[Pages H9104-H9173]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

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

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

Conference Report (To Accompany H.R. 644)

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) Short Title.--This Act may be cited as the ``Trade
Facilitation and Trade Enforcement Act of 2015''.
(b) Table of Contents.--The table of contents for this Act
is follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.

TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT

Sec. 101. Improving partnership programs.
Sec. 102. Report on effectiveness of trade enforcement activities.
Sec. 103. Priorities and performance standards for customs
modernization, trade facilitation, and trade enforcement
functions and programs.
Sec. 104. Educational seminars to improve efforts to classify and
appraise imported articles, to improve trade enforcement
efforts, and to otherwise facilitate legitimate
international trade.
Sec. 105. Joint strategic plan.
Sec. 106. Automated Commercial Environment.
Sec. 107. International Trade Data System.
Sec. 108. Consultations with respect to mutual recognition
arrangements.
Sec. 109. Commercial Customs Operations Advisory Committee.
Sec. 110. Centers of Excellence and Expertise.
Sec. 111. Commercial risk assessment targeting and trade alerts.
Sec. 112. Report on oversight of revenue protection and enforcement
measures.
Sec. 113. Report on security and revenue measures with respect to
merchandise transported in bond.

[[Page H9105]]

Sec. 114. Importer of record program.
Sec. 115. Establishment of importer risk assessment program.
Sec. 116. Customs broker identification of importers.
Sec. 117. Priority trade issues.
Sec. 118. Appropriate congressional committees defined.

TITLE II--IMPORT HEALTH AND SAFETY

Sec. 201. Interagency import safety working group.
Sec. 202. Joint import safety rapid response plan.
Sec. 203. Training.

TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

Sec. 301. Definition of intellectual property rights.
Sec. 302. Exchange of information related to trade enforcement.
Sec. 303. Seizure of circumvention devices.
Sec. 304. Enforcement by U.S. Customs and Border Protection of works
for which copyright registration is pending.
Sec. 305. National Intellectual Property Rights Coordination Center.
Sec. 306. Joint strategic plan for the enforcement of intellectual
property rights.
Sec. 307. Personnel dedicated to the enforcement of intellectual
property rights.
Sec. 308. Training with respect to the enforcement of intellectual
property rights.
Sec. 309. International cooperation and information sharing.
Sec. 310. Report on intellectual property rights enforcement.
Sec. 311. Information for travelers regarding violations of
intellectual property rights.

TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS

Sec. 401. Short title.
Sec. 402. Definitions.
Sec. 403. Application to Canada and Mexico.

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

Sec. 411. Trade remedy law enforcement division.
Sec. 412. Collection of information on evasion of trade remedy laws.
Sec. 413. Access to information.
Sec. 414. Cooperation with foreign countries on preventing evasion of
trade remedy laws.
Sec. 415. Trade negotiating objectives.

Subtitle B--Investigation of Evasion of Trade Remedy Laws

Sec. 421. Procedures for investigating claims of evasion of antidumping
and countervailing duty orders.

Subtitle C--Other Matters

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

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

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

TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS

Sec. 601. Trade enforcement priorities.
Sec. 602. Exercise of WTO authorization to suspend concessions or other
obligations under trade agreements.
Sec. 603. Trade monitoring.
Sec. 604. Establishment of Interagency Center on Trade Implementation,
Monitoring, and Enforcement.
Sec. 605. Inclusion of interest in certain distributions of antidumping
duties and countervailing duties.
Sec. 606. Illicitly imported, exported, or trafficked cultural
property, archaeological or ethnological materials, and
fish, wildlife, and plants.
Sec. 607. Enforcement under title III of the Trade Act of 1974 with
respect to certain acts, policies, and practices.
Sec. 608. Honey transshipment.
Sec. 609. Establishment of Chief Innovation and Intellectual Property
Negotiator.
Sec. 610. Measures relating to countries that deny adequate protection
for intellectual property rights.
Sec. 611. Trade Enforcement Trust Fund.

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

Sec. 701. Enhancement of engagement on currency exchange rate and
economic policies with certain major trading partners of
the United States.
Sec. 702. Advisory Committee on International Exchange Rate Policy.

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

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

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

Subtitle B--Preclearance Operations

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

TITLE IX--MISCELLANEOUS PROVISIONS

Sec. 901. De minimis value.
Sec. 902. Consultation on trade and customs revenue functions.
Sec. 903. Penalties for customs brokers.
Sec. 904. Amendments to chapter 98 of the Harmonized Tariff Schedule of
the United States.
Sec. 905. Exemption from duty of residue of bulk cargo contained in
instruments of international traffic previously exported
from the United States.
Sec. 906. Drawback and refunds.
Sec. 907. Report on certain U.S. Customs and Border Protection
agreements.
Sec. 908. Charter flights.
Sec. 909. United States-Israel trade and commercial enhancement.
Sec. 910. Elimination of consumptive demand exception to prohibition on
importation of goods made with convict labor, forced
labor, or indentured labor; report.
Sec. 911. Voluntary reliquidations by U.S. Customs and Border
Protection.
Sec. 912. Tariff classification of recreational performance outerwear.
Sec. 913. Modifications to duty treatment of protective active
footwear.
Sec. 914. Amendments to Bipartisan Congressional Trade Priorities and
Accountability Act of 2015.
Sec. 915. Trade preferences for Nepal.
Sec. 916. Agreement by Asia-Pacific Economic Cooperation members to
reduce rates of duty on certain environmental goods.
Sec. 917. Amendment to Tariff Act of 1930 to require country of origin
marking of certain castings.
Sec. 918. Inclusion of certain information in submission of nomination
for appointment as Deputy United States Trade
Representative.
Sec. 919. Sense of Congress on the need for a miscellaneous tariff bill
process.
Sec. 920. Customs user fees.
Sec. 921. Increase in penalty for failure to file return of tax.
Sec. 922. Permanent moratorium on Internet access taxes and on multiple
and discriminatory taxes on electronic commerce.

SEC. 2. DEFINITIONS.

In this Act:
(1) Automated commercial environment.--The term ``Automated
Commercial Environment'' means the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(f)(4)).
(2) Commercial operations of u.s. customs and border
protection.--The term ``commercial operations of U.S. Customs
and Border Protection'' includes--
(A) administering any customs revenue function (as defined
in section 415 of the Homeland Security Act of 2002 (6 U.S.C.
215));
(B) coordinating efforts of the Department of Homeland
Security with respect to trade facilitation and trade
enforcement;
(C) coordinating with the Director of U.S. Immigration and
Customs Enforcement with respect to--
(i) investigations relating to trade enforcement; and
(ii) the development and implementation of the joint
strategic plan required by section 105;
(D) coordinating, on behalf of the Department of Homeland
Security, efforts among Federal agencies to facilitate
legitimate trade and to enforce the customs and trade laws of
the United States, including representing the Department of
Homeland Security in interagency fora addressing such
efforts;
(E) coordinating with customs authorities of foreign
countries to facilitate legitimate international trade and
enforce the customs and trade laws of the United States and
the customs and trade laws of foreign countries;
(F) collecting, assessing, and disseminating information as
appropriate and in accordance with any law regarding cargo
destined for the United States--
(i) to ensure that such cargo complies with the customs and
trade laws of the United States; and
(ii) to facilitate the legitimate international trade of
such cargo;
(G) soliciting and considering on a regular basis input
from private sector entities, including the Commercial
Customs Operations Advisory Committee established by section
109 and the Trade Support Network, with respect to, as
appropriate--
(i) the implementation of changes to the customs and trade
laws of the United States; and
(ii) the development, implementation, or revision of
policies or regulations administered by U.S. Customs and
Border Protection; and
(H) otherwise advising the Secretary of Homeland Security
with respect to the development of

[[Page H9106]]

policies associated with facilitating legitimate trade and
enforcing the customs and trade laws of the United States.
(3) Commissioner.--The term ``Commissioner'' means the
Commissioner of U.S. Customs and Border Protection, as
described in section 411(b) of the Homeland Security Act of
2002, as amended by section 802(a) of this Act.
(4) Customs and trade laws of the united states.--The term
``customs and trade laws of the United States'' includes the
following:
(A) The Tariff Act of 1930 (19 U.S.C. 1202 et seq.).
(B) Section 249 of the Revised Statutes (19 U.S.C. 3).
(C) Section 2 of the Act of March 4, 1923 (42 Stat. 1453,
chapter 251; 19 U.S.C. 6).
(D) The Act of March 3, 1927 (44 Stat. 1381, chapter 348;
19 U.S.C. 2071 et seq.).
(E) Section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c).
(F) Section 251 of the Revised Statutes (19 U.S.C. 66).
(G) Section 1 of the Act of June 26, 1930 (46 Stat. 817,
chapter 617; 19 U.S.C. 68).
(H) The Act of June 18, 1934 (48 Stat. 998, chapter 590; 19
U.S.C. 81a et seq.; commonly known as the ``Foreign Trade
Zones Act'').
(I) Section 1 of the Act of March 2, 1911 (36 Stat. 965,
chapter 191; 19 U.S.C. 198).
(J) The Trade Act of 1974 (19 U.S.C. 2101 et seq.).
(K) The Trade Agreements Act of 1979 (19 U.S.C. 2501 et
seq.).
(L) The North American Free Trade Agreement Implementation
Act (19 U.S.C. 3301 et seq.).
(M) The Uruguay Round Agreements Act (19 U.S.C. 3501 et
seq.).
(N) The Caribbean Basin Economic Recovery Act (19 U.S.C.
2701 et seq.).
(O) The Andean Trade Preference Act (19 U.S.C. 3201 et
seq.).
(P) The African Growth and Opportunity Act (19 U.S.C. 3701
et seq.).
(Q) The Customs Enforcement Act of 1986 (Public Law 99-570;
100 Stat. 3207-79).
(R) The Customs and Trade Act of 1990 (Public Law 101-382;
104 Stat. 629).
(S) The Customs Procedural Reform and Simplification Act of
1978 (Public Law 95-410; 92 Stat. 888).
(T) The Trade Act of 2002 (Public Law 107-210; 116 Stat.
933).
(U) The Convention on Cultural Property Implementation Act
(19 U.S.C. 2601 et seq.).
(V) The Act of March 28, 1928 (45 Stat. 374, chapter 266;
19 U.S.C. 2077 et seq.).
(W) The Act of August 7, 1939 (53 Stat. 1262, chapter 566).
(X) The Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 (Public Law 114-26; 19 U.S.C. 4201
et seq.).
(Y) The Trade Preferences Extension Act of 2015 (Public Law
114-27; 129 Stat. 362).
(Z) Any other provision of law implementing a trade
agreement.
(AA) Any other provision of law vesting customs revenue
functions in the Secretary of the Treasury.
(BB) Any other provision of law relating to trade
facilitation or trade enforcement that is administered by
U.S. Customs and Border Protection on behalf of any Federal
agency that is required to participate in the International
Trade Data System established under section 411(d) of the
Tariff Act of 1930 (19 U.S.C. 1411(d)).
(CC) Any other provision of customs or trade law
administered by U.S. Customs and Border Protection or U.S.
Immigration and Customs Enforcement.
(5) Private sector entity.--The term ``private sector
entity'' means--
(A) an importer;
(B) an exporter;
(C) a forwarder;
(D) an air, sea, or land carrier or shipper;
(E) a contract logistics provider;
(F) a customs broker; or
(G) any other person (other than an employee of a
government) affected by the implementation of the customs and
trade laws of the United States.
(6) Trade enforcement.--The term ``trade enforcement''
means the enforcement of the customs and trade laws of the
United States.
(7) Trade facilitation.--The term ``trade facilitation''
refers to policies and activities of U.S. Customs and Border
Protection with respect to facilitating the movement of
merchandise into and out of the United States in a manner
that complies with the customs and trade laws of the United
States.

TITLE I--TRADE FACILITATION AND TRADE ENFORCEMENT

SEC. 101. IMPROVING PARTNERSHIP PROGRAMS.

(a) In General.--In order to advance the security, trade
enforcement, and trade facilitation missions of U.S. Customs
and Border Protection, the Commissioner shall ensure that
partnership programs of U.S. Customs and Border Protection
established before the date of the enactment of this Act,
such as the Customs-Trade Partnership Against Terrorism
established under subtitle B of title II of the Security and
Accountability for Every Port Act of 2006 (6 U.S.C. 961 et
seq.), and partnership programs of U.S. Customs and Border
Protection established on or after such date of enactment,
provide trade benefits to private sector entities that meet
the requirements for participation in those programs
established by the Commissioner under this section.
(b) Elements.--In developing and operating partnership
programs under subsection (a), the Commissioner shall--
(1) consult with private sector entities, the public, and
other Federal agencies when appropriate, to ensure that
participants in those programs receive commercially
significant and measurable trade benefits, including
providing preclearance of merchandise for qualified persons
that demonstrate the highest levels of compliance with the
customs and trade laws of the United States, regulations of
U.S. Customs and Border Protection, and other requirements
the Commissioner determines to be necessary;
(2) ensure an integrated and transparent system of trade
benefits and compliance requirements for all partnership
programs of U.S. Customs and Border Protection;
(3) consider consolidating partnership programs in
situations in which doing so would support the objectives of
such programs, increase participation in such programs,
enhance the trade benefits provided to participants in such
programs, and enhance the allocation of the resources of U.S.
Customs and Border Protection;
(4) coordinate with the Director of U.S. Immigration and
Customs Enforcement, and other Federal agencies with
authority to detain and release merchandise entering the
United States--
(A) to ensure coordination in the release of such
merchandise through the Automated Commercial Environment, or
its predecessor, and the International Trade Data System
established under section 411(d) of the Tariff Act of 1930
(19 U.S.C. 1411(d));
(B) to ensure that the partnership programs of those
agencies are compatible with the partnership programs of U.S.
Customs and Border Protection;
(C) to develop criteria for authorizing the release, on an
expedited basis, of merchandise for which documentation is
required from one or more of those agencies to clear or
license the merchandise for entry into the United States; and
(D) to create pathways, within and among the appropriate
Federal agencies, for qualified persons that demonstrate the
highest levels of compliance with the customs and trade laws
of the United States to receive immediate clearance absent
information that a transaction may pose a national security
or compliance threat; and
(5) ensure that trade benefits are provided to participants
in partnership programs.
(c) Report Required.--Not later than the date that is 180
days after the date of the enactment of this Act, and not
later than December 31 of each calendar year thereafter, the
Commissioner shall submit to the appropriate congressional
committees a report that--
(1) identifies each partnership program referred to in
subsection (a);
(2) for each such program, identifies--
(A) the requirements for participants in the program;
(B) the commercially significant and measurable trade
benefits provided to participants in the program;
(C) the number of participants in the program; and
(D) in the case of a program that provides for
participation at multiple tiers, the number of participants
at each such tier;
(3) identifies the number of participants enrolled in more
than one such partnership program;
(4) assesses the effectiveness of each such partnership
program in advancing the security, trade enforcement, and
trade facilitation missions of U.S. Customs and Border
Protection, based on historical developments, the level of
participation in the program, and the evolution of benefits
provided to participants in the program;
(5) summarizes the efforts of U.S. Customs and Border
Protection to work with other Federal agencies with authority
to detain and release merchandise entering the United States
to ensure that partnership programs of those agencies are
compatible with partnership programs of U.S. Customs and
Border Protection;
(6) summarizes criteria developed with those agencies for
authorizing the release, on an expedited basis, of
merchandise for which documentation is required from one or
more of those agencies to clear or license the merchandise
for entry into the United States;
(7) summarizes the efforts of U.S. Customs and Border
Protection to work with private sector entities and the
public to develop and improve such partnership programs;
(8) describes measures taken by U.S. Customs and Border
Protection to make private sector entities aware of the trade
benefits available to participants in such partnership
programs; and
(9) summarizes the plans, targets, and goals of U.S.
Customs and Border Protection with respect to such
partnership programs for the 2 years following the submission
of the report.

SEC. 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT
ACTIVITIES.

(a) In General.--Not later than one year after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit to the appropriate congressional
committees a report on the effectiveness of trade enforcement
activities of U.S. Customs and Border Protection.
(b) Contents.--The report required by subsection (a) shall
include--
(1) a description of the use of resources, results of
audits and verifications, targeting, organization, and
training of personnel of U.S. Customs and Border Protection;
(2) a description of trade enforcement activities to
address undervaluation, transshipment, legitimacy of entities
making entry, protection of revenues, fraud prevention and
detection, and penalties, including intentional
misclassification, inadequate bonding, and other
misrepresentations; and
(3) a description of trade enforcement activities with
respect to the priority trade issues described in section
117, including--
(A) methodologies used in such enforcement activities, such
as targeting;

[[Page H9107]]

(B) recommendations for improving such enforcement
activities; and
(C) a description of the implementation of previous
recommendations for improving such enforcement activities.
(c) Form of Report.--The report required by subsection (a)
shall be submitted in unclassified form, but may include a
classified annex.

SEC. 103. PRIORITIES AND PERFORMANCE STANDARDS FOR CUSTOMS
MODERNIZATION, TRADE FACILITATION, AND TRADE
ENFORCEMENT FUNCTIONS AND PROGRAMS.

(a) Priorities and Performance Standards.--
(1) In general.--The Commissioner, in consultation with the
appropriate congressional committees, shall establish
priorities and performance standards to measure the
development and levels of achievement of the customs
modernization, trade facilitation, and trade enforcement
functions and programs described in subsection (b).
(2) Minimum priorities and standards.--Such priorities and
performance standards shall, at a minimum, include priorities
and standards relating to efficiency, outcome, output, and
other types of applicable measures.
(b) Functions and Programs Described.--The functions and
programs referred to in subsection (a) are the following:
(1) The Automated Commercial Environment.
(2) Each of the priority trade issues described in section
117.
(3) The Centers of Excellence and Expertise described in
section 110.
(4) Drawback for exported merchandise under section 313 of
the Tariff Act of 1930 (19 U.S.C. 1313), as amended by
section 906 of this Act.
(5) Transactions relating to imported merchandise in bond.
(6) Collection of countervailing duties assessed under
subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C.
1671 et seq.) and antidumping duties assessed under subtitle
B of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et
seq.).
(7) The expedited clearance of cargo.
(8) The issuance of regulations and rulings.
(9) The issuance of Regulatory Audit Reports.
(c) Consultations and Notification.--
(1) Consultations.--The consultations required by
subsection (a)(1) shall occur, at a minimum, on an annual
basis.
(2) Notification.--The Commissioner shall notify the
appropriate congressional committees of any changes to the
priorities or performance standards referred to in subsection
(a) not later than 30 days before such changes are to take
effect.

SEC. 104. EDUCATIONAL SEMINARS TO IMPROVE EFFORTS TO CLASSIFY
AND APPRAISE IMPORTED ARTICLES, TO IMPROVE
TRADE ENFORCEMENT EFFORTS, AND TO OTHERWISE
FACILITATE LEGITIMATE INTERNATIONAL TRADE.

(a) Establishment.--The Commissioner and the Director shall
establish and carry out on a fiscal year basis educational
seminars to--
(1) improve the ability of personnel of U.S. Customs and
Border Protection to classify and appraise articles imported
into the United States in accordance with the customs and
trade laws of the United States;
(2) improve the trade enforcement efforts of personnel of
U.S. Customs and Border Protection and personnel of U.S.
Immigration and Customs Enforcement; and
(3) otherwise improve the ability and effectiveness of
personnel of U.S. Customs and Border Protection and personnel
of U.S. Immigration and Customs Enforcement to facilitate
legitimate international trade.
(b) Content.--
(1) Classifying and appraising imported articles.--In
carrying out subsection (a)(1), the Commissioner, the
Director, and interested parties in the private sector
selected under subsection (c) shall provide instruction and
related instructional materials at each educational seminar
carried out under this section to personnel of U.S. Customs
and Border Protection and, as appropriate, to personnel of
U.S. Immigration and Customs Enforcement on the following:
(A) Conducting a physical inspection of an article imported
into the United States, including testing of samples of the
article, to determine if the article is mislabeled in the
manifest or other accompanying documentation.
(B) Reviewing the manifest and other accompanying
documentation of an article imported into the United States
to determine if the country of origin of the article listed
in the manifest or other accompanying documentation is
accurate.
(C) Customs valuation.
(D) Industry supply chains and other related matters as
determined to be appropriate by the Commissioner.
(2) Trade enforcement efforts.--In carrying out subsection
(a)(2), the Commissioner, the Director, and interested
parties in the private sector selected under subsection (c)
shall provide instruction and related instructional materials
at each educational seminar carried out under this section to
personnel of U.S. Customs and Border Protection and, as
appropriate, to personnel of U.S. Immigration and Customs
Enforcement to identify opportunities to enhance enforcement
of the following:
(A) Collection of countervailing duties assessed under
subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C.
1671 et seq.) and antidumping duties assessed under subtitle
B of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et
seq.).
(B) Addressing evasion of duties on imports of textiles.
(C) Protection of intellectual property rights.
(D) Enforcement of child labor laws.
(3) Approval of commissioner and director.--The instruction
and related instructional materials at each educational
seminar carried out under this section shall be subject to
the approval of the Commissioner and the Director.
(c) Selection Process.--
(1) In general.--The Commissioner shall establish a process
to solicit, evaluate, and select interested parties in the
private sector for purposes of assisting in providing
instruction and related instructional materials described in
subsection (b) at each educational seminar carried out under
this section.
(2) Criteria.--The Commissioner shall evaluate and select
interested parties in the private sector under the process
established under paragraph (1) based on--
(A) availability and usefulness;
(B) the volume, value, and incidence of mislabeling or
misidentification of origin of imported articles; and
(C) other appropriate criteria established by the
Commissioner.
(3) Public availability.--The Commissioner and the Director
shall publish in the Federal Register a detailed description
of the process established under paragraph (1) and the
criteria established under paragraph (2).
(d) Special Rule for Antidumping and Countervailing Duty
Orders.--
(1) In general.--The Commissioner shall give due
consideration to carrying out an educational seminar under
this section in whole or in part to improve the ability of
personnel of U.S. Customs and Border Protection to enforce a
countervailing or antidumping duty order issued under section
706 or 736 of the Tariff Act of 1930 (19 U.S.C. 1671e or
1673e) upon the request of a petitioner in an action
underlying such countervailing or antidumping duty order.
(2) Interested party.--A petitioner described in paragraph
(1) shall be treated as an interested party in the private
sector for purposes of the requirements of this section.
(e) Performance Standards.--The Commissioner and the
Director shall establish performance standards to measure the
development and level of achievement of educational seminars
carried out under this section.
(f) Reporting.--Not later than September 30, 2016, and
annually thereafter, the Commissioner and the Director shall
submit to the appropriate congressional committees a report
on the effectiveness of educational seminars carried out
under this section.
(g) Definitions.--In this section:
(1) Director.--The term ``Director'' means the Director of
U.S. Immigration and Customs Enforcement.
(2) United states.--The term ``United States'' means the
customs territory of the United States, as defined in General
Note 2 to the Harmonized Tariff Schedule of the United
States.
(3) U.S. customs and border protection personnel.--The term
``U.S. Customs and Border Protection personnel'' means import
specialists, auditors, and other appropriate employees of the
U.S. Customs and Border Protection.
(4) U.S. immigration and customs enforcement personnel.--
The term ``U.S. Immigration and Customs Enforcement
personnel'' means Homeland Security Investigations
Directorate personnel and other appropriate employees of U.S.
Immigration and Customs Enforcement.

SEC. 105. JOINT STRATEGIC PLAN.

(a) In General.--Not later than one year after the date of
the enactment of this Act, and every 2 years thereafter, the
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall jointly develop and submit to the
appropriate congressional committees a joint strategic plan.
(b) Contents.--The joint strategic plan required under this
section shall be comprised of a comprehensive multiyear plan
for trade enforcement and trade facilitation, and shall
include--
(1) a summary of actions taken during the 2-year period
preceding the submission of the plan to improve trade
enforcement and trade facilitation, including a description
and analysis of specific performance measures to evaluate the
progress of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement in meeting each such
responsibility;
(2) a statement of objectives and plans for further
improving trade enforcement and trade facilitation;
(3) a specific identification of the priority trade issues
described in section 117 that can be addressed in order to
enhance trade enforcement and trade facilitation, and a
description of strategies and plans for addressing each such
issue, including--
(A) a description of the targeting methodologies used for
enforcement activities with respect to each such issue;
(B) recommendations for improving such enforcement
activities; and
(C) a description of the implementation of previous
recommendations for improving such enforcement activities;
(4) a description of efforts made to improve consultation
and coordination among and within Federal agencies, and in
particular between U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement, regarding trade
enforcement and trade facilitation;
(5) a description of the training that has occurred to date
within U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement to improve trade
enforcement and trade facilitation, including training at
educational seminars carried out under section 104;
(6) a description of efforts to work with the World Customs
Organization and other international organizations, in
consultation with other Federal agencies as appropriate, with
respect to enhancing trade enforcement and trade
facilitation;
(7) a description of U.S. Custom and Border Protection
organizational benchmarks for optimizing staffing and wait
times at ports of entry;
(8) a specific identification of any domestic or
international best practices that may further improve trade
enforcement and trade facilitation;

[[Page H9108]]

(9) any legislative recommendations to further improve
trade enforcement and trade facilitation; and
(10) a description of efforts made to improve consultation
and coordination with the private sector to enhance trade
enforcement and trade facilitation.
(c) Consultations.--
(1) In general.--In developing the joint strategic plan
required under this section, the Commissioner and the
Director of U.S. Immigration and Customs Enforcement shall
consult with--
(A) appropriate officials from relevant Federal agencies,
including--
(i) the Department of the Treasury;
(ii) the Department of Agriculture;
(iii) the Department of Commerce;
(iv) the Department of Justice;
(v) the Department of the Interior;
(vi) the Department of Health and Human Services;
(vii) the Food and Drug Administration;
(viii) the Consumer Product Safety Commission; and
(ix) the Office of the United States Trade Representative;
and
(B) the Commercial Customs Operations Advisory Committee
established by section 109.
(2) Other consultations.--In developing the joint strategic
plan required under this section, the Commissioner and the
Director shall seek to consult with--
(A) appropriate officials from relevant foreign law
enforcement agencies and international organizations,
including the World Customs Organization; and
(B) interested parties in the private sector.
(d) Form of Plan.--The joint strategic plan required under
this section shall be submitted in unclassified form, but may
include a classified annex.

SEC. 106. AUTOMATED COMMERCIAL ENVIRONMENT.

(a) Funding.--Section 13031(f)(4)(B) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(f)(4)(B)) is amended--
(1) by striking ``2003 through 2005'' and inserting ``2016
through 2018'';
(2) by striking ``such amounts as are available in that
Account'' and inserting ``not less than $153,736,000''; and
(3) by striking ``for the development'' and inserting ``to
complete the development and implementation''.
(b) Report.--
(1) In general.--Not later than December 31, 2016, the
Commissioner shall submit to the Committee on Appropriations
and the Committee on Finance of the Senate and the Committee
on Appropriations and the Committee on Ways and Means of the
House of Representatives a report detailing--
(A) U.S. Customs and Border Protection's incorporation of
all core trade processing capabilities, including cargo
release, entry summary, cargo manifest, cargo financial data,
and export data elements, into the Automated Commercial
Environment not later than September 30, 2016, to conform
with the admissibility criteria of agencies participating in
the International Trade Data System identified pursuant to
paragraph (4)(A)(iii) of section 411(d) of the Tariff Act of
1930 (19 U.S.C. 1411(d)), as added by section 107 of this
Act;
(B) U.S. Customs and Border Protection's remaining
priorities for processing entry summary data elements, cargo
manifest data elements, cargo financial data elements, and
export elements in the Automated Commercial Environment, and
the objectives and plans for implementing these remaining
priorities;
(C) the components of the National Customs Automation
Program specified in section 411(a)(2) of the Tariff Act of
1930 that have not been implemented; and
(D) any additional components of the National Customs
Automation Program initiated by the Commissioner to complete
the development, establishment, and implementation of the
Automated Commercial Environment.
(2) Update of reports.--Not later than September 30, 2017,
the Commissioner shall submit to the Committee on
Appropriations and the Committee on Finance of the Senate and
the Committee on Appropriations and the Committee on Ways and
Means of the House of Representatives an updated report
addressing each of the matters referred to in paragraph (1),
and--
(A) evaluating the effectiveness of the implementation of
the Automated Commercial Environment; and
(B) detailing the percentage of trade processed in the
Automated Commercial Environment every month since September
30, 2016.
(3) Repeal.--Section 311(b) of the Customs Border Security
Act of 2002 (19 U.S.C. 2075 note) is amended by striking
paragraph (3).
(c) Government Accountability Office Report.--Not later
than December 31, 2017, the Comptroller General of the United
States shall submit to the Committee on Appropriations and
the Committee on Finance of the Senate and the Committee on
Appropriations and the Committee on Ways and Means of the
House of Representatives a report--
(1) assessing the progress of other Federal agencies in
accessing and utilizing the Automated Commercial Environment;
and
(2) assessing the potential cost savings to the United
States Government and importers and exporters and the
potential benefits to enforcement of the customs and trade
laws of the United States if the elements identified in
subparagraphs (A) through (D) of subsection (b)(1) are
implemented.

SEC. 107. INTERNATIONAL TRADE DATA SYSTEM.

Section 411(d) of the Tariff Act of 1930 (19 U.S.C.
1411(d)) is amended--
(1) by redesignating paragraphs (4) through (7) as
paragraphs (5) through (8), respectively;
(2) by inserting after paragraph (3) the following:
``(4) Information technology infrastructure.--
``(A) In general.--The Secretary shall work with the head
of each agency participating in the ITDS and the Interagency
Steering Committee to ensure that each agency--
``(i) develops and maintains the necessary information
technology infrastructure to support the operation of the
ITDS and to submit all data to the ITDS electronically;
``(ii) enters into a memorandum of understanding, or takes
such other action as is necessary, to provide for the
information sharing between the agency and U.S. Customs and
Border Protection necessary for the operation and maintenance
of the ITDS;
``(iii) not later than June 30, 2016, identifies and
transmits to the Commissioner of U.S. Customs and Border
Protection the admissibility criteria and data elements
required by the agency to authorize the release of cargo by
U.S. Customs and Border Protection for incorporation into the
operational functionality of the Automated Commercial
Environment computer system authorized under section
13031(f)(4) of the Consolidated Omnibus Budget and
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)); and
``(iv) not later than December 31, 2016, utilizes the ITDS
as the primary means of receiving from users the standard set
of data and other relevant documentation, exclusive of
applications for permits, licenses, or certifications
required for the release of imported cargo and clearance of
cargo for export.
``(B) Rule of construction.--Nothing in this paragraph
shall be construed to require any action to be taken that
would compromise an ongoing law enforcement investigation or
would compromise national security.''; and
(3) in paragraph (8), as redesignated, by striking
``section 9503(c) of the Omnibus Budget Reconciliation Act of
1987 (19 U.S.C. 2071 note)'' and inserting ``section 109 of
the Trade Facilitation and Trade Enforcement Act of 2015''.

SEC. 108. CONSULTATIONS WITH RESPECT TO MUTUAL RECOGNITION
ARRANGEMENTS.

(a) Consultations.--The Secretary of Homeland Security,
with respect to any proposed mutual recognition arrangement
or similar agreement between the United States and a foreign
government providing for mutual recognition of supply chain
security programs and customs revenue functions, shall
consult with the appropriate congressional committees--
(1) not later than 30 days before initiating negotiations
to enter into any such arrangement or similar agreement; and
(2) not later than 30 days before entering into any such
arrangement or similar agreement.
(b) Negotiating Objective.--It shall be a negotiating
objective of the United States in any negotiation for a
mutual recognition arrangement or similar agreement with a
foreign country on partnership programs, such as the Customs-
Trade Partnership Against Terrorism established under
subtitle B of title II of the Security and Accountability for
Every Port Act of 2006 (6 U.S.C. 961 et seq.), to seek to
ensure the compatibility of the partnership programs of that
country with the partnership programs of U.S. Customs and
Border Protection to enhance security, trade facilitation,
and trade enforcement.

SEC. 109. COMMERCIAL CUSTOMS OPERATIONS ADVISORY COMMITTEE.

(a) Establishment.--Not later than the date that is 60 days
after the date of the enactment of this Act, the Secretary of
the Treasury and the Secretary of Homeland Security shall
jointly establish a Commercial Customs Operations Advisory
Committee (in this section referred to as the ``Advisory
Committee'').
(b) Membership.--
(1) In general.--The Advisory Committee shall be comprised
of--
(A) 20 individuals appointed under paragraph (2);
(B) the Assistant Secretary for Tax Policy of the
Department of the Treasury and the Commissioner, who shall
jointly co-chair meetings of the Advisory Committee; and
(C) the Assistant Secretary for Policy and the Director of
U.S. Immigration and Customs Enforcement, who shall serve as
deputy co-chairs of meetings of the Advisory Committee.
(2) Appointment.--
(A) In general.--The Secretary of the Treasury and the
Secretary of Homeland Security shall jointly appoint 20
individuals from the private sector to the Advisory
Committee.
(B) Requirements.--In making appointments under
subparagraph (A), the Secretary of the Treasury and the
Secretary of Homeland Security shall appoint members--
(i) to ensure that the membership of the Advisory Committee
is representative of the individuals and firms affected by
the commercial operations of U.S. Customs and Border
Protection; and
(ii) without regard to political affiliation.
(C) Terms.--Each individual appointed to the Advisory
Committee under this paragraph shall be appointed for a term
of not more than 3 years, and may be reappointed to
subsequent terms, but may not serve more than 2 terms
sequentially.
(3) Transfer of membership.--The Secretary of the Treasury
and the Secretary of Homeland Security may transfer members
serving on the Advisory Committee on Commercial Operations of
the United States Customs Service established under section
9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19
U.S.C. 2071 note) on the day before the date of the enactment
of this Act to the Advisory Committee established under
subsection (a).
(c) Duties.--The Advisory Committee established under
subsection (a) shall--
(1) advise the Secretary of the Treasury and the Secretary
of Homeland Security on all matters involving the commercial
operations of U.S.

[[Page H9109]]

Customs and Border Protection, including advising with
respect to significant changes that are proposed with respect
to regulations, policies, or practices of U.S. Customs and
Border Protection;
(2) provide recommendations to the Secretary of the
Treasury and the Secretary of Homeland Security on
improvements to the commercial operations of U.S. Customs and
Border Protection;
(3) collaborate in developing the agenda for Advisory
Committee meetings; and
(4) perform such other functions relating to the commercial
operations of U.S. Customs and Border Protection as
prescribed by law or as the Secretary of the Treasury and the
Secretary of Homeland Security jointly direct.
(d) Meetings.--Notwithstanding section 10(f) of the Federal
Advisory Committee Act (5 U.S.C. App.), the Advisory
Committee shall meet at the call of the Secretary of the
Treasury and the Secretary of Homeland Security, or at the
call of not less than \2/3\ of the membership of the Advisory
Committee. The Advisory Committee shall meet at least 4 times
each calendar year.
(e) Annual Report.--Not later than December 31, 2016, and
annually thereafter, the Advisory Committee shall submit to
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a report
that--
(1) describes the activities of the Advisory Committee
during the preceding fiscal year; and
(2) sets forth any recommendations of the Advisory
Committee regarding the commercial operations of U.S. Customs
and Border Protection.
(f) Termination.--Section 14(a)(2) of the Federal Advisory
Committee Act (5 U.S.C. App.; relating to the termination of
advisory committees) shall not apply to the Advisory
Committee.
(g) Conforming Amendment.--
(1) In general.--Effective on the date on which the
Advisory Committee is established under subsection (a),
section 9503(c) of the Omnibus Budget Reconciliation Act of
1987 (19 U.S.C. 2071 note) is repealed.
(2) Reference.--Any reference in law to the Advisory
Committee on Commercial Operations of the United States
Customs Service established under section 9503(c) of the
Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071
note) made on or after the date on which the Advisory
Committee is established under subsection (a), shall be
deemed a reference to the Commercial Customs Operations
Advisory Committee established under subsection (a).

SEC. 110. CENTERS OF EXCELLENCE AND EXPERTISE.

(a) In General.--The Commissioner shall, in consultation
with the appropriate congressional committees and the
Commercial Customs Operations Advisory Committee established
under section 109, develop and implement Centers of
Excellence and Expertise throughout U.S. Customs and Border
Protection that--
(1) enhance the economic competitiveness of the United
States by consistently enforcing the laws and regulations of
the United States at all ports of entry of the United States
and by facilitating the flow of legitimate trade through
increasing industry-based knowledge;
(2) improve enforcement efforts, including enforcement of
priority trade issues described in section 117, in specific
industry sectors through the application of targeting
information from the National Targeting Center under section
111 and from other means of verification;
(3) build upon the expertise of U.S. Customs and Border
Protection in particular industry operations, supply chains,
and compliance requirements;
(4) promote the uniform implementation at each port of
entry of the United States of policies and regulations
relating to imports;
(5) centralize the trade enforcement and trade facilitation
efforts of U.S. Customs and Border Protection;
(6) formalize an account-based approach to apply, as the
Commissioner determines appropriate, to the importation of
merchandise into the United States;
(7) foster partnerships though the expansion of trade
programs and other trusted partner programs;
(8) develop applicable performance measurements to meet
internal efficiency and effectiveness goals; and
(9) whenever feasible, facilitate a more efficient flow of
information between Federal agencies.
(b) Report.--Not later than December 31, 2016, the
Commissioner shall submit to the appropriate congressional
committees a report describing--
(1) the scope, functions, and structure of each Center of
Excellence and Expertise developed and implemented under
subsection (a);
(2) the effectiveness of each such Center of Excellence and
Expertise in improving enforcement efforts, including
enforcement of priority trade issues described in section
117, and facilitating legitimate trade;
(3) the quantitative and qualitative benefits of each such
Center of Excellence and Expertise to the trade community,
including through fostering partnerships through the
expansion of trade programs such as the Importer Self
Assessment program and other trusted partner programs;
(4) all applicable performance measurements with respect to
each such Center of Excellence and Expertise, including
performance measures with respect to meeting internal
efficiency and effectiveness goals;
(5) the performance of each such Center of Excellence and
Expertise in increasing the accuracy and completeness of data
with respect to international trade and facilitating a more
efficient flow of information between Federal agencies; and
(6) any planned changes in the number, scope, functions, or
any other aspect of the Centers of Excellence and Expertise
developed and implemented under subsection (a).

SEC. 111. COMMERCIAL RISK ASSESSMENT TARGETING AND TRADE
ALERTS.

(a) Commercial Risk Assessment Targeting.--In carrying out
its duties under section 411(g)(4) of the Homeland Security
Act of 2002, as added by section 802(a) of this Act, the
National Targeting Center, in coordination with the Office of
Trade established under section 4 of the Act of March 3, 1927
(44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), as
added by section 802(h) of this Act, as appropriate, shall--
(1) establish targeted risk assessment methodologies and
standards--
(A) for evaluating the risk that cargo destined for the
United States may violate the customs and trade laws of the
United States, particularly those laws applicable to
merchandise subject to the priority trade issues described in
section 117; and
(B) for issuing, as appropriate, Trade Alerts described in
subsection (b);
(2) to the extent practicable and otherwise authorized by
law, use, to administer the methodologies and standards
established under paragraph (1)--
(A) publicly available information;
(B) information available from the Automated Commercial
System, the Automated Commercial Environment, the Automated
Targeting System, the Automated Export System, the
International Trade Data System established under section
411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)), the
TECS (formerly known as the ``Treasury Enforcement
Communications System''), the case management system of U.S.
Immigration and Customs Enforcement, and any successor
systems; and
(C) information made available to the National Targeting
Center, including information provided by private sector
entities;
(3) provide for the receipt and transmission to the
appropriate U.S. Customs and Border Protection offices of
allegations from interested parties in the private sector of
violations of customs and trade laws of the United States
with respect to merchandise relating to the priority trade
issues described in section 117; and
(4) notify, on a timely basis, each interested party in the
private sector that has submitted an allegation of any
violation of the customs and trade laws of the United States
of any civil or criminal actions taken by U.S. Customs and
Border Protection or any other Federal agency resulting from
the allegation.
(b) Trade Alerts.--
(1) Issuance.--In carrying out its duties under section
411(g)(4) of the Homeland Security Act of 2002, as added by
section 802(a) of this Act, and based upon the application of
the targeted risk assessment methodologies and standards
established under subsection (a), the Executive Director of
the National Targeting Center may issue Trade Alerts to
directors of United States ports of entry directing further
inspection, or physical examination or testing, of specific
merchandise to ensure compliance with all applicable customs
and trade laws of the United States and regulations
administered by U.S. Customs and Border Protection.
(2) Determinations not to implement trade alerts.--The
director of a United States port of entry may determine not
to conduct further inspections, or physical examination or
testing, pursuant to a Trade Alert issued under paragraph (1)
if the director--
(A) finds that such a determination is justified by port
security interests; and
(B) not later than 48 hours after making the determination,
notifies the Assistant Commissioner of the Office of Field
Operations of U.S. Customs and Border Protection of the
determination and the reasons for the determination.
(3) Summary of determinations not to implement.--The
Assistant Commissioner of the Office of Field Operations of
U.S. Customs and Border Protection shall--
(A) compile an annual summary of all determinations by
directors of United States ports of entry under paragraph (2)
and the reasons for those determinations;
(B) conduct an evaluation of the utilization of Trade
Alerts issued under paragraph (1); and
(C) not later than December 31 of each calendar year,
submit the summary to the appropriate congressional
committees.
(4) Inspection defined.--In this subsection, the term
``inspection'' means the comprehensive evaluation process
used by U.S. Customs and Border Protection, other than
physical examination or testing, to permit the entry of
merchandise into the United States, or the clearance of
merchandise for transportation in bond through the United
States, for purposes of--
(A) assessing duties;
(B) identifying restricted or prohibited items; and
(C) ensuring compliance with all applicable customs and
trade laws of the United States and regulations administered
by U.S. Customs and Border Protection.
(c) Use of Trade Data for Commercial Enforcement
Purposes.--Section 343(a)(3)(F) of the Trade Act of 2002 (19
U.S.C. 2071 note) is amended to read as follows:
``(F) The information collected pursuant to the regulations
shall be used exclusively for ensuring cargo safety and
security, preventing smuggling, and commercial risk
assessment targeting, and shall not be used for any
commercial enforcement purposes, including for determining
merchandise entry. Notwithstanding the preceding sentence,
nothing in this section shall be treated as amending,
repealing, or otherwise modifying title IV of the Tariff Act
of 1930 or regulations promulgated thereunder.''.

SEC. 112. REPORT ON OVERSIGHT OF REVENUE PROTECTION AND
ENFORCEMENT MEASURES.

(a) In General.--Not later than June 30, 2016, and not
later than March 31 of each second year thereafter, the
Inspector General of the Department of the Treasury shall
submit to the

[[Page H9110]]

Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report assessing,
with respect to the period covered by the report, as
specified in subsection (b), the following:
(1) The effectiveness of the measures taken by U.S. Customs
and Border Protection with respect to protection of revenue,
including--
(A) the collection of countervailing duties assessed under
subtitle A of title VII of the Tariff Act of 1930 (19 U.S.C.
1671 et seq.) and antidumping duties assessed under subtitle
B of title VII of the Tariff Act of 1930 (19 U.S.C. 1673 et
seq.);
(B) the assessment, collection, and mitigation of
commercial fines and penalties;
(C) the use of bonds, including continuous and single
transaction bonds, to secure that revenue; and
(D) the adequacy of the policies of U.S. Customs and Border
Protection with respect to the monitoring and tracking of
merchandise transported in bond and collecting duties, as
appropriate.
(2) The effectiveness of actions taken by U.S. Customs and
Border Protection to measure accountability and performance
with respect to protection of revenue.
(3) The number and outcome of investigations instituted by
U.S. Customs and Border Protection with respect to the
underpayment of duties.
(4) The effectiveness of training with respect to the
collection of duties provided for personnel of U.S. Customs
and Border Protection.
(b) Period Covered by Report.--Each report required by
subsection (a) shall cover the period of 2 fiscal years
ending on September 30 of the calendar year preceding the
submission of the report.

SEC. 113. REPORT ON SECURITY AND REVENUE MEASURES WITH
RESPECT TO MERCHANDISE TRANSPORTED IN BOND.

(a) In General.--Not later than December 31 of 2016, 2017,
and 2018, the Secretary of Homeland Security and the
Secretary of the Treasury shall jointly submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report on efforts
undertaken by U.S. Customs and Border Protection to ensure
the secure transportation of merchandise in bond through the
United States and the collection of revenue owed upon the
entry of such merchandise into the United States for
consumption.
(b) Elements.--Each report required by subsection (a) shall
include, for the fiscal year preceding the submission of the
report, information on--
(1) the overall number of entries of merchandise for
transportation in bond through the United States;
(2) the ports at which merchandise arrives in the United
States for transportation in bond and at which records of the
arrival of such merchandise are generated;
(3) the average time taken to reconcile such records with
the records at the final destination of the merchandise in
the United States to demonstrate that the merchandise reaches
its final destination or is re-exported;
(4) the average time taken to transport merchandise in bond
from the port at which the merchandise arrives in the United
States to its final destination in the United States;
(5) the total amount of duties, taxes, and fees owed with
respect to shipments of merchandise transported in bond and
the total amount of such duties, taxes, and fees paid;
(6) the total number of notifications by carriers of
merchandise being transported in bond that the destination of
the merchandise has changed; and
(7) the number of entries that remain unreconciled.

SEC. 114. IMPORTER OF RECORD PROGRAM.

(a) Establishment.--Not later than the date that is 180
days after the date of the enactment of this Act, the
Secretary of Homeland Security shall establish an importer of
record program to assign and maintain importer of record
numbers.
(b) Requirements.--The Secretary shall ensure that, as part
of the importer of record program, U.S. Customs and Border
Protection--
(1) develops criteria that importers must meet in order to
obtain an importer of record number, including--
(A) criteria to ensure sufficient information is collected
to allow U.S. Customs and Border Protection to verify the
existence of the importer requesting the importer of record
number;
(B) criteria to ensure sufficient information is collected
to allow U.S. Customs and Border Protection to identify
linkages or other affiliations between importers that are
requesting or have been assigned importer of record numbers;
and
(C) criteria to ensure sufficient information is collected
to allow U.S. Customs and Border Protection to identify
changes in address and corporate structure of importers;
(2) provides a process by which importers are assigned
importer of record numbers;
(3) maintains a centralized database of importer of record
numbers, including a history of importer of record numbers
associated with each importer, and the information described
in subparagraphs (A), (B), and (C) of paragraph (1);
(4) evaluates and maintains the accuracy of the database if
such information changes; and
(5) takes measures to ensure that duplicate importer of
record numbers are not issued.
(c) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary shall submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report on the
importer of record program established under subsection (a).
(d) Number Defined.--In this section, the term ``number'',
with respect to an importer of record, means a filing
identification number described in section 24.5 of title 19,
Code of Federal Regulations (or any corresponding similar
regulation) that fully supports the requirements of
subsection (b) with respect to the collection and maintenance
of information.

SEC. 115. ESTABLISHMENT OF IMPORTER RISK ASSESSMENT PROGRAM.

(a) In General.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Commissioner
shall establish a program that directs U.S. Customs and
Border Protection to adjust bond amounts for importers,
including new importers and nonresident importers, based on
risk assessments of such importers conducted by U.S. Customs
and Border Protection, in order to protect the revenue of the
Federal Government.
(b) Requirements.--The Commissioner shall ensure that, as
part of the program established under subsection (a), U.S.
Customs and Border Protection--
(1) develops risk assessment guidelines for importers,
including new importers and nonresident importers, to
determine if and to what extent--
(A) to adjust bond amounts of imported products of such
importers; and
(B) to increase screening of imported products of such
importers;
(2) develops procedures to ensure increased oversight of
imported products of new importers, including nonresident
importers, relating to the enforcement of the priority trade
issues described in section 117;
(3) develops procedures to ensure increased oversight of
imported products of new importers, including new nonresident
importers, by Centers of Excellence and Expertise established
under section 110; and
(4) establishes a centralized database of new importers,
including new nonresident importers, to ensure accuracy of
information that is required to be provided by such importers
to U.S. Customs and Border Protection.
(c) Exclusion of Certain Importers.--This section shall not
apply to an importer that is a validated Tier 2 or Tier 3
participant in the Customs-Trade Partnership Against
Terrorism program established under subtitle B of title II of
the Security and Accountability for Every Port Act of 2006 (6
U.S.C. 961 et seq.).
(d) Report.--Not later than the date that is 2 years after
the date of the enactment of this Act, the Inspector General
of the Department of the Treasury shall submit to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives a report
detailing--
(1) the risk assessment guidelines developed under
subsection (b)(1);
(2) the procedures developed under subsection (b)(2) to
ensure increased oversight of imported products of new
importers, including new nonresident importers, relating to
the enforcement of priority trade issues described in section
117;
(3) the procedures developed under subsection (b)(3) to
ensure increased oversight of imported products of new
importers, including new nonresident importers, by Centers of
Excellence and Expertise established under section 110; and
(4) the number of bonds adjusted based on the risk
assessment guidelines developed under subsection (b)(1).
(e) Definitions.--In this section:
(1) Importer.--The term ``importer'' means one of the
parties qualifying as an importer of record under section
484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1484(a)(2)(B)).
(2) Nonresident importer.--The term ``nonresident
importer'' means an importer who is--
(A) an individual who is not a citizen of the United States
or an alien lawfully admitted for permanent residence in the
United States; or
(B) a partnership, corporation, or other commercial entity
that is not organized under the laws of a jurisdiction within
the customs territory of the United States (as such term is
defined in General Note 2 of the Harmonized Tariff Schedule
of the United States) or in the Virgin Islands of the United
States.

SEC. 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS.

(a) In General.--Section 641 of the Tariff Act of 1930 (19
U.S.C. 1641) is amended by adding at the end the following:
``(i) Identification of Importers.--
``(1) In general.--The Secretary shall prescribe
regulations setting forth the minimum standards for customs
brokers and importers, including nonresident importers,
regarding the identity of the importer that shall apply in
connection with the importation of merchandise into the
United States.
``(2) Minimum requirements.--The regulations required under
paragraph (1) shall, at a minimum--
``(A) identify the information that an importer, including
a nonresident importer, is required to submit to a broker and
that a broker is required to collect in order to verify the
identity of the importer;
``(B) identify reasonable procedures that a broker is
required to follow in order to verify the authenticity of
information collected from an importer; and
``(C) require a broker to maintain records of the
information collected by the broker to verify the identity of
an importer.
``(3) Penalties.--Any customs broker who fails to collect
information required under the regulations prescribed under
this subsection shall be liable to the United States, at the
discretion of the Secretary, for a monetary penalty not to
exceed $10,000 for each violation of those regulations and
shall be subject to revocation or suspension of a license or
permit of the customs broker pursuant to the procedures set
forth in subsection (d). This penalty shall be assessed in
the same manner and under the same procedures as the monetary
penalties provided for in subsection (d)(2)(A).
``(4) Definitions.--In this subsection:

[[Page H9111]]

``(A) Importer.--The term `importer' means one of the
parties qualifying as an importer of record under section
484(a)(2)(B).
``(B) Nonresident importer.--The term `nonresident
importer' means an importer who is--
``(i) an individual who is not a citizen of the United
States or an alien lawfully admitted for permanent residence
in the United States; or
``(ii) a partnership, corporation, or other commercial
entity that is not organized under the laws of a jurisdiction
within the customs territory of the United States (as such
term is defined in General Note 2 of the Harmonized Tariff
Schedule of the United States) or in the Virgin Islands of
the United States.''.
(b) Study and Report Required.--Not later than the date
that is 180 days after the date of the enactment of this Act,
the Commissioner shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives a report containing recommendations for--
(1) determining the most timely and effective way to
require foreign nationals to provide customs brokers with
appropriate and accurate information, comparable to that
which is required of United States nationals, concerning the
identity, address, and other related information relating to
such foreign nationals necessary to enable customs brokers to
comply with the requirements of section 641(i) of the Tariff
Act of 1930 (as added by subsection (a) of this section); and
(2) establishing a system for customs brokers to review
information maintained by relevant Federal agencies for
purposes of verifying the identities of importers, including
nonresident importers, seeking to import merchandise into the
United States.

SEC. 117. PRIORITY TRADE ISSUES.

(a) In General.--The Commissioner shall establish the
following as priority trade issues:
(1) Agriculture programs.
(2) Antidumping and countervailing duties.
(3) Import safety.
(4) Intellectual property rights.
(5) Revenue.
(6) Textiles and wearing apparel.
(7) Trade agreements and preference programs.
(b) Modification.--The Commissioner is authorized to
establish new priority trade issues and eliminate,
consolidate, or otherwise modify the priority trade issues
described in subsection (a) if the Commissioner--
(1) determines it necessary and appropriate to do so; and
(2)(A) in the case of new priority trade issues, submits to
the appropriate congressional committees a summary of
proposals to establish such new priority trade issues not
later than 30 days after such new priority trade issues are
to take effect; and
(B) in the case of existing priority trade issues, submits
to the appropriate congressional committees a summary of
proposals to eliminate, consolidate, or otherwise modify such
existing priority trade issues not later than 60 days before
such changes are to take effect.

SEC. 118. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED.

In this title, the term ``appropriate congressional
committees'' means--
(1) the Committee on Finance and the Committee on Homeland
Security and Governmental Affairs of the Senate; and
(2) the Committee on Ways and Means and the Committee on
Homeland Security of the House of Representatives.

TITLE II--IMPORT HEALTH AND SAFETY

SEC. 201. INTERAGENCY IMPORT SAFETY WORKING GROUP.

(a) Establishment.--There is established an interagency
Import Safety Working Group.
(b) Membership.--The interagency Import Safety Working
Group shall consist of the following officials or their
designees:
(1) The Secretary of Homeland Security, who shall serve as
the Chair.
(2) The Secretary of Health and Human Services, who shall
serve as the Vice Chair.
(3) The Secretary of the Treasury.
(4) The Secretary of Commerce.
(5) The Secretary of Agriculture.
(6) The United States Trade Representative.
(7) The Director of the Office of Management and Budget.
(8) The Commissioner of Food and Drugs.
(9) The Commissioner of U.S. Customs and Border Protection.
(10) The Chairman of the Consumer Product Safety
Commission.
(11) The Director of U.S. Immigration and Customs
Enforcement.
(12) The head of any other Federal agency designated by the
President to participate in the interagency Import Safety
Working Group, as appropriate.
(c) Duties.--The duties of the interagency Import Safety
Working Group shall include--
(1) consulting on the development of the joint import
safety rapid response plan required by section 202;
(2) periodically evaluating the adequacy of the plans,
practices, and resources of the Federal Government dedicated
to ensuring the safety of merchandise imported into the
United States and the expeditious entry of such merchandise,
including--
(A) minimizing the duplication of efforts among Federal
agencies the heads of which are members of the interagency
Import Safety Working Group and ensuring the compatibility of
the policies and regulations of those agencies; and
(B) recommending additional administrative actions, as
appropriate, designed to ensure the safety of merchandise
imported into the United States and the expeditious entry of
such merchandise and considering the impact of those actions
on private sector entities;
(3) reviewing the engagement and cooperation of foreign
governments and foreign manufacturers in facilitating the
inspection and certification, as appropriate, of such
merchandise to be imported into the United States and the
facilities producing such merchandise to ensure the safety of
the merchandise and the expeditious entry of the merchandise
into the United States;
(4) identifying best practices, in consultation with
private sector entities as appropriate, to assist United
States importers in taking all appropriate steps to ensure
the safety of merchandise imported into the United States,
including with respect to--
(A) the inspection of manufacturing facilities in foreign
countries;
(B) the inspection of merchandise destined for the United
States before exportation from a foreign country or before
distribution in the United States; and
(C) the protection of the international supply chain (as
defined in section 2 of the Security and Accountability For
Every Port Act of 2006 (6 U.S.C. 901));
(5) identifying best practices to assist Federal, State,
and local governments and agencies, and port authorities, to
improve communication and coordination among such agencies
and authorities with respect to ensuring the safety of
merchandise imported into the United States and the
expeditious entry of such merchandise; and
(6) otherwise identifying appropriate steps to increase the
accountability of United States importers and the engagement
of foreign government agencies with respect to ensuring the
safety of merchandise imported into the United States and the
expeditious entry of such merchandise.

SEC. 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN.

(a) In General.--Not later than December 31, 2016, the
Secretary of Homeland Security, in consultation with the
interagency Import Safety Working Group established under
section 201, shall develop a plan (to be known as the ``joint
import safety rapid response plan'') that sets forth
protocols and defines practices for U.S. Customs and Border
Protection to use--
(1) in taking action in response to, and coordinating
Federal responses to, an incident in which cargo destined for
or merchandise entering the United States has been identified
as posing a threat to the health or safety of consumers in
the United States; and
(2) in recovering from or mitigating the effects of actions
and responses to an incident described in paragraph (1).
(b) Contents.--The joint import safety rapid response plan
shall address--
(1) the statutory and regulatory authorities and
responsibilities of U.S. Customs and Border Protection and
other Federal agencies in responding to an incident described
in subsection (a)(1);
(2) the protocols and practices to be used by U.S. Customs
and Border Protection when taking action in response to, and
coordinating Federal responses to, such an incident;
(3) the measures to be taken by U.S. Customs and Border
Protection and other Federal agencies in recovering from or
mitigating the effects of actions taken in response to such
an incident after the incident to ensure the resumption of
the entry of merchandise into the United States; and
(4) exercises that U.S. Customs and Border Protection may
conduct in conjunction with Federal, State, and local
agencies, and private sector entities, to simulate responses
to such an incident.
(c) Updates of Plan.--The Secretary of Homeland Security
shall review and update the joint import safety rapid
response plan, as appropriate, after conducting exercises
under subsection (d).
(d) Import Health and Safety Exercises.--
(1) In general.--The Secretary of Homeland Security and the
Commissioner shall periodically engage in the exercises
referred to in subsection (b)(4), in conjunction with
Federal, State, and local agencies and private sector
entities, as appropriate, to test and evaluate the protocols
and practices identified in the joint import safety rapid
response plan at United States ports of entry.
(2) Requirements for exercises.--In conducting exercises
under paragraph (1), the Secretary and the Commissioner
shall--
(A) make allowance for the resources, needs, and
constraints of United States ports of entry of different
sizes in representative geographic locations across the
United States;
(B) base evaluations on current risk assessments of
merchandise entering the United States at representative
United States ports of entry located across the United
States;
(C) ensure that such exercises are conducted in a manner
consistent with the National Incident Management System, the
National Response Plan, the National Infrastructure
Protection Plan, the National Preparedness Guidelines, the
Maritime Transportation System Security Plan, and other such
national initiatives of the Department of Homeland Security,
as appropriate; and
(D) develop metrics with respect to the resumption of the
entry of merchandise into the United States after an incident
described in subsection (a)(1).
(3) Requirements for testing and evaluation.--The Secretary
and the Commissioner shall ensure that the testing and
evaluation carried out in conducting exercises under
paragraph (1)--
(A) are performed using clear and objective performance
measures; and
(B) result in the identification of specific
recommendations or best practices for responding to an
incident described in subsection (a)(1).
(4) Dissemination of recommendations and best practices.--
The Secretary and the Commissioner shall--
(A) share the recommendations or best practices identified
under paragraph (3)(B) among

[[Page H9112]]

the members of the interagency Import Safety Working Group
established under section 201 and with, as appropriate--
(i) State, local, and tribal governments;
(ii) foreign governments; and
(iii) private sector entities; and
(B) use such recommendations and best practices to update
the joint import safety rapid response plan.

SEC. 203. TRAINING.

The Commissioner shall ensure that personnel of U.S.
Customs and Border Protection assigned to United States ports
of entry are trained to effectively administer the provisions
of this title and to otherwise assist in ensuring the safety
of merchandise imported into the United States and the
expeditious entry of such merchandise.

TITLE III--IMPORT-RELATED PROTECTION OF INTELLECTUAL PROPERTY RIGHTS

SEC. 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS.

In this title, the term ``intellectual property rights''
refers to copyrights, trademarks, and other forms of
intellectual property rights that are enforced by U.S.
Customs and Border Protection or U.S. Immigration and Customs
Enforcement.

SEC. 302. EXCHANGE OF INFORMATION RELATED TO TRADE
ENFORCEMENT.

(a) In General.--The Tariff Act of 1930 is amended by
inserting after section 628 (19 U.S.C. 1628) the following
new section:

``SEC. 628A. EXCHANGE OF INFORMATION RELATED TO TRADE
ENFORCEMENT.

``(a) In General.--Subject to subsections (c) and (d), if
the Commissioner of U.S. Customs and Border Protection
suspects that merchandise is being imported into the United
States in violation of section 526 of this Act or section
602, 1201(a)(2), or 1201(b)(1) of title 17, United States
Code, and determines that the examination or testing of the
merchandise by a person described in subsection (b) would
assist the Commissioner in determining if the merchandise is
being imported in violation of that section, the
Commissioner, to permit the person to conduct the examination
and testing--
``(1) shall provide to the person information that appears
on the merchandise and its packaging and labels, including
unredacted images of the merchandise and its packaging and
labels; and
``(2) may, subject to any applicable bonding requirements,
provide to the person unredacted samples of the merchandise.
``(b) Person Described.--A person described in this
subsection is--
``(1) in the case of merchandise suspected of being
imported in violation of section 526, the owner of the
trademark suspected of being copied or simulated by the
merchandise;
``(2) in the case of merchandise suspected of being
imported in violation of section 602 of title 17, United
States Code, the owner of the copyright suspected of being
infringed by the merchandise;
``(3) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing a technological measure that effectively
controls access to a work protected under that title, and
being imported in violation of section 1201(a)(2) of that
title, the owner of a copyright in the work; and
``(4) in the case of merchandise suspected of being
primarily designed or produced for the purpose of
circumventing protection afforded by a technological measure
that effectively protects a right of an owner of a copyright
in a work or a portion of a work, and being imported in
violation of section 1201(b)(1) of that title, the owner of
the copyright.
``(c) Limitation.--Subsection (a) applies only with respect
to merchandise suspected of infringing a trademark or
copyright that is recorded with U.S. Customs and Border
Protection.
``(d) Exception.--The Commissioner may not provide under
subsection (a) information, photographs, or samples to a
person described in subsection (b) if providing such
information, photographs, or samples would compromise an
ongoing law enforcement investigation or national
security.''.
(b) Termination of Previous Authority.--Notwithstanding
paragraph (2) of section 818(g) of the National Defense
Authorization Act for Fiscal Year 2012 (Public Law 112-81;
125 Stat. 1496; 10 U.S.C. 2302 note), paragraph (1) of that
section shall have no force or effect on or after the date of
the enactment of this Act.

SEC. 303. SEIZURE OF CIRCUMVENTION DEVICES.

(a) In General.--Section 596(c)(2) of the Tariff Act of
1930 (19 U.S.C. 1595a(c)(2)) is amended--
(1) in subparagraph (E), by striking ``or'';
(2) in subparagraph (F), by striking the period at the end
and inserting ``; or''; and
(3) by adding at the end the following:
``(G) U.S. Customs and Border Protection determines it is a
technology, product, service, device, component, or part
thereof the importation of which is prohibited under
subsection (a)(2) or (b)(1) of section 1201 of title 17,
United States Code.''.
(b) Notification of Persons Injured.--
(1) In general.--Not later than the date that is 30
business days after seizing merchandise pursuant to
subparagraph (G) of section 596(c)(2) of the Tariff Act of
1930, as added by subsection (a), the Commissioner shall
provide to any person identified under paragraph (2)
information regarding the merchandise seized that is
equivalent to information provided to copyright owners under
regulations of U.S. Customs and Border Protection for
merchandise seized for violation of the copyright laws.
(2) Persons to be provided information.--Any person injured
by the violation of subsection (a)(2) or (b)(1) of section
1201 of title 17, United States Code, that resulted in the
seizure of the merchandise shall be provided information
under paragraph (1), if that person is included on a list to
be established and maintained by the Commissioner. The
Commissioner shall publish notice of the establishment of and
revisions to the list in the Federal Register.
(3) Regulations.--Not later than the date that is one year
after the date of the enactment of this Act, the Secretary of
the Treasury shall prescribe regulations establishing
procedures that implement this subsection.

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

Not later than the date that is 180 days after the date of
the enactment of this Act, the Secretary of Homeland Security
shall authorize a process pursuant to which the Commissioner
shall enforce a copyright for which the owner has submitted
an application for registration under title 17, United States
Code, with the United States Copyright Office, to the same
extent and in the same manner as if the copyright were
registered with the Copyright Office, including by sharing
information, images, and samples of merchandise suspected of
infringing the copyright under section 628A of the Tariff Act
of 1930, as added by section 302.

SEC. 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION
CENTER.

(a) Establishment.--The Secretary of Homeland Security
shall--
(1) establish within U.S. Immigration and Customs
Enforcement a National Intellectual Property Rights
Coordination Center; and
(2) appoint an Assistant Director to head the National
Intellectual Property Rights Coordination Center.
(b) Duties.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall--
(1) coordinate the investigation of sources of merchandise
that infringe intellectual property rights to identify
organizations and individuals that produce, smuggle, or
distribute such merchandise;
(2) conduct and coordinate training with other domestic and
international law enforcement agencies on investigative best
practices--
(A) to develop and expand the capability of such agencies
to enforce intellectual property rights; and
(B) to develop metrics to assess whether the training
improved enforcement of intellectual property rights;
(3) coordinate, with U.S. Customs and Border Protection,
activities conducted by the United States to prevent the
importation or exportation of merchandise that infringes
intellectual property rights;
(4) support the international interdiction of merchandise
destined for the United States that infringes intellectual
property rights;
(5) collect and integrate information regarding
infringement of intellectual property rights from domestic
and international law enforcement agencies and other non-
Federal sources;
(6) develop a means to receive and organize information
regarding infringement of intellectual property rights from
such agencies and other sources;
(7) disseminate information regarding infringement of
intellectual property rights to other Federal agencies, as
appropriate;
(8) develop and implement risk-based alert systems, in
coordination with U.S. Customs and Border Protection, to
improve the targeting of persons that repeatedly infringe
intellectual property rights;
(9) coordinate with the offices of United States attorneys
in order to develop expertise in, and assist with the
investigation and prosecution of, crimes relating to the
infringement of intellectual property rights; and
(10) carry out such other duties as the Secretary of
Homeland Security may assign.
(c) Coordination With Other Agencies.--In carrying out the
duties described in subsection (b), the Assistant Director of
the National Intellectual Property Rights Coordination Center
shall coordinate with--
(1) U.S. Customs and Border Protection;
(2) the Food and Drug Administration;
(3) the Department of Justice;
(4) the Department of Commerce, including the United States
Patent and Trademark Office;
(5) the United States Postal Inspection Service;
(6) the Office of the United States Trade Representative;
(7) any Federal, State, local, or international law
enforcement agencies that the Director of U.S. Immigration
and Customs Enforcement considers appropriate; and
(8) any other entities that the Director considers
appropriate.
(d) Private Sector Outreach.--
(1) In general.--The Assistant Director of the National
Intellectual Property Rights Coordination Center shall work
with U.S. Customs and Border Protection and other Federal
agencies to conduct outreach to private sector entities in
order to determine trends in and methods of infringing
intellectual property rights.
(2) Information sharing.--The Assistant Director shall
share information and best practices with respect to the
enforcement of intellectual property rights with private
sector entities, as appropriate, in order to coordinate
public and private sector efforts to combat the infringement
of intellectual property rights.

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

The Commissioner and the Director of U.S. Immigration and
Customs Enforcement shall include in the joint strategic plan
required by section 105--
(1) a description of the efforts of the Department of
Homeland Security to enforce intellectual property rights;
(2) a list of the 10 United States ports of entry at which
U.S. Customs and Border Protection

[[Page H9113]]

has seized the most merchandise, both by volume and by value,
that infringes intellectual property rights during the most
recent 2-year period for which data are available; and
(3) a recommendation for the optimal allocation of
personnel, resources, and technology to ensure that U.S.
Customs and Border Protection and U.S. Immigration and
Customs Enforcement are adequately enforcing intellectual
property rights.

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

(a) Personnel of U.S. Customs and Border Protection.--The
Commissioner and the Director of U.S. Immigration and Customs
Enforcement shall ensure that sufficient personnel are
assigned throughout U.S. Customs and Border Protection and
U.S. Immigration and Customs Enforcement, respectively, who
have responsibility for preventing the importation into the
United States of merchandise that infringes intellectual
property rights.
(b) Staffing of National Intellectual Property Rights
Coordination Center.--The Commissioner shall--
(1) assign not fewer than 3 full-time employees of U.S.
Customs and Border Protection to the National Intellectual
Property Rights Coordination Center established under section
305; and
(2) ensure that sufficient personnel are assigned to United
States ports of entry to carry out the directives of the
Center.

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

(a) Training.--The Commissioner shall ensure that officers
of U.S. Customs and Border Protection are trained to
effectively detect and identify merchandise destined for the
United States that infringes intellectual property rights,
including through the use of technologies identified under
subsection (c).
(b) Consultation With Private Sector.--The Commissioner
shall consult with private sector entities to better identify
opportunities for collaboration between U.S. Customs and
Border Protection and such entities with respect to training
for officers of U.S. Customs and Border Protection in
enforcing intellectual property rights.
(c) Identification of New Technologies.--In consultation
with private sector entities, the Commissioner shall
identify--
(1) technologies with the cost-effective capability to
detect and identify merchandise at United States ports of
entry that infringes intellectual property rights; and
(2) cost-effective programs for training officers of U.S.
Customs and Border Protection to use such technologies.
(d) Donations of Technology.--Not later than the date that
is 180 days after the date of the enactment of this Act, the
Commissioner shall prescribe regulations to enable U.S.
Customs and Border Protection to receive donations of
hardware, software, equipment, and similar technologies, and
to accept training and other support services, from private
sector entities, for the purpose of enforcing intellectual
property rights.

SEC. 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING.

(a) Cooperation.--The Secretary of Homeland Security shall
coordinate with the competent law enforcement and customs
authorities of foreign countries, including by sharing
information relevant to enforcement actions, to enhance the
efforts of the United States and such authorities to enforce
intellectual property rights.
(b) Technical Assistance.--The Secretary of Homeland
Security shall provide technical assistance to competent law
enforcement and customs authorities of foreign countries to
enhance the ability of such authorities to enforce
intellectual property rights.
(c) Interagency Collaboration.--The Commissioner and the
Director of U.S. Immigration and Customs Enforcement shall
lead interagency efforts to collaborate with law enforcement
and customs authorities of foreign countries to enforce
intellectual property rights.

SEC. 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT.

Not later than September 30, 2016, and annually thereafter,
the Commissioner and the Director of U.S. Immigration and
Customs Enforcement shall jointly submit to the Committee on
Finance of the Senate, the Committee on Ways and Means of the
House of Representatives, the Committee on Homeland Security
and Governmental Affairs of the Senate, and the Committee on
Homeland Security of the House of Representatives a report
that contains the following:
(1) With respect to the enforcement of intellectual
property rights, the following:
(A) The number of referrals, during the preceding year,
from U.S. Customs and Border Protection to U.S. Immigration
and Customs Enforcement relating to infringement of
intellectual property rights.
(B) The number of investigations relating to the
infringement of intellectual property rights referred by U.S.
Immigration and Customs Enforcement to a United States
attorney for prosecution and the United States attorneys to
which those investigations were referred.
(C) The number of such investigations accepted by each such
United States attorney and the status or outcome of each such
investigation.
(D) The number of such investigations that resulted in the
imposition of civil or criminal penalties.
(E) A description of the efforts of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement to
improve the success rates of investigations and prosecutions
relating to the infringement of intellectual property rights.
(2) An estimate of the average time required by the Office
of Trade established under section 4 of the Act of March 3,
1927 (44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), as
added by section 802(h) of this Act, to respond to a request
from port personnel for advice with respect to whether
merchandise detained by U.S. Customs and Border Protection
infringed intellectual property rights, distinguished by
types of intellectual property rights infringed.
(3) A summary of the outreach efforts of U.S. Customs and
Border Protection and U.S. Immigration and Customs
Enforcement with respect to--
(A) the interdiction and investigation of, and the sharing
of information between those agencies and other Federal
agencies to prevent, the infringement of intellectual
property rights;
(B) collaboration with private sector entities--
(i) to identify trends in the infringement of, and
technologies that infringe, intellectual property rights;
(ii) to identify opportunities for enhanced training of
officers of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement; and
(iii) to develop best practices to enforce intellectual
property rights; and
(C) coordination with foreign governments and international
organizations with respect to the enforcement of intellectual
property rights.
(4) A summary of the efforts of U.S. Customs and Border
Protection and U.S. Immigration and Customs Enforcement to
address the challenges with respect to the enforcement of
intellectual property rights presented by Internet commerce
and the transit of small packages and an identification of
the volume, value, and type of merchandise seized for
infringing intellectual property rights as a result of such
efforts.
(5) A summary of training relating to the enforcement of
intellectual property rights conducted under section 308 and
expenditures for such training.

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

(a) In General.--The Secretary of Homeland Security shall
develop and carry out an educational campaign to inform
travelers entering or leaving the United States about the
legal, economic, and public health and safety implications of
acquiring merchandise that infringes intellectual property
rights outside the United States and importing such
merchandise into the United States in violation of United
States law.
(b) Declaration Forms.--The Commissioner shall ensure that
all versions of Declaration Form 6059B of U.S. Customs and
Border Protection, or a successor form, including any
electronic equivalent of Declaration Form 6059B or a
successor form, printed or displayed on or after the date
that is 30 days after the date of the enactment of this Act
include a written warning to inform travelers arriving in the
United States that importation of merchandise into the United
States that infringes intellectual property rights may
subject travelers to civil or criminal penalties and may pose
serious risks to safety or health.

TITLE IV--PREVENTION OF EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS

SEC. 401. SHORT TITLE.

This title may be cited as the ``Enforce and Protect Act of
2015''.

SEC. 402. DEFINITIONS.

In this title:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Finance and the Committee on
Appropriations of the Senate; and
(B) the Committee on Ways and Means and the Committee on
Appropriations of the House of Representatives.
(2) Covered merchandise.--The term ``covered merchandise''
means merchandise that is subject to--
(A) a countervailing duty order issued under section 706 of
the Tariff Act of 1930 (19 U.S.C. 1671e); or
(B) an antidumping duty order issued under section 736 of
the Tariff Act of 1930 (19 U.S.C. 1673e).
(3) Eligible small business.--
(A) In general.--The term ``eligible small business'' means
any business concern that, in the judgment of the
Commissioner, due to its small size, has neither adequate
internal resources nor financial ability to obtain qualified
outside assistance in preparing and submitting for
consideration allegations of evasion.
(B) Nonreviewability.--Any agency decision regarding
whether a business concern is an eligible small business for
purposes of section 411(b)(4)(E) is not reviewable by any
other agency or by any court.
(4) Enter; entry.--The terms ``enter'' and ``entry'' refer
to the entry, or withdrawal from warehouse for consumption,
of merchandise in the customs territory of the United States.
(5) Evade; evasion.--The terms ``evade'' and ``evasion''
refer to entering covered merchandise into the customs
territory of the United States by means of any document or
electronically transmitted data or information, written or
oral statement, or act that is material and false, or any
omission that is material, and that results in any cash
deposit or other security or any amount of applicable
antidumping or countervailing duties being reduced or not
being applied with respect to the merchandise.
(6) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.
(7) Trade remedy laws.--The term ``trade remedy laws''
means title VII of the Tariff Act of 1930 (19 U.S.C. 1671 et
seq.).

SEC. 403. APPLICATION TO CANADA AND MEXICO.

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

[[Page H9114]]

the North American Free Trade Agreement Implementation Act
(19 U.S.C. 3438), this title and the amendments made by this
title shall apply with respect to goods from Canada and
Mexico.

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

SEC. 411. TRADE REMEDY LAW ENFORCEMENT DIVISION.

(a) Establishment.--
(1) In general.--The Secretary of Homeland Security shall
establish and maintain within the Office of Trade established
under section 4 of the Act of March 3, 1927 (44 Stat. 1381,
chapter 348; 19 U.S.C. 2071 et seq.), as added by section
802(h) of this Act, a Trade Remedy Law Enforcement Division.
(2) Composition.--The Trade Remedy Law Enforcement Division
shall be composed of--
(A) headquarters personnel led by a Director, who shall
report to the Executive Assistant Commissioner of the Office
of Trade; and
(B) a National Targeting and Analysis Group dedicated to
preventing and countering evasion.
(3) Duties.--The Trade Remedy Law Enforcement Division
shall be dedicated--
(A) to the development and administration of policies to
prevent and counter evasion, including policies relating to
the implementation of section 517 of the Tariff Act of 1930,
as added by section 421 of this Act;
(B) to direct enforcement and compliance assessment
activities concerning evasion;
(C) to the development and conduct of commercial risk
assessment targeting with respect to cargo destined for the
United States in accordance with subsection (c);
(D) to issuing Trade Alerts described in subsection (d);
and
(E) to the development of policies for the application of
single entry and continuous bonds for entries of covered
merchandise to sufficiently protect the collection of
antidumping and countervailing duties commensurate with the
level of risk of noncollection.
(b) Duties of Director.--The duties of the Director of the
Trade Remedy Law Enforcement Division shall include--
(1) directing the trade enforcement and compliance
assessment activities of U.S. Customs and Border Protection
that concern evasion;
(2) facilitating, promoting, and coordinating cooperation
and the exchange of information between U.S. Customs and
Border Protection, U.S. Immigration and Customs Enforcement,
and other relevant Federal agencies regarding evasion;
(3) notifying on a timely basis the administering authority
(as defined in section 771(1) of the Tariff Act of 1930 (19
U.S.C. 1677(1))) and the Commission (as defined in section
771(2) of the Tariff Act of 1930 (19 U.S.C. 1677(2))) of any
finding, determination, civil action, or criminal action
taken by U.S. Customs and Border Protection or other Federal
agency regarding evasion;
(4) serving as the primary liaison between U.S. Customs and
Border Protection and the public regarding activities
concerning evasion, including activities relating to
investigations conducted under section 517 of the Tariff Act
of 1930, as added by section 421 of this Act, which include--
(A) receiving allegations of evasion from parties,
including allegations described in section 517(b)(2) of the
Tariff Act of 1930, as so added;
(B) upon request by the party or parties that submitted
such an allegation of evasion, providing information to such
party or parties on the status of U.S. Customs and Border
Protection's consideration of the allegation and decision to
pursue or not pursue any administrative inquiries or other
actions, such as changes in policies, procedures, or resource
allocation as a result of the allegation;
(C) as needed, requesting from the party or parties that
submitted such an allegation of evasion any additional
information that may be relevant for U.S. Customs and Border
Protection determining whether to initiate an administrative
inquiry or take any other action regarding the allegation;
(D) notifying on a timely basis the party or parties that
submitted such an allegation of the results of any
administrative, civil, or criminal actions taken by U.S.
Customs and Border Protection or other Federal agency
regarding evasion as a direct or indirect result of the
allegation;
(E) upon request, providing technical assistance and advice
to eligible small businesses to enable such businesses to
prepare and submit such an allegation of evasion, except that
the Director may deny technical assistance if the Director
concludes that the allegation, if submitted, would not lead
to the initiation of an administrative inquiry or any other
action to address the allegation;
(F) in cooperation with the public, the Commercial Customs
Operations Advisory Committee established under section 109,
the Trade Support Network, and any other relevant parties and
organizations, developing guidelines on the types and nature
of information that may be provided in such an allegation of
evasion; and
(G) consulting regularly with the public, the Commercial
Customs Operations Advisory Committee, the Trade Support
Network, and any other relevant parties and organizations
regarding the development and implementation of regulations,
interpretations, and policies related to countering evasion.
(c) Preventing and Countering Evasion of the Trade Remedy
Laws.--In carrying out its duties with respect to preventing
and countering evasion, the National Targeting and Analysis
Group dedicated to preventing and countering evasion shall--
(1) establish targeted risk assessment methodologies and
standards--
(A) for evaluating the risk that cargo destined for the
United States may constitute evading covered merchandise; and
(B) for issuing, as appropriate, Trade Alerts described in
subsection (d); and
(2) to the extent practicable and otherwise authorized by
law, use information available from the Automated Commercial
System, the Automated Commercial Environment, the Automated
Targeting System, the Automated Export System, the
International Trade Data System established under section
411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)), and the
TECS (formerly known as the ``Treasury Enforcement
Communications System''), and any similar and successor
systems, to administer the methodologies and standards
established under paragraph (1).
(d) Trade Alerts.--Based upon the application of the
targeted risk assessment methodologies and standards
established under subsection (c), the Director of the Trade
Remedy Law Enforcement Division shall issue Trade Alerts or
other such means of notification to directors of United
States ports of entry directing further inspection, physical
examination, or testing of merchandise to ensure compliance
with the trade remedy laws and to require additional bonds,
cash deposits, or other security to ensure collection of any
duties, taxes, and fees owed.

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

(a) Authority to Collect Information.--To determine whether
covered merchandise is being entered into the customs
territory of the United States through evasion, the
Secretary, acting through the Commissioner--
(1) shall exercise all existing authorities to collect
information needed to make the determination; and
(2) may collect such additional information as is necessary
to make the determination through such methods as the
Commissioner considers appropriate, including by issuing
questionnaires with respect to the entry or entries at issue
to--
(A) a person who filed an allegation with respect to the
covered merchandise;
(B) a person who is alleged to have entered the covered
merchandise into the customs territory of the United States
through evasion; or
(C) any other person who is determined to have information
relevant to the allegation of entry of covered merchandise
into the customs territory of the United States through
evasion.
(b) Adverse Inference.--
(1) Use of adverse inference.--
(A) In general.--If the Secretary finds that a person
described in subparagraph (B) has failed to cooperate by not
acting to the best of the person's ability to comply with a
request for information under subsection (a), the Secretary
may, in making a determination whether an entry or entries of
covered merchandise may constitute merchandise that is
entered into the customs territory of the United States
through evasion, use an inference that is adverse to the
interests of that person in selecting from among the facts
otherwise available to determine whether evasion has
occurred.
(B) Person described.--A person described in this
subparagraph is--
(i) a person who filed an allegation with respect to
covered merchandise;
(ii) a person alleged to have entered covered merchandise
into the customs territory of the United States through
evasion; or
(iii) a foreign producer or exporter of covered merchandise
that is alleged to have entered into the customs territory of
the United States through evasion.
(C) Application.--An inference described in subparagraph
(A) may be used under that subparagraph with respect to a
person described in clause (ii) or (iii) of subparagraph (B)
without regard to whether another person involved in the same
transaction or transactions under examination has provided
the information sought by the Secretary, such as import or
export documentation.
(2) Adverse inference described.--An adverse inference used
under paragraph (1)(A) may include reliance on information
derived from--
(A) the allegation of evasion of the trade remedy laws, if
any, submitted to U.S. Customs and Border Protection;
(B) a determination by the Commissioner in another
investigation, proceeding, or other action regarding evasion
of the unfair trade laws; or
(C) any other available information.

SEC. 413. ACCESS TO INFORMATION.

(a) In General.--Section 777(b)(1)(A)(ii) of the Tariff Act
of 1930 (19 U.S.C. 1677f(b)(1)(A)(ii)) is amended by
inserting ``negligence, gross negligence, or'' after
``regarding''.
(b) Additional Information.--Notwithstanding any other
provision of law, the Secretary is authorized to provide to
the Secretary of Commerce or the United States International
Trade Commission any information that is necessary to enable
the Secretary of Commerce or the United States International
Trade Commission to assist the Secretary to identify, through
risk assessment targeting or otherwise, covered merchandise
that is entered into the customs territory of the United
States through evasion.

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

(a) Bilateral Agreements.--
(1) In general.--The Secretary shall seek to negotiate and
enter into bilateral agreements with the customs authorities
or other appropriate authorities of foreign countries for
purposes of cooperation on preventing evasion of the trade
remedy laws of the United States and the trade remedy laws of
the other country.
(2) Provisions and authorities.--The Secretary shall seek
to include in each such bilateral agreement the following
provisions and authorities:
(A) On the request of the importing country, the exporting
country shall provide, consistent

[[Page H9115]]

with its laws, regulations, and procedures, production,
trade, and transit documents and other information necessary
to determine whether an entry or entries exported from the
exporting country are subject to the importing country's
trade remedy laws.
(B) On the written request of the importing country, the
exporting country shall conduct a verification for purposes
of enabling the importing country to make a determination
described in subparagraph (A).
(C) The exporting country may allow the importing country
to participate in a verification described in subparagraph
(B), including through a site visit.
(D) If the exporting country does not allow participation
of the importing country in a verification described in
subparagraph (B), the importing country may take this fact
into consideration in its trade enforcement and compliance
assessment activities regarding the compliance of the
exporting country's exports with the importing country's
trade remedy laws.
(b) Consideration.--The Commissioner is authorized to take
into consideration whether a country is a signatory to a
bilateral agreement described in subsection (a) and the
extent to which the country is cooperating under the
bilateral agreement for purposes of trade enforcement and
compliance assessment activities of U.S. Customs and Border
Protection that concern evasion by such country's exports.
(c) Report.--Not later than December 31 of each calendar
year beginning after the date of the enactment of this Act,
the Secretary shall submit to the appropriate congressional
committees a report summarizing--
(1) the status of any ongoing negotiations of bilateral
agreements described in subsection (a), including the
identities of the countries involved in such negotiations;
(2) the terms of any completed bilateral agreements
described in subsection (a); and
(3) bilateral cooperation and other activities conducted
pursuant to or enabled by any completed bilateral agreements
described in subsection (a).

SEC. 415. TRADE NEGOTIATING OBJECTIVES.

The principal negotiating objectives of the United States
shall include obtaining the objectives of the bilateral
agreements described under section 414(a) for any trade
agreements under negotiation as of the date of the enactment
of this Act or future trade agreement negotiations.

Subtitle B--Investigation of Evasion of Trade Remedy Laws

SEC. 421. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.

(a) In General.--The Tariff Act of 1930 is amended by
inserting after section 516A (19 U.S.C. 1516a) the following:

``SEC. 517. PROCEDURES FOR INVESTIGATING CLAIMS OF EVASION OF
ANTIDUMPING AND COUNTERVAILING DUTY ORDERS.

``(a) Definitions.--In this section:
``(1) Administering authority.--The term `administering
authority' has the meaning given that term in section 771(1).
``(2) Commissioner.--The term `Commissioner' means the
Commissioner of U.S. Customs and Border Protection.
``(3) Covered merchandise.--The term `covered merchandise'
means merchandise that is subject to--
``(A) an antidumping duty order issued under section 736;
or
``(B) a countervailing duty order issued under section 706.
``(4) Enter; entry.--The terms `enter' and `entry' refer to
the entry, or withdrawal from warehouse for consumption, of
merchandise into the customs territory of the United States.
``(5) Evasion.--
``(A) In general.--Except as provided in subparagraph (B),
the term `evasion' refers to entering covered merchandise
into the customs territory of the United States by means of
any document or electronically transmitted data or
information, written or oral statement, or act that is
material and false, or any omission that is material, and
that results in any cash deposit or other security or any
amount of applicable antidumping or countervailing duties
being reduced or not being applied with respect to the
merchandise.
``(B) Exception for clerical error.--
``(i) In general.--Except as provided in clause (ii), the
term `evasion' does not include entering covered merchandise
into the customs territory of the United States by means of--

``(I) a document or electronically transmitted data or
information, written or oral statement, or act that is false
as a result of a clerical error; or
``(II) an omission that results from a clerical error.

``(ii) Patterns of negligent conduct.--If the Commissioner
determines that a person has entered covered merchandise into
the customs territory of the United States by means of a
clerical error referred to in subclause (I) or (II) of clause
(i) and that the clerical error is part of a pattern of
negligent conduct on the part of that person, the
Commissioner may determine, notwithstanding clause (i), that
the person has entered such covered merchandise into the
customs territory of the United States through evasion.
``(iii) Electronic repetition of errors.--For purposes of
clause (ii), the mere nonintentional repetition by an
electronic system of an initial clerical error does not
constitute a pattern of negligent conduct.
``(iv) Rule of construction.--A determination by the
Commissioner that a person has entered covered merchandise
into the customs territory of the United States by means of a
clerical error referred to in subclause (I) or (II) of clause
(i) rather than through evasion shall not be construed to
excuse that person from the payment of any duties applicable
to the merchandise.
``(6) Interested party.--
``(A) In general.--The term `interested party' means--
``(i) a foreign manufacturer, producer, or exporter, or the
United States importer, of covered merchandise or a trade or
business association a majority of the members of which are
producers, exporters, or importers of such merchandise;
``(ii) a manufacturer, producer, or wholesaler in the
United States of a domestic like product;
``(iii) a certified union or recognized union or group of
workers that is representative of an industry engaged in the
manufacture, production, or wholesale in the United States of
a domestic like product;
``(iv) a trade or business association a majority of the
members of which manufacture, produce, or wholesale a
domestic like product in the United States;
``(v) an association a majority of the members of which is
composed of interested parties described in clause (ii),
(iii), or (iv) with respect to a domestic like product; and
``(vi) if the covered merchandise is a processed
agricultural product, as defined in section 771(4)(E), a
coalition or trade association that is representative of
either--

``(I) processors;
``(II) processors and producers; or
``(III) processors and growers.

``(B) Domestic like product.--For purposes of subparagraph
(A), the term `domestic like product' means a product that is
like, or in the absence of like, most similar in
characteristics and uses with, covered merchandise.
``(b) Investigations.--
``(1) In general.--Not later than 15 business days after
receiving an allegation described in paragraph (2) or a
referral described in paragraph (3), the Commissioner shall
initiate an investigation if the Commissioner determines that
the information provided in the allegation or the referral,
as the case may be, reasonably suggests that covered
merchandise has been entered into the customs territory of
the United States through evasion.
``(2) Allegation described.--An allegation described in
this paragraph is an allegation that a person has entered
covered merchandise into the customs territory of the United
States through evasion that is--
``(A) filed with the Commissioner by an interested party;
and
``(B) accompanied by information reasonably available to
the party that filed the allegation.
``(3) Referral described.--A referral described in this
paragraph is information submitted to the Commissioner by any
other Federal agency, including the Department of Commerce or
the United States International Trade Commission, that
reasonably suggests that a person has entered covered
merchandise into the customs territory of the United States
through evasion.
``(4) Consideration by administering authority.--
``(A) In general.--If the Commissioner receives an
allegation under paragraph (2) and is unable to determine
whether the merchandise at issue is covered merchandise, the
Commissioner shall--
``(i) refer the matter to the administering authority to
determine whether the merchandise is covered merchandise
pursuant to the authority of the administering authority
under title VII; and
``(ii) notify the party that filed the allegation, and any
other interested party participating in the investigation, of
the referral.
``(B) Determination; transmission to commissioner.--After
receiving a referral under subparagraph (A)(i) with respect
to merchandise, the administering authority shall determine
whether the merchandise is covered merchandise and promptly
transmit that determination to the Commissioner.
``(C) Stay of deadlines.--The period required for any
referral and determination under this paragraph shall not be
counted in calculating any deadline under this section.
``(D) Rule of construction.--Nothing in this paragraph
shall be construed to affect the authority of an interested
party to commence an action in the United States Court of
International Trade under section 516A(a)(2) with respect to
a determination of the administering authority under this
paragraph.
``(5) Consolidation of allegations and referrals.--
``(A) In general.--The Commissioner may consolidate
multiple allegations described in paragraph (2) and referrals
described in paragraph (3) into a single investigation if the
Commissioner determines it is appropriate to do so.
``(B) Effect on timing requirements.--If the Commissioner
consolidates multiple allegations or referrals into a single
investigation under subparagraph (A), the date on which the
Commissioner receives the first such allegation or referral
shall be used for purposes of the requirement under paragraph
(1) with respect to the timing of the initiation of the
investigation.
``(6) Information-sharing to protect health and safety.--
If, during the course of conducting an investigation under
paragraph (1) with respect to covered merchandise, the
Commissioner has reason to suspect that such covered
merchandise may pose a health or safety risk to consumers,
the Commissioner shall provide, as appropriate, information
to the appropriate Federal agencies for purposes of
mitigating the risk.
``(7) Technical assistance and advice.--
``(A) In general.--Upon request, the Commissioner shall
provide technical assistance and advice to eligible small
businesses to enable such businesses to prepare and submit
allegations described in paragraph (2), except that the
Commissioner may deny technical assistance if the
Commissioner concludes that the allegation, if

[[Page H9116]]

submitted, would not lead to the initiation of an
investigation under this subsection or any other action to
address the allegation.
``(B) Eligible small business defined.--
``(i) In general.--In this paragraph, the term `eligible
small business' means any business concern that the
Commissioner determines, due to its small size, has neither
adequate internal resources nor the financial ability to
obtain qualified outside assistance in preparing and filing
allegations described in paragraph (2).
``(ii) Non-reviewability.--The determination of the
Commissioner regarding whether a business concern is an
eligible small business for purposes of this paragraph is not
reviewable by any other agency or by any court.
``(c) Determinations.--
``(1) Determination of evasion.--
``(A) In general.--Except as provided in subparagraph (B),
not later than 300 calendar days after the date on which the
Commissioner initiates an investigation under subsection (b)
with respect to covered merchandise, the Commissioner shall
make a determination, based on substantial evidence, with
respect to whether such covered merchandise was entered into
the customs territory of the United States through evasion.
``(B) Additional time.--The Commissioner may extend the
time to make a determination under subparagraph (A) by not
more than 60 calendar days if the Commissioner determines
that--
``(i) the investigation is extraordinarily complicated
because of--

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

``(ii) additional time is necessary to make the
determination under subparagraph (A).
``(2) Authority to collect and verify additional
information.--In making a determination under paragraph (1)
with respect to covered merchandise, the Commissioner may
collect such additional information as is necessary to make
the determination through such methods as the Commissioner
considers appropriate, including by--
``(A) issuing a questionnaire with respect to such covered
merchandise to--
``(i) an interested party that filed an allegation under
paragraph (2) of subsection (b) that resulted in the
initiation of an investigation under paragraph (1) of that
subsection with respect to such covered merchandise;
``(ii) a person alleged to have entered such covered
merchandise into the customs territory of the United States
through evasion;
``(iii) a person that is a foreign producer or exporter of
such covered merchandise; or
``(iv) the government of a country from which such covered
merchandise was exported; and
``(B) conducting verifications, including on-site
verifications, of any relevant information.
``(3) Adverse inference.--
``(A) In general.--If the Commissioner finds that a party
or person described in clause (i), (ii), or (iii) of
paragraph (2)(A) has failed to cooperate by not acting to the
best of the party or person's ability to comply with a
request for information, the Commissioner may, in making a
determination under paragraph (1), use an inference that is
adverse to the interests of that party or person in selecting
from among the facts otherwise available to make the
determination.
``(B) Application.--An inference described in subparagraph
(A) may be used under that subparagraph with respect to a
person described in clause (ii) or (iii) of paragraph (2)(A)
without regard to whether another person involved in the same
transaction or transactions under examination has provided
the information sought by the Commissioner, such as import or
export documentation.
``(C) Adverse inference described.--An adverse inference
used under subparagraph (A) may include reliance on
information derived from--
``(i) the allegation of evasion of the trade remedy laws,
if any, submitted to U.S. Customs and Border Protection;
``(ii) a determination by the Commissioner in another
investigation, proceeding, or other action regarding evasion
of the unfair trade laws; or
``(iii) any other available information.
``(4) Notification.--Not later than 5 business days after
making a determination under paragraph (1) with respect to
covered merchandise, the Commissioner--
``(A) shall provide to each interested party that filed an
allegation under paragraph (2) of subsection (b) that
resulted in the initiation of an investigation under
paragraph (1) of that subsection with respect to such covered
merchandise a notification of the determination and may, in
addition, include an explanation of the basis for the
determination; and
``(B) may provide to importers, in such manner as the
Commissioner determines appropriate, information discovered
in the investigation that the Commissioner determines will
help educate importers with respect to importing merchandise
into the customs territory of the United States in accordance
with all applicable laws and regulations.
``(d) Effect of Determinations.--
``(1) In general.--If the Commissioner makes a
determination under subsection (c) that covered merchandise
was entered into the customs territory of the United States
through evasion, the Commissioner shall--
``(A)(i) suspend the liquidation of unliquidated entries of
such covered merchandise that are subject to the
determination and that enter on or after the date of the
initiation of the investigation under subsection (b) with
respect to such covered merchandise and on or before the date
of the determination; or
``(ii) if the Commissioner has already suspended the
liquidation of such entries pursuant to subsection (e)(1),
continue to suspend the liquidation of such entries;
``(B) pursuant to the Commissioner's authority under
section 504(b)--
``(i) extend the period for liquidating unliquidated
entries of such covered merchandise that are subject to the
determination and that entered before the date of the
initiation of the investigation; or
``(ii) if the Commissioner has already extended the period
for liquidating such entries pursuant to subsection (e)(1),
continue to extend the period for liquidating such entries;
``(C) notify the administering authority of the
determination and request that the administering authority--
``(i) identify the applicable antidumping or countervailing
duty assessment rates for entries described in subparagraphs
(A) and (B); or
``(ii) if no such assessment rate for such an entry is
available at the time, identify the applicable cash deposit
rate to be applied to the entry, with the applicable
antidumping or countervailing duty assessment rate to be
provided as soon as that rate becomes available;
``(D) require the posting of cash deposits and assess
duties on entries described in subparagraphs (A) and (B) in
accordance with the instructions received from the
administering authority under paragraph (2); and
``(E) take such additional enforcement measures as the
Commissioner determines appropriate, such as--
``(i) initiating proceedings under section 592 or 596;
``(ii) implementing, in consultation with the relevant
Federal agencies, rule sets or modifications to rule sets for
identifying, particularly through the Automated Targeting
System and the Automated Commercial Environment authorized
under section 13031(f)(4) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)), importers,
other parties, and merchandise that may be associated with
evasion;
``(iii) requiring, with respect to merchandise for which
the importer has repeatedly provided incomplete or erroneous
entry summary information in connection with determinations
of evasion, the importer to deposit estimated duties at the
time of entry; and
``(iv) referring the record in whole or in part to U.S.
Immigration and Customs Enforcement for civil or criminal
investigation.
``(2) Cooperation of administering authority.--
``(A) In general.--Upon receiving a notification from the
Commissioner under paragraph (1)(C), the administering
authority shall promptly provide to the Commissioner the
applicable cash deposit rates and antidumping or
countervailing duty assessment rates and any necessary
liquidation instructions.
``(B) Special rule for cases in which the producer or
exporter is unknown.--If the Commissioner and the
administering authority are unable to determine the producer
or exporter of the merchandise with respect to which a
notification is made under paragraph (1)(C), the
administering authority shall identify, as the applicable
cash deposit rate or antidumping or countervailing duty
assessment rate, the cash deposit or duty (as the case may
be) in the highest amount applicable to any producer or
exporter, including the `all-others' rate of the merchandise
subject to an antidumping order or countervailing duty order
under section 736 or 706, respectively, or a finding issued
under the Antidumping Act, 1921, or any administrative review
conducted under section 751.
``(e) Interim Measures.--Not later than 90 calendar days
after initiating an investigation under subsection (b) with
respect to covered merchandise, the Commissioner shall decide
based on the investigation if there is a reasonable suspicion
that such covered merchandise was entered into the customs
territory of the United States through evasion and, if the
Commissioner decides there is such a reasonable suspicion,
the Commissioner shall--
``(1) suspend the liquidation of each unliquidated entry of
such covered merchandise that entered on or after the date of
the initiation of the investigation;
``(2) pursuant to the Commissioner's authority under
section 504(b), extend the period for liquidating each
unliquidated entry of such covered merchandise that entered
before the date of the initiation of the investigation; and
``(3) pursuant to the Commissioner's authority under
section 623, take such additional measures as the
Commissioner determines necessary to protect the revenue of
the United States, including requiring a single transaction
bond or additional security or the posting of a cash deposit
with respect to such covered merchandise.
``(f) Administrative Review.--
``(1) In general.--Not later than 30 business days after
the Commissioner makes a determination under subsection (c)
with respect to whether covered merchandise was entered into
the customs territory of the United States through evasion, a
person determined to have entered such covered merchandise
through evasion or an interested party that filed an
allegation under paragraph (2) of subsection (b) that
resulted in the initiation of an investigation under
paragraph (1) of that subsection with respect to such covered
merchandise may file an appeal with the Commissioner for de
novo review of the determination.
``(2) Timeline for review.--Not later than 60 business days
after an appeal of a determination is filed under paragraph
(1), the Commissioner shall complete the review of the
determination.
``(g) Judicial Review.--
``(1) In general.--Not later than 30 business days after
the Commissioner completes a review under subsection (f) of a
determination under subsection (c) with respect to whether
covered

[[Page H9117]]

merchandise was entered into the customs territory of the
United States through evasion, a person determined to have
entered such covered merchandise through evasion or an
interested party that filed an allegation under paragraph (2)
of subsection (b) that resulted in the initiation of an
investigation under paragraph (1) of that subsection with
respect to such covered merchandise may seek judicial review
of the determination under subsection (c) and the review
under subsection (f) in the United States Court of
International Trade to determine whether the determination
and review is conducted in accordance with subsections (c)
and (f).
``(2) Standard of review.--In determining whether a
determination under subsection (c) or review under subsection
(f) is conducted in accordance with those subsections, the
United States Court of International Trade shall examine--
``(A) whether the Commissioner fully complied with all
procedures under subsections (c) and (f); and
``(B) whether any determination, finding, or conclusion is
arbitrary, capricious, an abuse of discretion, or otherwise
not in accordance with law.
``(3) Rule of construction.--Nothing in this subsection
shall affect the availability of judicial review to an
interested party under any other provision of law.
``(h) Rule of Construction With Respect to Other Civil and
Criminal Proceedings and Investigations.--No determination
under subsection (c), review under subsection (f), or action
taken by the Commissioner pursuant to this section shall
preclude any individual or entity from proceeding, or
otherwise affect or limit the authority of any individual or
entity to proceed, with any civil, criminal, or
administrative investigation or proceeding pursuant to any
other provision of Federal or State law, including sections
592 and 596.''.
(b) Conforming Amendment.--Section 1581(c) of title 28,
United States Code, is amended by inserting ``or 517'' after
``516A''.
(c) Effective Date.--The amendments made by this section
shall take effect on the date that is 180 days after the date
of the enactment of this Act.
(d) Regulations.--Not later than the date that is 180 days
after the date of the enactment of this Act, the Secretary
shall prescribe such regulations as may be necessary to
implement the amendments made by this section.

Subtitle C--Other Matters

SEC. 431. ALLOCATION AND TRAINING OF PERSONNEL.

The Commissioner shall, to the maximum extent possible,
ensure that U.S. Customs and Border Protection--
(1) employs sufficient personnel who have expertise in, and
responsibility for, preventing and investigating the entry of
covered merchandise into the customs territory of the United
States through evasion;
(2) on the basis of risk assessment metrics, assigns
sufficient personnel with primary responsibility for
preventing the entry of covered merchandise into the customs
territory of the United States through evasion to the ports
of entry in the United States at which the Commissioner
determines potential evasion presents the most substantial
threats to the revenue of the United States; and
(3) provides adequate training to relevant personnel to
increase expertise and effectiveness in the prevention and
identification of entries of covered merchandise into the
customs territory of the United States through evasion.

SEC. 432. ANNUAL REPORT ON PREVENTION AND INVESTIGATION OF
EVASION OF ANTIDUMPING AND COUNTERVAILING DUTY
ORDERS.

(a) In General.--Not later than January 15 of each calendar
year that begins on or after the date that is 270 days after
the date of the enactment of this Act, the Commissioner, in
consultation with the Secretary of Commerce and the Director
of U.S. Immigration and Customs Enforcement, shall submit to
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives a report on
the efforts being taken to prevent and investigate the entry
of covered merchandise into the customs territory of the
United States through evasion.
(b) Contents.--Each report required under subsection (a)
shall include--
(1) for the calendar year preceding the submission of the
report--
(A) a summary of the efforts of U.S. Customs and Border
Protection to prevent and investigate the entry of covered
merchandise into the customs territory of the United States
through evasion;
(B) the number of allegations of evasion received,
including allegations received under subsection (b) of
section 517 of the Tariff Act of 1930, as added by section
421 of this Act, and the number of such allegations resulting
in investigations by U.S. Customs and Border Protection or
any other Federal agency;
(C) a summary of investigations initiated, including
investigations initiated under subsection (b) of such section
517, including--
(i) the number and nature of the investigations initiated,
conducted, or completed; and
(ii) the resolution of each completed investigation;
(D) the amount of additional duties that were determined to
be owed as a result of such investigations, the amount of
such duties that were collected, and, for any such duties not
collected, a description of the reasons those duties were not
collected;
(E) with respect to each such investigation that led to the
imposition of a penalty, the amount of the penalty;
(F) an identification of the countries of origin of covered
merchandise determined under subsection (c) of such section
517 to be entered into the customs territory of the United
States through evasion;
(G) the amount of antidumping and countervailing duties
collected as a result of any investigations or other actions
by U.S. Customs and Border Protection or any other Federal
agency;
(H) a description of the allocation of personnel and other
resources of U.S. Customs and Border Protection and U.S.
Immigration and Customs Enforcement to prevent and
investigate evasion, including any assessments conducted
regarding the allocation of such personnel and resources; and
(I) a description of training conducted to increase
expertise and effectiveness in the prevention and
investigation of evasion; and
(2) a description of processes and procedures of U.S.
Customs and Border Protection to prevent and investigate
evasion, including--
(A) the specific guidelines, policies, and practices used
by U.S. Customs and Border Protection to ensure that
allegations of evasion are promptly evaluated and acted upon
in a timely manner;
(B) an evaluation of the efficacy of those guidelines,
policies, and practices;
(C) an identification of any changes since the last report
required by this section, if any, that have materially
improved or reduced the effectiveness of U.S. Customs and
Border Protection in preventing and investigating evasion;
(D) a description of the development and implementation of
policies for the application of single entry and continuous
bonds for entries of covered merchandise to sufficiently
protect the collection of antidumping and countervailing
duties commensurate with the level of risk of not collecting
those duties;
(E) a description of the processes and procedures for
increased cooperation and information sharing with the
Department of Commerce, U.S. Immigration and Customs
Enforcement, and any other relevant Federal agencies to
prevent and investigate evasion; and
(F) an identification of any recommended policy changes for
other Federal agencies or legislative changes to improve the
effectiveness of U.S. Customs and Border Protection in
preventing and investigating evasion.
(c) Public Summary.--The Commissioner shall make available
to the public a summary of the report required by subsection
(a) that includes, at a minimum--
(1) a description of the type of merchandise with respect
to which investigations were initiated under subsection (b)
of section 517 of the Tariff Act of 1930, as added by section
421 of this Act;
(2) the amount of additional duties determined to be owed
as a result of such investigations and the amount of such
duties that were collected;
(3) an identification of the countries of origin of covered
merchandise determined under subsection (c) of such section
517 to be entered into the customs territory of the United
States through evasion; and
(4) a description of the types of measures used by U.S.
Customs and Border Protection to prevent and investigate
evasion.

SEC. 433. ADDRESSING CIRCUMVENTION BY NEW SHIPPERS.

Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C.
1675(a)(2)(B)) is amended--
(1) by striking clause (iii);
(2) by redesignating clause (iv) as clause (iii); and
(3) by inserting after clause (iii), as redesignated by
paragraph (2) of this section, the following:
``(iv) Determinations based on bona fide sales.--Any
weighted average dumping margin or individual countervailing
duty rate determined for an exporter or producer in a review
conducted under clause (i) shall be based solely on the bona
fide United States sales of an exporter or producer, as the
case may be, made during the period covered by the review. In
determining whether the United States sales of an exporter or
producer made during the period covered by the review were
bona fide, the administering authority shall consider,
depending on the circumstances surrounding such sales--

``(I) the prices of such sales;
``(II) whether such sales were made in commercial
quantities;
``(III) the timing of such sales;
``(IV) the expenses arising from such sales;
``(V) whether the subject merchandise involved in such
sales was resold in the United States at a profit;
``(VI) whether such sales were made on an arms-length
basis; and
``(VII) any other factor the administering authority
determines to be relevant as to whether such sales are, or
are not, likely to be typical of those the exporter or
producer will make after completion of the review.''.

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

SECTION 501. SHORT TITLE.

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

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

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

[[Page H9118]]

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

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

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

SEC. 503. STATE TRADE EXPANSION PROGRAM.

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

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

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

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

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

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

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

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

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

[[Page H9119]]

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

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

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

SEC. 504. STATE AND FEDERAL EXPORT PROMOTION COORDINATION.

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

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

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

SEC. 505. STATE TRADE COORDINATION.

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

[[Page H9120]]

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

TITLE VI--ADDITIONAL ENFORCEMENT PROVISIONS

SEC. 601. TRADE ENFORCEMENT PRIORITIES.

(a) In General.--Section 310 of the Trade Act of 1974 (19
U.S.C. 2420) is amended to read as follows:

``SEC. 310. TRADE ENFORCEMENT PRIORITIES.

``(a) Trade Enforcement Priorities, Consultations, and
Report.--
``(1) Trade enforcement priorities consultations.--Not
later than May 31 of each calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the United States Trade
Representative (in this section referred to as the `Trade
Representative') shall consult with the Committee on Finance
of the Senate and the Committee on Ways and Means of the
House of Representatives with respect to the prioritization
of acts, policies, or practices of foreign governments that
raise concerns with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, or otherwise create or maintain barriers
to United States goods, services, or investment.
``(2) Identification of trade enforcement priorities.--In
identifying acts, policies, or practices of foreign
governments as trade enforcement priorities under this
subsection, the Trade Representative shall focus on those
acts, policies, and practices the elimination of which is
likely to have the most significant potential to increase
United States economic growth, and take into account all
relevant factors, including--
``(A) the economic significance of any potential
inconsistency between an obligation assumed by a foreign
government pursuant to a trade agreement to which both the
foreign government and the United States are parties and the
acts, policies, or practices of that government;
``(B) the impact of the acts, policies, or practices of a
foreign government on maintaining and creating United States
jobs and productive capacity;
``(C) the major barriers and trade distorting practices
described in the most recent National Trade Estimate required
under section 181(b);
``(D) the major barriers and trade distorting practices
described in other relevant reports addressing international
trade and investment barriers prepared by a Federal agency or
congressional commission during the 12 months preceding the
date of the most recent report under paragraph (3);
``(E) a foreign government's compliance with its
obligations under any trade agreements to which both the
foreign government and the United States are parties;
``(F) the implications of a foreign government's
procurement plans and policies; and
``(G) the international competitive position and export
potential of United States products and services.
``(3) Report on trade enforcement priorities and actions
taken to address.--
``(A) In general.--Not later than July 31 of each calendar
year that begins after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, the Trade
Representative shall report to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives on acts, policies, or practices of foreign
governments identified as trade enforcement priorities based
on the consultations under paragraph (1) and the criteria set
forth in paragraph (2).
``(B) Report in subsequent years.--The Trade Representative
shall include, when reporting under subparagraph (A) in any
calendar year after the calendar year that begins after the
date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, a description of actions taken to
address any acts, policies, or practices of foreign
governments identified as trade enforcement priorities under
this subsection in the calendar year preceding that report
and, as relevant, any calendar year before that calendar
year.
``(b) Semiannual Enforcement Consultations.--
``(1) In general.--At the same time as the reporting under
subsection (a)(3), and not later than January 31 of each
following year, the Trade Representative shall consult with
the Committee on Finance of the Senate and the Committee on
Ways and Means of the House of Representatives with respect
to the identification, prioritization, investigation, and
resolution of acts, policies, or practices of foreign
governments of concern with respect to obligations under the
WTO Agreements or any other trade agreement to which the
United States is a party, or that otherwise create or
maintain trade barriers.
``(2) Acts, policies, or practices of concern.--The
semiannual enforcement consultations required by paragraph
(1) shall address acts, policies, or practices of foreign
governments that raise concerns with respect to obligations
under the WTO Agreements or any other trade agreement to
which the United States is a party, or otherwise create or
maintain trade barriers, including--
``(A) engagement with relevant trading partners;
``(B) strategies for addressing such concerns;
``(C) availability and deployment of resources to be used
in the investigation or resolution of such concerns;
``(D) the merits of any potential dispute resolution
proceeding under the WTO Agreements or any other trade
agreement to which the United States is a party relating to
such concerns; and
``(E) any other aspects of such concerns.
``(3) Active investigations.--The semiannual enforcement
consultations required by paragraph (1) shall address acts,
policies, or practices that the Trade Representative is
actively investigating with respect to obligations under the
WTO Agreements or any other trade agreement to which the
United States is a party, including--
``(A) strategies for addressing concerns raised by such
acts, policies, or practices;
``(B) any relevant timeline with respect to investigation
of such acts, policies, or practices;
``(C) the merits of any potential dispute resolution
proceeding under the WTO Agreements or any other trade
agreement to which the United States is a party with respect
to such acts, policies, or practices;
``(D) barriers to the advancement of the investigation of
such acts, policies, or practices; and
``(E) any other matters relating to the investigation of
such acts, policies, or practices.
``(4) Ongoing enforcement actions.--The semiannual
enforcement consultations required by paragraph (1) shall
address all ongoing enforcement actions taken by or against
the United States with respect to obligations under the WTO
Agreements or any other trade agreement to which the United
States is a party, including--
``(A) any relevant timeline with respect to such actions;
``(B) the merits of such actions;
``(C) any prospective implementation actions;
``(D) potential implications for any law or regulation of
the United States;
``(E) potential implications for United States
stakeholders, domestic competitors, and exporters; and
``(F) other issues relating to such actions.
``(5) Enforcement resources.--The semiannual enforcement
consultations required by paragraph (1) shall address the
availability and deployment of enforcement resources,
resource constraints on monitoring and enforcement
activities, and strategies to address those constraints,
including the use of available resources of other Federal
agencies to enhance monitoring and enforcement capabilities.
``(c) Investigation and Resolution.--In the case of any
acts, policies, or practices of a foreign government
identified as a trade enforcement priority under subsection
(a), the Trade Representative shall, not later than the date
of the first semiannual enforcement consultations held under
subsection (b) after the identification of the priority, take
appropriate action to address that priority, including--
``(1) engagement with the foreign government to resolve
concerns raised by such acts, policies, or practices;
``(2) initiation of an investigation under section
302(b)(1) with respect to such acts, policies, or practices;
``(3) initiation of negotiations for a bilateral agreement
that provides for resolution of concerns raised by such acts,
policies, or practices; or
``(4) initiation of dispute settlement proceedings under
the WTO Agreements or any other trade agreement to which the
United States is a party with respect to such acts, policies,
or practices.
``(d) Enforcement Notifications and Consultation.--
``(1) Initiation of enforcement action.--The Trade
Representative shall notify and consult with the Committee on
Finance of the Senate and the Committee on Ways and Means of
the House of Representatives in advance of the initiation of
any formal trade dispute by or against the United States
taken in regard to an obligation under the WTO Agreements or
any other trade agreement to which the United States is a
party. With respect to a formal trade dispute against the
United States, if advance notification and consultation are
not possible, the Trade Representative shall notify and
consult at the earliest practicable opportunity after
initiation of the dispute.
``(2) Circulation of reports.--The Trade Representative
shall notify and consult with the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives in advance of the announced or anticipated
circulation of any report of a dispute settlement panel or
the Appellate Body of the World Trade Organization or of a
dispute settlement panel under any other trade agreement to
which the United States is a party with respect to a formal
trade dispute by or against the United States.
``(e) Definitions.--In this section:
``(1) WTO.--The term `WTO' means the World Trade
Organization.
``(2) WTO agreement.--The term `WTO Agreement' has the
meaning given that term in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
``(3) WTO agreements.--The term `WTO Agreements' means the
WTO Agreement and agreements annexed to that Agreement.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 is amended by striking the item relating to
section 310 and inserting the following:

``Sec. 310. Trade enforcement priorities.''.

[[Page H9121]]

SEC. 602. EXERCISE OF WTO AUTHORIZATION TO SUSPEND
CONCESSIONS OR OTHER OBLIGATIONS UNDER TRADE
AGREEMENTS.

(a) In General.--Section 306 of the Trade Act of 1974 (19
U.S.C. 2416) is amended--
(1) by redesignating subsection (c) as subsection (d); and
(2) by inserting after subsection (b) the following:
``(c) Exercise of WTO Authorization to Suspend Concessions
or Other Obligations.--If--
``(1) action has terminated pursuant to section 307(c),
``(2) the petitioner or any representative of the domestic
industry that would benefit from reinstatement of action has
submitted to the Trade Representative a written request for
reinstatement of action, and
``(3) the Trade Representatives has completed the
requirements of subsection (d) and section 307(c)(3),
the Trade Representative may at any time determine to take
action under section 301(c) to exercise an authorization to
suspend concessions or other obligations under Article 22 of
the Understanding on Rules and Procedures Governing the
Settlement of Disputes (referred to in section 101(d)(16) of
the Uruguay Round Agreements Act (19 U.S.C. 3511(d)(16))).''.
(b) Conforming Amendments.--Chapter 1 of title III of the
Trade Act of 1974 (19 U.S.C. 2411 et seq.) is amended--
(1) in section 301(c)(1) (19 U.S.C. 2411(c)(1)), in the
matter preceding subparagraph (A), by inserting ``or section
306(c)'' after ``subsection (a) or (b)'';
(2) in section 306(b) (19 U.S.C. 2416(b)), in the
subsection heading, by striking ``Further Action'' and
inserting ``Action on the Basis of Monitoring'';
(3) in section 306(d) (19 U.S.C. 2416(d)), as redesignated
by subsection (a)(1), by inserting ``or (c)'' after
``subsection (b)''; and
(4) in section 307(c)(3) (19 U.S.C. 2417(c)(3)), by
inserting ``or if a request is submitted to the Trade
Representative under section 306(c)(2) to reinstate action,''
after ``under section 301,''.

SEC. 603. TRADE MONITORING.

(a) In General.--Chapter 1 of title II of the Trade Act of
1974 (19 U.S.C. 2251 et seq.) is amended by adding at the end
the following:

``SEC. 205. TRADE MONITORING.

``(a) Monitoring Tool for Imports.--
``(1) In general.--Not later than 180 days after the date
of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the Commission shall make available
on a website of the Commission an import monitoring tool to
allow the public access to data on the volume and value of
goods imported to the United States for the purpose of
assessing whether such data has changed with respect to such
goods over a period of time.
``(2) Data described.--For purposes of the monitoring tool
under paragraph (1), the Commission shall use data compiled
by the Department of Commerce and such other government data
as the Commission considers appropriate.
``(3) Periods of time.--The Commission shall ensure that
data accessed through the monitoring tool under paragraph (1)
includes data for the most recent quarter for which such data
are available and previous quarters as the Commission
considers practicable.
``(b) Monitoring Reports.--
``(1) In general.--Not later than 270 days after the date
of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, and not less frequently than
quarterly thereafter, the Secretary of Commerce shall publish
on a website of the Department of Commerce, and notify the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives of the availability
of, a monitoring report on changes in the volume and value of
trade with respect to imports and exports of goods
categorized based on the 6-digit subheading number of the
goods under the Harmonized Tariff Schedule of the United
States during the most recent quarter for which such data are
available and previous quarters as the Secretary considers
practicable.
``(2) Requests for comment.--Not later than one year after
the date of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the Secretary of Commerce shall
solicit through the Federal Register public comment on the
monitoring reports described in paragraph (1).
``(c) Sunset.--The requirements under this section
terminate on the date that is seven years after the date of
the enactment of the Trade Facilitation and Trade Enforcement
Act of 2015.''.
(b) Clerical Amendment.--The table of contents for the
Trade Act of 1974 (19 U.S.C. 2101 et seq.) is amended by
inserting after the item relating to section 204 the
following:

``Sec. 205. Trade monitoring.''.

SEC. 604. ESTABLISHMENT OF INTERAGENCY CENTER ON TRADE
IMPLEMENTATION, MONITORING, AND ENFORCEMENT.

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

SEC. 605. INCLUSION OF INTEREST IN CERTAIN DISTRIBUTIONS OF
ANTIDUMPING DUTIES AND COUNTERVAILING DUTIES.

(a) In General.--The Secretary of Homeland Security shall
deposit all interest described in subsection (c) into the
special account established under section 754(e) of the
Tariff Act of 1930 (19 U.S.C. 1675c(e)) (repealed by subtitle
F of title VII of the Deficit Reduction Act of 2005 (Public
Law 109-171; 120 Stat. 154)) for inclusion in distributions
described in subsection (b) made on or after the date of the
enactment of this Act.
(b) Distributions Described.--Distributions described in
this subsection are distributions of antidumping duties and
countervailing duties assessed on or after October 1, 2000,
that are made under section 754 of the Tariff Act of 1930 (19
U.S.C. 1675c) (repealed by subtitle F of title VII of the
Deficit Reduction Act of 2005 (Public Law 109-171; 120 Stat.
154)), with respect to entries of merchandise that--
(1) were made on or before September 30, 2007; and
(2) were, in accordance with section 822 of the Claims
Resolution Act of 2010 (19 U.S.C. 1675c note), unliquidated,
not in litigation, and not under an order of liquidation from
the Department of Commerce on December 8, 2010.
(c) Interest Described.--

[[Page H9122]]

(1) Interest realized.--Interest described in this
subsection is interest earned on antidumping duties or
countervailing duties described in subsection (b) that is
realized through application of a payment received on or
after October 1, 2014, by U.S. Customs and Border Protection
under, or in connection with--
(A) a customs bond pursuant to a court order or judgment;
or
(B) a settlement with respect to a customs bond, including
any payment made to U.S. Customs and Border Protection with
respect to that bond by a surety.
(2) Types of interest.--Interest described in paragraph (1)
includes the following:
(A) Interest accrued under section 778 of the Tariff Act of
1930 (19 U.S.C. 1677g).
(B) Interest accrued under section 505(d) of the Tariff Act
of 1930 (19 U.S.C. 1505(d)).
(C) Equitable interest under common law and interest under
section 963 of the Revised Statutes (19 U.S.C. 580) awarded
by a court against a surety under its bond for late payment
of antidumping duties, countervailing duties, or interest
described in subparagraph (A) or (B).
(d) Definitions.--In this section:
(1) Antidumping duties.--The term ``antidumping duties''
means antidumping duties imposed under section 731 of the
Tariff Act of 1930 (19 U.S.C. 1673) or under the Antidumping
Act, 1921 (title II of the Act of May 27, 1921; 42 Stat. 11,
chapter 14).
(2) Countervailing duties.--The term ``countervailing
duties'' means countervailing duties imposed under section
701 of the Tariff Act of 1930 (19 U.S.C. 1671).

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

(a) In General.--The Commissioner and the Director of U.S.
Immigration and Customs Enforcement shall ensure that
appropriate personnel of U.S. Customs and Border Protection
and U.S. Immigration and Customs Enforcement, as the case may
be, are trained in the detection, identification, detention,
seizure, and forfeiture of cultural property, archaeological
or ethnological materials, and fish, wildlife, and plants,
the importation, exportation, or trafficking of which
violates the laws of the United States.
(b) Training.--The Commissioner and the Director are
authorized to accept training and other support services from
experts outside of the Federal Government with respect to the
detection, identification, detention, seizure, and forfeiture
of cultural property, archaeological or ethnological
materials, or fish, wildlife, and plants described in
subsection (a).

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

Section 301(d)(3)(B) of the Trade Act of 1974 (19 U.S.C.
2411(d)(3)(B)) is amended--
(1) in clause (ii), by striking ``or'' at the end;
(2) in clause (iii)(V), by striking the period at the end
and inserting ``, or''; and
(3) by adding at the end the following:
``(iv) constitutes a persistent pattern of conduct by the
government of a foreign country under which that government
fails to effectively enforce commitments under agreements to
which the foreign country and the United States are parties,
including with respect to trade in goods, trade in services,
trade in agriculture, foreign investment, intellectual
property, digital trade in goods and services and cross-
border data flows, regulatory practices, state-owned and
state-controlled enterprises, localization barriers to trade,
labor and the environment, anticorruption, trade remedy laws,
textiles, and commercial partnerships.''.

SEC. 608. HONEY TRANSSHIPMENT.

(a) In General.--The Commissioner shall direct appropriate
personnel and the use of resources of U.S. Customs and Border
Protection to address concerns that honey is being imported
into the United States in violation of the customs and trade
laws of the United States.
(b) Country of Origin.--
(1) In general.--The Commissioner shall compile a database
of the individual characteristics of honey produced in
foreign countries to facilitate the verification of country
of origin markings of imported honey.
(2) Engagement with foreign governments.--The Commissioner
shall seek to engage the customs agencies of foreign
governments for assistance in compiling the database
described in paragraph (1).
(3) Consultation with industry.--In compiling the database
described in paragraph (1), the Commissioner shall consult
with entities in the honey industry regarding the development
of industry standards for honey identification.
(4) Consultation with food and drug administration.--In
compiling the database described in paragraph (1), the
Commissioner shall consult with the Commissioner of Food and
Drugs.
(c) Report Required.--Not later than 180 days after the
date of the enactment of this Act, the Commissioner shall
submit to Congress a report that--
(1) describes and assesses the limitations in the existing
analysis capabilities of laboratories with respect to
determining the country of origin of honey samples or the
percentage of honey contained in a sample; and
(2) includes any recommendations of the Commissioner for
improving such capabilities.
(d) Sense of Congress.--It is the sense of Congress that
the Commissioner of Food and Drugs should promptly establish
a national standard of identity for honey for the
Commissioner of U.S. Customs and Border Protection to use to
ensure that imports of honey are--
(1) classified accurately for purposes of assessing duties;
and
(2) denied entry into the United States if such imports
pose a threat to the health or safety of consumers in the
United States.

SEC. 609. ESTABLISHMENT OF CHIEF INNOVATION AND INTELLECTUAL
PROPERTY NEGOTIATOR.

(a) In General.--Section 141 of the Trade Act of 1974 (19
U.S.C. 2171) is amended--
(1) in subsection (b)(2)--
(A) by striking ``and one Chief Agricultural Negotiator''
and inserting ``, one Chief Agricultural Negotiator, and one
Chief Innovation and Intellectual Property Negotiator,'';
(B) by striking ``or the Chief Agricultural Negotiator''
and inserting ``, the Chief Agricultural Negotiator, or the
Chief Innovation and Intellectual Property Negotiator''; and
(C) by striking ``and the Chief Agricultural Negotiator''
and inserting ``, the Chief Agricultural Negotiator, and the
Chief Innovation and Intellectual Property Negotiator''; and
(2) in subsection (c)--
(A) by moving paragraph (5) 2 ems to the left; and
(B) by adding at the end the following:
``(6) The principal functions of the Chief Innovation and
Intellectual Property Negotiator shall be to conduct trade
negotiations and to enforce trade agreements relating to
United States intellectual property and to take appropriate
actions to address acts, policies, and practices of foreign
governments that have a significant adverse impact on the
value of United States innovation. The Chief Innovation and
Intellectual Property Negotiator shall be a vigorous advocate
on behalf of United States innovation and intellectual
property interests. The Chief Innovation and Intellectual
Property Negotiator shall perform such other functions as the
United States Trade Representative may direct.''.
(b) Compensation.--Section 5314 of title 5, United States
Code is amended by striking ``Chief Agricultural
Negotiator.'' and inserting the following:
``Chief Agricultural Negotiator, Office of the United
States Trade Representative.
``Chief Innovation and Intellectual Property Negotiator,
Office of the United States Trade Representative.''.
(c) Report Required.--Not later than one year after the
appointment of the first Chief Innovation and Intellectual
Property Negotiator pursuant to paragraph (2) of section
141(b) of the Trade Act of 1974, as amended by subsection
(a), and annually thereafter, the United States Trade
Representative shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives a report describing in detail--
(1) enforcement actions taken by the Trade Representative
during the one-year period preceding the submission of the
report to ensure the protection of United States innovation
and intellectual property interests; and
(2) other actions taken by the Trade Representative to
advance United States innovation and intellectual property
interests.

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

(a) Inclusion of Countries That Deny Adequate Protection of
Trade Secrets.--Section 182(d)(2) of the Trade Act of 1974
(19 U.S.C. 2242(d)(2)) is amended by inserting ``, trade
secrets,'' after ``copyrights''.
(b) Special Rules for Countries on the Priority Watch List
of the United States Trade Representative.--
(1) In general.--Section 182 of the Trade Act of 1974 (19
U.S.C. 2242) is amended by striking subsection (g) and
inserting the following:
``(g) Special Rules for Foreign Countries on the Priority
Watch List.--
``(1) Action plans.--
``(A) In general.--Not later than 90 days after the date on
which the Trade Representative submits the National Trade
Estimate under section 181(b), the Trade Representative shall
develop an action plan described in subparagraph (C) with
respect to each foreign country described in subparagraph
(B).
``(B) Foreign country described.--The Trade Representative
shall develop an action plan under subparagraph (A) with
respect to each foreign country that--
``(i) the Trade Representative has identified for placement
on the priority watch list; and
``(ii) has remained on such list for at least one year.
``(C) Action plan described.--An action plan developed
under subparagraph (A) shall contain the benchmarks described
in subparagraph (D) and be designed to assist the foreign
country--
``(i) to achieve--

``(I) adequate and effective protection of intellectual
property rights; and
``(II) fair and equitable market access for United States
persons that rely upon intellectual property protection; or

``(ii) to make significant progress toward achieving the
goals described in clause (i).
``(D) Benchmarks described.--The benchmarks contained in an
action plan developed pursuant to subparagraph (A) are such
legislative, institutional, enforcement, or other actions as
the Trade Representative determines to be necessary for the
foreign country to achieve the goals described in clause (i)
or (ii) of subparagraph (C).
``(2) Failure to meet action plan benchmarks.--If, as of
one year after the date on which an action plan is developed
under paragraph (1)(A), the President, in consultation with
the Trade Representative, determines that the foreign country
to which the action plan applies has not substantially
complied with the benchmarks described in paragraph (1)(D),
the President may take appropriate action with respect to the
foreign country.
``(3) Priority watch list defined.--In this subsection, the
term `priority watch list' means

[[Page H9123]]

the priority watch list established by the Trade
Representative pursuant to subsection (a).
``(h) Annual Report.--Not later than 30 days after the date
on which the Trade Representative submits the National Trade
Estimate under section 181(b), the Trade Representative shall
submit to the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate a
report on actions taken under this section during the 12
months preceding such report, and the reasons for such
actions, including--
``(1) a list of any foreign countries identified under
subsection (a);
``(2) a description of progress made in achieving improved
intellectual property protection and market access for
persons relying on intellectual property rights; and
``(3) a description of the action plans developed under
subsection (g) and any actions taken by foreign countries
under such plans.''.
(2) Funding.--
(A) In general.--Amounts from the Trade Enforcement Trust
Fund established under section 611 may be expended by the
United States Trade Representative, only as provided by
appropriations Acts, to provide assistance to any developing
country to which an action plan applies under section 182(g)
of the Trade Act of 1974, as amended by paragraph (1), to
facilitate the efforts of the developing country to comply
with the benchmarks contained in the action plan. Such
assistance may include capacity building, activities designed
to increase awareness of intellectual property rights, and
training for officials responsible for enforcing intellectual
property rights in the developing country.
(B) Developing country defined.--In this paragraph, the
term ``developing country'' means a country classified by the
World Bank as having a low-income or lower-middle-income
economy.
(3) Rule of construction.--Nothing in this subsection or
the amendment made by this subsection shall be construed as
limiting the authority of the President or the United States
Trade Representative to develop action plans other than
action plans described in section 182(g) of the Trade Act of
1974, as amended by paragraph (1), or to take any action
otherwise authorized by law in response to the failure of a
foreign country to provide adequate and effective protection
and enforcement of intellectual property rights.

SEC. 611. TRADE ENFORCEMENT TRUST FUND.

(a) Establishment.--There is established in the Treasury of
the United States a trust fund to be known as the Trade
Enforcement Trust Fund (in this section referred to as the
``Trust Fund''), consisting of amounts transferred to the
Trust Fund under subsection (b) and any amounts that may be
credited to the Trust Fund under subsection (c).
(b) Transfer of Amounts.--
(1) In general.--The Secretary of the Treasury shall
transfer to the Trust Fund, from the general fund of the
Treasury, for each fiscal year that begins on or after the
date of the enactment of this Act through fiscal year 2026,
an amount equal to $15,000,000 (or a lesser amount as
required pursuant to paragraph (2)).
(2) Limitation.--The total amount in the Trust Fund at any
time may not exceed $30,000,000.
(3) Frequency of transfers.--The Secretary shall transfer
amounts required to be transferred to the Trust Fund under
paragraph (1) not less frequently than quarterly from the
general fund of the Treasury to the Trust Fund in a manner
that ensures that the total amount in the Trust Fund at the
end of the quarter does not exceed the limitation established
under paragraph (2).
(c) Investment of Amounts.--
(1) Investment of amounts.--The Secretary shall invest such
portion of the Trust Fund as is not required to meet current
withdrawals in interest-bearing obligations of the United
States or in obligations guaranteed as to both principal and
interest by the United States.
(2) Interest and proceeds.--The interest on, and the
proceeds from the sale or redemption of, any obligations held
in the Trust Fund shall be credited to and form a part of the
Trust Fund.
(d) Availability of Amounts From Trust Fund.--
(1) In general.--The United States Trade Representative
shall, on the basis of the advice of the Trade Policy
Committee and relevant subordinate bodies of the TPC, use or
transfer for the use by Federal agencies represented on the
TPC amounts in the Trust Fund, only as provided by
appropriations Acts, for making expenditures for any of the
following:
(A) To seek to enforce the provisions of and commitments
and obligations under the WTO Agreements and free trade
agreements to which the United States is a party and resolve
any actions by foreign countries that are inconsistent with
those provisions, commitments, and obligations.
(B) To monitor and ensure the full implementation by
foreign countries of the provisions of and commitments and
obligations under free trade agreements to which the United
States is a party for purposes of systematically assessing,
identifying, investigating, or initiating steps to address
inconsistencies with those provisions, commitments, and
obligations.
(C) To thoroughly investigate and respond to petitions
under section 302 of the Trade Act of 1974 (19 U.S.C. 2412)
requesting that action be taken under section 301 of such Act
(19 U.S.C. 2411).
(D) To support capacity-building efforts undertaken by the
United States pursuant to any free trade agreement to which
the United States is a party and to prioritize and give
special attention to the timely, consistent, and robust
implementation of the commitments and obligations of a party
to that free trade agreement, including commitments and
obligations related to trade in goods, trade in services,
trade in agriculture, foreign investment, intellectual
property, digital trade in goods and services and cross-
border data flows, regulatory practices, state-owned and
state-controlled enterprises, localization barriers to trade,
labor and the environment, currency, foreign currency
manipulation, anticorruption, trade remedy laws, textiles,
and commercial partnerships.
(E) To support capacity-building efforts undertaken by the
United States pursuant to any such free trade agreement and
to include performance indicators against which the progress
and obstacles for the implementation of commitments and
obligations can be identified and assessed within a
meaningful time frame.
(2) Limitation.--Amounts made available in the Trust Fund
may not be used to offset costs of conducting negotiations
for any free trade agreement to be entered into on or after
the date of the enactment of this Act, but may be used to
support implementation and capacity building prior to entry
into force of a free trade agreement.
(e) Report.--Not later than 18 months after the entry into
force of any free trade agreement entered into after the date
of the enactment of this Act, the United States Trade
Representative, in consultation with the Federal agencies
represented on the TPC, shall submit to Congress a report on
the actions taken under subsection (d) in connection with
that agreement.
(f) Comptroller General Study.--
(1) In general.--The Comptroller General of the United
States shall conduct a study that includes the following:
(A) A comprehensive analysis of the trade enforcement
expenditures of each Federal agency with responsibilities
relating to trade that specifies, with respect to each such
Federal agency--
(i) the amounts appropriated for trade enforcement; and
(ii) the number of full-time employees carrying out
activities relating to trade enforcement.
(B) Recommendations on the additional employees and
resources that each such Federal agency may need to
effectively enforce the free trade agreements to which the
United States is a party.
(2) Report.--Not later than one year after the date of the
enactment of this Act, the Comptroller General shall submit
to Congress a report on the results of the study conducted
under paragraph (1).
(g) Definitions.--In this section:
(1) Trade policy committee; tpc.--The terms ``Trade Policy
Committee'' and ``TPC'' mean the interagency organization
established under section 242 of the Trade Expansion Act of
1962 (19 U.S.C. 1872).
(2) WTO.--The term ``WTO'' means the World Trade
Organization.
(3) WTO agreement.--The term ``WTO Agreement'' has the
meaning given that term in section 2(9) of the Uruguay Round
Agreements Act (19 U.S.C. 3501(9)).
(4) WTO agreements.--The term ``WTO Agreements'' means the
WTO Agreement and agreements annexed to that Agreement.

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

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

(a) Major Trading Partner Report.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and not less frequently than once
every 180 days thereafter, the Secretary shall submit to the
appropriate committees of Congress a report on the
macroeconomic and currency exchange rate policies of each
country that is a major trading partner of the United States.
(2) Elements.--
(A) In general.--Each report submitted under paragraph (1)
shall contain--
(i) for each country that is a major trading partner of the
United States--

(I) that country's bilateral trade balance with the United
States;
(II) that country's current account balance as a percentage
of its gross domestic product;
(III) the change in that country's current account balance
as a percentage of its gross domestic product during the 3-
year period preceding the submission of the report;
(IV) that country's foreign exchange reserves as a
percentage of its short-term debt; and
(V) that country's foreign exchange reserves as a
percentage of its gross domestic product; and

(ii) an enhanced analysis of macroeconomic and exchange
rate policies for each country that is a major trading
partner of the United States that has--

(I) a significant bilateral trade surplus with the United
States;
(II) a material current account surplus; and
(III) engaged in persistent one-sided intervention in the
foreign exchange market.

(B) Enhanced analysis.--Each enhanced analysis under
subparagraph (A)(ii) shall include, for each country with
respect to which an analysis is made under that
subparagraph--
(i) a description of developments in the currency markets
of that country, including, to the greatest extent feasible,
developments with respect to currency interventions;
(ii) a description of trends in the real effective exchange
rate of the currency of that country and in the degree of
undervaluation of that currency;
(iii) an analysis of changes in the capital controls and
trade restrictions of that country; and
(iv) patterns in the reserve accumulation of that country.
(3) Assessment factors.--Not later than 90 days after the
date of the enactment of this Act, the Secretary shall
publicly describe the factors

[[Page H9124]]

used to assess under paragraph (2)(A)(ii) whether a country
has a significant bilateral trade surplus with the United
States, has a material current account surplus, and has
engaged in persistent one-sided intervention in the foreign
exchange market.
(b) Engagement on Exchange Rate and Economic Policies.--
(1) In general.--The President, through the Secretary,
shall commence enhanced bilateral engagement with each
country for which an enhanced analysis of macroeconomic and
currency exchange rate policies is included in the report
submitted under subsection (a), in order to, as appropriate--
(A) urge implementation of policies to address the causes
of the undervaluation of its currency, its significant
bilateral trade surplus with the United States, and its
material current account surplus, including undervaluation
and surpluses relating to exchange rate management;
(B) express the concern of the United States with respect
to the adverse trade and economic effects of that
undervaluation and those surpluses;
(C) advise that country of the ability of the President to
take action under subsection (c); and/or
(D) develop a plan with specific actions to address that
undervaluation and those surpluses.
(2) Waiver.--
(A) In general.--The Secretary may waive the requirement
under paragraph (1) to commence enhanced bilateral engagement
with a country if the Secretary determines that commencing
enhanced bilateral engagement with the country--
(i) would have an adverse impact on the United States
economy greater than the benefits of such action; or
(ii) would cause serious harm to the national security of
the United States.
(B) Certification and report.--The Secretary shall promptly
certify to Congress a determination under subparagraph (A)
and promptly submit to Congress a report that describes in
detail the reasons for the Secretary's determination under
subparagraph (A).
(c) Remedial Action.--
(1) In general.--If, on or after the date that is one year
after the commencement of enhanced bilateral engagement by
the President, through the Secretary, with respect to a
country under subsection (b)(1), the Secretary determines
that the country has failed to adopt appropriate policies to
correct the undervaluation and surpluses described in
subsection (b)(1)(A) with respect to that country, the
President shall take one or more of the following actions:
(A) Prohibit the Overseas Private Investment Corporation
from approving any new financing (including any insurance,
reinsurance, or guarantee) with respect to a project located
in that country on and after such date.
(B) Except as provided in paragraph (3), and pursuant to
paragraph (4), prohibit the Federal Government from
procuring, or entering into any contract for the procurement
of, goods or services from that country on and after such
date.
(C) Instruct the United States Executive Director of the
International Monetary Fund to call for additional rigorous
surveillance of the macroeconomic and exchange rate policies
of that country and, as appropriate, formal consultations on
findings of currency manipulation.
(D) Instruct the United States Trade Representative to take
into account, in consultation with the Secretary, in
assessing whether to enter into a bilateral or regional trade
agreement with that country or to initiate or participate in
negotiations with respect to a bilateral or regional trade
agreement with that country, the extent to which that country
has failed to adopt appropriate policies to correct the
undervaluation and surpluses described in subsection
(b)(1)(A).
(2) Waiver.--
(A) In general.--The President may waive the requirement
under paragraph (1) to take remedial action if the President
determines that taking remedial action under paragraph (1)
would--
(i) have an adverse impact on the United States economy
greater than the benefits of taking remedial action; or
(ii) would cause serious harm to the national security of
the United States.
(B) Certification and report.--The President shall promptly
certify to Congress a determination under subparagraph (A)
and promptly submit to Congress a report that describes in
detail the reasons for the President's determination under
subparagraph (A).
(3) Exception.--The President may not apply a prohibition
under paragraph (1)(B) in a manner that is inconsistent with
United States obligations under international agreements.
(4) Consultations.--
(A) Office of management and budget.--Before applying a
prohibition under paragraph (1)(B), the President shall
consult with the Director of the Office of Management and
Budget to determine whether such prohibition would subject
the taxpayers of the United States to unreasonable cost.
(B) Congress.--The President shall consult with the
appropriate committees of Congress with respect to any action
the President takes under paragraph (1)(B), including whether
the President has consulted as required under subparagraph
(A).
(d) Definitions.--In this section:
(1) Appropriate committees of congress.--The term
``appropriate committees of Congress'' means--
(A) the Committee on Banking, Housing, and Urban Affairs
and the Committee on Finance of the Senate; and
(B) the Committee on Financial Services and the Committee
on Ways and Means of the House of Representatives.
(2) Country.--The term ``country'' means a foreign country,
dependent territory, or possession of a foreign country, and
may include an association of 2 or more foreign countries,
dependent territories, or possessions of countries into a
customs union outside the United States.
(3) Real effective exchange rate.--The term ``real
effective exchange rate'' means a weighted average of
bilateral exchange rates, expressed in price-adjusted terms.
(4) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury.

SEC. 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE
POLICY.

(a) Establishment.--
(1) In general.--There is established an Advisory Committee
on International Exchange Rate Policy (in this section
referred to as the ``Committee'').
(2) Duties.--The Committee shall be responsible for
advising the Secretary of the Treasury with respect to the
impact of international exchange rates and financial policies
on the economy of the United States.
(b) Membership.--
(1) In general.--The Committee shall be composed of 9
members as follows, none of whom shall be employees of the
Federal Government:
(A) Three members shall be appointed by the President pro
tempore of the Senate, upon the recommendation of the
chairmen and ranking members of the Committee on Banking,
Housing, and Urban Affairs and the Committee on Finance of
the Senate.
(B) Three members shall be appointed by the Speaker of the
House of Representatives, upon the recommendation of the
chairmen and ranking members of the Committee on Financial
Services and the Committee on Ways and Means of the House of
Representatives.
(C) Three members shall be appointed by the President.
(2) Qualifications.--Members shall be selected under
paragraph (1) on the basis of their objectivity and
demonstrated expertise in finance, economics, or currency
exchange.
(3) Terms.--
(A) In general.--Members shall be appointed for a term of 2
years or until the Committee terminates.
(B) Reappointment.--A member may be reappointed to the
Committee for additional terms.
(4) Vacancies.--Any vacancy in the Committee shall not
affect its powers, but shall be filled in the same manner as
the original appointment.
(c) Duration of Committee.--
(1) In general.--The Committee shall terminate on the date
that is 2 years after the date of the enactment of this Act
unless renewed by the President for a subsequent 2-year
period.
(2) Continued renewal.--The President may continue to renew
the Committee for successive 2-year periods by taking
appropriate action to renew the Committee prior to the date
on which the Committee would otherwise terminate.
(d) Meetings.--The Committee shall hold not fewer than 2
meetings each calendar year.
(e) Chairperson.--
(1) In general.--The Committee shall elect from among its
members a chairperson for a term of 2 years or until the
Committee terminates.
(2) Reelection; subsequent terms.--A chairperson of the
Committee may be reelected chairperson but is ineligible to
serve consecutive terms as chairperson.
(f) Staff.--The Secretary of the Treasury shall make
available to the Committee such staff, information,
personnel, administrative services, and assistance as the
Committee may reasonably require to carry out the activities
of the Committee.
(g) Application of the Federal Advisory Committee Act.--
(1) In general.--Except as provided in paragraph (2), the
provisions of the Federal Advisory Committee Act (5 U.S.C.
App.) shall apply to the Committee.
(2) Exception.--Meetings of the Committee shall be exempt
from the requirements of subsections (a) and (b) of section
10 and section 11 of the Federal Advisory Committee Act
(relating to open meetings, public notice, public
participation, and public availability of documents),
whenever and to the extent it is determined by the President
or the Secretary of the Treasury that such meetings will be
concerned with matters the disclosure of which--
(A) would seriously compromise the development by the
Government of the United States of monetary or financial
policy; or
(B) is likely to--
(i) lead to significant financial speculation in
currencies, securities, or commodities; or
(ii) significantly endanger the stability of any financial
institution.
(h) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary of the Treasury for each
fiscal year in which the Committee is in effect $1,000,000 to
carry out this section.

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

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

SEC. 801. SHORT TITLE.

This title may be cited as the ``U.S. Customs and Border
Protection Authorization Act''.

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

(a) In General.--Section 411 of the Homeland Security Act
of 2002 (6 U.S.C. 211) is amended to read as follows:

``SEC. 411. ESTABLISHMENT OF U.S. CUSTOMS AND BORDER
PROTECTION; COMMISSIONER, DEPUTY COMMISSIONER,
AND OPERATIONAL OFFICES.

``(a) In General.--There is established in the Department
an agency to be known as U.S. Customs and Border Protection.

[[Page H9125]]

``(b) Commissioner of U.S. Customs and Border Protection.--
``(1) In general.--There shall be at the head of U.S.
Customs and Border Protection a Commissioner of U.S. Customs
and Border Protection (in this section referred to as the
`Commissioner').
``(2) Committee referral.--As an exercise of the rulemaking
power of the Senate, any nomination for the Commissioner
submitted to the Senate for confirmation, and referred to a
committee, shall be referred to the Committee on Finance.
``(c) Duties.--The Commissioner shall--
``(1) coordinate and integrate the security, trade
facilitation, and trade enforcement functions of U.S. Customs
and Border Protection;
``(2) ensure the interdiction of persons and goods
illegally entering or exiting the United States;
``(3) facilitate and expedite the flow of legitimate
travelers and trade;
``(4) direct and administer the commercial operations of
U.S. Customs and Border Protection, and the enforcement of
the customs and trade laws of the United States;
``(5) detect, respond to, and interdict terrorists, drug
smugglers and traffickers, human smugglers and traffickers,
and other persons who may undermine the security of the
United States, in cases in which such persons are entering,
or have recently entered, the United States;
``(6) safeguard the borders of the United States to protect
against the entry of dangerous goods;
``(7) ensure the overall economic security of the United
States is not diminished by efforts, activities, and programs
aimed at securing the homeland;
``(8) in coordination with U.S. Immigration and Customs
Enforcement and United States Citizenship and Immigration
Services, enforce and administer all immigration laws, as
such term is defined in paragraph (17) of section 101(a) of
the Immigration and Nationality Act (8 U.S.C. 1101(a)),
including--
``(A) the inspection, processing, and admission of persons
who seek to enter or depart the United States; and
``(B) the detection, interdiction, removal, departure from
the United States, short-term detention, and transfer of
persons unlawfully entering, or who have recently unlawfully
entered, the United States;
``(9) develop and implement screening and targeting
capabilities, including the screening, reviewing,
identifying, and prioritizing of passengers and cargo across
all international modes of transportation, both inbound and
outbound;
``(10) in coordination with the Secretary, deploy
technology to collect the data necessary for the Secretary to
administer the biometric entry and exit data system pursuant
to section 7208 of the Intelligence Reform and Terrorism
Prevention Act of 2004 (8 U.S.C. 1365b);
``(11) enforce and administer the laws relating to
agricultural import and entry inspection referred to in
section 421;
``(12) in coordination with the Under Secretary for
Management of the Department, ensure U.S. Customs and Border
Protection complies with Federal law, the Federal Acquisition
Regulation, and the Department's acquisition management
directives for major acquisition programs of U.S. Customs and
Border Protection;
``(13) ensure that the policies and regulations of U.S.
Customs and Border Protection are consistent with the
obligations of the United States pursuant to international
agreements;
``(14) enforce and administer--
``(A) the Container Security Initiative program under
section 205 of the Security and Accountability for Every Port
Act of 2006 (6 U.S.C. 945); and
``(B) the Customs-Trade Partnership Against Terrorism
program under subtitle B of title II of such Act (6 U.S.C.
961 et seq.);
``(15) conduct polygraph examinations in accordance with
section 3(1) of the Anti-Border Corruption Act of 2010
(Public Law 111-376; 124 Stat. 4105);
``(16) establish the standard operating procedures
described in subsection (k);
``(17) carry out the training required under subsection
(l); and
``(18) carry out other duties and powers prescribed by law
or delegated by the Secretary.
``(d) Deputy Commissioner.--There shall be in U.S. Customs
and Border Protection a Deputy Commissioner who shall assist
the Commissioner in the management of U.S. Customs and Border
Protection.
``(e) U.S. Border Patrol.--
``(1) In general.--There is established in U.S. Customs and
Border Protection the U.S. Border Patrol.
``(2) Chief.--There shall be at the head of the U.S. Border
Patrol a Chief, who shall--
``(A) be at the level of Executive Assistant Commissioner
within U.S. Customs and Border Protection; and
``(B) report to the Commissioner.
``(3) Duties.--The U.S. Border Patrol shall--
``(A) serve as the law enforcement office of U.S. Customs
and Border Protection with primary responsibility for
interdicting persons attempting to illegally enter or exit
the United States or goods being illegally imported into or
exported from the United States at a place other than a
designated port of entry;
``(B) deter and prevent the illegal entry of terrorists,
terrorist weapons, persons, and contraband; and
``(C) carry out other duties and powers prescribed by the
Commissioner.
``(f) Air and Marine Operations.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an office known as Air and Marine
Operations.
``(2) Executive assistant commissioner.--There shall be at
the head of Air and Marine Operations an Executive Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--Air and Marine Operations shall--
``(A) serve as the law enforcement office within U.S.
Customs and Border Protection with primary responsibility to
detect, interdict, and prevent acts of terrorism and the
unlawful movement of people, illicit drugs, and other
contraband across the borders of the United States in the air
and maritime environment;
``(B) conduct joint aviation and marine operations with
U.S. Immigration and Customs Enforcement;
``(C) conduct aviation and marine operations with
international, Federal, State, and local law enforcement
agencies, as appropriate;
``(D) administer the Air and Marine Operations Center
established under paragraph (4); and
``(E) carry out other duties and powers prescribed by the
Commissioner.
``(4) Air and marine operations center.--
``(A) In general.--There is established in Air and Marine
Operations an Air and Marine Operations Center.
``(B) Executive director.--There shall be at the head of
the Air and Marine Operations Center an Executive Director,
who shall report to the Executive Assistant Commissioner of
Air and Marine Operations.
``(C) Duties.--The Air and Marine Operations Center shall--
``(i) manage the air and maritime domain awareness of the
Department, as directed by the Secretary;
``(ii) monitor and coordinate the airspace for unmanned
aerial systems operations of Air and Marine Operations in
U.S. Customs and Border Protection;
``(iii) detect, identify, and coordinate a response to
threats to national security in the air domain, in
coordination with other appropriate agencies, as determined
by the Executive Assistant Commissioner;
``(iv) provide aviation and marine support to other
Federal, State, tribal, and local agencies; and
``(v) carry out other duties and powers prescribed by the
Executive Assistant Commissioner.
``(g) Office of Field Operations.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Field Operations.
``(2) Executive assistant commissioner.--There shall be at
the head of the Office of Field Operations an Executive
Assistant Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of Field Operations shall
coordinate the enforcement activities of U.S. Customs and
Border Protection at United States air, land, and sea ports
of entry to--
``(A) deter and prevent terrorists and terrorist weapons
from entering the United States at such ports of entry;
``(B) conduct inspections at such ports of entry to
safeguard the United States from terrorism and illegal entry
of persons;
``(C) prevent illicit drugs, agricultural pests, and
contraband from entering the United States;
``(D) in coordination with the Commissioner, facilitate and
expedite the flow of legitimate travelers and trade;
``(E) administer the National Targeting Center established
under paragraph (4);
``(F) coordinate with the Executive Assistant Commissioner
for the Office of Trade with respect to the trade
facilitation and trade enforcement activities of U.S. Customs
and Border Protection; and
``(G) carry out other duties and powers prescribed by the
Commissioner.
``(4) National targeting center.--
``(A) In general.--There is established in the Office of
Field Operations a National Targeting Center.
``(B) Executive director.--There shall be at the head of
the National Targeting Center an Executive Director, who
shall report to the Executive Assistant Commissioner of the
Office of Field Operations.
``(C) Duties.--The National Targeting Center shall--
``(i) serve as the primary forum for targeting operations
within U.S. Customs and Border Protection to collect and
analyze traveler and cargo information in advance of arrival
in the United States to identify and address security risks
and strengthen trade enforcement;
``(ii) identify, review, and target travelers and cargo for
examination;
``(iii) coordinate the examination of entry and exit of
travelers and cargo;
``(iv) develop and conduct commercial risk assessment
targeting with respect to cargo destined for the United
States;
``(v) coordinate with the Transportation Security
Administration, as appropriate;
``(vi) issue Trade Alerts pursuant to section 111(b) of the
Trade Facilitation and Trade Enforcement Act of 2015; and
``(vii) carry out other duties and powers prescribed by the
Executive Assistant Commissioner.
``(5) Annual report on staffing.--
``(A) In general.--Not later than 30 days after the date of
the enactment of the Trade Facilitation and Trade Enforcement
Act of 2015, and annually thereafter, the Executive Assistant
Commissioner shall submit to the Committee on Homeland
Security and the Committee on Ways and Means of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs and the Committee on Finance of the
Senate a report on the staffing model for the Office of Field
Operations, including information on how many supervisors,
front-line U.S. Customs and Border Protection officers, and
support personnel are assigned to each Field Office and port
of entry.
``(B) Form.--The report required under subparagraph (A)
shall, to the greatest extent practicable, be submitted in
unclassified form, but

[[Page H9126]]

may be submitted in classified form, if the Executive
Assistant Commissioner determines that such is appropriate
and informs the Committee on Homeland Security and the
Committee on Ways and Means of the House of Representatives
and the Committee on Homeland Security and Governmental
Affairs and the Committee on Finance of the Senate of the
reasoning for such.
``(h) Office of Intelligence.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Intelligence.
``(2) Assistant commissioner.--There shall be at the head
of the Office of Intelligence an Assistant Commissioner, who
shall report to the Commissioner.
``(3) Duties.--The Office of Intelligence shall--
``(A) develop, provide, coordinate, and implement
intelligence capabilities into a cohesive intelligence
enterprise to support the execution of the duties and
responsibilities of U.S. Customs and Border Protection;
``(B) manage the counterintelligence operations of U.S.
Customs and Border Protection;
``(C) establish, in coordination with the Chief
Intelligence Officer of the Department, as appropriate,
intelligence-sharing relationships with Federal, State,
local, and tribal agencies and intelligence agencies;
``(D) conduct risk-based covert testing of U.S. Customs and
Border Protection operations, including for nuclear and
radiological risks; and
``(E) carry out other duties and powers prescribed by the
Commissioner.
``(i) Office of International Affairs.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of International Affairs.
``(2) Assistant commissioner.--There shall be at the head
of the Office of International Affairs an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of International Affairs, in
collaboration with the Office of Policy of the Department,
shall--
``(A) coordinate and support U.S. Customs and Border
Protection's foreign initiatives, policies, programs, and
activities;
``(B) coordinate and support U.S. Customs and Border
Protection's personnel stationed abroad;
``(C) maintain partnerships and information-sharing
agreements and arrangements with foreign governments,
international organizations, and United States agencies in
support of U.S. Customs and Border Protection's duties and
responsibilities;
``(D) provide necessary capacity building, training, and
assistance to foreign customs and border control agencies to
strengthen border, global supply chain, and travel security,
as appropriate;
``(E) coordinate mission support services to sustain U.S.
Customs and Border Protection's global activities;
``(F) coordinate with customs authorities of foreign
countries with respect to trade facilitation and trade
enforcement;
``(G) coordinate U.S. Customs and Border Protection's
engagement in international negotiations;
``(H) advise the Commissioner with respect to matters
arising in the World Customs Organization and other
international organizations as such matters relate to the
policies and procedures of U.S. Customs and Border
Protection;
``(I) advise the Commissioner regarding international
agreements to which the United States is a party as such
agreements relate to the policies and regulations of U.S.
Customs and Border Protection; and
``(J) carry out other duties and powers prescribed by the
Commissioner.
``(j) Office of Professional Responsibility.--
``(1) In general.--There is established in U.S. Customs and
Border Protection an Office of Professional Responsibility.
``(2) Assistant commissioner.--There shall be at the head
of the Office of Professional Responsibility an Assistant
Commissioner, who shall report to the Commissioner.
``(3) Duties.--The Office of Professional Responsibility
shall--
``(A) investigate criminal and administrative matters and
misconduct by officers, agents, and other employees of U.S.
Customs and Border Protection;
``(B) manage integrity-related programs and policies of
U.S. Customs and Border Protection;
``(C) conduct research and analysis regarding misconduct of
officers, agents, and other employees of U.S. Customs and
Border Protection; and
``(D) carry out other duties and powers prescribed by the
Commissioner.
``(k) Standard Operating Procedures.--
``(1) In general.--The Commissioner shall establish--
``(A) standard operating procedures for searching,
reviewing, retaining, and sharing information contained in
communication, electronic, or digital devices encountered by
U.S. Customs and Border Protection personnel at United States
ports of entry;
``(B) standard use of force procedures that officers and
agents of U.S. Customs and Border Protection may employ in
the execution of their duties, including the use of deadly
force;
``(C) uniform, standardized, and publicly-available
procedures for processing and investigating complaints
against officers, agents, and employees of U.S. Customs and
Border Protection for violations of professional conduct,
including the timely disposition of complaints and a written
notification to the complainant of the status or outcome, as
appropriate, of the related investigation, in accordance with
section 552a of title 5, United States Code (commonly
referred to as the `Privacy Act' or the `Privacy Act of
1974');
``(D) an internal, uniform reporting mechanism regarding
incidents involving the use of deadly force by an officer or
agent of U.S. Customs and Border Protection, including an
evaluation of the degree to which the procedures required
under subparagraph (B) were followed; and
``(E) standard operating procedures, acting through the
Executive Assistant Commissioner for Air and Marine
Operations and in coordination with the Office for Civil
Rights and Civil Liberties and the Office of Privacy of the
Department, to provide command, control, communication,
surveillance, and reconnaissance assistance through the use
of unmanned aerial systems, including the establishment of--
``(i) a process for other Federal, State, and local law
enforcement agencies to submit mission requests;
``(ii) a formal procedure to determine whether to approve
or deny such a mission request;
``(iii) a formal procedure to determine how such mission
requests are prioritized and coordinated; and
``(iv) a process regarding the protection and privacy of
data and images collected by U.S. Customs and Border
Protection through the use of unmanned aerial systems.
``(2) Requirements regarding certain notifications.--The
standard operating procedures established pursuant to
subparagraph (A) of paragraph (1) shall require--
``(A) in the case of a search of information conducted on
an electronic device by U.S. Customs and Border Protection
personnel, the Commissioner to notify the individual subject
to such search of the purpose and authority for such search,
and how such individual may obtain information on reporting
concerns about such search; and
``(B) in the case of information collected by U.S. Customs
and Border Protection through a search of an electronic
device, if such information is transmitted to another Federal
agency for subject matter assistance, translation, or
decryption, the Commissioner to notify the individual subject
to such search of such transmission.
``(3) Exceptions.--The Commissioner may withhold the
notifications required under paragraphs (1)(C) and (2) if the
Commissioner determines, in the sole and unreviewable
discretion of the Commissioner, that such notifications would
impair national security, law enforcement, or other
operational interests.
``(4) Update and review.--The Commissioner shall review and
update every three years the standard operating procedures
required under this subsection.
``(5) Audits.--The Inspector General of the Department of
Homeland Security shall develop and annually administer,
during each of the three calendar years beginning in the
calendar year that begins after the date of the enactment of
the Trade Facilitation and Trade Enforcement Act of 2015, an
auditing mechanism to review whether searches of electronic
devices at or between United States ports of entry are being
conducted in conformity with the standard operating
procedures required under subparagraph (A) of paragraph (1).
Such audits shall be submitted to the Committee on Homeland
Security of the House of Representatives and the Committee on
Homeland Security and Governmental Affairs of the Senate and
shall include the following:
``(A) A description of the activities of officers and
agents of U.S. Customs and Border Protection with respect to
such searches.
``(B) The number of such searches.
``(C) The number of instances in which information
contained in such devices that were subjected to such
searches was retained, copied, shared, or entered in an
electronic database.
``(D) The number of such devices detained as the result of
such searches.
``(E) The number of instances in which information
collected from such devices was subjected to such searches
and was transmitted to another Federal agency, including
whether such transmissions resulted in a prosecution or
conviction.
``(6) Requirements regarding other notifications.--The
standard use of force procedures established pursuant to
subparagraph (B) of paragraph (1) shall require--
``(A) in the case of an incident of the use of deadly force
by U.S. Customs and Border Protection personnel, the
Commissioner to notify the Committee on Homeland Security of
the House of Representatives and the Committee on Homeland
Security and Governmental Affairs of the Senate; and
``(B) the Commissioner to provide to such committees a copy
of the evaluation pursuant to subparagraph (D) of such
paragraph not later than 30 days after completion of such
evaluation.
``(7) Report on unmanned aerial systems.--The Commissioner
shall submit to the Committee on Homeland Security of the
House of Representatives and the Committee on Homeland
Security and Governmental Affairs of the Senate an annual
report, for each of the three calendar years beginning in the
calendar year that begins after the date of the enactment of
the Trade Facilitation and Trade Enforcement Act of 2015,
that reviews whether the use of unmanned aerial systems is
being conducted in conformity with the standard operating
procedures required under subparagraph (E) of paragraph (1).
Such reports--
``(A) shall be submitted with the annual budget of the
United States Government submitted by the President under
section 1105 of title 31, United States Code;
``(B) may be submitted in classified form if the
Commissioner determines that such is appropriate; and
``(C) shall include--
``(i) a detailed description of how, where, and for how
long data and images collected through the use of unmanned
aerial systems by U.S.

[[Page H9127]]

Customs and Border Protection are collected and stored; and
``(ii) a list of Federal, State, and local law enforcement
agencies that submitted mission requests in the previous year
and the disposition of such requests.
``(l) Training.--The Commissioner shall require all
officers and agents of U.S. Customs and Border Protection to
participate in a specified amount of continuing education (to
be determined by the Commissioner) to maintain an
understanding of Federal legal rulings, court decisions, and
departmental policies, procedures, and guidelines.
``(m) Short-term Detention Standards.--
``(1) Access to food and water.--The Commissioner shall
make every effort to ensure that adequate access to food and
water is provided to an individual apprehended and detained
at a United States port of entry or between ports of entry as
soon as practicable following the time of such apprehension
or during subsequent short-term detention.
``(2) Access to information on detainee rights at border
patrol processing centers.--
``(A) In general.--The Commissioner shall ensure that an
individual apprehended by a U.S. Border Patrol agent or an
Office of Field Operations officer is provided with
information concerning such individual's rights, including
the right to contact a representative of such individual's
government for purposes of United States treaty obligations.
``(B) Form.--The information referred to in subparagraph
(A) may be provided either verbally or in writing, and shall
be posted in the detention holding cell in which such
individual is being held. The information shall be provided
in a language understandable to such individual.
``(3) Short-term detention defined.--In this subsection,
the term `short-term detention' means detention in a U.S.
Customs and Border Protection processing center for 72 hours
or less, before repatriation to a country of nationality or
last habitual residence.
``(4) Daytime repatriation.--When practicable,
repatriations shall be limited to daylight hours and avoid
locations that are determined to have high indices of crime
and violence.
``(5) Report on procurement process and standards.--Not
later than 180 days after the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015, the
Comptroller General of the United States shall submit to the
Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate a report on the
procurement process and standards of entities with which U.S.
Customs and Border Protection has contracts for the
transportation and detention of individuals apprehended by
agents or officers of U.S. Customs and Border Protection.
Such report should also consider the operational efficiency
of contracting the transportation and detention of such
individuals.
``(6) Report on inspections of short-term custody
facilities.--The Commissioner shall--
``(A) annually inspect all facilities utilized for short-
term detention; and
``(B) make publicly available information collected
pursuant to such inspections, including information regarding
the requirements under paragraphs (1) and (2) and, where
appropriate, issue recommendations to improve the conditions
of such facilities.
``(n) Wait Times Transparency.--
``(1) In general.--The Commissioner shall--
``(A) publish live wait times for travelers entering the
United States at the 20 United States airports that support
the highest volume of international travel (as determined by
available Federal flight data);
``(B) make information about such wait times available to
the public in real time through the U.S. Customs and Border
Protection website;
``(C) submit to the Committee on Homeland Security and the
Committee on Ways and Means of the House of Representatives
and the Committee on Homeland Security and Governmental
Affairs and the Committee on Finance of the Senate, for each
of the five calendar years beginning in the calendar year
that begins after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015, a report that
includes compilations of all such wait times and a ranking of
such United States airports by wait times; and
``(D) provide adequate staffing at the U.S. Customs and
Border Protection information center to ensure timely access
for travelers attempting to submit comments or speak with a
representative about their entry experiences.
``(2) Calculation.--The wait times referred to in paragraph
(1)(A) shall be determined by calculating the time elapsed
between an individual's entry into the U.S. Customs and
Border Protection inspection area and such individual's
clearance by a U.S. Customs and Border Protection officer.
``(o) Other Authorities.--
``(1) In general.--The Secretary may establish such other
offices or positions of Assistant Commissioners (or other
similar officers or officials) as the Secretary determines
necessary to carry out the missions, duties, functions, and
authorities of U.S. Customs and Border Protection.
``(2) Notification.--If the Secretary exercises the
authority provided under paragraph (1), the Secretary shall
notify the Committee on Homeland Security and the Committee
on Ways and Means of the House of Representatives and the
Committee on Homeland Security and Governmental Affairs and
the Committee on Finance of the Senate not later than 30 days
before exercising such authority.
``(p) Reports to Congress.--The Commissioner shall, on and
after the date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015, continue to submit to the
Committee on Homeland Security and the Committee on Ways and
Means of the House of Representatives and the Committee on
Homeland Security and Governmental Affairs and the Committee
on Finance of the Senate any report required, on the day
before such date of enactment, to be submitted under any
provision of law.
``(q) Other Federal Agencies.--Nothing in this section may
be construed as affecting in any manner the authority,
existing on the day before the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015, of any
other Federal agency or component of the Department.
``(r) Definitions.--In this section, the terms `commercial
operations', `customs and trade laws of the United States',
`trade enforcement', and `trade facilitation' have the
meanings given such terms in section 2 of the Trade
Facilitation and Trade Enforcement Act of 2015.''.
(b) Special Rules.--
(1) Treatment.--Section 411 of the Homeland Security Act of
2002, as amended by subsection (a) of this section, shall be
treated as if included in such Act as of the date of the
enactment of such Act, and, in addition to the functions,
missions, duties, and authorities specified in such amended
section 411, U.S. Customs and Border Protection shall
continue to perform and carry out the functions, missions,
duties, and authorities under section 411 of such Act as in
existence on the day before the date of the enactment of this
Act, and section 415 of the Homeland Security Act of 2002.
(2) Rules of construction.--
(A) Rules and regulations.--Notwithstanding paragraph (1),
nothing in this title or any amendment made by this title may
be construed as affecting in any manner any rule or
regulation issued or promulgated pursuant to any provision of
law, including section 411 of the Homeland Security Act of
2002 as in existence on the day before the date of the
enactment of this Act, and any such rule or regulation shall
continue to have full force and effect on and after such
date.
(B) Other actions.--Notwithstanding paragraph (1), nothing
in this Act may be construed as affecting in any manner any
action, determination, policy, or decision pursuant to
section 411 of the Homeland Security Act of 2002 as in
existence on the day before the date of the enactment of this
Act, and any such action, determination, policy, or decision
shall continue to have full force and effect on and after
such date.
(c) Continuation in Office.--
(1) Commissioner.--The individual serving as the
Commissioner of Customs on the day before the date of the
enactment of this Act may serve as the Commissioner of U.S.
Customs and Border Protection on and after such date of
enactment until a Commissioner of U.S. Customs and Border
Protection is appointed under section 411 of the Homeland
Security Act of 2002, as amended by subsection (a) of this
section.
(2) Other positions.--The individual serving as Deputy
Commissioner, and the individuals serving as Assistant
Commissioners and other officers and officials, under section
411 of the Homeland Security Act of 2002 on the day before
the date of the enactment of this Act may serve as the
Executive Assistant Commissioners, Deputy Commissioner,
Assistant Commissioners, and other officers and officials, as
appropriate, under such section 411 as amended by subsection
(a) of this section unless the Commissioner of U.S. Customs
and Border Protection determines that another individual
should hold such position or positions.
(d) Reference.--
(1) Title 5.--Section 5314 of title 5, United States Code,
is amended by striking ``Commissioner of Customs, Department
of Homeland Security'' and inserting ``Commissioner of U.S.
Customs and Border Protection, Department of Homeland
Security''.
(2) Other references.--On and after the date of the
enactment of this Act, any reference in law or regulations to
the ``Commissioner of Customs'' or the ``Commissioner of the
Customs Service'' shall be deemed to be a reference to the
Commissioner of U.S. Customs and Border Protection.
(e) Clerical Amendment.--The table of contents in section
1(b) of the Homeland Security Act of 2002 (6 U.S.C. 101 et
seq.) is amended by striking the item relating to section 411
and inserting the following new item:

``Sec. 411. Establishment of U.S. Customs and Border Protection;
Commissioner, Deputy Commissioner, and operational
offices.''.
(f) Repeals.--Sections 416 and 418 of the Homeland Security
Act of 2002 (6 U.S.C. 216 and 218), and the items relating to
such sections in the table of contents in section 1(b) of
such Act, are repealed.
(g) Clerical and Conforming Amendments.--
(1) In general.--The Homeland Security Act of 2002 (6
U.S.C. 101 et seq.) is amended--
(A) in title I--
(i) in section 102(f)(10) (6 U.S.C. 112(f)(10)), by
striking ``the Directorate of Border and Transportation
Security'' and inserting ``the Commissioner of U.S. Customs
and Border Protection''; and
(ii) in section 103(a)(1) (6 U.S.C. 113(a)(1))--

(I) in subparagraph (C), by striking ``An Under Secretary
for Border and Transportation Security.'' and inserting ``A
Commissioner of U.S. Customs and Border Protection.''; and
(II) in subparagraph (G), by striking ``A Director of the
Office of Counternarcotics Enforcement.'' and inserting ``A
Director of U.S. Immigration and Customs Enforcement.''; and

(B) in title IV--
(i) by striking the title heading and inserting ``BORDER,
MARITIME, AND TRANSPORTATION SECURITY'';

[[Page H9128]]

(ii) in subtitle A--

(I) by striking the subtitle heading and inserting
``Border, Maritime, and Transportation Security
Responsibilities and Functions''; and
(II) in section 402 (6 U.S.C. 202)--

(aa) in the section heading, by striking
``responsibilities'' and inserting ``border, maritime, and
transportation responsibilities''; and
(bb) by striking ``, acting through the Under Secretary for
Border and Transportation Security,'';
(iii) in subtitle B--

(I) by striking the subtitle heading and inserting ``U.S.
Customs and Border Protection'';
(II) in section 412(b) (6 U.S.C. 212), by striking ``the
United States Customs Service'' each place it appears and
inserting ``U.S. Customs and Border Protection'';
(III) in section 413 (6 U.S.C. 213), by striking
``available to the United States Customs Service or'';
(IV) in section 414 (6 U.S.C. 214), by striking ``the
United States Customs Service'' and inserting ``U.S. Customs
and Border Protection''; and
(V) in section 415 (6 U.S.C. 215)--

(aa) in paragraph (7), by inserting before the colon the
following: ``, and of U.S. Customs and Border Protection on
the day before the effective date of the U.S. Customs and
Border Protection Authorization Act''; and
(bb) in paragraph (8), by inserting before the colon the
following: ``, and of U.S. Customs and Border Protection on
the day before the effective date of the U.S. Customs and
Border Protection Authorization Act'';
(iv) in subtitle C--

(I) by striking section 424 (6 U.S.C. 234) and inserting
the following new section:

``SEC. 424. PRESERVATION OF TRANSPORTATION SECURITY
ADMINISTRATION AS A DISTINCT ENTITY.

``Notwithstanding any other provision of this Act, the
Transportation Security Administration shall be maintained as
a distinct entity within the Department.''; and

(II) in section 430 (6 U.S.C. 238)--

(aa) by amending subsection (a) to read as follows:
``(a) Establishment.--There is established in the
Department an Office for Domestic Preparedness.'';
(bb) in subsection (b), by striking the second sentence;
and
(cc) in subsection (c)(7), by striking ``Directorate'' and
inserting ``Department''; and
(v) in subtitle D--

(I) in section 441 (6 U.S.C. 251)--

(aa) by striking the section heading and inserting
``transfer of functions''; and
(bb) by striking ``Under Secretary for Border and
Transportation Security'' and inserting ``Secretary'';

(II) in section 443 (6 U.S.C. 253)--

(aa) in the matter preceding paragraph (1), by striking
``Under Secretary for Border and Transportation Security''
and inserting ``Secretary''; and
(bb) by striking ``the Bureau of Border Security'' and
inserting ``U.S. Immigration and Customs Enforcement'' each
place it appears; and

(III) by amending section 444 (6 U.S.C. 254) to read as
follows:

``SEC. 444. EMPLOYEE DISCIPLINE.

``Notwithstanding any other provision of law, the Secretary
may impose disciplinary action on any employee of U.S.
Immigration and Customs Enforcement and U.S. Customs and
Border Protection who willfully deceives Congress or agency
leadership on any matter.''.
(2) Conforming amendments.--Section 401 of the Homeland
Security Act of 2002 (6 U.S.C. 201) is repealed.
(3) Clerical amendments.--The table of contents in section
1(b) of the Homeland Security Act of 2002 is amended--
(A) by striking the item relating to title IV and inserting
the following:

``TITLE IV--BORDER, MARITIME, AND TRANSPORTATION SECURITY'';

(B) by striking the item relating to subtitle A of title IV
and inserting the following:

``Subtitle A--Border, Maritime, and Transportation Security
Responsibilities and Functions'';

(C) by striking the item relating to section 401;
(D) by striking the item relating to subtitle B of title IV
and inserting the following:

``Subtitle B--U.S. Customs and Border Protection'';

(E) by striking the item relating to section 441 and
inserting the following:

``Sec. 441. Transfer of functions.''; and
(F) by striking the item relating to section 442 and
inserting the following:

``Sec. 442. U.S. Immigration and Customs Enforcement.''.
(h) Office of Trade.--
(1) Trade offices and functions.--The Act of March 3, 1927
(44 Stat. 1381, chapter 348; 19 U.S.C. 2071 et seq.), is
amended by adding at the end the following:

``SEC. 4. OFFICE OF TRADE.

``(a) In General.--There is established in U.S. Customs and
Border Protection an Office of Trade.
``(b) Executive Assistant Commissioner.--There shall be at
the head of the Office of Trade an Executive Assistant
Commissioner, who shall report to the Commissioner of U.S.
Customs and Border Protection.
``(c) Duties.--The Office of Trade shall--
``(1) direct the development and implementation, pursuant
to the customs and trade laws of the United States, of
policies and regulations administered by U.S. Customs and
Border Protection;
``(2) advise the Commissioner of U.S. Customs and Border
Protection with respect to the impact on trade facilitation
and trade enforcement of any policy or regulation otherwise
proposed or administered by U.S. Customs and Border
Protection;
``(3) coordinate with the Executive Assistant Commissioner
for the Office of Field Operations with respect to the trade
facilitation and trade enforcement activities of U.S. Customs
and Border Protection;
``(4) direct the development and implementation of matters
relating to the priority trade issues identified by the
Commissioner of U.S. Customs and Border Protection in the
joint strategic plan for trade facilitation and trade
enforcement required under section 105 of the Trade
Facilitation and Trade Enforcement Act of 2015;
``(5) otherwise advise the Commissioner of U.S. Customs and
Border Protection with respect to the development and
implementation of the joint strategic plan;
``(6) direct the trade enforcement activities of U.S.
Customs and Border Protection;
``(7) oversee the trade modernization activities of U.S.
Customs and Border Protection, including the development and
implementation of the Automated Commercial Environment
computer system authorized under section 13031(f)(4) of the
Consolidated Omnibus Budget and Reconciliation Act of 1985
(19 U.S.C. 58c(f)(4)) and support for the establishment of
the International Trade Data System under the oversight of
the Department of the Treasury pursuant to section 411(d) of
the Tariff Act of 1930 (19 U.S.C. 1411(d));
``(8) direct the administration of customs revenue
functions as otherwise provided by law or delegated by the
Commissioner of U.S. Customs and Border Protection; and
``(9) prepare an annual report to be submitted to the
Committee on Finance of the Senate and the Committee on Ways
and Means of the House of Representatives not later than June
1, 2016, and March 1 of each calendar year thereafter that
includes--
``(A) a summary of the changes to customs policies and
regulations adopted by U.S. Customs and Border Protection
during the preceding calendar year; and
``(B) a description of the public vetting and interagency
consultation that occurred with respect to each such change.
``(d) Transfer of Assets, Functions, Personnel, or
Liabilities; Elimination of Offices.--
``(1) Office of international trade.--
``(A) Transfer.--Not later than 30 days after the date of
the enactment of the Trade Facilitation and Trade Enforcement
Act of 2015, the Commissioner of U.S. Customs and Border
Protection shall transfer the assets, functions, personnel,
and liabilities of the Office of International Trade to the
Office of Trade established under subsection (b).
``(B) Elimination.--Not later than 30 days after the date
of the enactment of the Trade Facilitation and Trade
Enforcement Act of 2015, the Office of International Trade
shall be abolished.
``(C) Limitation on funds.--No funds appropriated to U.S.
Customs and Border Protection or the Department of Homeland
Security may be used to transfer the assets, functions,
personnel, or liabilities of the Office of International
Trade to an office other than the Office of Trade established
under subsection (a), unless the Commissioner of U.S. Customs
and Border Protection notifies the Committee on Homeland
Security and the Committee on Ways and Means of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs and the Committee on Finance of the
Senate of the specific assets, functions, personnel, or
liabilities to be transferred, and the reason for the
transfer, not less than 90 days prior to the transfer of such
assets, functions, personnel, or liabilities.
``(D) Office of international trade defined.--In this
paragraph, the term `Office of International Trade' means the
Office of International Trade established by section 2 of
this Act and as in effect on the day before the date of the
enactment of the Trade Facilitation and Trade Enforcement Act
of 2015.
``(2) Other transfers.--
``(A) In general.--The Commissioner of U.S. Customs and
Border Protection is authorized to transfer any other assets,
functions, or personnel within U.S. Customs and Border
Protection to the Office of Trade established under
subsection (a).
``(B) Congressional notification.--Not less than 90 days
prior to the transfer of assets, functions, personnel, or
liabilities under subparagraph (A), the Commissioner of U.S.
Customs and Border Protection shall notify the Committee on
Homeland Security and the Committee on Ways and Means of the
House of Representatives and the Committee on Homeland
Security and Governmental Affairs and the Committee on
Finance of the Senate of the specific assets, functions,
personnel, or liabilities to be transferred, and the reason
for such transfer.
``(e) Definitions.--In this section, the terms `customs and
trade laws of the United States', `trade enforcement', and
`trade facilitation' have the meanings given such terms in
section 2 of the Trade Facilitation and Trade Enforcement Act
of 2015.''.
(2) Continuation in office.--The individual serving as the
Assistant Commissioner of the Office of International Trade
on the day before the date of the enactment of this Act may
serve as the Executive Assistant Commissioner of Trade on and
after such date of enactment, at the discretion of the
Commissioner of U.S. Customs and Border Protection.
(3) Conforming amendments.--Section 2 of the Act of March
3, 1927 (44. Stat. 1381, chapter 348; 19 U.S.C. 2072), as
added by section 402 of the Security and Accountability for
Every Port Act of 2006 (Public Law 109-347; 120 Stat. 1924),
is amended--

[[Page H9129]]

(A) by striking subsection (d); and
(B) by redesignating subsections (e) and (f) as subsections
(d) and (e), respectively.
(i) Reports and Assessments.--
(1) Report on business transformation initiative.--Not
later than 90 days after the date of the enactment of this
Act and annually thereafter for the next five years, the
Commissioner shall submit to the Committee on Ways and Means
and the Committee on Homeland Security of the House of
Representatives and the Committee on Finance and the
Committee on Homeland Security and Governmental Affairs of
the Senate a report on U.S. Customs and Border Protection's
Business Transformation Initiative, including locations where
the Initiative is deployed, the types of equipment utilized,
a description of protocols and procedures, information on
wait times at such locations since deployment, and
information regarding the schedule for deployment at new
locations.
(2) Port of entry infrastructure needs assessments.--Not
later than 180 days after the date of the enactment of this
Act, the Commissioner shall assess the physical
infrastructure and technology needs at the 20 busiest land
ports of entry (as measured by U.S. Customs and Border
Protection) with a particular attention to identify ways to--
(A) improve travel and trade facilitation;
(B) reduce wait times;
(C) improve physical infrastructure and conditions for
individuals accessing pedestrian ports of entry;
(D) enter into long-term leases with nongovernmental and
private sector entities;
(E) enter into lease-purchase agreements with
nongovernmental and private sector entities; and
(F) achieve cost savings through leases described in
subparagraphs (D) and (E).
(3) Personal searches.--Not later than 90 days after the
date of the enactment of this Act and annually thereafter for
the next three years, the Commissioner shall submit to the
Committee on Homeland Security of the House of
Representatives and the Committee on Homeland Security and
Governmental Affairs of the Senate a report on supervisor-
approved personal searches conducted in the previous year by
U.S. Customs and Border Protection personnel. Such report
shall include the number of personal searches conducted in
each sector and field office, the number of invasive personal
searches conducted in each sector and field office, whether
personal searches were conducted by Office of Field
Operations or U.S. Border Patrol personnel, and how many
personal searches resulted in the discovery of contraband.
(j) Trusted Traveler Programs.--The Secretary of Homeland
Security may not enter into or renew an agreement with the
government of a foreign country for a trusted traveler
program administered by U.S. Customs and Border Protection
unless the Secretary certifies in writing that such
government--
(1) routinely submits to INTERPOL for inclusion in
INTERPOL's Stolen and Lost Travel Documents database
information about lost and stolen passports and travel
documents of the citizens and nationals of such country; or
(2) makes available to the United States Government the
information described in paragraph (1) through another means
of reporting.
(k) Agricultural Specialist Career Track.--Not later than
one year after the date of the enactment of this Act, the
Secretary of Homeland Security shall submit to the Committee
on Homeland Security and the Committee on Ways and Means of
the House of Representatives and the Committee on Homeland
Security and Governmental Affairs and the Committee on
Finance of the Senate a plan to create an agricultural
specialist career track within U.S. Customs and Border
Protection. Such plan shall include the following:
(1) A description of education, training, experience, and
assignments necessary for career progression as an
agricultural specialist.
(2) Recruitment and retention goals for agricultural
specialists, including a timeline for fulfilling staffing
deficits identified in agricultural resource allocation
models.
(3) An assessment of equipment and other resources needed
to support agricultural specialists.
(4) Any other factors the Commissioner determines
appropriate.
(l) Sense of Congress Regarding the Foreign Language Award
Program.--
(1) Findings.--Congress finds the following:
(A) Congress established the Foreign Language Award Program
(FLAP) to incentivize employees at United States ports of
entry to utilize their foreign language skills on the job by
providing a financial incentive for the use of the foreign
language for at least ten percent of their duties after
passage of competency tests. FLAP incentivizes the use of
more than two dozen languages and has been instrumental in
identifying and utilizing U.S. Customs and Border Protection
officers and agents who are proficient in a foreign language.
(B) In 1993, Congress provided for dedicated funding for
this program by stipulating that certain fees collected by
U.S. Customs and Border Protection be used to fund FLAP.
(C) Through FLAP, foreign travelers are aided by having an
officer at a port of entry who speaks their language, and
U.S. Customs and Border Protection benefits by being able to
focus its border security efforts in a more effective manner.
(2) Sense of congress.--It is the sense of Congress that
FLAP incentivizes U.S. Customs and Border Protection officers
to attain and maintain competency in a foreign language,
thereby improving the efficiency of operations for the
functioning of U.S. Customs and Border Protection's security
mission, making the United States a more welcoming place when
foreign travelers find officers can communicate in their
language, and helping to expedite traveler processing to
reduce wait times.

Subtitle B--Preclearance Operations

SEC. 811. SHORT TITLE.

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

SEC. 812. DEFINITIONS.

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

SEC. 813. ESTABLISHMENT OF PRECLEARANCE OPERATIONS.

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

SEC. 814. NOTIFICATION AND CERTIFICATION TO CONGRESS.

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

[[Page H9130]]

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

SEC. 815. PROTOCOLS.

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

SEC. 816. LOST AND STOLEN PASSPORTS.

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

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

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

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

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

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

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

TITLE IX--MISCELLANEOUS PROVISIONS

SEC. 901. DE MINIMIS VALUE.

(a) Findings.--Congress makes the following findings:
(1) Modernizing international customs is critical for
United States businesses of all sizes,

[[Page H9131]]

consumers in the United States, and the economic growth of
the United States.
(2) Higher thresholds for the value of articles that may be
entered informally and free of duty provide significant
economic benefits to businesses and consumers in the United
States and the economy of the United States through costs
savings and reductions in trade transaction costs.
(b) Sense of Congress.--It is the sense of Congress that
the United States Trade Representative should encourage other
countries, through bilateral, regional, and multilateral
fora, to establish commercially meaningful de minimis values
for express and postal shipments that are exempt from customs
duties and taxes and from certain entry documentation
requirements, as appropriate.
(c) De Minimis Value.--Section 321(a)(2)(C) of the Tariff
Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking
``$200'' and inserting ``$800''.
(d) Effective Date.--The amendment made by subsection (c)
shall apply with respect to articles entered, or withdrawn
from warehouse for consumption, on or after the 15th day
after the date of the enactment of this Act.

SEC. 902. CONSULTATION ON TRADE AND CUSTOMS REVENUE
FUNCTIONS.

Section 401(c) of the Security and Accountability For Every
Port Act of 2006 (6 U.S.C. 115(c)) is amended--
(1) in paragraph (1), by striking ``on Department policies
and actions that have'' and inserting ``not later than 30
days after proposing, and not later than 30 days before
finalizing, any Department policies, initiatives, or actions
that will have''; and
(2) in paragraph (2)(A), by striking ``not later than 30
days prior to the finalization of'' and inserting ``not later
than 60 days before proposing, and not later than 60 days
before finalizing,''.

SEC. 903. PENALTIES FOR CUSTOMS BROKERS.

(a) In General.--Section 641(d)(1) of the Tariff Act of
1930 (19 U.S.C. 1641(d)(1)) is amended--
(1) in subparagraph (E), by striking ``; or'' and inserting
a semicolon;
(2) in subparagraph (F), by striking the period and
inserting ``; or''; and
(3) by adding at the end the following:
``(G) has been convicted of committing or conspiring to
commit an act of terrorism described in section 2332b of
title 18, United States Code.''.
(b) Technical Amendments.--Section 641 of the Tariff Act of
1930 (19 U.S.C. 1641) is amended--
(1) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border Protection'';
(2) in subsection (d)(2)(B), by striking ``The Customs
Service'' and inserting ``U.S. Customs and Border
Protection''; and
(3) in subsection (g)(2)(B), by striking ``Secretary's
notice'' and inserting ``notice under subparagraph (A)''.

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

(a) Articles Exported and Returned, Advanced or Improved
Abroad.--
(1) In general.--U.S. Note 3 to subchapter II of chapter 98
of the Harmonized Tariff Schedule of the United States is
amended by adding at the end the following:
``(f)(1) For purposes of subheadings 9802.00.40 and
9802.00.50, fungible articles exported from the United States
for the purposes described in such subheadings--
``(A) may be commingled; and
``(B) the origin, value, and classification of such
articles may be accounted for using an inventory management
method.
``(2) If a person chooses to use an inventory management
method under this paragraph with respect to fungible
articles, the person shall use the same inventory management
method for any other articles with respect to which the
person claims fungibility under this paragraph.
``(3) For the purposes of this paragraph--
``(A) the term `fungible articles' means merchandise or
articles that, for commercial purposes, are identical or
interchangeable in all situations; and
``(B) the term `inventory management method' means any
method for managing inventory that is based on generally
accepted accounting principles.''.
(2) Effective date.--The amendment made by this subsection
applies to articles classifiable under subheading 9802.00.40
or 9802.00.50 of the Harmonized Tariff Schedule of the United
States that are entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.
(b) Modification of Provisions Relating to Returned
Property.--
(1) In general.--The article description for heading
9801.00.10 of the Harmonized Tariff Schedule of the United
States is amended by inserting after ``exported'' the
following: ``, or any other products when returned within 3
years after having been exported''.
(2) Effective date.--The amendment made by paragraph (1)
applies to articles entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.
(c) Duty-Free Treatment for Certain United States
Government Property Returned to the United States.--
(1) In general.--Subchapter I of chapter 98 of the
Harmonized Tariff Schedule of the United States is amended by
inserting in numerical sequence the following new heading:

`` 9801.00.11 United States Free ............... ............... ............... ''.
Government
property,
returned to the
United States
without having
been advanced in
value or improved
in condition by
any means while
abroad, entered
by the United
States Government
or a contractor
to the United
States
Government, and
certified by the
importer as
United States
Government
property.........

(2) Effective date.--The amendment made by paragraph (1)
applies to goods entered, or withdrawn from warehouse for
consumption, on or after the date that is 60 days after the
date of the enactment of this Act.

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

(a) In General.--General Note 3(e) of the Harmonized Tariff
Schedule of the United States is amended--
(1) in subparagraph (v), by striking ``and'' at the end;
(2) in subparagraph (vi), by adding ``and'' at the end;
(3) by inserting after subparagraph (vi) (as so amended)
the following new subparagraph:
``(vii) residue of bulk cargo contained in instruments of
international traffic previously exported from the United
States,''; and
(4) by adding at the end of the flush text following
subparagraph (vii) (as so added) the following: ``For
purposes of subparagraph (vii) of this paragraph: The term
`residue' means material of bulk cargo that remains in an
instrument of international traffic after the bulk cargo is
removed, with a quantity, by weight or volume, not exceeding
7 percent of the bulk cargo, and with no or de minimis value.
The term `bulk cargo' means cargo that is unpackaged and is
in either solid, liquid, or gaseous form. The term
`instruments of international traffic' means containers or
holders, capable of and suitable for repeated use, such as
lift vans, cargo vans, shipping tanks, skids, pallets, caul
boards, and cores for textile fabrics, arriving (whether
loaded or empty) in use or to be used in the shipment of
merchandise in international traffic, and any additional
articles or classes of articles that the Commissioner of U.S.
Customs and Border Protection designates as instruments of
international traffic.''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act and
apply with respect to residue of bulk cargo contained in
instruments of international traffic that are imported into
the customs territory of the United States on or after such
date of enactment and that previously have been exported from
the United States.

SEC. 906. DRAWBACK AND REFUNDS.

(a) Articles Made From Imported Merchandise.--Section
313(a) of the Tariff Act of 1930 (19 U.S.C. 1313(a)) is
amended by striking ``the full amount of the duties paid upon
the merchandise so used shall be refunded as drawback, less 1
per centum of such duties, except that such'' and inserting
``an amount calculated pursuant to regulations prescribed by
the Secretary of the Treasury under subsection (l) shall be
refunded as drawback, except that''.
(b) Substitution for Drawback Purposes.--Section 313(b) of
the Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended--
(1) by striking ``If imported'' and inserting the
following:
``(1) In general.--If imported'';
(2) by striking ``and any other merchandise (whether
imported or domestic) of the same kind and quality are'' and
inserting ``or merchandise classifiable under the same 8-
digit HTS subheading number as such imported merchandise
is'';
(3) by striking ``three years'' and inserting ``5 years'';
(4) by striking ``the receipt of such imported merchandise
by the manufacturer or producer of such articles'' and
inserting ``the date of importation of such imported
merchandise'';
(5) by striking ``an amount of drawback equal to'' and all
that follows through the end period and inserting ``an amount
calculated pursuant to regulations prescribed by the
Secretary of the Treasury under subsection (l), but only if
those articles have not been used prior to such exportation
or destruction.''; and
(6) by adding at the end the following:
``(2) Requirements relating to transfer of merchandise.--
``(A) Manufacturers and producers.--Drawback shall be
allowed under paragraph (1) with respect to an article
manufactured or produced using imported merchandise or other
merchandise classifiable under the same 8-digit HTS
subheading number as such imported merchandise only if the
manufacturer or producer of the article received such
imported merchandise or such other merchandise, directly or
indirectly, from the importer.
``(B) Exporters and destroyers.--Drawback shall be allowed
under paragraph (1) with respect to a manufactured or
produced article that is exported or destroyed only if the
exporter or destroyer received that article, directly or
indirectly, from the manufacturer or producer.
``(C) Evidence of transfer.--Transfers of merchandise under
subparagraph (A) and transfers of articles under subparagraph
(B) may be

[[Page H9132]]

evidenced by business records kept in the normal course of
business and no additional certificates of transfer or
manufacture shall be required.
``(3) Submission of bill of materials or formula.--
``(A) In general.--Drawback shall be allowed under
paragraph (1) with respect to an article manufactured or
produced using imported merchandise or other merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise only if the person making the
drawback claim submits with the claim a bill of materials or
formula identifying the merchandise and article by the 8-
digit HTS subheading number and the quantity of the
merchandise.
``(B) Bill of materials and formula defined.--In this
paragraph, the terms `bill of materials' and `formula' mean
records kept in the normal course of business that identify
each component incorporated into a manufactured or produced
article or that identify the quantity of each element,
material, chemical, mixture, or other substance incorporated
into a manufactured article.
``(4) Special rule for sought chemical elements.--
``(A) In general.--For purposes of paragraph (1), a sought
chemical element may be--
``(i) considered imported merchandise, or merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise, used in the manufacture or
production of an article as described in paragraph (1); and
``(ii) substituted for source material containing that
sought chemical element, without regard to whether the sought
chemical element and the source material are classifiable
under the same 8-digit HTS subheading number, and apportioned
quantitatively, as appropriate.
``(B) Sought chemical element defined.--In this paragraph,
the term `sought chemical element' means an element listed in
the Periodic Table of Elements that is imported into the
United States or a chemical compound consisting of those
elements, either separately in elemental form or contained in
source material.''.
(c) Merchandise Not Conforming to Sample or
Specifications.--Section 313(c) of the Tariff Act of 1930 (19
U.S.C. 1313(c)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (C)(ii), by striking ``under a
certificate of delivery'' each place it appears;
(B) in subparagraph (D)--
(i) by striking ``3'' and inserting ``5''; and
(ii) by striking ``the Customs Service'' and inserting
``U.S. Customs and Border Protection''; and
(C) in the flush text at the end, by striking ``the full
amount of the duties paid upon such merchandise, less 1
percent,'' and inserting ``an amount calculated pursuant to
regulations prescribed by the Secretary of the Treasury under
subsection (l)'';
(2) in paragraph (2), by striking ``the Customs Service''
and inserting ``U.S. Customs and Border Protection''; and
(3) by amending paragraph (3) to read as follows:
``(3) Evidence of transfers.--Transfers of merchandise
under paragraph (1) may be evidenced by business records kept
in the normal course of business and no additional
certificates of transfer shall be required.''.
(d) Proof of Exportation.--Section 313(i) of the Tariff Act
of 1930 (19 U.S.C. 1313(i)) is amended to read as follows:
``(i) Proof of Exportation.--A person claiming drawback
under this section based on the exportation of an article
shall provide proof of the exportation of the article. Such
proof of exportation--
``(1) shall establish fully the date and fact of
exportation and the identity of the exporter; and
``(2) may be established through the use of records kept in
the normal course of business or through an electronic export
system of the United States Government, as determined by the
Commissioner of U.S. Customs and Border Protection.''.
(e) Unused Merchandise Drawback.--Section 313(j) of the
Tariff Act of 1930 (19 U.S.C. 1313(j)) is amended--
(1) in paragraph (1)--
(A) in subparagraph (A), in the matter preceding clause
(i)--
(i) by striking ``3-year'' and inserting ``5-year''; and
(ii) by inserting ``and before the drawback claim is
filed'' after ``the date of importation''; and
(B) in the flush text at the end, by striking ``99 percent
of the amount of each duty, tax, or fee so paid'' and
inserting ``an amount calculated pursuant to regulations
prescribed by the Secretary of the Treasury under subsection
(l)'';
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``paragraph (4)'' and inserting ``paragraphs (4), (5), and
(6)'';
(B) in subparagraph (A), by striking ``commercially
interchangeable with'' and inserting ``classifiable under the
same 8-digit HTS subheading number as'';
(C) in subparagraph (B)--
(i) by striking ``3-year'' and inserting ``5-year''; and
(ii) by inserting ``and before the drawback claim is
filed'' after ``the imported merchandise'';
(D) in subparagraph (C)(ii), by striking subclause (II) and
inserting the following:

``(II) received the imported merchandise, other merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise, or any combination of such
imported merchandise and such other merchandise, directly or
indirectly from the person who imported and paid any duties,
taxes, and fees imposed under Federal law upon importation or
entry and due on the imported merchandise (and any such
transferred merchandise, regardless of its origin, will be
treated as the imported merchandise and any retained
merchandise will be treated as domestic merchandise);''; and

(E) in the flush text at the end--
(i) by striking ``the amount of each such duty, tax, and
fee'' and all that follows through ``99 percent of that duty,
tax, or fee'' and inserting ``an amount calculated pursuant
to regulations prescribed by the Secretary of the Treasury
under subsection (l) shall be refunded as drawback''; and
(ii) by striking the last sentence and inserting the
following: ``Notwithstanding subparagraph (A), drawback shall
be allowed under this paragraph with respect to wine if the
imported wine and the exported wine are of the same color and
the price variation between the imported wine and the
exported wine does not exceed 50 percent. Transfers of
merchandise may be evidenced by business records kept in the
normal course of business and no additional certificates of
transfer shall be required.'';
(3) in paragraph (3)(B), by striking ``the commercially
interchangeable merchandise'' and inserting ``merchandise
classifiable under the same 8-digit HTS subheading number as
such imported merchandise''; and
(4) by adding at the end the following:
``(5)(A) For purposes of paragraph (2) and except as
provided in subparagraph (B), merchandise may not be
substituted for imported merchandise for drawback purposes
based on the 8-digit HTS subheading number if the article
description for the 8-digit HTS subheading number under which
the imported merchandise is classified begins with the term
`other'.
``(B) In cases described in subparagraph (A), merchandise
may be substituted for imported merchandise for drawback
purposes if--
``(i) the other merchandise and such imported merchandise
are classifiable under the same 10-digit HTS statistical
reporting number; and
``(ii) the article description for that 10-digit HTS
statistical reporting number does not begin with the term
`other'.
``(6)(A) For purposes of paragraph (2), a drawback claimant
may use the first 8 digits of the 10-digit Schedule B number
for merchandise or an article to determine if the merchandise
or article is classifiable under the same 8-digit HTS
subheading number as the imported merchandise, without regard
to whether the Schedule B number corresponds to more than one
8-digit HTS subheading number.
``(B) In this paragraph, the term `Schedule B' means the
Department of Commerce Schedule B, Statistical Classification
of Domestic and Foreign Commodities Exported from the United
States.''.
(f) Liability for Drawback Claims.--Section 313(k) of the
Tariff Act of 1930 (19 U.S.C. 1313(k)) is amended to read as
follows:
``(k) Liability for Drawback Claims.--
``(1) In general.--Any person making a claim for drawback
under this section shall be liable for the full amount of the
drawback claimed.
``(2) Liability of importers.--An importer shall be liable
for any drawback claim made by another person with respect to
merchandise imported by the importer in an amount equal to
the lesser of--
``(A) the amount of duties, taxes, and fees that the person
claimed with respect to the imported merchandise; or
``(B) the amount of duties, taxes, and fees that the
importer authorized the other person to claim with respect to
the imported merchandise.
``(3) Joint and several liability.--Persons described in
paragraphs (1) and (2) shall be jointly and severally liable
for the amount described in paragraph (2).''.
(g) Regulations.--Section 313(l) of the Tariff Act of 1930
(19 U.S.C. 1313(l)) is amended to read as follows:
``(l) Regulations.--
``(1) In general.--Allowance of the privileges provided for
in this section shall be subject to compliance with such
rules and regulations as the Secretary of the Treasury shall
prescribe.
``(2) Calculation of drawback.--
``(A) In general.--Not later than the date that is 2 years
after the date of the enactment of the Trade Facilitation and
Trade Enforcement Act of 2015, the Secretary shall prescribe
regulations for determining the calculation of amounts
refunded as drawback under this section.
``(B) Claims with respect to unused merchandise.--The
regulations required by subparagraph (A) for determining the
calculation of amounts refunded as drawback under this
section shall provide for a refund of equal to 99 percent of
the duties, taxes, and fees paid on the imported merchandise,
which were imposed under Federal law upon entry or
importation of the imported merchandise, and may require the
claim to be based upon the average per unit duties, taxes,
and fees as reported on the entry summary line item or, if
not reported on the entry summary line item, as otherwise
allocated by U.S. Customs and Border Protection, except that
where there is substitution of the merchandise, then--
``(i) in the case of an article that is exported, the
amount of the refund shall be equal to 99 percent of the
lesser of--

``(I) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; or
``(II) the amount of duties, taxes, and fees that would
apply to the exported article if the exported article were
imported; and

``(ii) in the case of an article that is destroyed, the
amount of the refund shall be an amount that is--

``(I) equal to 99 percent of the lesser of--

``(aa) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; and

[[Page H9133]]

``(bb) the amount of duties, taxes, and fees that would
apply to the destroyed article if the destroyed article were
imported; and

``(II) reduced by the value of materials recovered during
destruction as provided in subsection (x).

``(C) Claims with respect to manufactured articles into
which imported or substitute merchandise is incorporated.--
The regulations required by subparagraph (A) for determining
the calculation of amounts refunded as drawback under this
section shall provide for a refund of equal to 99 percent of
the duties, taxes, and fees paid on the imported merchandise
incorporated into an article that is exported or destroyed,
which were imposed under Federal law upon entry or
importation of the imported merchandise incorporated into an
article that is exported or destroyed, and may require the
claim to be based upon the average per unit duties, taxes,
and fees as reported on the entry summary line item, or if
not reported on the entry summary line item, as otherwise
allocated by U.S. Customs and Border Protection, except that
where there is substitution of the imported merchandise,
then--
``(i) in the case of an article that is exported, the
amount of the refund shall be equal to 99 percent of the
lesser of--

``(I) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; or
``(II) the amount of duties, taxes, and fees that would
apply to the substituted merchandise if the substituted
merchandise were imported; and

``(ii) in the case of an article that is destroyed, the
amount of the refund shall be an amount that is--

``(I) equal to 99 percent of the lesser of--

``(aa) the amount of duties, taxes, and fees paid with
respect to the imported merchandise; and
``(bb) the amount of duties, taxes, and fees that would
apply to the substituted merchandise if the substituted
merchandise were imported; and

``(II) reduced by the value of materials recovered during
destruction as provided in subsection (x).

``(D) Exceptions.--The calculations set forth in
subparagraphs (B) and (C) shall not apply to claims for wine
based on subsection (j)(2) and claims based on subsection (p)
and instead--
``(i) for any drawback claim for wine based on subsection
(j)(2), the amount of the refund shall be equal to 99 percent
of the duties, taxes, and fees paid with respect to the
imported merchandise, without regard to the limitations in
subparagraphs (B)(i) and (B)(ii); and
``(ii) for any drawback claim based on subsection (p), the
amount of the refund shall be subject to the limitations set
out in paragraph (4) of that subsection and without regard to
subparagraph (B)(i), (B)(ii), (C)(i), or (C)(ii).
``(3) Status reports on regulations.--Not later than the
date that is one year after the date of the enactment of the
Trade Facilitation and Trade Enforcement Act of 2015, and
annually thereafter until the regulations required by
paragraph (2) are final, the Secretary shall submit to
Congress a report on the status of those regulations.''.
(h) Substitution of Finished Petroleum Derivatives.--
Section 313(p) of the Tariff Act of 1930 (19 U.S.C. 1313(p))
is amended--
(1) by striking ``Harmonized Tariff Schedule of the United
States'' each place it appears and inserting ``HTS''; and
(2) in paragraph (3)(A)--
(A) in clause (ii)(III), by striking ``, as so certified in
a certificate of delivery or certificate of manufacture and
delivery''; and
(B) in the flush text at the end--
(i) by striking ``, so designated on the certificate of
delivery or certificate of manufacture and delivery''; and
(ii) by striking the last sentence and inserting the
following: ``The party transferring the merchandise shall
maintain records kept in the normal course of business to
demonstrate the transfer.''.
(i) Packaging Material.--Section 313(q) of the Tariff Act
of 1930 (19 U.S.C. 1313(q)) is amended--
(1) in paragraph (1), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on such imported
material'' and inserting ``in an amount calculated pursuant
to regulations prescribed by the Secretary of the Treasury
under subsection (l)'';
(2) in paragraph (2), by striking ``of 99 percent of any
duty, tax, or fee imposed under Federal law on the imported
or substituted merchandise used to manufacture or produce
such material'' and inserting ``in an amount calculated
pursuant to regulations prescribed by the Secretary of the
Treasury under subsection (l)''; and
(3) in paragraph (3), by striking ``they contain'' each
place it appears and inserting ``it contains''.
(j) Filing of Drawback Claims.--Section 313(r) of the
Tariff Act of 1930 (19 U.S.C. 1313(r)) is amended--
(1) in paragraph (1)--
(A) by striking the first sentence and inserting the
following: ``A drawback entry shall be filed or applied for,
as applicable, not later than 5 years after the date on which
merchandise on which drawback is claimed was imported.'';
(B) in the second sentence, by striking ``3-year'' and
inserting ``5-year''; and
(C) in the third sentence, by striking ``the Customs
Service'' and inserting ``U.S. Customs and Border
Protection'';
(2) in paragraph (3)--
(A) in subparagraph (A)--
(i) in the matter preceding clause (i), by striking ``The
Customs Service'' and inserting ``U.S. Customs and Border
Protection'';
(ii) in clauses (i) and (ii), by striking ``the Customs
Service'' each place it appears and inserting ``U.S. Customs
and Border Protection''; and
(iii) in clause (ii)(I), by striking ``3-year'' and
inserting ``5-year''; and
(B) in subparagraph (B), by striking ``the periods of time
for retaining records set forth in subsection (t) of this
section and'' and inserting ``the period of time for
retaining records set forth in''; and
(3) by adding at the end the following:
``(4) All drawback claims filed on and after the date that
is 2 years after the date of the enactment of the Trade
Facilitation and Trade Enforcement Act of 2015 shall be filed
electronically.''.
(k) Designation of Merchandise by Successor.--Section
313(s) of the Tariff Act of 1930 (19 U.S.C. 1313(s)) is
amended--
(1) in paragraph (2), by striking subparagraph (B) and
inserting the following:
``(B) subject to paragraphs (5) and (6) of subsection (j),
imported merchandise, other merchandise classifiable under
the same 8-digit HTS subheading number as such imported
merchandise, or any combination of such imported merchandise
and such other merchandise, that the predecessor received,
before the date of succession, from the person who imported
and paid any duties, taxes, and fees due on the imported
merchandise;''; and
(2) in paragraph (4), by striking ``certifies that'' and
all that follows and inserting ``certifies that the
transferred merchandise was not and will not be claimed by
the predecessor.''.
(l) Drawback Certificates.--Section 313 of the Tariff Act
of 1930 (19 U.S.C. 1313) is amended by striking subsection
(t).
(m) Drawback for Recovered Materials.--Section 313(x) of
the Tariff Act of 1930 (19 U.S.C. 1313(x)) is amended by
striking ``and (c)'' and inserting ``(c), and (j)''.
(n) Definitions.--Section 313 of the Tariff Act of 1930 (19
U.S.C. 1313) is amended by adding at the end the following:
``(z) Definitions.--In this section:
``(1) Directly.--The term `directly' means a transfer of
merchandise or an article from one person to another person
without any intermediate transfer.
``(2) HTS.--The term `HTS' means the Harmonized Tariff
Schedule of the United States.
``(3) Indirectly.--The term `indirectly' means a transfer
of merchandise or an article from one person to another
person with one or more intermediate transfers.''.
(o) Recordkeeping.--Section 508(c)(3) of the Tariff Act of
1930 (19 U.S.C. 1508(c)(3)) is amended by striking
``payment'' and inserting ``liquidation''.
(p) Government Accountability Office Report.--
(1) In general.--Not later than one year after the issuance
of the regulations required by subsection (l)(2) of section
313 of the Tariff Act of 1930, as added by subsection (g) of
this section, the Comptroller General of the United States
shall submit to the Committee on Finance of the Senate and
the Committee on Ways and Means of the House of
Representatives a report on the modernization of drawback and
refunds under section 313 of the Tariff Act of 1930, as
amended by this section.
(2) Contents.--The report required by paragraph (1) shall
include the following:
(A) An assessment of the modernization of drawback and
refunds under section 313 of the Tariff Act of 1930, as
amended by this section.
(B) A description of drawback claims that were permissible
before the effective date provided for in subsection (q) that
are not permissible after that effective date and an
identification of industries most affected.
(C) A description of drawback claims that were not
permissible before the effective date provided for in
subsection (q) that are permissible after that effective date
and an identification of industries most affected.
(q) Effective Date.--
(1) In general.--The amendments made by this section
shall--
(A) take effect on the date of the enactment of this Act;
and
(B) except as provided in paragraph (3), apply to drawback
claims filed on or after the date that is 2 years after such
date of enactment.
(2) Reporting of operability of automated commercial
environment computer system.--Not later than one year after
the date of the enactment of this Act, and not later than 2
years after such date of enactment, the Secretary of the
Treasury shall submit to the Committee on Finance of the
Senate and the Committee on Ways and Means of the House of
Representatives a report on--
(A) the date on which the Automated Commercial Environment
will be ready to process drawback claims; and
(B) the date on which the Automated Export System will be
ready to accept proof of exportation under subsection (i) of
section 313 of the Tariff Act of 1930, as amended by
subsection (d) of this section.
(3) Transition rule.--During the one-year period beginning
on the date that is 2 years after the date of the enactment
of this Act, a person may elect to file a claim for drawback
under--
(A) section 313 of the Tariff Act of 1930, as amended by
this section; or
(B) section 313 of the Tariff Act of 1930, as in effect on
the day before the date of the enactment of this Act.

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

(a) In General.--Not later than one year after entering
into an agreement under a program specified in subsection
(b), and annually thereafter until the termination of the
program, the Commissioner shall submit to the Committee on
Finance and the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on Ways
and Means and the

[[Page H9134]]

Committee on Homeland Security of the House of
Representatives a report that includes the following:
(1) A description of the development of the program,
including an identification of the authority under which the
program operates.
(2) A description of the type of entity with which U.S.
Customs and Border Protection entered into the agreement and
the amount that entity reimbursed U.S. Customs and Border
Protection under the agreement.
(3) An identification of the type of port of entry to which
the agreement relates and an assessment of how the agreement
provides economic benefits and security benefits (if
applicable) at the port of entry.
(4) A description of the services provided by U.S. Customs
and Border Protection under the agreement during the year
preceding the submission of the report.
(5) The amount of fees collected under the agreement during
that year.
(6) The total operating expenses of the program during that
year.
(7) A detailed accounting of how the fees collected under
the agreement have been spent during that year.
(8) A summary of any complaints or criticism received by
U.S. Customs and Border Protection during that year regarding
the agreement.
(9) An assessment of the compliance of the entity described
in paragraph (2) with the terms of the agreement.
(10) Recommendations with respect to how activities
conducted pursuant to the agreement could function more
effectively or better produce economic benefits and security
benefits (if applicable).
(11) A summary of the benefits to and challenges faced by
U.S. Customs and Border Protection and the entity described
in paragraph (2) under the agreement.
(12) If the entity described in paragraph (2) is an
operator of an airport--
(A) a detailed account of the revenue collected by U.S.
Customs and Border Protection at the airport from--
(i) fees collected under the agreement; and
(ii) fees collected from sources other than under the
agreement, including fees paid by passengers and air
carriers; and
(B) an assessment of the revenue described in subparagraph
(A) compared with the operating costs of U.S. Customs and
Border Protection at the airport.
(b) Program Specified.--A program specified in this
subsection is--
(1) the program for entering into reimbursable fee
agreements for the provision of U.S. Customs and Border
Protection services established by section 560 of the
Department of Homeland Security Appropriations Act, 2013
(division D of Public Law 113-6; 127 Stat. 378);
(2) the pilot program authorizing U.S. Customs and Border
Protection to enter into partnerships with private sector and
government entities at ports of entry established by section
559 of the Department of Homeland Security Appropriations
Act, 2014 (division F of Public Law 113-76; 6 U.S.C. 211
note);
(3) the program under which U.S. Customs and Border
Protection collects a fee for the use of customs services at
designated facilities under section 236 of the Trade and
Tariff Act of 1984 (19 U.S.C. 58b); or
(4) the program established by subtitle B of title VIII of
this Act authorizing U.S. Customs and Border Protection to
establish preclearance operations in foreign countries.

SEC. 908. CHARTER FLIGHTS.

Section 13031(e)(1) of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended--
(1) by striking ``(1) Notwithstanding section 451 of the
Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of
law (other than paragraph (2))'' and inserting the following:
``(1)(A) Notwithstanding section 451 of the Tariff Act of
1930 (19 U.S.C. 1451) or any other provision of law (other
than subparagraph (B) and paragraph (2))''; and
(2) by adding at the end the following:
``(B)(i) An appropriate officer of U.S. Customs and Border
Protection may assign a sufficient number of employees of
U.S. Customs and Border Protection (if available) to perform
services described in clause (ii) for a charter air carrier
(as defined in section 40102 of title 49, United States Code)
for a charter flight arriving after normal operating hours at
an airport that is an established port of entry serviced by
U.S. Customs and Border Protection, notwithstanding that
overtime funds for those services are not available, if the
charter air carrier--
``(I) not later than 4 hours before the flight arrives,
specifically requests that such services be provided; and
``(II) pays any overtime fees incurred in connection with
such services.
``(ii) Services described in this clause are customs
services for passengers and their baggage or any other
similar service that could lawfully be performed during
regular hours of operation.''.

SEC. 909. UNITED STATES-ISRAEL TRADE AND COMMERCIAL
ENHANCEMENT.

(a) Findings.--Congress finds the following:
(1) Israel is America's dependable, democratic ally in the
Middle East--an area of paramount strategic importance to the
United States.
(2) The United States-Israel Free Trade Agreement formed
the modern foundation of the bilateral commercial
relationship between the two countries and was the first such
agreement signed by the United States with a foreign country.
(3) The United States-Israel Free Trade Agreement has been
instrumental in expanding commerce and the strategic
relationship between the United States and Israel.
(4) More than $45,000,000,000 in goods and services is
traded annually between the two countries, in addition to
roughly $10,000,000,000 in United States foreign direct
investment in Israel.
(5) The United States continues to look for and find new
opportunities to enhance cooperation with Israel, including
through the enactment of the United States-Israel Enhanced
Security Cooperation Act of 2012 (Public Law 112-150; 22
U.S.C. 8601 et seq.) and the United States-Israel Strategic
Partnership Act of 2014 (Public Law 113-296; 128 Stat. 4075).
(6) It has been the policy of the United States Government
to combat all elements of the Arab League Boycott of Israel
by--
(A) public statements of Administration officials;
(B) enactment of relevant sections of the Export
Administration Act of 1979 (50 U.S.C. 4601 et seq.) (as
continued in effect pursuant to the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.)), including
sections to ensure foreign persons comply with applicable
reporting requirements relating to the Boycott;
(C) enactment of the Tax Reform Act of 1976 (Public Law 94-
455; 90 Stat. 1520) that denies certain tax benefits to
entities abiding by the Boycott;
(D) ensuring through free trade agreements with Bahrain and
Oman that such countries no longer participate in the
Boycott; and
(E) ensuring as a condition of membership in the World
Trade Organization that Saudi Arabia no longer enforces the
secondary or tertiary elements of the Boycott.
(b) Statements of Policy.--Congress--
(1) supports the strengthening of economic cooperation
between the United States and Israel and recognizes the
tremendous strategic, economic, and technological value of
cooperation with Israel;
(2) recognizes the benefit of cooperation with Israel to
United States companies, including by improving American
competitiveness in global markets;
(3) recognizes the importance of trade and commercial
relations to the pursuit and sustainability of peace, and
supports efforts to bring together the United States, Israel,
the Palestinian territories, and others in enhanced commerce;
(4) opposes politically motivated actions that penalize or
otherwise limit commercial relations specifically with
Israel, such as boycotts of, divestment from, or sanctions
against Israel;
(5) notes that boycotts of, divestment from, and sanctions
against Israel by governments, governmental bodies, quasi-
governmental bodies, international organizations, and other
such entities are contrary to principle of nondiscrimination
under the GATT 1994 (as defined in section 2(1)(B) of the
Uruguay Round Agreements Act (19 U.S.C. 3501(1)(B)));
(6) encourages the inclusion of politically motivated
actions that penalize or otherwise limit commercial relations
specifically with Israel such as boycotts of, divestment
from, or sanctions against Israel as a topic of discussion at
the U.S.-Israel Joint Economic Development Group (JEDG) to
support the strengthening of the United States-Israel
commercial relationship and combat any commercial
discrimination against Israel; and
(7) supports efforts to prevent investigations or
prosecutions by governments or international organizations of
United States persons solely on the basis of such persons
doing business with Israel, with Israeli entities, or in any
territory controlled by Israel.
(c) Principal Trade Negotiating Objectives of the United
States.--
(1) Commercial partnerships.--Among the principal trade
negotiating objectives of the United States for proposed
trade agreements with foreign countries regarding commercial
partnerships are the following:
(A) To discourage actions by potential trading partners
that directly or indirectly prejudice or otherwise discourage
commercial activity solely between the United States and
Israel.
(B) To discourage politically motivated boycotts of,
divestment from, and sanctions against Israel and to seek the
elimination of politically motivated nontariff barriers on
Israeli goods, services, or other commerce imposed on Israel.
(C) To seek the elimination of state-sponsored unsanctioned
foreign boycotts of Israel, or compliance with the Arab
League Boycott of Israel, by prospective trading partners.
(2) Effective date.--This subsection takes effect on the
date of the enactment of this Act and applies with respect to
negotiations commenced before, on, or after such date of
enactment.
(d) Report on Politically Motivated Acts of Boycott of,
Divestment From, and Sanctions Against Israel.--
(1) In general.--Not later than 180 days after the date of
the enactment of this Act, and annually thereafter, the
President shall submit to Congress a report on politically
motivated boycotts of, divestment from, and sanctions against
Israel.
(2) Matters to be included.--The report required by
paragraph (1) shall include the following:
(A) A description of the establishment of barriers to
trade, including nontariff barriers, investment, or commerce
by foreign countries or international organizations against
United States persons operating or doing business in Israel,
with Israeli entities, or in Israeli-controlled territories.
(B) A description of specific steps being taken by the
United States to encourage foreign countries and
international organizations to cease creating such barriers
and to dismantle measures already in place, and an assessment
of the effectiveness of such steps.
(C) A description of specific steps being taken by the
United States to prevent investigations or prosecutions by
governments or international organizations of United States
persons solely on the basis of such persons doing business
with

[[Page H9135]]

Israel, with Israeli entities, or in Israeli-controlled
territories.
(D) Decisions by foreign persons, including corporate
entities and state-affiliated financial institutions, that
limit or prohibit economic relations with Israel or persons
doing business in Israel or in any territory controlled by
Israel.
(e) Certain Foreign Judgments Against United States
Persons.--Notwithstanding any other provision of law, no
domestic court shall recognize or enforce any foreign
judgment entered against a United States person that conducts
business operations in Israel, or any territory controlled by
Israel, if the domestic court determines that the foreign
judgment is based, in whole or in part, on a determination by
a foreign court that the United States person's conducting
business operations in Israel or any territory controlled by
Israel or with Israeli entities constitutes a violation of
law.
(f) Definitions.--In this section:
(1) Boycott of, divestment from, and sanctions against
israel.--The term ``boycott of, divestment from, and
sanctions against Israel'' means actions by states, nonmember
states of the United Nations, international organizations, or
affiliated agencies of international organizations that are
politically motivated and are intended to penalize or
otherwise limit commercial relations specifically with Israel
or persons doing business in Israel or in any territory
controlled by Israel.
(2) Domestic court.--The term ``domestic court'' means a
Federal court of the United States, or a court of any State
or territory of the United States or of the District of
Columbia.
(3) Foreign court.--The term ``foreign court'' means a
court, an administrative body, or other tribunal of a foreign
country.
(4) Foreign judgment.--The term ``foreign judgment'' means
a final civil judgment rendered by a foreign court.
(5) Foreign person.--The term ``foreign person'' means--
(A) an individual who is not a United States person or an
alien lawfully admitted for permanent residence into the
United States; or
(B) a corporation, partnership, or other nongovernmental
entity which is not a United States person.
(6) Person.--
(A) In general.--The term ``person'' means--
(i) a natural person;
(ii) a corporation, business association, partnership,
society, trust, financial institution, insurer, underwriter,
guarantor, and any other business organization, any other
nongovernmental entity, organization, or group, and any
governmental entity operating as a business enterprise; and
(iii) any successor to any entity described in clause (ii).
(B) Application to governmental entities.--The term
``person'' does not include a government or governmental
entity that is not operating as a business enterprise.
(7) United states person.--The term ``United States
person'' means--
(A) a natural person who is a national of the United States
(as defined in section 101(a)(22) of the Immigration and
Nationality Act (8 U.S.C. 1101(a)(22))); or
(B) a corporation or other legal entity that is organized
under the laws of the United States, any State or territory
thereof, or the District of Columbia, if natural persons
described in subparagraph (A) own, directly or indirectly,
more than 50 percent of the outstanding capital stock or
other beneficial interest in such legal entity.

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

(a) Elimination of Consumptive Demand Exception.--
(1) In general.--Section 307 of the Tariff Act of 1930 (19
U.S.C. 1307) is amended by striking ``The provisions of this
section'' and all that follows through ``of the United
States.''.
(2) Effective date.--The amendment made by paragraph (1)
shall take effect on the date that is 15 days after the date
of the enactment of this Act.
(b) Report Required.--Not later than 180 days after the
date of the enactment of this Act, and annually thereafter,
the Commissioner shall submit to the Committee on Finance of
the Senate and the Committee on Ways and Means of the House
of Representatives a report on compliance with section 307 of
the Tariff Act of 1930 (19 U.S.C. 1307) that includes the
following:
(1) The number of instances in which merchandise was denied
entry pursuant to that section during the 1-year period
preceding the submission of the report.
(2) A description of the merchandise denied entry pursuant
to that section.
(3) Such other information as the Commissioner considers
appropriate with respect to monitoring and enforcing
compliance with that section.

SEC. 911. VOLUNTARY RELIQUIDATIONS BY U.S. CUSTOMS AND BORDER
PROTECTION.

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

SEC. 912. TARIFF CLASSIFICATION OF RECREATIONAL PERFORMANCE
OUTERWEAR.

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

[[Page H9136]]

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

`` .............. Recreational .................. ..................... ......................
performance
outerwear:

6201.91.03 Padded, 8.5% Free (AU, BH, CA, CL, 58.5%
sleeveless CO, IL, JO, KR, MA,
jackets........ MX, P, PA, PE, SG)
2.5% (OM)

6201.91.05 Other........... 49.7 cents/kg + Free (AU,BH, CA, CL, 52.9 cents/kg + 58.5%
19.7% CO, IL, JO, KR, MA,
MX, P, PA, PE, SG)
14.9 cents/kg +5.9%
(OM)

.............. Other: .................. ..................... ......................

6201.91.25 Padded, 8.5% Free (AU,BH, CA, CL, 58.5%
sleeveless CO, IL, JO, KR, MA,
jackets........ MX, P, PA, PE, SG)
2.5% (OM)

6201.91.40 Other........... 49.7 cents/kg + Free (AU,BH, CA, CL, 52.9 cents/kg + 58.5% ''
19.7% CO, IL, JO, KR, MA, .
MX, P, PA, PE, SG)
14.9 cents/kg +5.9%
(OM)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6201.92.05 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

6201.92.17 Water resistant. 6.2% Free (AU, BH, CA, CL, 37.5%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6201.92.19 Other........... 9.4% Free (AU,BH, CA, CL, 90%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

............... Other: ................... ..................... ..................

[[Page H9137]]

6201.92.30 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

6201.92.35 Water resistant. 6.2% Free (AU, BH, CA, CL, 37.5%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6201.92.45 Other........... 9.4% Free (AU,BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, OM, P, PA, PE,
SG)

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

`` .............. Recreational .................. ..................... ......................
performance
outerwear:

6201.93.15 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down...........

.............. Other: .................. ..................... ......................

6201.93.18 Padded, 14.9% Free (AU, BH, CA, CL, 76%
sleeveless CO, IL, JO, KR, MA,
jackets....... MX, OM, P, PA, PE,
SG)

.............. Other: .................. ..................... ......................

6201.93.45 Containing 36 49.5 cents/kg + Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
percent or 19.6% CO, IL, JO, KR, MA,
more by MX, OM, P, PA, PE,
weight of SG)
wool or fine
animal hair..

.............. Other: .................. ..................... ......................

6201.93.47 Water 7.1% Free (AU, BH, CA, CL, 65%
resistant... CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6201.93.49 Other........ 27.7% Free (AU, BH, CA, CL, 90%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

.............. Other: .................. ..................... ......................

6201.93.50 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down...........

.............. Other: .................. ..................... ......................

6201.93.52 Padded, 14.9% Free (AU, BH, CA, CL, 76%
sleeveless CO, IL, JO, KR, MA,
jackets....... MX, OM, P, PA, PE,
SG)

.............. Other: .................. ..................... ......................

[[Page H9138]]

6201.93.55 Containing 36 49.5 cents/kg + Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
percent or 19.6% CO, IL, JO, KR, MA,
more by MX, OM, P, PA, PE,
weight of SG)
wool or fine
animal hair..

.............. Other: .................. ..................... ......................

6201.93.60 Water 7.1% Free (AU, BH, CA, CL, 65%
resistant... CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6201.93.65 Other........ 27.7% Free (AU, BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, OM, P, PA, PE,
SG)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6201.99.05 Containing 70 Free ..................... 35%
percent or more
by weight of
silk or silk
waste...........

6201.99.15 Other............ 4.2% Free (AU,BH, CA, CL, 35%
CO, E*, IL, JO, KR,
MA, MX, OM, P, PA,
PE, SG)

............... Other: ................... ..................... ..................

6201.99.50 Containing 70 Free ..................... 35%
percent or more
by weight of
silk or silk
waste...........

6201.99.80 Other............ 4.2% Free (AU, BH, CA, CL, 35% ''
CO, E*, IL, JO, KR, .
MA, MX, OM, P, PA,
PE, SG)

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

`` .............. Recreational .................. ......................
performance
outerwear:

6202.91.03 Padded, 14% Free (AU, BH, CA, CL, 58.5%
sleeveless CO, IL, JO, KR, MA,
jackets........ MX, P, PA, PE, SG)
4.2% (OM)

6202.91.15 Other........... 36 cents/kg + Free (AU, BH, CA, CL, 46.3 cents/kg +58.5%
16.3% CO, IL, JO, KR, MA,
MX, P, PA, PE, SG)
10.8 cents/kg + 4.8%
(OM)................

.............. Other: .................. ......................

6202.91.60 Padded, 14% Free (AU, BH, CA, CL, 58.5%
sleeveless CO, IL, JO, KR, MA,
jackets........ MX, P, PA, PE, SG)
4.2% (OM) ........

6202.91.90 Other........... 36 cents/kg + Free (AU, BH, CA, CL, 46.3 cents/kg + 58.5% ''
16.3% CO, IL, JO, KR, MA, .
MX, P, PA, PE, SG) .
10.8 cents/kg + 4.8%
(OM) ..........

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

[[Page H9139]]

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

`` ............... Recreational ................... ..................
performance
outerwear:

6202.92.03 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................

6202.92.05 Water resistant. 6.2% Free (AU, BH, CA, CL, 37.5%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6202.92.12 Other........... 8.9% Free (AU, BH, CA, CL, 90%
CO, IL, JO, KR, MA,
MX,OM, P, PA,PE, SG)

............... Other: ................... ..................

6202.92.25 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................

6202.92.30 Water resistant. 6.2% Free (AU, BH, CA, CL, 37.5%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6202.92.90 Other........... 8.9% Free (AU, BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, OM, P, PA, PE,
SG) .........

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

`` .............. Recreational .................. ..................... ......................
performance
outerwear:

6202.93.01 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down...........

.............. Other: .................. ..................... ......................

6202.93.03 Padded, 14.9% Free (AU, BH, CA, CL, 76%
sleeveless CO, IL, JO, KR, MA,
jackets....... MX, OM, P, PA, PE,
SG)

.............. Other: .................. ..................... ......................

6202.93.05 Containing 36 43.4 cents/kg + Free (AU, BH, CA, CL, 46.3 cents/kg + 58.5%
percent or 19.7% CO, IL, JO, KR, MA,
more by MX, OM, P, PA, PE,
weight of SG)
wool or fine
animal hair..

.............. Other: .................. ..................... ......................

6202.93.07 Water 7.1% Free (AU, BH, CA, CL, 65%
resistant... CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

[[Page H9140]]

6202.93.09 Other........ 27.7% Free (AU, BH, CA, CL, 90%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

.............. Other: .................. ..................... ......................

6202.93.15 Containing 15 4.4% Free (AU, BH, CA, CL, 60%
percent or more CO, IL, JO, KR, MA,
by weight of MX, OM, P, PA, PE,
down and SG)
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down...........

.............. Other: .................. ..................... ......................

6202.93.25 Padded, 14.9% Free (AU, BH, CA, CL, 76%
sleeveless CO, IL, JO, KR, MA,
jackets....... MX, OM, P, PA, PE,
SG)

.............. Other: .................. ..................... ......................

6202.93.45 Containing 36 43.4 cents/kg + Free (AU, BH, CA, CL, 46.3 cents/kg + 58.5%
percent or 19.7% CO, IL, JO, KR, MA,
more by MX, OM, P, PA, PE,
weight of SG)
wool or fine
animal hair..

.............. Other: .................. ..................... ......................

6202.93.48 Water 7.1% Free (AU, BH, CA, CL, 65%
resistant... CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

6202.93.55 Other........ 27.7% Free (AU, BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, OM, P, PA, PE,
SG)

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

`` ............... Recreational ................... ..................
performance
outerwear:

6202.99.03 Containing 70 Free 35%
percent or more
by weight of
silk or silk
waste...........

6202.99.15 Other............ 2.8% Free (AU,BH, CA, CL, 35%
CO, E*, IL, JO, KR,
MA,MX, OM, P, PA,
PE,SG)

............... Other: ................... ..................

6202.99.60 Containing 70 Free 35%
percent or more
by weight of
silk or silk
waste...........

6202.99.80 Other............ 2.8% Free (AU, BH, CA, CL, 35% ''
CO, E*, IL, JO, KR, .
MA, MX, OM, P, PA,
PE, SG) .........

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

`` 6203.41 Of wool or fine .................. ..................... ......................
animal hair:

.............. Recreational .................. ..................... ......................
performance
outerwear:

.............. Trousers, .................. ..................... ......................
breeches and
shorts:

6203.41.01 Trousers, 7.6% Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
breeches, CO,IL, JO,KR, MA,MX,
containing P, PA, PE,SG)
elastomeric 2.2% (OM)
fiber, water
resistant,
without belt
loops,
weighing more
than 9 kg per
dozen........

.............. Other: .................. ..................... ......................

[[Page H9141]]

6203.41.03 Trousers of 41.9 cents/kg + Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
worsted wool 16.3% CO,IL, JO,KR, MA,MX,
fabric, made P, PA, PE,SG)
of wool yarn 12.5 cents/kg + 4.8%
having an (OM)
average
fiber
diameter of
18.5 microns
or less.....

6203.41.06 Other........ 41.9 cents/kg + Free (AU, BH, CA, CL, 52.9 cents/kg + 58.5%
16.3% CO,IL, JO,KR, MA,MX,
P, PA, PE,SG)
12.5 cents/kg + 4.8%
(OM)

6203.41.08 Bib and brace 8.5% Free (AU, BH, CA, CL, 63%
overalls...... CO,IL, JO,KR, MA,MX,
P, PA, PE, SG)
2.5% (OM)

.............. Other: .................. ..................... ......................

.............. Trousers, .................. ..................... ......................
breeches and
shorts:

6203.41.25 Trousers and 7.6% Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
breeches, CO,IL, JO,KR, MA,MX,
containing P, PA, PE,SG)
elastomeric 2.2% (OM)
fiber, water
resistant,
without belt
loops,
weighing more
than 9 kg per
dozen........

.............. Other: .................. ..................... ......................

6203.41.30 Trousers of 41.9 cents/kg Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
worsted wool +16.3% CO,IL, JO,KR, MA,MX,
fabric, made P, PA, PE,SG)
of wool yarn 12.5 cents/kg + 4.8%
having an (OM)
average
fiber
diameter of
18.5 microns
or less.....

6203.41.60 Other........ 41.9 cents/kg Free (AU, BH, CA, CL, 52.9 cents/kg +58.5%
+16.3% CO,IL, JO,KR, MA,MX,
P, PA, PE,SG)
12.5 cents/kg + 4.8%
(OM)

6203.41.80 Bib and brace 8.5% Free (AU, BH, CA, CL, 63% ''
overalls...... CO,IL, JO,KR, MA,MX, .
P, PA, PE,SG)
2.5% (OM)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6203.42.03 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

6203.42.05 Bib and brace 10.3% Free (AU,BH, CA, 90%
overalls....... CL,CO, IL, JO,KR,
MA,MX,OM, P, PA,PE,
SG)

[[Page H9142]]

6203.42.07 Other........... 16.6% Free (AU,BH, CA, 90%
CL,CO, IL, JO,
MA,MX,OM, P, PA,PE,
SG)
9.9% (KR)

............... Other: ................... ..................... ..................

6203.42.17 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

6203.42.25 Bib and brace 10.3% Free (AU,BH, CA, 90%
overalls....... CL,CO, IL, JO,KR,
MA,MX,OM, P, PA,PE,
SG)

6203.42.45 Other........... 16.6% Free (AU,BH, CA, 90% ''
CL,CO, IL, JO, MA, .
MX, OM, P, PA,PE,
SG)
9.9% (KR)

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

`` .............. Recreational .................. ..................... ......................
performance
outerwear:

6203.43.01 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down...........

.............. Other: .................. ..................... ......................

.............. Bib and brace .................. ..................... ......................
overalls:.....

6203.43.03 Water 7.1% Free (AU,BH, CA, CL, 65%
resistant.... CO, IL, JO, KR,
MA,MX,OM, P,
PA,PE,SG)

6203.43.05 Other......... 14.9% Free (AU,BH, CA, CL, 76%
CO, IL, JO, KR, MA,
MX,OM, P, PA, PE,SG)

.............. Other: .................. ..................... ......................

6203.43.09 Containing 36 49.6 cents/kg + Free (AU,BH, CA, CL, 52.9 cents/kg + 58.5%
percent or 19.7% CO, IL, JO, KR, MA,
more by MX,OM, P, PA,PE,SG)
weight of
wool or fine
animal hair..

.............. Other: .................. ..................... ......................

6203.43.11 Water 7.1% Free (AU,BH, CA, CL, 65%
resistant CO, IL, JO, MA,
trousers or MX,OM, P, PA,PE,SG)
breeches.... 1.4% (KR)

6203.43.13 Other........ 27.9% Free (AU,BH, CA, CL, 90%
CO, IL, JO, MA,
MX,OM, P, PA, PE,SG)
5.5% (KR)

.............. Other: .................. ..................... ......................

6203.43.45 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down...........

.............. Other: .................. ..................... ......................

.............. Bib and brace .................. ..................... ......................
overalls:.....

[[Page H9143]]

6203.43.55 Water 7.1% Free (AU,BH, CA, CL, 65%
resistant.... CO, IL, JO, KR, MA,
MX,OM, P, PA, PE,SG)

6203.43.60 Other......... 14.9% Free (AU,BH, CA, CL, 76%
CO,IL,JO, KR, MA,
MX,OM, P, PA, PE,SG)

.............. Other: .................. ..................... ......................

6203.43.65 Certified hand- 12.2% Free (AU,BH, CA, CL, 76%
loomed and CO, IL, JO, KR, MA,
folklore MX,OM, P, PA, PE,SG)
products.....

.............. Other: .................. ..................... ......................

6203.43.70 Containing 36 49.6 cents/kg + Free (AU,BH, CA, CL, 52.9 cents/kg + 58.5%
percent or 19.7% CO, IL, JO, KR, MA,
more by MX,OM, P, PA, PE,SG)
weight of
wool or fine
animal hair.

.............. Other: .................. ..................... ......................

6203.43.75 Water 7.1% Free (AU,BH, CA, CL, 65%
resistant CO, IL, JO, MA,
trousers or MX,OM, P, PA,PE,SG)
breeches... 1.4% (KR)

6203.43.90 Other....... 27.9% Free (AU,BH, CA, CL, 90% ''
CO, IL, JO, MA, .
MX,OM, P, PA, PE,SG)
5.5% (KR)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

............... Of artificial ................... ..................... ..................
fibers:

6203.49.01 Bib and brace 8.5% Free (AU,BH, CA, CL, 76%
overalls....... CO, IL,JO, KR, MA,
MX,OM, P, PA,PE, SG)

6203.49.05 Trousers, 27.9% Free (AU,BH, CA, CL, 90%
breeches and CO, IL,JO, KR, MA,
shorts......... MX,OM, P,PA,PE, SG)

............... Of other textile ................... ..................... ..................
materials:......

6203.49.07 Containing 70 Free ..................... 35%
percent or more
by weight of
silk or silk
waste..........

6203.49.09 Other........... 2.8% Free (AU,BH, CA, CL, 35%
CO, E*, IL, JO,MA,
MX,OM, P, PA,PE, SG)
0.5% (KR)

............... Other: ................... ..................... ..................

............... Of artificial ................... ..................... ..................
fibers:

6203.49.25 Bib and brace 8.5% Free (AU,BH, CA, CL, 76%
overalls....... CO, IL,JO, KR, MA,
MX,OM, P, PA,PE, SG)

............... Trousers, ................... ..................... ..................
breeches and
shorts:

[[Page H9144]]

6203.49.35 Certified hand- 12.2% Free (AU,BH, CA, CL, 76%
loomed and CO, IL,JO, KR, MA,
folklore MX,OM, P,PA,PE, SG)
products......

6203.49.50 Other.......... 27.9% Free (AU,BH, CA, CL, 90%
CO, IL,JO, KR, MA,
MX,OM, P,PA,PE, SG)

............... Of other textile ................... ..................... ..................
materials:......

6203.49.60 Containing 70 Free ..................... 35%
percent or more
by weight of
silk or silk
waste..........

6203.49.90 Other........... 2.8% Free (AU,BH, CA, CL, 35% ''
CO, E*, IL, JO,MA, .
MX,OM, P,PA,PE, SG)
0.5% (KR)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6204.61.05 Trousers and 7.6% Free (AU,BH, CA, CL, 58.5%
breeches, CO, IL,JO, KR, MA,
containing MX, P, PA, PE, SG)
elastomeric 2.2% (OM)
fiber, water
resistant,
without belt
loops, weighing
more than 6 kg
per dozen.......

6204.61.15 Other............ 13.6% Free (AU,BH, CA, CL, 58.5%
CO, IL,JO, KR, MA,
MX, P, PA, PE, SG)
4% (OM)

............... Other: ................... ..................... ..................

6204.61.60 Trousers and 7.6% Free (AU,BH, CA, CL, 58.5%
breeches, CO, IL,JO, KR, MA,
containing MX, P, PA, PE, SG)
elastomeric 2.2% (OM)
fiber, water
resistant,
without belt
loops, weighing
more than 6 kg
per dozen.......

6204.61.80 Other............ 13.6% Free (AU,BH, CA, CL, 58.5% ''
CO, IL,JO, KR, MA, .
MX, P, PA, PE, SG)
4% (OM)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6204.62.03 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

6204.62.05 Bib and brace 8.9% Free (AU,BH, CA, 90%
overalls....... CL,CO, IL, JO,KR,
MA,MX, OM, P, PA,
PE, SG)

[[Page H9145]]

6204.62.15 Other........... 16.6% Free (AU,BH, CA, 90%
CL,CO, IL, JO, MA,
MX,OM, P, PA,PE, SG)
9.9% (KR)

............... Other: ................... ..................... ..................

6204.62.50 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

6204.62.60 Bib and brace 8.9% Free (AU,BH, CA, 90%
overalls....... CL,CO, IL, JO,KR,
MA,MX, OM, P, PA,
PE, SG)

............... Other: ................... ..................... ..................

6204.62.70 Certified hand- 7.1% Free (AU,BH, CA, 37.5%
loomed and CL,CO, E, IL, JO,KR,
folklore MA,MX, OM, P, PA,
products...... PE, SG)

6204.62.80 Other.......... 16.6% Free (AU,BH, CA, 90% ''
CL,CO, IL, JO, MA, .
MX,OM, P, PA,PE, SG)
9.9% (KR)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6204.63.01 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

............... Bib and brace ................... ..................... ..................
overalls:

6204.63.02 Water resistant 7.1% Free (AU, BH, CA, CL, 65%
CO,IL, JO,KR, MA,MX,
OM,P, PA,PE, SG)

6204.63.03 Other.......... 14.9% Free (AU, BH, CA, CL, 76%
CO,IL, JO,KR, MA,MX,
OM,P, PA,PE, SG)

............... Other: ................... ..................... ..................

6204.63.08 Containing 36 13.6% Free (AU, BH, CA, CL, 58.5%
percent or CO,IL, JO,KR, MA,
more by weight MX, OM, P, PA,PE,
of wool or SG)
fine animal
hair..........

............... Other: ................... ..................... ..................

6204.63.09 Water 7.1% Free (AU, BH, CA, CL, 65%
resistant CO,IL, JO,KR,
trousers or MA,MX,OM,P, PA,PE,
breeches..... SG)

6204.63.11 Other......... 28.6% Free (AU,BH,CA, 90%
CL,CO, IL,JO,
MA,MX,OM,P, PA,PE,
SG)
5.7% (KR)

............... Other: ................... ..................... ..................

6204.63.50 Containing 15 Free ..................... 60%
percent or more
by weight of
down and
waterfowl
plumage and of
which down
comprises 35
percent or more
by weight;
containing 10
percent or more
by weight of
down............

............... Other: ................... ..................... ..................

[[Page H9146]]

............... Bib and brace ................... ..................... ..................
overalls:

6204.63.55 Water resistant 7.1% Free (AU, BH, CA, CL, 65%
CO,IL, JO,KR, MA,MX,
OM,P, PA,PE, SG)

6204.63.60 Other.......... 14.9% Free (AU, BH, CA, CL, 76%
CO,IL, JO,KR, MA,MX,
OM,P, PA,PE, SG)

6204.63.65 Certified hand- 11.3% Free (AU, BH, CA, CL, 76%
loomed and CO, E, IL, JO,KR,
folklore MA,MX,OM,P, PA,PE,
products....... SG)

............... Other: ................... ..................... ..................

6204.63.70 Containing 36 13.6% Free (AU, BH, CA, CL, 58.5%
percent or CO,IL, JO,KR, MA,MX,
more by weight OM,P, PA,PE, SG)
of wool or
fine animal
hair..........

............... Other: ................... ..................... ..................

6204.63.75 Water 7.1% Free (AU, BH, CA, CL, 65%
resistant CO,IL, JO,KR, MA,MX,
trousers or OM,P, PA,PE, SG)
breeches.....

6204.63.90 Other......... 28.6% Free (AU, BH, CA, CL, 90% ''
CO,IL, JO, MA, .
MX,OM, P, PA, PE,SG)
5.7% (KR)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

............... Of artificial ................... ..................... ..................
fibers:

6204.69.01 Bib and brace 13.6% Free (AU, BH, CA, CL, 76%
overalls....... CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

............... Trousers, ................... ..................... ..................
breeches and
shorts:........

6204.69.02 Containing 36 13.6% Free (AU,BH, CA, 58.5%
percent or CL,CO, IL, JO,KR,
more by weight MA, MX, OM, P, PA,
of wool or PE, SG)
fine animal
hair..........

6204.69.03 Other.......... 28.6% Free (AU,BH, CA, 90%
CL,CO, IL, JO,KR,
MA, MX, OM, P, PA,
PE, SG)

............... Of silk or silk ................... ..................... ..................
waste:

6204.69.04 Containing 70 1.1% Free (AU, BH, CA, CL, 65%
percent or more CO, E, IL, JO, KR,
by weight of MA, MX, OM, P, PA,
silk or silk PE, SG)
waste..........

6204.69.05 Other........... 7.1% Free (AU,BH, CA, 65%
CL,CO, E*, IL, JO,
KR,MA,MX, OM, P,PA,
PE, SG)

[[Page H9147]]

6204.69.06 Other............ 2.8% Free (AU, BH, CA, CL, 35%
CO, E*, IL, JO, KR,
MA, MX, OM, P, PA,
PE, SG)

............... Other: ................... ..................... ..................

............... Of artificial ................... ..................... ..................
fibers:

6204.69.15 Bib and brace 13.6% Free (AU,BH, CA, 76%
overalls....... CL,CO, IL, JO,KR,
MA, MX, OM, P, PA,
PE, SG)

............... Trousers, ................... ..................... ..................
breeches and
shorts:........

6204.69.22 Containing 36 13.6% Free (AU,BH, CA, 58.5%
percent or CL,CO, IL, JO,KR,
more by weight MA, MX, OM, P, PA,
of wool or PE, SG)
fine animal
hair..........

6204.69.28 Other.......... 28.6% Free (AU,BH, CA, 90%
CL,CO, IL, JO,KR,
MA, MX, OM, P, PA,
PE, SG)

............... Of silk or silk ................... ..................... ..................
waste:

6204.69.45 Containing 70 1.1% Free (AU,BH, CA, 65%
percent or more CL,CO, E, IL, JO,
by weight of KR, MA, MX, OM,
silk or silk P,PA, PE, SG)
waste..........

6204.69.65 Other........... 7.1% Free (AU,BH, CA, 65%
CL,CO, E*,IL, JO,
KR,MA,MX, OM, P,PA,
PE, SG)

6204.69.80 Other............ 2.8% Free (AU,BH, CA, 35% ''
CL,CO, E*, IL, JO, .
KR,MA,MX, OM, P,PA,
PE, SG)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

............... Of man-made ................... ..................... ..................
fibers:

6210.40.15 Having an outer 3.8% Free (AU, BH, CA, CL, 65%
surface CO,IL, JO,KR, MA,MX,
impregnated, OM,P, PA,PE, SG)
coated, covered
or laminated
with rubber or
plastics
material which
completely
obscures the
underlying
fabric.........

6210.40.25 Other........... 7.1% Free (AU, BH, CA, CL, 65%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

............... Other: ................... ..................... ..................

6210.40.28 Having an outer 3.3% Free (AU, BH, CA, CL, 37.5%
surface CO, E, IL, JO, KR,
impregnated, MA, MX, OM, P, PA,
coated, covered PE, SG)
or laminated
with rubber or
plastics
material which
completely
obscures the
underlying
fabric.........

6210.40.29 Other........... 6.2% Free (AU, BH, CA, CL, 37.5%
CO, E*, IL, JO, KR,
MA, MX, OM, P, PA,
PE, SG)

............... Other: ................... ..................... ..................

............... Of man-made ................... ..................... ..................
fibers:

[[Page H9148]]

6210.40.35 Having an outer 3.8% Free (AU, BH, CA, CL, 65%
surface CO, IL, JO, KR, MA,
impregnated, MX, OM, P, PA, PE,
coated, covered SG)
or laminated
with rubber or
plastics
material which
completely
obscures the
underlying
fabric.........

6210.40.55 Other........... 7.1% Free (AU, BH, CA, CL, 65%
CO, IL, JO, KR, MA,
MX, OM, P, PA, PE,
SG)

............... Other: ................... ..................... ..................

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

6210.40.80 Other........... 6.2% Free (AU, BH, CA, CL, 37.5% ''
CO, E*, IL, JO, KR, .
MA, MX, OM, P, PA,
PE, SG)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

............... Of man-made ................... ..................... ..................
fibers:

6210.50.03 Having an outer 3.8% Free (AU, BH, CA, CL, 65%
surface CO, IL, JO, KR, MA,
impregnated, MX, OM,P, PA, PE,
coated, covered SG)
or laminated
with rubber or
plastics
material which
completely
obscures the
underlying
fabric.........

6210.50.05 Other........... 7.1% Free (AU, BH, CA, CL, 65%
CO, IL, JO, KR, MA,
MX, OM,P, PA, PE,
SG)

............... Other: ................... ..................... ..................

6210.50.12 Having an outer 3.3% Free (AU, BH, CA, CL, 37.5%
surface CO, E, IL, JO, KR,
impregnated, MA, MX, OM, P,
coated, covered PA,PE, SG)
or laminated
with rubber or
plastics
material which
completely
obscures the
underlying
fabric.........

6210.50.22 Other........... 6.2% Free (AU, BH, CA, CL, 37.5%
CO, E*, IL, JO, KR,
MA, MX, OM, P,PA,
PE, SG)

............... Other: ................... ..................... ..................

............... Of man-made ................... ..................... ..................
fibers:

6210.50.35 Having an outer 3.8% Free (AU, BH, CA, CL, 65%
surface CO, IL, JO, KR, MA,
impregnated, MX, OM,P, PA, PE,
coated, covered SG)
or laminated
with rubber or
plastics
material which
completely
obscures the
underlying
fabric.........

6210.50.55 Other........... 7.1% Free (AU, BH, CA, CL, 65%
CO, IL, JO, KR, MA,
MX, OM,P, PA, PE,
SG)

............... Other: ................... ..................... ..................

[[Page H9149]]

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

6210.50.80 Other........... 6.2% Free (AU, BH, CA, CL, 37.5% ''
CO, E*, IL, JO, KR, .
MA, MX, OM, P, PA,
PE, SG)

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

`` 6211.32 Of cotton: ................... ..................... ..................

6211.32.50 Recreational 8.1% Free (AU, BH, CA, CL, 90%
performance CO, IL, JO, KR, MA,
outerwear....... MX, OM, P, PA, PE,
SG)

6211.32.90 Other............ 8.1% Free (AU, BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, OM, P, PA, PE,
SG)

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

`` 6211.33 Of man-made fibers: ................... ..................... ..................

6211.33.50 Recreational 16% Free (AU, BH, CA, CL, 76%
performance CO, IL, JO, KR, MA,
outerwear....... MX, P, PA ,PE, SG)
4.8% (OM)

6211.33.90 Other............ 16% Free (AU, BH, CA, CL, 76% ''
CO, IL, JO, KR, MA, .
MX, P, PA, PE, SG)
4.8% (OM)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6211.39.03 Of wool or fine 12% Free (AU, BH, CA, CL, 58.5%
animal hair..... CO, IL, JO, KR, MA,
MX, P, PA, PE, SG)
3.6% (OM)

6211.39.07 Containing 70 0.5% Free (AU, BH, CA, CL, 35%
percent or more CO, E, IL, JO, KR,
by weight of MA, MX, OM, P, PA,
silk or silk PE, SG)
waste...........

6211.39.15 Other............ 2.8% Free (AU, BH, CA, CL, 35%
CO, E*, IL, JO, KR,
MA, MX, OM, P, PE,
SG)

............... Other: ................... ..................... ..................

6211.39.30 Of wool or fine 12% Free (AU, BH, CA, CL, 58.5%
animal hair..... CO, IL, JO, KR, MA,
MX, P, PA, PE, SG)
3.6% (OM)

[[Page H9150]]

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

6211.39.80 Other............ 2.8% Free (AU, BH, CA, CL, 35% ''
CO, E*, IL, JO, KR, .
MA, MX, OM, P, PE,
SG)

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

`` 6211.42 Of cotton: ................... ..................... ..................

6211.42.05 Recreational 8.1% Free (AU, BH, CA, CL, 90%
performance CO, IL, JO, KR, MA,
outerwear....... MX, OM, P, PA, PE,
SG)

6211.42.10 Other............ 8.1% Free (AU, BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, OM, P, PA, PE,
SG)

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

`` 6211.43 Of man-made fibers: ................... ..................... ..................

6211.43.05 Recreational 16% Free (AU, BH, CA, CL, 90%
performance CO, IL, JO, KR, MA,
outerwear....... MX, P, PA, PE, SG)
4.8% (OM)

6211.43.10 Other............ 16% Free (AU, BH, CA, CL, 90% ''
CO, IL, JO, KR, MA, .
MX, P, PA, PE, SG)
4.8% (OM)

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

`` ............... Recreational ................... ..................... ..................
performance
outerwear:

6211.49.03 Containing 70 1.2% Free (AU, BH, CA, CL, 35%
percent or more CO, E, IL, JO, KR,
by weight of MA, MX, OM, P,
silk or silk PA,PE, SG)
waste...........

6211.49.15 Of wool or fine 12% Free (AU, BH, CA, CL, 58.5%
animal hair..... CO, IL, JO, KR, MA
,MX, P, PA, PE, SG)
3.6% (OM)

6211.49.25 Other............ 7.3% Free (AU, BH, CA, CL, 35%
CO, E, IL, JO, MA,
MX, OM, P, PA, PE,
SG)
1.4% (KR)

............... Other: ................... ..................... ..................

6211.49.50 Containing 70 1.2% Free (AU, BH, CA, CL, 35%
percent or more CO, E, IL, JO, KR,
by weight of MA, MX, OM, P, PA,
silk or silk PE, SG)
waste...........

[[Page H9151]]

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

6211.49.80 Other............ 7.3% Free (AU, BH, CA, CL, 35% ''
CO, E, IL, JO, MA, .
MX,OM, P, PA, PE,
SG)
1.4% (KR)

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

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

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

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

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

SEC. 914. AMENDMENTS TO BIPARTISAN CONGRESSIONAL TRADE
PRIORITIES AND ACCOUNTABILITY ACT OF 2015.

(a) Immigration Laws of the United States.--Section 102(a)
of the Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 (Public Law 114-26; 19 U.S.C.
4201(a)) is amended--
(1) in paragraph (12), by striking ``and'' at the end;
(2) in paragraph (13), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(14) to ensure that trade agreements do not require
changes to the immigration laws of the United States or
obligate the United States to grant access or expand access
to visas issued under section 101(a)(15) of the Immigration
and Nationality Act (8 U.S.C. 1101(a)(15)).''.
(b) Greenhouse Gas Emissions Measures.--Section 102(a) of
the Bipartisan Congressional Trade Priorities and
Accountability Act of 2015 (Public Law 114-26; 19 U.S.C.
4201(a)), as amended by subsection (a) of this section, is
further amended--
(1) in paragraph (13), by striking ``and'' at the end;
(2) in paragraph (14), by striking the period at the end
and inserting ``; and''; and
(3) by adding at the end the following:
``(15) to ensure that trade agreements do not establish
obligations for the United States regarding greenhouse gas
emissions measures, including obligations that require
changes to United States laws or regulations or that would
affect the implementation of such laws or regulations, other
than those fulfilling the other negotiating objectives in
this section.''.
(c) Fisheries Negotiations.--Section 102(b) of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015 (Public Law 114-26; 19 U.S.C. 4201(b)) is amended
by adding at the end the following:
``(22) Fisheries negotiations.--The principal negotiating
objectives of the United States with respect to trade in
fish, seafood, and shellfish products are--
``(A) to obtain competitive opportunities for United States
exports of fish, seafood, and shellfish products in foreign
markets substantially equivalent to the competitive
opportunities afforded foreign exports of fish, seafood, and
shellfish products in United States markets and to achieve
fairer and more open conditions of trade in fish, seafood,
and shellfish products, including by reducing or eliminating
tariff and nontariff barriers;
``(B) to eliminate fisheries subsidies that distort trade,
including subsidies of the type referred to in paragraph 9 of
Annex D to the Ministerial Declaration adopted by the World
Trade Organization at the Sixth Ministerial Conference at
Hong Kong, China on December 18, 2005;
``(C) to pursue transparency in fisheries subsidies
programs; and
``(D) to address illegal, unreported, and unregulated
fishing.''.
(d) Accreditation.--Section 104 of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
(Public Law 114-26; 19 U.S.C. 4203) is amended--
(1) in subsection (b)(3), by striking ``an official'' and
inserting ``a delegate and official''; and
(2) in subsection (c)(2)(C)--
(A) by striking ``an official'' each place it appears and
inserting ``a delegate and official''; and
(B) by inserting after the first sentence the following:
``In addition, the chairmen and ranking members described in
subparagraphs (A)(i) and (B)(i) shall each be permitted to
designate up to 3 personnel with proper security clearances
to serve as delegates and official advisers to the United
States delegation in negotiations for any trade agreement to
which this title applies.''.
(e) Trafficking in Persons.--
(1) In general.--Section 106(b)(6) of the Bipartisan
Congressional Trade Priorities and Accountability Act of 2015
(Public Law 114-26; 19 U.S.C. 4205(b)(6)) is amended by
striking subparagraph (B) and inserting the following:
``(B) Exception.--
``(i) Invoking exception.--If the President submits to the
appropriate congressional committees a letter stating that a
country to which subparagraph (A) applies has taken concrete
actions to implement the principal recommendations with
respect to that country in the most recent annual report on
trafficking in persons, the prohibition under subparagraph
(A) shall not apply with respect to a trade agreement or
trade agreements with that country.
``(ii) Content of letter; public availability.--A letter
submitted under clause (i) with respect to a country shall--

``(I) include a description of the concrete actions that
the country has taken to implement the principal
recommendations described in clause (i);
``(II) be accompanied by supporting documentation providing
credible evidence of each such concrete action, including
copies of relevant laws or regulations adopted or modified,
and any enforcement actions taken, by that country, where
appropriate; and

[[Page H9152]]

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

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

``(I) the Committee on Ways and Means and the Committee on
Foreign Affairs of the House of Representatives; and
``(II) the Committee on Finance and the Committee on
Foreign Relations of the Senate.

``(iii) Tier 2 watch list.--The term `tier 2 watch list'
means the list of countries required under section
110(b)(2)(A)(iii) of the Trafficking Victims Protection Act
of 2000 (22 U.S.C. 7107(b)(2)(A)(iii)).
``(iv) Tier 3 country.--The term `tier 3 country' means a
country on the list of countries required under section
110(b)(1)(C) of the Trafficking Victims Protection Act of
2000 (22 U.S.C. 7107(b)(1)(C)).''.
(2) Conforming amendment.--Section 106(b)(6)(A) of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015 (Public Law 114-26; 19 U.S.C. 4205(b)(6)(A)) is
amended by striking ``to which the minimum'' and all that
follows through ``7107(b)(1))'' and inserting ``listed as a
tier 3 country in the most recent annual report on
trafficking in persons''.
(f) Technical Amendments.--The Bipartisan Congressional
Trade Priorities and Accountability Act of 2015 is amended--
(1) in section 105(b)(3) (Public Law 114-26; 129 Stat. 346;
19 U.S.C. 4204(b)(3))--
(A) in subparagraph (A)(ii), by striking ``section
102(b)(16)'' and inserting ``section 102(b)(17)''; and
(B) in subparagraph (B)(ii), by striking ``section
102(b)(16)'' and inserting ``section 102(b)(17)''; and
(2) in section 106(b)(5) (Public Law 114-26; 129 Stat. 354;
19 U.S.C. 4205(b)(5)), by striking ``section 102(b)(15)(C)''
and inserting ``section 102(b)(16)(C)''.
(g) Effective Date.--The amendments made by this section
shall take effect as if included in the enactment of the
Bipartisan Congressional Trade Priorities and Accountability
Act of 2015 (Public Law 114-26; 129 Stat. 320; 19 U.S.C. 4201
et seq.).

SEC. 915. TRADE PREFERENCES FOR NEPAL.

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

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

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

[[Page H9153]]

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

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

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

SEC. 917. AMENDMENT TO TARIFF ACT OF 1930 TO REQUIRE COUNTRY
OF ORIGIN MARKING OF CERTAIN CASTINGS.

(a) In General.--Section 304(e) of the Tariff Act of 1930
(19 U.S.C. 1304(e)) is amended--
(1) in the subsection heading, by striking ``Manhole Rings
or Frames, Covers, and Assemblies Thereof'' and inserting
``Castings'';
(2) by inserting ``inlet frames, tree and trench grates,
lampposts, lamppost bases, cast utility poles, bollards,
hydrants, utility boxes,'' before ``manhole rings,''; and
(3) by adding at the end before the period the following:
``in a location such that it will remain visible after
installation''.
(b) Effective Date.--The amendments made by subsection (a)
take effect on the date of the enactment of this Act and
apply with respect to the importation of castings described
in such amendments on or after the date that is 180 days
after such date of enactment.

SEC. 918. INCLUSION OF CERTAIN INFORMATION IN SUBMISSION OF
NOMINATION FOR APPOINTMENT AS DEPUTY UNITED
STATES TRADE REPRESENTATIVE.

Section 141(b) of the Trade Act of 1974 (19 U.S.C. 2171(b))
is amended by adding at the end the following:
``(5)(A) When the President submits to the Senate for its
advice and consent a nomination of an individual for
appointment as a Deputy United States Trade Representative
under paragraph (2), the President shall include in that
submission information on the country, regional offices, and
functions of the Office of the United States Trade
Representative with respect to which that individual will
have responsibility.
``(B) The President shall notify the Committee on Ways and
Means of the House of Representatives and the Committee on
Finance of the Senate not less than 30 days prior to making
any change to the responsibilities of any Deputy United
States Trade Representative included in a submission under
subparagraph (A), including the reason for that change.''.

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

(a) Findings.--Congress makes the following findings:
(1) As of the date of the enactment of this Act, the
Harmonized Tariff Schedule of the United States imposes
duties on imported goods for which there is no domestic
availability or insufficient domestic availability.
(2) The imposition of duties on such goods creates
artificial distortions in the economy of the United States
that negatively affect United States manufacturers and
consumers.
(3) It would be in the interests of the United States if
the Harmonized Tariff Schedule were updated regularly and
predictably to eliminate such artificial distortions by
suspending or reducing duties on such goods.
(4) The manufacturing competitiveness of the United States
around the world would be enhanced if the Harmonized Tariff
Schedule were updated regularly and predictably to suspend or
reduce duties on such goods.
(b) Sense of Congress.--It is the sense of Congress that,
to remove the competitive disadvantage to United States
manufacturers and consumers resulting from the imposition of
such duties and to promote the competitiveness of United
States manufacturers, the Committee on Finance of the Senate
and the Committee on Ways and Means of the House of
Representatives are urged to advance, as soon as possible,
after consultation with the public and Members of the Senate
and the House of Representatives, a regular and predictable
legislative process for the temporary suspension and
reduction of duties that is consistent with the rules of the
Senate and the House.

SEC. 920. CUSTOMS USER FEES.

(a) In General.--Section 13031(j)(3) of the Consolidated
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C.
58c(j)(3)) is amended--
(1) in subparagraph (A), by striking ``July 7, 2025'' and
inserting ``September 30, 2025''; and
(2) by striking subparagraph (D).
(b) Rate for Merchandise Processing Fees.--Section 503 of
the United States-Korea Free Trade Agreement Implementation
Act (Public Law 112-41; 19 U.S.C. 3805 note) is amended--
(1) by striking ``June 30, 2025'' and inserting ``September
30, 2025''; and
(2) by striking subsection (c).

SEC. 921. INCREASE IN PENALTY FOR FAILURE TO FILE RETURN OF
TAX.

(a) In General.--Section 6651(a) of the Internal Revenue
Code of 1986 is amended by striking ``$135'' in the last
sentence and inserting ``$205''.
(b) Conforming Amendment.--Section 6651(i) of such Code is
amended by striking ``$135'' and inserting ``$205''.
(c) Effective Date.--The amendments made by this section
shall apply to returns required to be filed in calendar years
after 2015.

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

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

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

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

[[Page H9154]]

JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE

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

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

Title I--Trade Facilitation and Trade Enforcement

SECTION 101. IMPROVING PARTNERSHIP PROGRAMS

Present Law
The Customs-Trade Partnership Against Terrorism (C-TPAT),
codified in the Security and Accountability for Every Port
Act (SAFE Port Act) of 2006 (6 U.S.C. 961 et seq.), is a
voluntary trade partnership program in which Customs and
Border Protection (CBP) and members of the trade community
work together to secure and facilitate the movement of
legitimate trade. Companies that are members of C-TPAT are
considered low-risk, which expedites cargo clearance based on
the company's security profile and compliance history.
House Amendment
Section 101 requires the Commissioner of CBP to work with
the private sector and other Federal agencies to ensure that
all CBP partnership programs provide trade benefits to
participants. This would apply to partnership programs
established before enactment of this bill, and any programs
established after enactment. It establishes elements for the
development and operation of any such partnership programs,
which require the Commissioner to: 1) consult with private
sector entities, the public, and other Federal agencies when
appropriate, to ensure that participants receive commercially
significant and measurable trade benefits; 2) ensure an
integrated and transparent system of trade benefits and
compliance requirements for all CBP partnership programs; 3)
consider consolidating partnership programs in situations in
which doing so would support the objectives of such programs,
increase participation, enhance trade benefits, and enhance
the allocation of resources of CBP; 4) coordinate with the
Director of ICE, and other Federal agencies with authority to
detain and release merchandise; and 5) ensure that trade
benefits are provided to participants in partnership
programs.
It further requires the Commissioner to submit to the
Committee on Finance and the Committee on Homeland Security
and Governmental Affairs of the Senate and the Committee on
Ways and Means and the Committee on Homeland Security of the
House of Representatives a report that: 1) identifies each
partnership program; 2) for each program, identifies the
requirements for participation, benefits provided to
participants, the number of participants, and in the case of
a program that provides for participation at multiple tiers,
the number of participants at each such tier; 3) identifies
the number of participants enrolled in more than one program;
4) assesses the effectiveness of each program in advancing
the security, trade enforcement, and trade facilitation
missions of CBP; 5) summarizes CBP's efforts to work with
other Federal agencies to detain and release merchandise
entering the United States to ensure that partnership
programs of those agencies are compatible with CBP
partnership programs; 6) summarizes criteria developed with
those agencies for authorizing the release, on an expedited
basis, of merchandise for which documentation is required
from one or more of those agencies to clear or license the
merchandise for entry into the United States; 7) summarizes
CBP efforts to work with the private sector and the public to
develop partnership programs; 8) describes measures taken by
CBP to make the private sector aware of trade benefits
available to participants in partnership programs; and 9)
summarizes CBP's plans, targets, and goals with respect to
partnership programs for the two years following submission
of the report.
Senate Amendment
Section 101 of the Senate amendment is the same as section
101 of the House amendment with the exception of a difference
in the recipients of the report required in this section.
Conference Agreement
The conference agreement follows the House amendment.

SECTION 102. REPORT ON EFFECTIVENESS OF TRADE ENFORCEMENT ACTIVITIES

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

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

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

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

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

[[Page H9155]]

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

section 105. joint strategic plan

Present Law
No provision.
House Amendment
Section 105(a) requires the Commissioner of CBP and the
Director of ICE to create and submit to the Committee on
Finance and the Committee on Homeland Security and
Governmental Affairs of the Senate and the Committee on Ways
and Means and the Committee on Homeland Security of the House
of Representatives a biennial joint strategic plan on trade
facilitation and trade enforcement.
Section 105(b) requires the joint strategic plan to contain
a comprehensive plan for trade facilitation and trade
enforcement that includes: 1) a summary of the actions taken
during the 2-year period preceding submission of the plan to
improve trade facilitation and trade enforcement; 2) a
statement of objectives and plans for further improving trade
facilitation and trade enforcement; 3) a specific
identification of priority trade issues that can be addressed
to enhance trade enforcement and trade facilitation; 4) a
description of efforts made to improve consultation and
coordination among and within Federal agencies; 5) a
description of training that has occurred within CBP and ICE
to improve trade enforcement and trade facilitation; 6) a
description of efforts to work with the World Customs
Organization and other international organizations with
respect to enhancing trade facilitation and trade
enforcement; 7) a description of CBP organizational
benchmarks for optimizing staffing and wait times at ports of
entry; 8) a specific identification of any domestic or
international best practices that may further improve trade
enforcement and trade facilitation; 9) any legislative
recommendations to further improve trade facilitation and
trade enforcements; and 10) a description of efforts to
improve consultation and coordination with the private sector
to enhance trade facilitation and trade enforcement.
Section 105(c) requires the Commissioner and the Director
to consult with the appropriate Federal agencies and
appropriate officials from relevant law enforcement agencies,
international organizations, and interested parties in the
private sector.
Senate Amendment
Section 105 of the Senate amendment is the same as section
105 of the House amendment with exception the following
provisions. In addition to the reporting requirements
contained in section 105(b) of the House amendment, the
Senate amendment requires a description of trade enforcement
activities with respect to priority trade issues, including
methodologies used in enforcement activities, recommendations
for improving enforcement activities, and a description of
the implementation of previous recommendations for improving
enforcement activities. The amendments also differ in the
recipients of the required report.
Conference Agreement
The conference agreement follows the Senate amendment with
a modification. The Conferees agree to modify section 105(a)
to include the Committee on Finance and the Committee on
Homeland Security and Governmental Affairs of the Senate and
the Committee on Ways and Means and the Committee on Homeland
Security of the House of Representatives as recipients of the
required joint strategic plan.

section 106. automated commercial environment

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

section 107. international trade data system

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

[[Page H9156]]

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

section 108. consultations with respect to mutual recognition
arrangements

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

section 109. commercial customs operations advisory committee

Present Law
The Advisory Committee on Commercial Operations (COAC) of
the United States Customs Service was established in the
Omnibus Budget Reconciliation Act of 1987. The Department of
the Treasury Order No. 100-16, effective May 23, 2003,
specified that COAC would be administered jointly by the
Department of the Treasury and Department of Homeland
Security.
House Amendment
Section 109(a) requires the Secretary of the Treasury and
the Secretary of Homeland Security to jointly establish a
Commercial Customs Operations Advisory Committee (COAC).
Section 109(b) requires that COAC be comprised of 20
appointed individuals from the private sector, appointed
without regard to political affiliation; the Commissioner of
CBP and the Assistant Secretary of Treasury for Tax Policy,
who shall co-chair meetings; and the Assistant Secretary for
Policy of the Department of Homeland Security and the ICE
Director, who shall serve as deputy co-chairs of meetings.
Section 109(b) further requires that appointed private sector
individuals be representative of individuals and firms
affected by the commercial operations of CBP, and provides
that individuals may be appointed to multiple 3-year terms
but cannot serve more than two terms sequentially. The
Secretaries of the Treasury and Homeland Security are
authorized to transfer members to the COAC who are currently
serving on the Advisory Committee on Commercial Operations of
the United States Customs Service.
Section 109(c) establishes the duties of COAC, which shall
be to: 1) advise the Secretaries of the Treasury and Homeland
Security on all matters involving the commercial operations
of CBP and the investigations of ICE; 2) provide
recommendations to the Secretaries on improvements that CBP
and ICE should make to their commercial operations and
investigations; 3) collaborate in developing the agenda for
COAC meetings; and 4) perform other functions relating to the
commercial operations of CBP and the investigations of ICE as
prescribed by law or as directed by the Secretaries.
Section 109(d) establishes that: 1) COAC shall meet at the
call of the Secretary of the Treasury, the Secretary of
Homeland Security, or two-thirds of the membership of COAC;
2) COAC shall meet at least four times each calendar year;
and 3) that COAC meetings shall be open to the public unless
the Secretary of the Treasury or the Secretary of Homeland
Security determines that the meeting will include matters the
disclosure of which would compromise the development of
policies, priorities, or negotiating objectives or positions
that could impact the commercial operations of CBP of the
operations or investigations of ICE.
Section 109(e) requires COAC to submit an annual report to
the Senate Committee on Finance and the House Committee on
Ways and Means that describes the activities of COAC during
the preceding fiscal year and sets forth any recommendations
of COAC regarding the commercial operations of CBP.
Section 109(f) establishes that section 14(a)(2) of the
Federal Advisory Committee Act (5 U.S.C. App.), relating to
the termination of advisory committees, shall not apply to
COAC.
Senate Amendment
Section 109 of the Senate amendment is the same as section
109 of the House amendment.
Conference Agreement
The conference agreement follows the House amendment and
the Senate amendment with a modification. The Conferees have
agreed to strike Section 109(d)(2). The Conferees believe
that COAC meetings should normally be open to the public. The
Conferees recognize the need to close COAC meetings, in
portion or in whole, when a meeting will include matters the
disclosure of which would compromise the development of
policies, priorities, or negotiating objectives or positions
that could impact the operations of CBP or the operations or
investigations of ICE. The Conferees agree, however, that the
current procedures in the Federal Advisory Committee Act (5
U.S.C. App.) are sufficient to close COAC meetings, in
portion or in whole, when necessary.

section 110. centers for excellence and expertise

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

section 111. commercial risk assessment targeting and trade alerts

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

[[Page H9157]]

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

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

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

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

Present Law
No provision.
House Amendment
Section 113(a) requires the Secretaries of Homeland
Security and the Treasury to jointly submit a report to the
Senate Committee on Finance and the House Committee on Ways
and Means on efforts undertaken by CBP to ensure the secure
transportation of merchandise in bond through the United
States and the collection of revenue owed upon the entry of
such merchandise into the United States for consumption. The
report must be submitted no later than December 31 of 2016,
2017, and 2018.
Section 113(b) requires that each report required by
section 113(a) shall include information on: 1) the overall
number of entries of merchandise for transportation in bond
through the United States; 2) the ports at which merchandise
arrives in the United States for transportation in bond and
at which records of arrival of such merchandise are
generated; 3) the average time taken to reconcile such
records with the records at the final destination of
merchandise in the United States to demonstrate that the
merchandise reaches its final destination or is re-exported;
4) the average time taken to transport merchandise in bond
from the port at which the merchandise arrives in the United
States to its final destination in the United States; 5) the
total amount of duties, taxes, and fees owed with respect to
shipments of merchandise transported in bond and the total of
such duties, taxes, and fees paid; 6) the total number of
notifications by carriers of merchandise being transported in
bond that the destination of merchandise has changed; and
7) the number of entries that remain unreconciled.
Senate Amendment
Section 113 of the Senate amendment is the same as section
113 of the House amendment.
Conference Agreement
The conference agreement follows the House amendment and
the Senate amendment.

SECTION 114. IMPORTER OF RECORD PROGRAM

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

SECTION 115. ESTABLISHMENT OF IMPORTER RISK ASSESSMENT PROGRAM

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

[[Page H9158]]

importers based on the level of risk assessed by CBP for
revenue protection.
In establishing this program, section 115(b) requires CBP
to: 1) develop risk-based criteria to assess new importers;
2) develop risk assessment guidelines for new importers to
determine if and to what extent to adjust the bond amounts
and increase screening of imports of new importers; 3)
develop procedures to ensure increased oversight of imported
products of new importers relating to the enforcement of
priority trade issues; 4) develop procedures to ensure
increased oversight by Centers of Excellence and Expertise;
and 5) establish a centralized database of new importers to
ensure the accuracy of information provided by new importers
pursuant to the requirements of this section.
Senate Amendment
Section 115 of the Senate amendment is the same as section
115 of the House amendment.
Conference Agreement
The conference agreement follows the House amendment and
the Senate amendment except that the Commissioner is required
to establish a program that directs CBP to adjust bond
amounts for importers, including new importers and non-
resident importers, based on the level of risk assessed by
CBP for revenue protection.
In establishing this program, CBP is required to: 1)
develop risk-based guidelines to determine if and to what
extent to adjust bond amounts and screen imported products of
importers, including new and non-resident importers; 2)
develop procedures to ensure increased oversight of imported
products of new importers, including new non-resident
importers, relating to the enforcement of the priority trade
issues; 3) develop procedures to ensure increased oversight
of imported products of new importers, including new non-
resident importers, by Centers of Excellence and Expertise;
and 4) establish a centralized database of new importers,
including new non-resident importers, to ensure the accuracy
of information provided by such importers pursuant to the
requirements of this section. The requirements of this
section shall not apply to any importer that is a validated
Tier 2 or Tier 3 participant in the Customs-Trade Partnership
Against Terrorism program established under subtitle B of
title II of the SAFE Port Act (6 U.S.C. 961 et seq.).
No later than two years after the enactment of this Act,
the Inspector General of the Department of Treasury shall
submit to the Committee on Finance of the Senate and the
Committee on Ways and Means of the House of Representatives a
report detailing: 1) the risk assessment guidelines required
by this section; 2) the procedures developed to ensure
increased oversight of imported products of new importers,
including new non-resident importers, relating to the
enforcement of priority trade issues; 3) the procedures
developed to ensure increased oversight of imported products
of new importers, including new non-resident importers, by
Centers of Excellence and Expertise; and 4) the number of
bonds adjusted based on the risk assessment guidelines
required by this section.

SECTION 116. CUSTOMS BROKER IDENTIFICATION OF IMPORTERS

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

SECTION 117. PRIORITY TRADE ISSUES

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

SECTION 118. APPROPRIATE CONGRESSIONAL COMMITTEES DEFINED

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

Title II--Import Health and Safety

SECTION 201. INTERAGENCY IMPORT SAFETY WORKING GROUP

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

[[Page H9159]]

SECTION 202. JOINT IMPORT SAFETY RAPID RESPONSE PLAN

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

SECTION 203. TRAINING

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

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

SECTION 301. DEFINITION OF INTELLECTUAL PROPERTY RIGHTS

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

SECTION 302. EXCHANGE OF INFORMATION RELATED TO TRADE ENFORCEMENT

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

SECTION 303. SEIZURE OF CIRCUMVENTION DEVICES

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

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

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

SECTION 305. NATIONAL INTELLECTUAL PROPERTY RIGHTS COORDINATION CENTER

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

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

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

[[Page H9160]]

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

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

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

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

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

SECTION 309. INTERNATIONAL COOPERATION AND INFORMATION SHARING

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

SECTION 310. REPORT ON INTELLECTUAL PROPERTY RIGHTS ENFORCEMENT

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

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

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

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

SECTION 401. SHORT TITLE

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

SECTION 402. DEFINITIONS

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

SECTION 403. APPLICATION TO CANADA AND MEXICO

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

[[Page H9161]]

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

SECTION 411. TRADE REMEDY LAW ENFORCEMENT DIVISION

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

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

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

SECTION 413. ACCESS TO INFORMATION

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

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

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

section 415. trade negotiating objectives

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

Subtitle B--Investigation of Evasion of Trade Remedy Laws

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

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

[[Page H9162]]

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

[[Page H9163]]

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

section 422. government accountability office report

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

Subtitle C--Other Matters

section 431. allocation and training of personnel

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

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

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

section 433. addressing circumvention by new shippers

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

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

section 501. short title

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

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

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

section 503. state trade expansion program

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

section 504. state and federal export promotion coordination

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

[[Page H9164]]

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

section 505. state trade coordination

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

Title VI--Additional Enforcement Provisions

Subtitle A--Trade Enforcement

section 601. trade enforcement priorities

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

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

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

section 603. trade monitoring

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

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

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

[[Page H9165]]

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

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

Present Law
No provision.
House Amendment
Section 913(a) directs CBP to include in all distributions
of collected antidumping and countervailing duties any and
all interest earned on such duties that is, or was, realized
through any payments received on or after October 1, 2014
under, or in connection with, any customs bond pursuant to a
court order or judgment, or settlement.
Section 913(b) describes the distributions in subsection
(a) as all distributions made on or after enactment pursuant
to section 754 of the Trade Act of 1930 (19 USC 1675c) (as
that section was in effect on February 7, 2006) of collected
antidumping and countervailing duties assessed on or after
October 1, 2000 on entries made through September 30, 2007.
Senate Amendment
Section 609 of the Senate amendment is similar to section
913 of the House amendment. Senate section 609(a) provides
that the Secretary of Homeland Security shall deposit all
interest in subsection 609(c) into the special account
established under section 754(e) of the Tariff Act of 1930
for inclusion in distributions described in subsection 609(b)
made on or after the date of the enactment of this Act.
Section 609(b) defines distributions as those made under
section 754 of the Tariff Act of 1930 (19 U.S.C. 1675c)
(repealed by subtitle F of title VII of the Deficit Reduction
Act of 2005 (Public Law 109-171; 120 Stat. 154)) with respect
to entries of merchandise made on or before September 30,
2007 and that were unliquidated, not in litigation, and not
under an order of liquidation on December 8, 2010.
Section 609(c) defines interest as an amount earned on
antidumping duties or countervailing duties distributed in
subsection (b) that is realized through application of a
payment received on or after October 1, 2014 by CBP or in
connection with a customs bond pursuant to a court order or a
settlement for any such bond. It further provides that the
types of interest include interest accrued under section 778
or 505(d) of the Trade Act of 1930, or equitable interest
under common law, or interest under section 963 of the
Revised Statutes awarded by a court against a surety under
its bond for late payment of antidumping duties,
countervailing duties, or other interest.
Conference Agreement
The conference agreement follows the Senate amendment with
a modification. The Conferees agree to describe interest in
section 609(c) as an amount earned on antidumping duties or
countervailing duties in subsection (b) that is realized
through application of a payment received on or after October
1, 2014 by CBP under, or in connection with, a customs bond
pursuant to a court order or judgment, or a settlement with
respect to a customs bond, including any payment to CBP with
respect to that bond by a surety.

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

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

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

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

SECTION 608. HONEY TRANSSHIPMENT

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

[[Page H9166]]

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

SECTION 609. ESTABLISHMENT OF CHIEF INNOVATION AND INTELLECTUAL
PROPERTY NEGOTIATOR

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

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

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

SECTION 611. TRADE ENFORCEMENT TRUST FUND

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

Title VII--Currency Manipulation

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

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

[[Page H9167]]

SECTION 702. ADVISORY COMMITTEE ON INTERNATIONAL EXCHANGE RATE POLICY

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

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

SECTION 801. SHORT TITLE

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

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

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

[[Page H9168]]

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

Subtitle B--Preclearance Operations

SECTION 811. SHORT TITLE

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

SECTION 812. DEFINITION

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

SECTION 813. ESTABLISHMENT OF PRECLEARANCE OPERATIONS

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

SECTION 814. NOTIFICATION AND CERTIFICATION TO CONGRESS

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

SECTION 815. PROTOCOLS

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

SECTION 816. LOST AND STOLEN PASSPORTS

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

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

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

[[Page H9169]]

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

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

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

SECTION 819. APPLICATION TO NEW AND EXISTING PRECLEARANCE OPERATIONS

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

Title IX--Miscellaneous Provisions

SECTION 901. DE MINIMIS VALUE

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

SECTION 902. CONSULTATION ON TRADE AND CUSTOMS REVENUE FUNCTIONS

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

SECTION 903. PENALTIES FOR CUSTOMS BROKERS

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

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

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

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

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

SECTION 906. DRAWBACK AND REFUNDS

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

[[Page H9170]]

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

[[Page H9171]]

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

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

Present Law
Section 560 of the Department of Homeland Security
Appropriations Act of 2013 authorizes CBP to enter into
certain reimbursable fee agreements for the provision of CBP
services.
Section 559 of the Department of Homeland Security
Appropriations Act of 2014 establishes a pilot program
authorizing CBP to enter into partnerships with private
sector and government entities at ports of entry.
House Amendment
Section 911 requires the Commissioner to submit to Congress
a detailed annual report on each reimbursable agreement and
public-private partnership agreement into which CBP enters.
Each report must include: 1) a description of the development
of the program; 2) a description of the type of entity with
which CBP entered into the agreement and the amount that
entity reimbursed CBP under the agreement; 3) an
identification of the type of port of entry to which the
agreement relates and an assessment of how the agreement
provides economic benefits at the port of entry; 4) a
description of the services provided by CBP under the
agreement during the year preceding the submission of the
report; 5) the amount of fees collected under the agreement
during that year; 6) a detailed accounting of how the fees
collected under the agreement have been spent during that
year; 7) a summary of any complaints or criticism received by
CBP during that year regarding the agreement; 8) an
assessment of the compliance with the terms of the agreement
of the entity that entered into an agreement with CBP; 9)
recommendations with respect to how activities conducted
pursuant to the agreement could function more effectively or
better produce economic benefits; and 10) a summary of the
benefits to and challenges faced by CBP and the entity that
entered into an agreement with CBP.
Senate Amendment
Section 909 of the Senate amendment is the same as section
911 of the House amendment except with respect to the
recipients of the report required in this section.
Conference Agreement
The conference agreement follows the Senate amendment and
House amendment with modifications. For agreements with an
airport operator, the Conferees agree to require CBP to
include in the annual report a detailed account of revenues
collected by CBP to cover its operating costs at that airport
from fees collected under the agreement and fees collected
from other sources, including fees paid by passengers and
aircraft operators. Further, subsection (a) is modified to
require CBP to identify the authority under which a program
operates and to require the reporting of the total operating
expenses of a program, and subsection (b) is modified to
cover the program under which CBP collects a fee for the use
of customs services at designated facilities under 19 U.S.C.
58b. The conference agreement also incorporates reporting
related to the preclearance program established by subtitle B
of title VIII.

SECTION 908. CHARTER FLIGHTS

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

SECTION 909. UNITED STATES-ISRAEL TRADE AND COMMERCIAL ENHANCEMENT

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

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

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

SECTION 911. VOLUNTARY RELIQUIDATIONS

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

section 912. tariff classification of recreational performance
outerwear

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

section 913. modifications of duty treatment of protective active
footwear

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

[[Page H9172]]

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

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

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

section 915. trade preferences for nepal

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

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

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

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

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

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

Present Law
No provision.
House Amendment
No provision.
Senate Amendment
Section 907 of the Senate amendment requires that, when the
President submits to the Senate for its advice and consent a
nomination of an individual for appointment as a Deputy
United States Trade Representative, the President shall
include in that submission information on the country,
regional offices, and functions of the Office of the United
States Trade Representative with respect to which that
individual will have responsibility.
Conference Agreement
The conference agreement follows the Senate amendment with
additional reporting requirements.

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

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

section 920. customs user fees

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

[[Page H9173]]

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

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

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

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

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

MINORITY VIEWS

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

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

____________________