth
in subsection (t) of this section and'' and
inserting ``the period of time for retaining
records set forth in''; and
(3) by adding at the end the following:
``(4) All drawback claims filed on and after the date
that is 2 years after the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015
(or, if later, the effective date provided for in
section 906(q)(2)(B) of that Act) shall be filed
electronically.''.
(k) Designation of Merchandise by Successor.--Section 313(s)
of the Tariff Act of 1930 (19 U.S.C. 1313(s)) is amended--
(1) in paragraph (2), by striking subparagraph (B)
and inserting the following:
``(B) subject to paragraphs (5) and (6) of
subsection (j), imported merchandise, other
merchandise classifiable under the same 8-digit
HTS subheading number as such imported
merchandise, or any combination of such
imported merchandise and such other
merchandise, that the predecessor received,
before the date of succession, from the person
who imported and paid any duties, taxes, and
fees due on the imported merchandise;''; and
(2) in paragraph (4), by striking ``certifies that''
and all that follows and inserting ``certifies that the
transferred merchandise was not and will not be claimed
by the predecessor.''.
(l) Drawback Certificates.--Section 313 of the Tariff Act of
1930 (19 U.S.C. 1313) is amended by striking subsection (t).
(m) Drawback for Recovered Materials.--Section 313(x) of the
Tariff Act of 1930 (19 U.S.C. 1313(x)) is amended by striking
``and (c)'' and inserting ``(c), and (j)''.
(n) Definitions.--Section 313 of the Tariff Act of 1930 (19
U.S.C. 1313) is amended by adding at the end the following:
``(z) Definitions.--In this section:
``(1) Directly.--The term `directly' means a transfer
of merchandise or an article from one person to another
person without any intermediate transfer.
``(2) HTS.--The term `HTS' means the Harmonized
Tariff Schedule of the United States.
``(3) Indirectly.--The term `indirectly' means a
transfer of merchandise or an article from one person
to another person with one or more intermediate
transfers.''.
(o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of
1930 (19 U.S.C. 1508(c)(3)) is amended--
(1) by striking ``3rd'' and inserting ``5th''; and
(2) by striking ``payment'' and inserting
``liquidation''.
(p) Government Accountability Office Report.--
(1) In general.--Not later than one year after the
issuance of the regulations required by subsection
(l)(2) of section 313 of the Tariff Act of 1930, as
added by subsection (g) of this section, the
Comptroller General of the United States shall submit
to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of
Representatives a report on the modernization of
drawback and refunds under section 313 of the Tariff
Act of 1930, as amended by this section.
(2) Contents.--The report required by paragraph (1)
include the following:
(A) An assessment of the modernization of
drawback and refunds under section 313 of the
Tariff Act of 1930, as amended by this section.
(B) A description of drawback claims that
were permissible before the effective date
provided for in subsection (q) that are not
permissible after that effective date and an
identification of industries most affected.
(C) A description of drawback claims that
were not permissible before the effective date
provided for in subsection (q) that are
permissible after that effective date and an
identification of industries most affected.
(q) Effective Date.--
(1) In general.--The amendments made by this section
shall--
(A) take effect on the date of the enactment
of this Act; and
(B) apply to drawback claims filed on or
after the date that is 2 years after such date
of enactment.
(2) Reporting of operability of automated commercial
environment computer system.--Not later than one year
after the date of the enactment of this Act, and not
later than 2 years after such date of enactment, the
Secretary of the Treasury shall submit to Congress a
report on--
(A) the date on which the Automated
Commercial Environment will be ready to process
drawback claims; and
(B) the date on which the Automated Export
System will be ready to accept proof of
exportation under subsection (i) of section 313
of the Tariff Act of 1930, as amended by
subsection (d).
(3) Transition rule.--During the one-year period
beginning on the date that is 2 years after the date of
the enactment of this Act (or, if later, the effective
date provided for in paragraph (2)(B)), a person may
elect to file a claim for drawback under--
(A) section 313 of the Tariff Act of 1930, as
amended by this section; or
(B) section 313 of the Tariff Act of 1930, as
in effect on the day before the date of the
enactment of this Act.
SEC. 907. OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE.
(a) Annual Report on Trade Agreements Program and National
Trade Policy Agenda.--Section 163(a) of the Trade Act of 1974
(19 U.S.C. 2213(a)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), by striking ``and''
at the end;
(B) in subparagraph (B), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(C) the operation of all United States
Trade Representative-led interagency programs
during the preceding year and for the year in
which the report is submitted.''; and
(2) by adding at the end the following:
``(4) The report shall include, with respect to the
matters referred to in paragraph (1)(C), information
regarding--
``(A) the objectives and priorities of all
United States Trade Representative-led
interagency programs for the year, and the
reasons therefor;
``(B) the actions proposed, or anticipated,
to be undertaken during the year to achieve
such objectives and priorities, including
actions authorized under the trade laws and
negotiations with foreign countries;
``(C) the role of each Federal agency
participating in the interagency program in
achieving such objectives and priorities and
activities of each agency with respect to their
participation in the program;
``(D) the United States Trade
Representative's coordination of each
participating Federal agency to more
effectively achieve such objectives and
priorities;
``(E) any proposed legislation necessary or
appropriate to achieve any of such objectives
or priorities; and
``(F) the progress that was made during the
preceding year in achieving such objectives and
priorities and coordination activities included
in the statement provided for such year under
this paragraph.''.
(b) Resource Management and Staffing Plans.--
(1) Annual plan.--
(A) In general.--The United States Trade
Representative shall on an annual basis develop
a plan--
(i) to match available resources of
the Office of the United States Trade
Representative to projected workload
and provide a detailed analysis of how
the funds allocated from the prior
fiscal year to date have been spent;
(ii) to identify existing staff of
the Office and new staff that will be
necessary to support the trade
negotiation and enforcement functions
and powers of the Office (including
those of the Trade Policy Staff
Committee) as described in section 141
of the Trade Act of 1974 (19 U.S.C.
2171) and section 301 of the Trade Act
of 1974 (19 U.S.C. 2411);
(iii) to identify existing staff of
the Office and staff of other Federal
agencies who will be required to be
detailed to support United States Trade
Representative-led interagency
programs, including any associated
expenses; and
(iv) to provide a detailed analysis
of the budgetary requirements of United
States Trade Representative-led
interagency programs for the next
fiscal year and provide a detailed
analysis of how the funds allocated
from the prior fiscal year to date have
been spent.
(B) Report.--The United States Trade
Representative shall submit to the Committee on
Ways and Means and the Committee on
Appropriations of the House of Representatives
and the Committee on Finance and the Committee
on Appropriations of the Senate a report that
contains the plan required under subparagraph
(A). The report required under this
subparagraph shall be submitted in conjunction
with the annual budget of the United States
Government required to be submitted to Congress
under section 1105 of title 31, United States
Code.
(2) Quadrennial plan.--
(A) In general.--Pursuant to the goals and
objectives of the strategic plan of the Office
of the United States Trade Representative as
required under section 306 of title 5, United
States Code, the United States Trade
Representative shall every 4 years develop a
plan--
(i) to analyze internal quality
controls and record management of the
Office;
(ii) to identify existing staff of
the Office and new staff that will be
necessary to support the trade
negotiation and enforcement functions
and powers of the Office (including
those of the Trade Policy Staff
Committee) as described in section 141
of the Trade Act of 1974 (19 U.S.C.
2171) and section 301 of the Trade Act
of 1974 (19 U.S.C. 2411);
(iii) to identify existing staff of
the Office and staff in other Federal
agencies who will be required to be
detailed to support United States Trade
Representative-led interagency
programs, including any associated
expenses;
(iv) to provide an outline of budget
justifications, including salaries and
expenses as well as non-personnel
administrative expenses, for the fiscal
years required under the strategic
plan; and
(v) to provide an outline of budget
justifications, including salaries and
expenses as well as non-personnel
administrative expenses, for United
States Trade Representative-led
interagency programs for the fiscal
years required under the strategic
plan.
(B) Report.--
(i) In general.--The United States
Trade Representative shall submit to
the Committee on Ways and Means and the
Committee on Appropriations of the
House of Representatives and the
Committee on Finance and the Committee
on Appropriations of the Senate a
report that contains the plan required
under subparagraph (A). Except as
provided in clause (ii), the report
required under this clause shall be
submitted in conjunction with the
strategic plan of the Office as
required under section 306 of title 5,
United States Code.
(ii) Exception.--The United States
Trade Representative shall submit to
the congressional committees specified
in clause (i) an initial report that
contains the plan required under
subparagraph (A) not later than
February 1, 2016.
SEC. 908. UNITED STATES-ISRAEL TRADE AND COMMERCIAL ENHANCEMENT.
(a) Findings.--Congress finds the following:
(1) Israel is America's dependable, democratic ally
in the Middle East--an area of paramount strategic
importance to the United States.
(2) The United States-Israel Free Trade Agreement
formed the modern foundation of the bilateral
commercial relationship between the two countries and
was the first such agreement signed by the United
States with a foreign country.
(3) The United States-Israel Free Trade Agreement has
been instrumental in expanding commerce and the
strategic relationship between the United States and
Israel.
(4) More than $45 billion in goods and services is
traded annually between the two countries in addition
to roughly $10 billion in United States foreign direct
investment in Israel.
(5) The United States continues to look for and find
new opportunities to enhance cooperation with Israel,
including through the enactment of the United States-
Israel Enhanced Security Cooperation Act of 2012
(Public Law 112-150) and the United States-Israel
Strategic Partnership Act of 2014 (Public Law 113-296).
(6) It has been the policy of the United States
Government to combat all elements of the Arab League
Boycott of Israel by--
(A) public statements of Administration
officials;
(B) enactment of relevant sections of the
Export Administration Act of 1979 (as continued
in effect pursuant to the International
Emergency Economic Powers Act), including
sections to ensure foreign persons comply with
applicable reporting requirements relating to
the boycott;
(C) enactment of the 1976 Tax Reform Act
(Public Law 94-455) that denies certain tax
benefits to entities abiding by the boycott;
(D) ensuring through free trade agreements
with Bahrain and Oman that such countries no
longer participate in the boycott; and
(E) ensuring as a condition of membership in
the World Trade Organization that Saudi Arabia
no longer enforces the secondary or tertiary
elements of the boycott.
(b) Statements of Policy.--Congress--
(1) supports the strengthening of United States-
Israel economic cooperation and recognizes the
tremendous strategic, economic, and technological value
of cooperation with Israel;
(2) recognizes the benefit of cooperation with Israel
to United States companies, including by improving
American competitiveness in global markets;
(3) recognizes the importance of trade and commercial
relations to the pursuit and sustainability of peace,
and supports efforts to bring together the United
States, Israel, the Palestinian territories, and others
in enhanced commerce;
(4) opposes politically motivated actions that
penalize or otherwise limit commercial relations
specifically with Israel such as boycotts, divestment
or sanctions;
(5) notes that the boycott, divestment, and
sanctioning of Israel by governments, governmental
bodies, quasi-governmental bodies, international
organizations, and other such entities is contrary to
the General Agreement on Tariffs and Trade (GATT)
principle of non-discrimination;
(6) encourages the inclusion of politically motivated
actions that penalize or otherwise limit commercial
relations specifically with Israel such as boycotts,
divestment from, or sanctions against Israel as a topic
of discussion at the U.S.-Israel Joint Economic
Development Group (JEDG) and other areas to support the
strengthening of the United States-Israel commercial
relationship and combat any commercial discrimination
against Israel;
(7) supports efforts to prevent investigations or
prosecutions by governments or international
organizations of United States persons on the sole
basis of such persons doing business with Israel, with
Israeli entities, or in Israeli-controlled territories;
and
(8) supports American States examining a company's
promotion or compliance with unsanctioned boycotts,
divestment from, or sanctions against Israel as part of
its consideration in awarding grants and contracts and
supports the divestment of State assets from companies
that support or promote actions to boycott, divest
from, or sanction Israel.
(c) Principal Trade Negotiating Objectives of the United
States.--
(1) Commercial partnerships.--Among the principal
trade negotiating objectives of the United States for
proposed trade agreements with foreign countries
regarding commercial partnerships are the following:
(A) To discourage actions by potential
trading partners that directly or indirectly
prejudice or otherwise discourage commercial
activity solely between the United States and
Israel.
(B) To discourage politically motivated
actions to boycott, divest from, or sanction
Israel and to seek the elimination of
politically motivated non-tariff barriers on
Israeli goods, services, or other commerce
imposed on the State of Israel.
(C) To seek the elimination of state-
sponsored unsanctioned foreign boycotts against
Israel or compliance with the Arab League
Boycott of Israel by prospective trading
partners.
(2) Effective date.--This subsection takes effect on
the date of the enactment of this Act and applies with
respect to negotiations commenced before, on, or after
the date of the enactment of this Act.
(d) Report on Politically Motivated Acts of Boycott,
Divestment From, and Sanctions Against Israel.--
(1) In general.--Not later than 180 days after the
date of the enactment of this Act, and annually
thereafter, the President shall submit to Congress a
report on politically motivated acts of boycott,
divestment from, and sanctions against Israel.
(2) Matters to be included.--The report required by
paragraph (1) shall include the following:
(A) A description of the establishment of
barriers to trade, including non-tariff
barriers, investment, or commerce by foreign
countries or international organizations
against United States persons operating or
doing business in Israel, with Israeli
entities, or in Israeli-controlled territories.
(B) A description of specific steps being
taken by the United States to encourage foreign
countries and international organizations to
cease creating such barriers and to dismantle
measures already in place and an assessment of
the effectiveness of such steps.
(C) A description of specific steps being
taken by the United States to prevent
investigations or prosecutions by governments
or international organizations of United States
persons on the sole basis of such persons doing
business with Israel, with Israeli entities, or
in Israeli-controlled territories.
(D) Decisions by foreign persons, including
corporate entities and state-affiliated
financial institutions, that limit or prohibit
economic relations with Israel or persons doing
business in Israel or in Israeli controlled
territories.
(e) Certain Foreign Judgments Against United States
Persons.--Notwithstanding any other provision of law, no
domestic court shall recognize or enforce any foreign judgment
entered against a United States person that conducts business
operations in Israel, or any territory controlled by Israel, if
the domestic court determines that the foreign judgment is
based, in whole or in part, on a determination by a foreign
court that the United States person's conducting business
operations therein or with Israeli entities constitutes a
violation of law.
(f) Definitions.--In this section:
(1) Boycott, divestment from, and sanctions against
israel.--The term ``boycott, divestment from, and
sanctions against Israel'' means actions by states,
non-member states of the United Nations, international
organizations, or affiliated agencies of international
organizations that are politically motivated and are
intended to penalize or otherwise limit commercial
relations specifically with Israel or persons doing
business in Israel or in Israeli-controlled
territories.
(2) Domestic court.--The term ``domestic court''
means a Federal court of the United States, or a court
of any State or territory of the United States or of
the District of Columbia.
(3) Foreign court.--The term ``foreign court'' means
a court, an administrative body, or other tribunal of a
foreign country.
(4) Foreign judgment.--The term ``foreign judgment''
means a final civil judgment rendered by a foreign
court.
(5) Foreign person.--The term ``foreign person''
means--
(A) any natural person who is not lawfully
admitted for permanent residence (as defined in
section 101(a)(20) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(20)) or who
is not a protected individual (as defined in
section 274B(a)(3) of such Act (8 U.S.C.
1324b(a)(3)); or
(B) any foreign corporation, business
association, partnership, trust, society or any
other entity or group that is not incorporated
or organized to do business in the United
States, as well as any international
organization, foreign government and any agency
or subdivision of foreign government, including
a diplomatic mission.
(6) Person.--
(A) In general.--The term ``person'' means--
(i) a natural person;
(ii) a corporation, business
association, partnership, society,
trust, financial institution, insurer,
underwriter, guarantor, and any other
business organization, any other
nongovernmental entity, organization,
or group, and any governmental entity
operating as a business enterprise; and
(iii) any successor to any entity
described in clause (ii).
(B) Application to governmental entities.--
The term ``person'' does not include a
government or governmental entity that is not
operating as a business enterprise.
(7) United states person.--The term ``United States
person'' means--
(A) a natural person who is a national of the
United States (as defined in section 101(a)(22)
of the Immigration and Nationality Act (8
U.S.C. 1101(a)(22))); or
(B) a corporation or other legal entity which
is organized under the laws of the United
States, any State or territory thereof, or the
District of Columbia, if natural persons
described in subparagraph (A) own, directly or
indirectly, more than 50 percent of the
outstanding capital stock or other beneficial
interest in such legal entity.
SEC. 909. ELIMINATION OF CONSUMPTIVE DEMAND EXCEPTION TO PROHIBITION ON
IMPORTATION OF GOODS MADE WITH CONVICT LABOR,
FORCED LABOR, OR INDENTURED LABOR; REPORT.
(a) Elimination of Consumptive Demand Exception.--
(1) In general.--Section 307 of the Tariff Act of
1930 (19 U.S.C. 1307) is amended by striking ``The
provisions of this section'' and all that follows
through ``of the United States.''.
(2) Effective date.--The amendment made by paragraph
(1) shall take effect on the date that is 15 days after
the date of the enactment of this Act.
(b) Report Required.--Not later than 180 days after the date
of the enactment of this Act, and annually thereafter, the
Commissioner shall submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report on compliance with section 307 of the
Tariff Act of 1930 (19 U.S.C. 1307) that includes the
following:
(1) The number of instances in which merchandise was
denied entry pursuant to that section during the 1-year
period preceding the submission of the report.
(2) A description of the merchandise denied entry
pursuant to that section.
(3) Such other information as the Commissioner
considers appropriate with respect to monitoring and
enforcing compliance with that section.
SEC. 910. CUSTOMS USER FEES.
(a) In General.--Section 13031(j)(3) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(j)(3))
is amended by adding at the end the following:
``(C) Fees may be charged under paragraphs (9) and (10) of
subsection (a) during the period beginning on July 8, 2025, and
ending on July 28, 2025.''.
(b) Rate for Merchandise Processing Fees.--Section 503 of the
United States-Korea Free Trade Agreement Implementation Act
(Public Law 112-41; 125 Stat. 460) is amended--
(1) by striking ``For the period'' and inserting
``(a) In General.--For the period''; and
(2) by adding at the end the following:
``(b) Additional Period.--For the period beginning on July 1,
2025, and ending on July 14, 2025, section 13031(a)(9) of the
Consolidated Omnibus Budget Reconciliation Act of 1985 (19
U.S.C. 58c(a)(9)) shall be applied and administered--
``(1) in subparagraph (A), by substituting `0.3464'
for `0.21'; and
``(2) in subparagraph (B)(i), by substituting
`0.3464' for `0.21'.''.
SEC. 911. REPORT ON CERTAIN U.S. CUSTOMS AND BORDER PROTECTION
AGREEMENTS.
(a) In General.--Not later than one year after entering into
an agreement under a program specified in subsection (b), and
annually thereafter until the termination of the program, the
Commissioner shall submit to the Committee on Finance of the
Senate, the Committee on Ways and Means of the House of
Representatives, the Committee on Homeland Security and
Governmental Affairs of the Senate, and the Committee on
Homeland Security of the House of Representatives a report that
includes the following:
(1) A description of the development of the program.
(2) A description of the type of entity with which
U.S. Customs and Border Protection entered into the
agreement and the amount that entity reimbursed U.S.
Customs and Border Protection under the agreement.
(3) An identification of the type of port of entry to
which the agreement relates and an assessment of how
the agreement provides economic benefits at the port of
entry.
(4) A description of the services provided by U.S.
Customs and Border Protection under the agreement
during the year preceding the submission of the report.
(5) The amount of fees collected under the agreement
during that year.
(6) A detailed accounting of how the fees collected
under the agreement have been spent during that year.
(7) A summary of any complaints or criticism received
by U.S. Customs and Border Protection during that year
regarding the agreement.
(8) An assessment of the compliance of the entity
described in paragraph (2) with the terms of the
agreement.
(9) Recommendations with respect to how activities
conducted pursuant to the agreement could function more
effectively or better produce economic benefits.
(10) A summary of the benefits to and challenges
faced by U.S. Customs and Border Protection and the
entity described in paragraph (2) under the agreement.
(b) Program Specified.--A program specified in this
subsection is--
(1) the program for entering into reimbursable fee
agreements for the provision of U.S. Customs and Border
Protection services established by section 560 of the
Department of Homeland Security Appropriations Act,
2013 (division D of Public Law 113-6; 127 Stat. 378);
or
(2) the pilot program authorizing U.S. Customs and
Border Protection to enter into partnerships with
private sector and government entities at ports of
entry established by section 559 of the Department of
Homeland Security Appropriations Act, 2014 (division F
of Public Law 113-76; 6 U.S.C. 211 note).
SEC. 912. AMENDMENTS TO BIPARTISAN CONGRESSIONAL TRADE PRIORITIES AND
ACCOUNTABILITY ACT OF 2015.
(a) Immigration Laws of the United States.--Section 102(a) of
the Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 is amended--
(1) in paragraph (12), by striking ``and'' at the
end;
(2) in paragraph (13), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(14) to ensure that trade agreements do not require
changes to the immigration laws of the United States or
obligate the United States to grant access or expand
access to visas issued under section 101(a)(15) of the
Immigration and Nationality Act (8 U.S.C.
1101(a)(15)).''.
(b) Global Warming.--Section 102(a) of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015,
as amended by subsection (a) of this section, is amended--
(1) in paragraph (13), by striking ``and'' at the
end;
(2) in paragraph (14), by striking the period at the
end and inserting ``; and''; and
(3) by adding at the end the following:
``(15) to ensure that trade agreements do not require
changes to U.S. law or obligate the United States with
respect to global warming or climate change.''.
(c) Fisheries Negotiations.--Section 102(b) of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
is amended by adding at the end the following:
``(22) Fisheries negotiations.--The principal
negotiating objectives of the United States with
respect to trade in fish, seafood, and shellfish
products are to obtain competitive opportunities for
United States exports of fish, seafood, and shellfish
products in foreign markets substantially equivalent to
the competitive opportunities afforded foreign exports
of fish, seafood, and shellfish products in United
States markets and to achieve fairer and more open
conditions of trade in fish, seafood, and shellfish
products, including by reducing or eliminating tariff
and non-tariff barriers and eliminating subsidies that
distort trade.''.
(d) Accreditation.--Section 104(c)(2)(C) of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
is amended by inserting after the first sentence the following:
``In addition, the chairman and ranking members described in
subparagraphs (A)(i) and (B)(i) shall each be permitted to
designate up to 3 personnel with proper security clearances to
serve as delegates to such negotiations.''.
(e) Trafficking in Persons.--Section 106(b)(6) of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015 is amended--
(1) by redesignating subparagraph (B) as subparagraph
(C); and
(2) by inserting after subparagraph (A) the
following:
``(B) Exception.--
``(i) Invoking exception.--If the
President submits to the appropriate
congressional committees a letter
stating that a country to which
subparagraph (A) applies has taken
concrete actions to implement the
principal recommendations with respect
to that country in the most recent
annual report on trafficking in
persons, this paragraph shall not apply
with respect to agreements with that
country.
``(ii) Content of letter; public
availability.--A letter submitted under
clause (i) with respect to a country
shall--
``(I) include a description
of the concrete actions that
the country has taken to
implement the principal
recommendations described in
clause (i); and
``(II) be made available to
the public.
``(iii) Appropriate congressional
committees defined.--In this
subparagraph, the term `appropriate
congressional committees' means--
``(I) the Committee on Ways
and Means and the Committee on
Foreign Affairs of the House of
Representatives; and
``(II) the Committee on
Finance and the Committee on
Foreign Relations of the
Senate.'';
(f) Technical Amendments.--The Bipartisan Congressional Trade
Priorities and Accountability Act of 2015 is amended--
(1) in section 105(b)(3)--
(A) in subparagraph (A)(ii), by striking
``section 102(b)(16)'' and inserting ``section
102(b)(17)''; and
(B) in subparagraph (B)(ii), by striking
``section 102(b)(16)'' and inserting ``section
102(b)(17)''; and
(2) in section 106(b)(5), by striking ``section
102(b)(15)(C)'' and inserting ``section
102(b)(16)(C)''.
(g) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015.
SEC. 913. CERTAIN INTEREST TO BE INCLUDED IN DISTRIBUTIONS UNDER
CONTINUED DUMPING AND SUBSIDY OFFSET ACT OF 2000.
(a) In General.--Notwithstanding any other provision of law,
the Commissioner shall include in all distributions of
collected antidumping and countervailing duties described in
subsection (b) all interest earned on such duties, including--
(1) interest accrued under section 778 of the Tariff
Act of 1930 (19 U.S.C. 1677g),
(2) interest accrued under section 505(d) of the
Tariff Act of 1930 (19 U.S.C. 1505(d)), and
(3) common-law equitable interest, and all interest
under section 963 of the Revised Statutes of the United
States (19 U.S.C. 580), awarded by a court against a
surety's late payment of antidumping or countervailing
duties and interest described in paragraph (1) or (2),
under its bond,
which is, or was, realized through application of any payment
received on or after October 1, 2014, by U.S. Customs and
Border Protection under, or in connection with, any customs
bond pursuant to a court order or judgment, or any settlement
for any such bond.
(b) Distributions Described.--The distributions described in
subsection (a) are all distributions made on or after the date
of the enactment of this Act pursuant to section 754 of the
Tariff Act of 1930 (19 U.S.C. 1675c) (as such section was in
effect on February 7, 2006) of collected antidumping and
countervailing duties assessed on or after October 1, 2000, on
entries made through September 30, 2007.
SEC. 914. REPORT ON COMPETITIVENESS OF U.S. RECREATIONAL PERFORMANCE
OUTERWEAR INDUSTRY.
Not later than June 1, 2016, the United States International
Trade Commission shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House of
Representatives a report on the competitiveness of the United
States recreational performance outwear industry and its
effects on the United States economy, including an assessment
of duty structures on inputs as well as finished products and
global supply chains.
SEC. 915. INCREASE IN PENALTY FOR FAILURE TO FILE RETURN OF TAX.
(a) In General.--Section 6651(a) of the Internal Revenue Code
of 1986 is amended by striking ``$135'' in the last sentence
and inserting ``$205''.
(b) Conforming Amendment.--Section 6651(i) of such Code is
amended by striking ``$135'' and inserting ``$205''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed in calendar years
after 2015.
PART B--TEXT OF THE MODIFICATION TO THE HOUSE AMENDMENT
Strike title VII and insert the following:
TITLE VII--CURRENCY MANIPULATION
SEC. 701. ENHANCEMENT OF ENGAGEMENT ON CURRENCY EXCHANGE RATE AND
ECONOMIC POLICIES WITH CERTAIN MAJOR TRADING
PARTNERS OF THE UNITED STATES.
(a) Major Trading Partner Report.--
(1) In general.--Not later than 180 days after the
date of the enactment of this Act, and not less
frequently than once every 180 days thereafter, the
Secretary shall submit to the appropriate committees of
Congress a report on the macroeconomic and currency
exchange rate policies of each country that is a major
trading partner of the United States.
(2) Elements.--
(A) In general.--Each report submitted under
paragraph (1) shall contain--
(i) for each country that is a major
trading partner of the United States--
(I) that country's bilateral
trade balance with the United
States;
(II) that country's current
account balance as a percentage
of its gross domestic product;
(III) the change in that
country's current account
balance as a percentage of its
gross domestic product during
the 3-year period preceding the
submission of the report;
(IV) that country's foreign
exchange reserves as a
percentage of its short-term
debt; and
(V) that country's foreign
exchange reserves as a
percentage of its gross
domestic product; and
(ii) an enhanced analysis of
macroeconomic and exchange rate
policies for each country that is a
major trading partner of the United
States that has--
(I) a significant bilateral
trade surplus with the United
States;
(II) a material current
account surplus; and
(III) engaged in persistent
one-sided intervention in the
foreign exchange market.
(B) Enhanced analysis.--Each enhanced
analysis under subparagraph (A)(ii) shall
include, for each country with respect to which
an analysis is made under that subparagraph--
(i) a description of developments in
the currency markets of that country,
including, to the greatest extent
feasible, developments with respect to
currency interventions;
(ii) a description of trends in the
real effective exchange rate of the
currency of that country and in the
degree of undervaluation of that
currency;
(iii) an analysis of changes in the
capital controls and trade restrictions
of that country;
(iv) patterns in the reserve
accumulation of that country; and
(v) an analysis of the macroeconomic
policy mix of that country and its
pattern of savings-investment
imbalances.
(3) Guidance.--The Secretary shall publicly issue
guidance not later than 90 days after the date of
enactment of the Act that describes the factors used to
assess under paragraph (2)(A)(ii) whether a country has
a significant bilateral trade surplus with the United
States, has a material current account surplus, and has
engaged in persistent one-sided intervention in the
foreign exchange market.
(b) Engagement on Exchange Rate and Economic Policies.--
(1) In general.--The President, through the
Secretary, shall commence enhanced bilateral engagement
with each country for which an enhanced analysis of
macroeconomic and currency exchange rate policies is
included in the report submitted under subsection (a),
in order to, as appropriate--
(A) urge implementation of policies to
address the causes of the undervaluation of its
currency, its bilateral trade surplus with the
United States, and its material current account
surplus, including undervaluation and surpluses
relating to exchange rate management;
(B) express the concern of the United States
with respect to the adverse trade and economic
effects of that undervaluation and those
surpluses; and/or
(C) advise that country of the ability of the
President to take action under subsection (c).
(2) Waiver.--
(A) In general.--The Secretary may waive the
requirement under subsection (b)(1) to commence
enhanced bilateral engagement with a country if
the Secretary determines that commencing
enhanced bilateral engagement with the
country--
(i) would have an adverse impact on
the United States economy greater than
the benefits of such action; or
(ii) would cause serious harm to the
national security of the United States.
(B) Certification.--The Secretary shall
promptly certify to Congress a determination
under subparagraph (A).
(c) Remedial Action.--
(1) In general.--If, on or after the date that is one
year after the commencement of enhanced bilateral
engagement by the President, through the Secretary,
with respect to a country under subsection (b)(1), the
Secretary determines that the country has failed to
adopt appropriate policies to correct the
undervaluation and surpluses described in subsection
(b)(1)(A) with respect to that country, the President
shall take one or more of the following actions:
(A) Prohibit the Overseas Private Investment
Corporation from approving any new financing
(including any insurance, reinsurance, or
guarantee) with respect to a project located in
that country on and after such date.
(B) Except as provided in paragraph (2), and
pursuant to paragraph (3), prohibit the Federal
Government from procuring, or entering into any
contract for the procurement of, goods or
services from that country on and after such
date.
(C) Instruct the United States Executive
Director of the International Monetary Fund to
call for additional rigorous surveillance of
the macroeconomic and exchange rate policies of
that country and, as appropriate, formal
consultations on findings of currency
manipulation.
(D) Instruct the United States Trade
Representative to take into account, in
consultation with the Secretary, in assessing
whether to enter into a bilateral or regional
trade agreement with that country or to
initiate or participate in negotiations with
respect to a bilateral or regional trade
agreement with that country, the extent to
which that country has failed to adopt
appropriate policies to correct the
undervaluation and surpluses described in
subsection (b)(1)(A).
(2) Waiver.--
(A) In general.--The President may waive the
requirement under paragraph (1) to take
remedial action if the President determines
that taking remedial action under paragraph (1)
would--
(i) have an adverse impact on the
United States economy greater than the
benefits of taking remedial action; or
(ii) would cause serious harm to the
national security of the United States.
(B) Certification.--The President shall
promptly certify to Congress a determination
under subparagraph (A).
(3) Exception.--The President may not apply a
prohibition under paragraph (1)(B) in a manner that is
inconsistent with United States obligations under
international agreements.
(4) Consultations.--
(A) Office of management and budget.--Before
applying a prohibition under paragraph (1)(B),
the President shall consult with the Director
of the Office of Management and Budget to
determine whether such prohibition would
subject the taxpayers of the United States to
unreasonable cost.
(B) Congress.--The President shall consult
with the appropriate committees of Congress
with respect to any action the President takes
under paragraph (1)(B), including whether the
President has consulted as required under
subparagraph (A).
(d) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Banking, Housing, and
Urban Affairs and the Committee on Finance of
the Senate; and
(B) the Committee on Financial Services and
the Committee on Ways and Means of the House of
Representatives.
(2) Country.--The term ``country'' means a foreign
country, dependent territory, or possession of a
foreign country, and may include an association of 2 or
more foreign countries, dependent territories, or
possessions of countries into a customs union outside
the United States.
(3) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of
bilateral exchange rates, expressed in price-adjusted
terms.
(4) Secretary.--The term ``Secretary'' means the
Secretary of the Treasury.
SEC. 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY.
(a) Establishment.--
(1) In general.--There is established an Advisory
Committee on International Exchange Rate Policy (in
this section referred to as the ``Committee'').
(2) Duties.--The Committee shall be responsible for
advising the Secretary of the Treasury with respect to
the impact of international exchange rates and
financial policies on the economy of the United States.
(b) Membership.--
(1) In general.--The Committee shall be composed of 9
members as follows, none of whom shall be employees of
the Federal Government:
(A) Three members shall be appointed by the
President pro tempore of the Senate, upon the
recommendation of the chairmen and ranking
members of the Committee on Banking, Housing,
and Urban Affairs and the Committee on Finance
of the Senate.
(B) Three members shall be appointed by the
Speaker of the House of Representatives upon
the recommendation of the chairmen and ranking
members of the Committee on Financial Services
and the Committee on Ways and Means of the
House of Representatives.
(C) Three members shall be appointed by the
President.
(2) Qualifications.--Members shall be selected under
paragraph (1) on the basis of their objectivity and
demonstrated expertise in finance, economics, or
currency exchange.
(3) Terms.--
(A) In general.--Members shall be appointed
for a term of 2 years or until the Committee
terminates.
(B) Reappointment.--A member may be
reappointed to the Committee for additional
terms.
(4) Vacancies.--Any vacancy in the Committee shall
not affect its powers, but shall be filled in the same
manner as the original appointment.
(c) Duration of Committee.--
(1) In general.--The Committee shall terminate on the
date that is 2 years after the date of the enactment of
this Act unless renewed by the President for a
subsequent 2-year period.
(2) Continued renewal.--The President may continue to
renew the Committee for successive 2-year periods by
taking appropriate action to renew the Committee prior
to the date on which the Committee would otherwise
terminate.
(d) Meetings.--The Committee shall hold not less than 2
meetings each calendar year.
(e) Chairperson.--
(1) In general.--The Committee shall elect from among
its members a chairperson for a term of 2 years or
until the Committee terminates.
(2) Reelection; subsequent terms.--A chairperson of
the Committee may be reelected chairperson but is
ineligible to serve consecutive terms as chairperson.
(f) Staff.--The Secretary of the Treasury shall make
available to the Committee such staff, information, personnel,
administrative services, and assistance as the Committee may
reasonably require to carry out the activities of the
Committee.
(g) Application of the Federal Advisory Committee Act.--
(1) In general.--Except as provided in paragraph (2),
the provisions of the Federal Advisory Committee Act (5
U.S.C. App.) shall apply to the Committee.
(2) Exception.--Meetings of the Committee shall be
exempt from the requirements of subsections (a) and (b)
of section 10 and section 11 of the Federal Advisory
Committee Act (relating to open meetings, public
notice, public participation, and public availability
of documents), whenever and to the extent it is
determined by the President or the Secretary of the
Treasury that such meetings will be concerned with
matters the disclosure of which--
(A) would seriously compromise the
development by the Government of the United
States of monetary or financial policy; or
(B) is likely to--
(i) lead to significant financial
specu1ation in currencies, securities,
or commodities; or
(ii) significantly endanger the
stability of any financial institution.
(h) Authorization of Appropriations.--There are authorized to
be appropriated to the Secretary of the Treasury for each
fiscal year in which the Committee is in effect $1,000,000 to
carry out this section.
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