[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 106 Introduced in Senate (IS)]
103d CONGRESS
1st Session
S. 106
To modernize the United States Customs Service.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 21 (legislative day, January 5), 1993
Mr. Hatch (for himself, Mr. Rockefeller, Mr. Roth, Mr. Grassley, and
Mr. Danforth) introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To modernize the United States Customs Service.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Customs
Modernization and Informed Compliance Act''.
(b) Reference.--Whenever in title I, II, or III of this Act an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a part, section, subsection, or other provision, the reference
shall be considered to be made to a part, section, subsection, or other
provision of the Tariff Act of 1930 (19 U.S.C. 1202 et seq.).
(c) Table of Contents.--The table of contents is as follows:
Section 1. Short title; reference; table of contents.
TITLE I--IMPROVEMENTS IN CUSTOMS ENFORCEMENT
Sec. 101. Penalties for violations of arrival, reporting, entry, and
clearance requirements.
Sec. 102. Failure to declare.
Sec. 103. Customs testing laboratories; detention of merchandise.
Sec. 104. Recordkeeping.
Sec. 105. Examination of books and witnesses.
Sec. 106. Judicial enforcement.
Sec. 107. Review of protests.
Sec. 108. Repeal of provision relating to reliquidation on account of
fraud.
Sec. 109. Penalties relating to manifests.
Sec. 110. Unlawful unlading or transshipment.
Sec. 111. Penalties for fraud, gross negligence, and negligence; prior
disclosure.
Sec. 112. Penalties for false drawback claims.
Sec. 113. Interpretive rulings and decisions; public information.
Sec. 114. Seizure authority.
TITLE II--NATIONAL CUSTOMS AUTOMATION PROGRAM
Sec. 201. National customs automation program.
Sec. 202. Drawback and refunds.
Sec. 203. Effective date of rates of duty.
Sec. 204. Definitions.
Sec. 205. Manifests.
Sec. 206. Invoice contents.
Sec. 207. Entry of merchandise.
Sec. 208. Appraisement and other procedures.
Sec. 209. Voluntary reliquidations.
Sec. 210. Appraisement regulations.
Sec. 211. Limitation on liquidation.
Sec. 212. Payment of duties and fees.
Sec. 213. Abandonment and damage.
Sec. 214. Customs officer's immunity.
Sec. 215. Protests.
Sec. 216. Refunds and errors.
Sec. 217. Bonds and other security.
Sec. 218. Customhouse brokers.
Sec. 219. Conforming amendments.
TITLE III--MISCELLANEOUS AMENDMENTS TO THE TARIFF ACT OF 1930
Sec. 301. Administrative exemptions.
Sec. 302. Report of arrival.
Sec. 303. Entry of vessels.
Sec. 304. Unlawful return of foreign vessel papers.
Sec. 305. Vessels not required to enter.
Sec. 306. Unlading.
Sec. 307. Declarations.
Sec. 308. General orders.
Sec. 309. Unclaimed merchandise.
Sec. 310. Destruction of merchandise.
Sec. 311. Proceeds of sale.
Sec. 312. Entry under regulations.
Sec. 313. American trademarks.
Sec. 314. Seizure.
Sec. 315. Customs Forfeiture Fund.
Sec. 316. Limitation on actions.
Sec. 317. Collection of fees on behalf of other agencies.
Sec. 318. Authority to settle claims.
Sec. 319. Use of private collection agencies.
TITLE IV--MISCELLANEOUS PROVISIONS AND CONSEQUENTIAL AND CONFORMING
AMENDMENTS TO OTHER LAWS
Sec. 401. Amendments to the Harmonized Tariff Schedule.
Sec. 402. Amendment to the Internal Revenue Code of 1986.
Sec. 403. Amendments to title 28, United States Code.
Sec. 404. Amendments to the revised statutes of the United States.
Sec. 405. Amendments to title 18, United States Code.
Sec. 406. Amendment to the Act to Prevent Pollution from Ships.
Sec. 407. Amendments to the Act of November 6, 1966.
Sec. 408. Repeal of obsolete provisions of law.
Sec. 409. Reports to Congress.
Sec. 410. Applicability of amendments to entry or withdrawal of goods.
TITLE I--IMPROVEMENTS IN CUSTOMS ENFORCEMENT
SEC. 101. PENALTIES FOR VIOLATIONS OF ARRIVAL, REPORTING, ENTRY, AND
CLEARANCE REQUIREMENTS.
Section 436 (19 U.S.C. 1436) is amended--
(1) by amending subsection (a)--
(A) by striking out ``433'' in paragraph (1) and
inserting ``431, 433, or 434 of this Act or section
4197 of the Revised Statutes of the United States (46
U.S.C. App. 91)'',
(B) by amending paragraph (2) to read as follows:
``(2) to present or transmit, electronically or otherwise,
any forged, altered, or false document, paper information, data
or manifest to the Customs Service under section 431(e),
433(d), or 434 of this Act or section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91) without
revealing the facts; or'', and
(C) by amending paragraph (3) to read as follows:
``(3) to fail to make entry or to obtain clearance as
required by section 434 or 644 of this Act, section 4197 of the
Revised Statutes of the United States (46 U.S.C. App. 91), or
section 1109 of the Federal Aviation Act of 1958 (49 U.S.C.
App. 1509); or''; and
(2) by striking out ``and entry'' in the section heading
and inserting ``entry, and clearance''.
SEC. 102. FAILURE TO DECLARE.
Section 497(a) (19 U.S.C. 1497(a)) is amended--
(1) by inserting ``or transmitted'' after ``made'' in
paragraph (1)(A); and
(2) by amending paragraph (2)(A) to read as follows:
``(A) if the article is a controlled substance,
either $500 or an amount equal to 1,000 percent of the
value of the article, whichever amount is greater;
and''.
SEC. 103. CUSTOMS TESTING LABORATORIES; DETENTION OF MERCHANDISE.
(a) Amendment.--Section 499 (19 U.S.C. 1499) is amended to read as
follows:
``SEC. 499. EXAMINATION OF MERCHANDISE.
``(a) Entry Examination.--
``(1) In general.--Imported merchandise that is required by
law or regulation to be inspected, examined, or appraised shall
not be delivered from customs custody (except under such bond
or other security as may be prescribed by the Secretary to
assure compliance with all applicable laws, regulations, and
instructions which the Secretary or the Customs Service is
authorized to enforce) until the merchandise has been
inspected, appraised, or examined and is reported by the
Customs Service to have been truly and correctly invoiced and
found to comply with the requirements of the laws of the United
States.
``(2) Examination.--The Customs Service--
``(A) shall designate the packages or quantities of
merchandise covered by any invoice or entry which are
to be opened and examined for the purpose of
appraisement or otherwise;
``(B) shall order such packages or quantities to be
sent to such place as is designated by the Secretary by
regulation for such purpose;
``(C) may require such additional packages or
quantities as the Secretary considers necessary for
such purpose; and
``(D) shall inspect a sufficient number of
shipments, and shall examine a sufficient number of
entries, to ensure compliance with the laws enforced by
the Customs Service.
``(3) Unspecified articles.--If any package contains any
article not specified in the invoice or entry and, in the
opinion of the Customs Service, the article was omitted from
the invoice or entry--
``(A) with fraudulent intent on the part of the
seller, shipper, owner, agent, importer of record, or
entry filer, the contents of the entire package in
which such article is found shall be subject to
seizure; or
``(B) without fraudulent intent, the value of the
article shall be added to the entry and the duties,
fees, and taxes thereon paid accordingly.
``(4) Deficiency.--If a deficiency is found in quantity,
weight, or measure in the examination of any package, the
person finding the deficiency shall make a report thereof to
the Customs Service. The Customs Service shall make allowance
for the deficiency in the liquidation of duties.
``(5) Information required for release.--If an examination
is conducted, any information required for release shall be
provided, either electronically or in paper form, to the
Customs Service at the port of examination. The absence of such
information does not limit the authority of the Customs Service
to conduct an examination.
``(b) Testing Laboratories.--
``(1) Accreditation of private testing laboratories.--The
Customs Service shall establish and implement a procedure,
under regulations promulgated by the Secretary, for accrediting
private laboratories within the United States which may be used
to perform tests (that would otherwise be performed by Customs
Service laboratories) to establish the characteristics,
quantities, or composition of imported merchandise. Such
regulations--
``(A) shall establish the conditions required for
the laboratories to receive and maintain accreditation
for purposes of this subsection;
``(B) shall establish the conditions regarding the
suspension and revocation of accreditation, which may
include the imposition of a monetary penalty not to
exceed $100,000 and such penalty is in addition to the
recovery, from a gauger or laboratory accredited under
paragraph (1), of any loss of revenue that may have
occurred, but the Customs Service--
``(i) may seek to recover lost revenue only
in cases where the gauger or laboratory
intentionally falsified the analysis or gauging
report in collusion with the importer; and
``(ii) shall neither assess penalties nor
seek to recover lost revenue because of a good
faith difference of professional opinion; and
``(C) may provide for the imposition of a
reasonable charge for accreditation and periodic
reaccreditation.
The collection of any charge for accreditation and
reaccreditation under this section is not prohibited by section
13031(e)(6) of the Consolidated Omnibus Budget Reconciliation
Act of 1985 (19 U.S.C. 58c(e)(6)).
``(2) Appeal of adverse accreditation decisions.--A
laboratory applying for accreditation, or that is accredited,
under this section may contest any decision or order of the
Customs Service denying, suspending, or revoking accreditation,
or imposing a monetary penalty, by commencing an action in
accordance with chapter 169 of title 28, United States Code, in
the Court of International Trade within 60 days after issuance
of the decision or order.
``(3) Testing by accredited laboratories.--When requested
by an importer of record of merchandise, the Customs Service
shall authorize the release to the importer of a representative
sample of the merchandise for testing, at the expense of the
importer, by a laboratory accredited under paragraph (1). The
testing results from a laboratory accredited under paragraph
(1) that are submitted by an importer of record with respect to
merchandise in an entry shall, in the absence of testing
results obtained from a Customs Service laboratory, be accepted
by the Customs Service if the importer of record certifies that
the sample tested was taken from the merchandise in the entry.
Nothing in this subsection shall be construed to limit in any
way or preclude the authority of the Customs Service to test or
analyze any sample or merchandise independently.
``(4) Availability of testing procedure, methodologies, and
information.--Testing procedures and methodologies used by the
Customs Service, and information resulting from any testing
conducted by the Customs Service, shall be made available as
follows:
``(A) Testing procedures and methodologies shall be
made available upon request to any person unless the
procedures or methodologies are--
``(i) proprietary to the holder of a
copyright or patent related to such procedures
or methodologies; or
``(ii) developed by the Customs Service for
enforcement purposes.
``(B) Information resulting from testing shall be
made available upon request to the importer of record
and any agent thereof unless the information--
``(i) is proprietary to the holder of a
copyright or patent related to the procedures
or methodologies; or
``(ii) reveals information developed by the
Customs Service for enforcement purposes.
``(5) Miscellaneous provisions.--For purposes of this
subsection--
``(A) any reference to a private laboratory
includes a reference to a private gauger; and
``(B) accreditation of private laboratories extends
only to the performance of functions by such
laboratories that are within the scope of those
responsibilities for determinations of the elements
relating to admissibility, quantity, composition, or
characteristics of imported merchandise that are vested
in, or delegated to, the Customs Service.
``(c) Detentions.--Except in the case of merchandise with respect
to which the determination of admissibility is vested in an agency
other than the Customs Service, the following apply:
``(1) In general.--Within the 5-day period (excluding
weekends and holidays) following the date on which merchandise
is presented for customs examination, the Customs Service shall
decide whether to release or detain the merchandise.
Merchandise which is not released within such 5-day period
shall be considered to be detained merchandise.
``(2) Notice of detention.--The Customs Service shall issue
a notice to the importer or other party having an interest in
detained merchandise no later than 5 days, excluding weekends
and holidays, after the decision to detain the merchandise is
made. The notice shall advise the importer or other interested
party of--
``(A) the initiation of the detention;
``(B) the specific reason for the detention;
``(C) the anticipated length of the detention;
``(D) the nature of the tests or inquiries to be
conducted; and
``(E) the nature of any information which, if
supplied to the Customs Service, may accelerate the
disposition of the detention.
``(3) Testing results.--Upon request by the importer or
other party having an interest in detained merchandise, the
Customs Service shall provide the party with copies of the
results of any testing conducted by the Customs Service on the
merchandise and a description of the testing procedures and
methodologies (unless such procedures or methodologies are
proprietary to the holder of a copyright or patent or were
developed by the Customs Service for enforcement purposes). The
results and test description shall be in sufficient detail to
permit the duplication and analysis of the testing and the
results.
``(4) Seizure and forfeiture.--If otherwise provided by
law, detained merchandise may be seized and forfeited.
``(5) Effect of failure to make determination.--
``(A) The failure by the Customs Service to make a
final determination with respect to the admissibility
of detained merchandise within 30 days after the
merchandise has been presented for customs examination,
or such longer period if specifically authorized by
law, shall be treated as a decision of the Customs
Service to exclude the merchandise for purposes of
section 514(a)(4).
``(B) For purposes of section 1581 of title 28,
United States Code, a protest against the decision to
exclude the merchandise which has not been allowed or
denied in whole or in part before the 30th day after
the day on which the protest was filed shall be treated
as having been denied on such 30th day.
``(C) Notwithstanding section 2639 of title 28,
United States Code, once an action respecting a
detention is commenced, unless the Customs Service
establishes by a preponderance of the evidence that an
admissibility decision has not been reached for good
cause, the court shall grant the appropriate relief
which may include, but is not limited to, an order to
cancel the detention and release the merchandise.''.
(b) Existing Laboratories.--Accreditation under section 499(b) of
the Tariff Act of 1930 (as added by subsection (a)) is not required for
any private laboratory (including any gauger) that was accredited or
approved by the Customs Service as of the day before the date of the
enactment of this Act; but any such laboratory is subject to
reaccreditation under the provisions of such section and the
regulations promulgated thereunder.
SEC. 104. RECORDKEEPING.
Section 508 (19 U.S.C. 1508) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Requirements.--Any--
``(1) owner, importer, consignee, importer of record, entry
filer, or other party who--
``(A) imports, files a drawback claim, or
transports or stores merchandise carried or held under
bond, or
``(B) knowingly causes the importation or
transportation or storage of merchandise carried or
held under bond into or from the customs territory of
the United States;
``(2) agent of any party described in paragraph (1); or
``(3) person whose activities require the filing of a
declaration or entry, or both;
shall make, keep, and render for examination and inspection such
records (including, but not limited to, statements, declarations,
documents and electronically generated or machine readable data)
which--
``(A) pertain to any such activity, or to the information
contained in the documents, records or electronically generated
or machine readable data required by this Act in connection
with such activity; and
``(B) are normally kept in the ordinary course of
business.''; and
(2) by amending subsection (c) to read as follows:
``(c) Period of Time.--The records required by subsections (a) and
(b) shall be kept for such period of time, not to exceed 5 years from
the date of entry or exportation, as appropriate, as the Secretary
shall prescribe; except that records for any drawback claim shall be
kept until the 3rd anniversary of the date of payment of the claim.''.
SEC. 105. EXAMINATION OF BOOKS AND WITNESSES.
Section 509 (19 U.S.C. 1509) is amended as follows:
(1) Subsection (a) is amended--
(A) by striking out ``and taxes'' wherever it
appears and inserting ``, fees and taxes'';
(B) by inserting ``or electronically generated or
machine readable data,'' after ``other document,'' in
paragraph (1);
(C) by striking out the semicolon at the end of
paragraph (1) and inserting ``, except that--
``(A) if such record, statement, declaration,
document, or electronically stored or transmitted
information or data is required by law or regulation
for the entry of the merchandise (whether or not the
Customs Service required its presentation at the time
of entry) it shall be provided to the Customs Service
within a reasonable time after demand for its
production is made, taking into consideration the
number, type, and age of the item demanded; and
``(B) if a person of whom demand is made under
subparagraph (A) fails to comply with the demand, the
person may be subject to penalty under subsection
(g);'';
(D) by amending that part of paragraph (2) that
precedes subparagraph (D) to read as follows:
``(2) summon, upon reasonable notice--
``(A) the person who--
``(i) imported, or knowingly caused to be
imported, merchandise into the customs
territory of the United States,
``(ii) exported merchandise, or knowingly
caused merchandise to be exported, to Canada,
``(iii) transported or stored merchandise
that was or is carried or held under customs
bond, or knowingly caused such transportation
or storage, or
``(iv) filed a declaration, entry, or
drawback claim with the Customs Service;
``(B) any officer, employee, or agent of any person
described in subparagraph (A);
``(C) any person having possession, custody or care
of records (including electronically generated or
machine readable data) relating to the importation or
other activity described in subparagraph (A); or''; and
(E) by striking out the comma at the end of
subparagraph (D) and inserting a semicolon.
(2) Subsections (b) and (c) are redesignated as subsections
(c) and (d), respectively.
(3) The following new subsection is inserted after
subsection (a):
``(b) Regulatory Audit Procedures.--
``(1) In conducting a regulatory audit under this section
(which does not include a quantity verification for a customs
bonded warehouse or general purpose foreign trade zone), the
Customs Service auditor shall provide the person being audited,
in advance of the audit, with a reasonable estimate of the time
to be required for the audit. If in the course of an audit it
becomes apparent that additional time will be required, the
Customs Service auditor shall immediately provide a further
estimate of such additional time.
``(2) Before commencing an audit, the Customs Service
auditor shall inform the party to be audited of his right to an
entry conference at which time the purpose will be explained
and an estimated termination date set. Upon completion of on-
site audit activities, the Customs Service auditor shall
schedule a closing conference to explain the preliminary
results of the audit.
``(3) Except as provided in paragraph (5), if the estimated
or actual termination date for an audit passes without the
Customs Service auditor providing a closing conference to
explain the results of the audit, the person being audited may
petition in writing for such a conference to the appropriate
regional commissioner, who, upon receipt of such a request,
shall provide for such a conference to be held within 15 days
after the date of receipt.
``(4) Except as provided in paragraph (5), the Customs
Service auditor shall complete the formal written audit report
within 90 days following the closing conference unless the
appropriate regional commissioner provides written notice to
the person being audited of the reason for any delay and the
anticipated completion date. After application of any exemption
contained in section 552 of title 5, United States Code, a copy
of the formal written audit report shall be sent to the person
audited no later than 30 days following completion of the
report.
``(5) Paragraphs (3) and (4) shall not apply after the
Customs Service commences a formal investigation with respect
to the issue involved.''.
(4) Subsection (d) (as redesignated by paragraph (2)) is
amended--
(A) by striking out ``or documents'' in paragraph
(1)(A) and inserting ``documents, or electronically
generated or machine readable data'';
(B) by inserting ``, unless such customhouse broker
is the importer of record on an entry'' after
``broker'' in paragraph (1)(C)(i);
(C) by striking out ``import'' in each of
paragraphs (2)(B) and (4)(B);
(D) by inserting ``described in section 508'' after
``transactions'' in each of paragraphs (2)(B) and
(4)(B); and
(E) by inserting ``, fees,'' after ``duties'' in
paragraph (4)(A).
(5) The following new subsections are added at the end
thereof:
``(e) List of Records and Information.--The Customs Service shall
identify and publish a list of the records or entry information that is
required to be maintained and produced under subsection (a)(1)(A).
``(f) Recordkeeping Compliance Program.--
``(1) In general.--After consultation with the importing
community, the Customs Service shall by regulation establish a
recordkeeping compliance program which the parties listed in
section 508(a) may participate in after being certified by the
Customs Service under paragraph (2). Participation in the
recordkeeping compliance program by recordkeepers is voluntary.
``(2) Certification.--A recordkeeper may be certified as a
participant in the recordkeeping compliance program after
meeting the general recordkeeping requirements established
under the program or after negotiating an alternative program
suited to the needs of the recordkeeper and the Customs
Service. Certification requirements shall take into account the
size and nature of the importing business and the volume of
imports. In order to be certified, the recordkeeper must be
able to demonstrate that it--
``(A) understands the legal requirements for
recordkeeping, including the nature of the records
required to be maintained and produced and the time
periods involved;
``(B) has in place procedures to explain the
recordkeeping requirements to those employees who are
involved in the preparation, maintenance, and
production of required records;
``(C) has in place procedures regarding the
preparation and maintenance of required records, and
the production of such records to the Customs Service;
``(D) has designated a dependable individual or
individuals to be responsible for recordkeeping
compliance under the program and whose duties include
maintaining familiarity with the recordkeeping
requirements of the Customs Service;
``(E) has a record maintenance procedure approved
by the Customs Service for original records, or, if
approved by the Customs Service, for alternative
records or recordkeeping formats other than the
original records; and
``(F) has procedures for notifying the Customs
Service of occurrences of variances to, and violations
of, the requirements of the recordkeeping compliance
program or the negotiated alternative programs, and for
taking corrective action when notified by the Customs
Service of violations or problems regarding such
program.
``(g) Penalties.--
``(1) Definition.--For purposes of this subsection, the
term `information' means any record, statement, declaration,
document, or electronically stored or transmitted information
or data referred to in subsection (a)(1)(A).
``(2) Effects of failure to comply with demand.--Except as
provided in paragraph (4), if a person fails to comply with a
lawful demand for information under subsection (a)(1)(A) the
following provisions apply:
``(A) If the failure to comply is a result of the
willful failure of the person to maintain, store, or
retrieve the demanded information, such person shall be
subject to a penalty, for each release of merchandise,
not to exceed $100,000, or an amount equal to 75
percent of the appraised value of the merchandise,
whichever amount is less.
``(B) If the failure to comply is a result of the
negligence of the person in maintaining, storing, or
retrieving the demanded information, such person shall
be subject to a penalty, for each release of
merchandise, not to exceed $10,000, or an amount equal
to 40 percent of the appraised value of the
merchandise, whichever amount is less.
``(C) In addition to any penalty imposed under
subparagraph (A) or (B) regarding demanded information,
if such information related to the eligibility of
merchandise for a column 1 special rate of duty under
title I, the entry of such merchandise--
``(i) if unliquidated, shall be liquidated
at the applicable column 1 general rate of
duty; or
``(ii) if liquidated within the 2-year
period preceding the date of the demand, shall
be reliquidated, notwithstanding the time
limitation in section 514 or 520, at the
applicable column 1 general rate of duty;
except that any liquidation or reliquidation under
clause (i) or (ii) shall be at the applicable column 2
rate of duty if the Customs Service demonstrates that
the merchandise should be dutiable at such rate.
``(3) Avoidance of penalty.--No penalty may be assessed
under this subsection if the person can show--
``(A) that the loss of the demanded information was
the result of an act of God or other natural casualty
or disaster beyond the fault of such person or an agent
of the person;
``(B) on the basis of other evidence satisfactory
to the Customs Service, that the demand was
substantially complied with; or
``(C) the information demanded was presented to and
retained by the Customs Service at the time of entry or
submitted in response to an earlier demand.
``(4) Penalties not exclusive.--Any penalty imposed under
this subsection shall be in addition to any other penalty
provided by law except for--
``(A) a penalty imposed under section 592 for a
material omission of the demanded information, or
``(B) disciplinary action taken under section 641.
``(5) Remission or mitigation.--A penalty imposed under
this section may be remitted or mitigated under section 618.
``(6) Customs summons.--Nothing in this subsection shall
limit or preclude the Customs Service from issuing, or seeking
the enforcement of, a customs summons.
``(7) Alternatives to penalties.--
``(A) In general.--When a recordkeeper who--
``(i) has been certified as a participant
in the recordkeeping compliance program under
subsection (f); and
``(ii) is generally in compliance with the
appropriate procedures and requirements of the
program;
does not produce a demanded record or information for a
specific release or provide the information by
acceptable alternative means, the Customs Service, in
the absence of willfulness or repeated violations,
shall issue a written notice of the violation to the
recordkeeper in lieu of a monetary penalty. Repeated
violations by the recordkeeper may result in the
issuance of penalties and removal of certification
under the program until corrective action, satisfactory
to the Customs Service, is taken.
``(B) Contents of notice.--A notice of violation
issued under subparagraph (A) shall--
``(i) state that the recordkeeper has
violated the recordkeeping requirements;
``(ii) indicate the record or information
which was demanded; and
``(iii) warn the recordkeeper that future
failures to produce demanded records or
information may result in the imposition of
monetary penalties.
``(C) Response to notice.--Within a reasonable time
after receiving written notice under subparagraph (A),
the recordkeeper shall notify the Customs Service of
the steps it has taken to prevent a recurrence of the
violation.
``(D) Regulations.--The Secretary shall promulgate
regulations to implement this paragraph. Such
regulations may specify the time periods for compliance
with a demand for information and provide guidelines
which define repeated violations for purposes of this
paragraph. Any penalty issued for a recordkeeping
violation shall take into account the degree of
compliance compared to the total number of
importations, the nature of the demanded records and
the recordkeeper's cooperation.''.
SEC. 106. JUDICIAL ENFORCEMENT.
The second sentence of section 510(a) (19 U.S.C. 1510(a)) is
amended by inserting ``and such court may assess a monetary penalty''
after ``as a contempt thereof''.
SEC. 107. REVIEW OF PROTESTS.
Section 515 (19 U.S.C. 1515) is amended by inserting at the end the
following new subsections:
``(c) If a protesting party believes that an application for
further review was erroneously or improperly denied or was denied
without authority for such action, it may file with the Commissioner of
Customs a written request that the denial of the application for
further review be set aside. Such request must be filed within 90 days
after the date of the notice of the denial. The Commissioner of Customs
may review such request and, based solely on the information before the
Customs Service at the time the application for further review was
denied, may set aside the denial of the application for further review
and void the denial of protest, if appropriate. If the Commissioner of
Customs fails to act within 30 days after the date of the request, the
request shall be considered denied. All denials of protests are
effective from the date of original denial for purposes of section 2636
of title 28, United States Code. If an action is commenced in the Court
of International Trade that arises out of a protest or an application
for further review, all administrative action pertaining to such
protest or application shall terminate and any administrative action
taken subsequent to the commencement of the action is null and void.
``(d) If a protest is timely and properly filed, but is denied
contrary to proper instructions, the Customs Service may on its own
initiative, or pursuant to a written request by the protesting party
filed with the appropriate district director within 90 days after the
date of the protest denial, void the denial of the protest.''.
SEC. 108. REPEAL OF PROVISION RELATING TO RELIQUIDATION ON ACCOUNT OF
FRAUD.
Section 521 (19 U.S.C. 1521) is repealed.
SEC. 109. PENALTIES RELATING TO MANIFESTS.
Section 584 (19 U.S.C. 1584) is amended--
(1) by amending subsection (a)--
(A) by striking out ``appropriate customs officer''
wherever it appears and inserting ``Customs Service'',
(B) by striking out ``officer demanding the same''
in paragraph (1) and inserting ``officer (whether of
the Customs Service or the Coast Guard) demanding the
same'', and
(C) by inserting ``(electronically or otherwise)''
after ``submission'' in the last sentence of paragraph
(1); and
(2) by amending subsection (b)--
(A) by striking out ``the appropriate customs
officer'', ``he'' (except in paragraph (1)(F)), and
``such officer'' wherever they appear and inserting
``the Customs Service'',
(B) by striking out ``written'' wherever it appears
(other than paragraph (1)(F)),
(C) by inserting ``or electronically transmit''
after ``issue'' wherever it appears, and
(D) by striking out ``his intention'' in the first
sentence of paragraph (1) and inserting ``intent''.
SEC. 110. UNLAWFUL UNLADING OR TRANSSHIPMENT.
Section 586 (19 U.S.C. 1586) is amended--
(1) by inserting ``, or of a hovering vessel which has
received or delivered merchandise while outside the territorial
sea,'' after ``from a foreign port or place'' wherever it
appears; and
(2) by amending subsection (f)--
(A) by striking out ``the appropriate customs
officer of the'' and ``the appropriate customs officer
within the'' and inserting ``the Customs Service at
the''; and
(B) by striking out ``the appropriate customs
officer is'' and inserting ``the Customs Service is''.
SEC. 111. PENALTIES FOR FRAUD, GROSS NEGLIGENCE, AND NEGLIGENCE; PRIOR
DISCLOSURE.
Section 592 (19 U.S.C. 1592) is amended--
(1) by inserting ``or electronically transmitted data or
information'' after ``document'' in subsection (a)(1)(A)(i);
(2) by inserting ``The mere nonintentional repetition by an
electronic system of an initial clerical error does not
constitute a pattern of negligent conduct.'' at the end of
subsection (a)(2);
(3) by amending subsection (b)--
(A) by amending the first sentence of paragraph
(1)(A)--
(i) by striking out ``the appropriate
customs officer'' and inserting ``the Customs
Service'',
(ii) by striking out ``he'' and inserting
``it'', and
(iii) by striking out ``his'' and inserting
``its'', and
(B) by amending paragraph (2)--
(i) by striking out ``the appropriate
customs officer'' wherever it appears and
inserting ``the Customs Service'',
(ii) by striking out ``such officer''
wherever it appears and inserting ``the Customs
Service'', and
(iii) by striking out ``he'' wherever it
appears and inserting ``it'';
(4) by amending subsection (c)(4)--
(A) by striking ``time of disclosure or within
thirty days, or such longer period as the appropriate
customs officer may provide, after notice by the
appropriate customs officer of his'' in subparagraphs
(A)(i) and (B), and inserting ``time of disclosure, or
within 30 days (or such longer period as the Customs
Service may provide) after notice by the Customs
Service of its''; and
(B) by inserting after the last sentence the
following: ``For purposes of this section, a formal
investigation of a violation is considered to be
commenced with regard to the disclosing party and the
disclosed information on the date recorded in writing
by the Customs Service as the date on which facts and
circumstances were discovered or information was
received which caused the Customs Service to believe
that a possibility of a violation of subsection (a)
existed.''; and
(5) by amending subsection (d)--
(A) by striking out ``the appropriate customs
officer'' and inserting ``the Customs Service'',
(B) by striking out ``duties'' wherever it appears
and inserting ``duties, taxes, or fees'', and
(C) by inserting ``, Taxes or Fees'' after
``Duties'' in the sideheading.
SEC. 112. PENALTIES FOR FALSE DRAWBACK CLAIMS.
(a) Amendment.--Part V of title IV is amended by inserting after
section 593 the following new section:
``SEC. 593A. PENALTIES FOR FALSE DRAWBACK CLAIMS.
``(a) Prohibition.--
``(1) General rule.--No person, by fraud, or negligence--
``(A) may seek, induce or affect, or attempt to
seek, induce, or affect, the payment or credit to that
person or others of any drawback claim by means of--
``(i) any document, written or oral
statement, or electronically transmitted data
or information, or act which is material and
false, or
``(ii) any omission which is material; or
``(B) may aid or abet any other person to violate
subparagraph (A).
``(2) Exception.--Clerical errors or mistakes of fact are
not violations of paragraph (1) unless they are part of a
pattern of negligent conduct. The mere nonintentional
repetition by an electronic system of an initial clerical error
does not constitute a pattern of negligent conduct.
``(b) Procedures.--
``(1) Prepenalty notice.--
``(A) In general.--If the Customs Service has
reasonable cause to believe that there has been a
violation of subsection (a) and determines that further
proceedings are warranted, the Customs Service shall
issue to the person concerned a written notice of
intent to issue a claim for a monetary penalty. Such
notice shall--
``(i) identify the drawback claim;
``(ii) set forth the details relating to
the seeking, inducing, or affecting, or the
attempted seeking, inducing, or affecting, or
the aiding or procuring of, the drawback claim;
``(iii) specify all laws and regulations
allegedly violated;
``(iv) disclose all the material facts
which establish the alleged violation;
``(v) state whether the alleged violation
occurred as a result of fraud or negligence;
``(vi) state the estimated actual or
potential loss of revenue due to the drawback
claim, and, taking into account all
circumstances, the amount of the proposed
monetary penalty; and
``(vii) inform such person that he shall
have a reasonable opportunity to make
representations, both oral and written, as to
why a claim for a monetary penalty should not
be issued in the amount stated.
``(B) Exceptions.--The Customs Service may not
issue a prepenalty notice if the amount of the penalty
in the penalty claim issued under paragraph (2) is
$1,000 or less. In such cases, the Customs Service may
proceed directly with a penalty claim.
``(C) Prior approval.--No prepenalty notice in
which the alleged violation occurred as a result of
fraud shall be issued without the prior approval of
Customs Headquarters.
``(2) Penalty claim.--After considering representations, if
any, made by the person concerned pursuant to the notice issued
under paragraph (1), the Customs Service shall determine
whether any violation of subsection (a), as alleged in the
notice, has occurred. If the Customs Service determines that
there was no violation, the Customs Service shall promptly
issue a written statement of the determination to the person to
whom the notice was sent. If the Customs Service determines
that there was a violation, Customs shall issue a written
penalty claim to such person. The written penalty claim shall
specify all changes in the information provided under clauses
(i) through (vii) of paragraph (1)(A). Such person shall have a
reasonable opportunity under section 618 to make
representations, both oral and written, seeking remission or
mitigation of the monetary penalty. At the conclusion of any
proceeding under section 618, the Customs Service shall provide
to the person concerned a written statement which sets forth
the final determination, and the findings of fact and
conclusions of law on which such determination is based.
``(c) Maximum Penalties.--
``(1) Fraud.--A fraudulent violation of subsection (a) of
this section is punishable by a civil penalty in an amount not
to exceed 3 times the actual or potential loss of revenue.
``(2) Negligence.--
``(A) In general.--A negligent violation of
subsection (a) is punishable by a civil penalty in an
amount not to exceed 20 percent of the actual or
potential loss of revenue for the 1st violation.
``(B) Repetitive violations.--If the Customs
Service determines that a repeat negligent violation
occurs relating to the same issue, the penalty amount
for the 2d violation shall be in an amount not to
exceed 50 percent of the total actual or potential loss
of revenue. The penalty amount for each succeeding
repetitive negligent violation shall be in an amount
not to exceed the actual or potential loss of revenue.
If the same party commits a nonrepetitive violation,
that violation shall be subject to a penalty not to
exceed 20 percent of the actual or potential loss of
revenue.
``(3) Prior disclosure.--
``(A) In general.--Subject to subparagraph (B), if
the person concerned discloses the circumstances of a
violation of subsection (a) before, or without
knowledge of the commencement of, a formal
investigation of such violation, the monetary penalty
assessed under this subsection may not exceed--
``(i) if the violation resulted from fraud,
an amount equal to the actual or potential
revenue of which the United States is or may be
deprived as a result of overpayment of the
claim; or
``(ii) if the violation resulted from
negligence, an amount equal to the interest
computed on the basis of the prevailing rate of
interest applied under section 6621 of the
Internal Revenue Code of 1986 on the amount of
actual revenue of which the United States is or
may be deprived during the period that--
``(I) begins on the date of the
overpayment of the claim; and
``(II) ends on the date on which
the person concerned tenders the amount
of the overpayment.
``(B) Condition affecting penalty limitations.--The
limitations in subparagraph (A) on the amount of the
monetary penalty to be assessed under subsection (c)
apply only if the person concerned tenders the amount
of the overpayment made on the claim at the time of
disclosure, or within 30 days (or such longer period as
the Customs Service may provide), after notice by the
Customs Service of its calculation of the amount of the
overpayment.
``(C) Burden of proof.--The person asserting lack
of knowledge of the commencement of a formal
investigation has the burden of proof in establishing
such lack of knowledge.
``(4) Commencement of investigation.--For purposes of this
section, a formal investigation of a violation is considered to
be commenced with regard to the disclosing party and the
disclosed information on the date recorded in writing by the
Customs Service as the date on which facts and circumstances
were discovered or information was received which caused the
Customs Service to believe that a possibility of a violation of
subsection (a) existed.
``(5) Exclusivity.--Penalty claims under this section shall
be the exclusive civil remedy for any drawback related
violation of subsection (a).
``(d) Deprivation of Lawful Revenue.--Notwithstanding section 514,
if the United States has been deprived of lawful duties and taxes
resulting from a violation of subsection (a), the Customs Service shall
require that such drawback claim be restored whether or not a monetary
penalty is assessed.
``(e) Drawback Compliance Program.--
``(1) In general.--After consultation with the drawback
trade community, the Customs Service shall establish a drawback
compliance program in which claimants and other parties in
interest may participate after being certified by the Customs
Service under paragraph (2). Participation in the drawback
compliance program is voluntary.
``(2) Certification.--A party may be certified as a
participant in the drawback compliance program after meeting
the general requirements established under the program or after
negotiating an alternative program suited to the needs of the
party and the Customs Service. Certification requirements shall
take into account the size and nature of the party's drawback
program and the volume of claims. In order to be certified, the
participant must be able to demonstrate that it--
``(A) understands the legal requirements for filing
claims, including the nature of the records required to
be maintained and produced and the time periods
involved;
``(B) has in place procedures to explain the
Customs Service requirements to those employees that
are involved in the preparation of claims, and the
maintenance and production of required records;
``(C) has in place procedures regarding the
preparation of claims and maintenance of required
records, and the production of such records to the
Customs Service;
``(D) has designated a dependable individual or
individuals to be responsible for compliance under the
program and whose duties include maintaining
familiarity with the drawback requirements of the
Customs Service;
``(E) has a record maintenance procedure approved
by the Customs Service for original records, or, if
approved by the Customs Service, for alternate records
or recordkeeping formats other than the original
records; and
``(F) has procedures for notifying the Customs
Service of variances to, and violations of, the
requirements of the drawback compliance program or any
negotiated alternative programs, and for taking
corrective action when notified by the Customs Service
for violations or problems regarding such program.
``(f) Alternatives to Penalties.--
``(1) In general.--When a party that--
``(A) has been certified as a participant in the
drawback compliance program under subsection (e); and
``(B) is generally in compliance with the
appropriate procedures and requirements of the program;
commits a violation of subsection (a), the Customs Service,
shall, in the absence of fraud or repeated violations, and in
lieu of a monetary penalty, issue a written notice of the
violation to the party. Repeated violations by a party may
result in the issuance of penalties and removal of
certification under the program until corrective action,
satisfactory to the Customs Service, is taken.
``(2) Contents of notice.--A notice of violation issued
under paragraph (1) shall--
``(A) state that the party has violated subsection
(a);
``(B) explain the nature of the violation; and
``(C) warn the party that future violations of
subsection (a) may result in the imposition of monetary
penalties.
``(3) Response to notice.--Within a reasonable time after
receiving written notice under paragraph (1), the party shall
notify the Customs Service of the steps it has taken to prevent
a recurrence of the violation.
``(g) Repetitive Violations.--
``(1) A party who has been issued a written notice under
subsection (f)(1) and subsequently commits a repeat negligent
violation involving the same issue is subject to the following
monetary penalties:
``(A) 2d violation.--An amount not to exceed 20
percent of the loss of revenue.
``(B) 3rd violation.--An amount not to exceed 50
percent of the loss of revenue.
``(C) 4th and subsequent violations.--An amount not
to exceed 100 percent of the loss of revenue.
``(2) If a party that has been certified as a participant
in the drawback compliance program under subsection (e) commits
an alleged violation which was not repetitive, the party shall
be issued a `warning letter', and, for any subsequent
violation, shall be subject to the same maximum penalty amounts
stated in paragraph (1).
``(h) Regulation.--The Secretary shall promulgate regulations and
guidelines to implement this section. Such regulations shall specify
that for purposes of subsection (g), a repeat negligent violation
involving the same issue shall be treated as a repetitive violation for
a maximum period of 3 years.
``(i) Court of International Trade Proceedings.--Notwithstanding
any other provision of law, in any proceeding commenced by the United
States in the Court of International Trade for the recovery of any
monetary penalty claimed under this section--
``(1) all issues, including the amount of the penalty,
shall be tried de novo;
``(2) if the monetary penalty is based on fraud, the United
States shall have the burden of proof to establish the alleged
violation by clear and convincing evidence; and
``(3) if the monetary penalty is based on negligence, the
United States shall have the burden of proof to establish the
act or omission constituting the violation, and the alleged
violator shall have the burden of providing evidence that the
act or omission did not occur as a result of negligence.''.
(b) Effective Date.--The amendment made by subsection (a) applies
to drawback claims filed on and after the nationwide operational
implementation of an automated drawback selectivity program by the
Customs Service. The Customs Service shall publish notice of this date
in the Customs Bulletin.
SEC. 113. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.
Section 625 (19 U.S.C. 1625) is amended to read as follows:
``SEC. 625. INTERPRETIVE RULINGS AND DECISIONS; PUBLIC INFORMATION.
``(a) Publication.--Within 90 days after the date of issuance of
any interpretive ruling (including any ruling letter, or internal
advice memorandum) or protest review decision under this chapter with
respect to any customs transaction, the Secretary shall have such
ruling or decision published in the Customs Bulletin or shall otherwise
make such ruling or decision available for public inspection.
``(b) Appeals.--A person may appeal an adverse interpretive ruling
and any interpretation of any regulation prescribed to implement such
ruling to a higher level of authority within the Customs Service for de
novo review. Upon a reasonable showing of business necessity, any such
appeal shall be considered and decided no later than 60 days following
the date on which the appeal is filed. The Secretary shall issue
regulations to implement this subsection.
``(c) Modification and Revocation.--A proposed interpretive ruling
or decision which would--
``(1) modify (other than to correct a clerical error) or
revoke a prior interpretive ruling or decision which has been
in effect for at least 60 days; or
``(2) have the effect of modifying the treatment previously
accorded by the Customs Service to substantially identical
transactions;
shall be published in the Customs Bulletin. The Secretary shall give
interested parties an opportunity to submit, during not less than the
30-day period after the date of such publication, comments on the
correctness of the proposed ruling or decision. After consideration of
any comments received, the Secretary shall publish a final ruling or
decision in the Customs Bulletin within 30 days after the closing of
the comment period. The final ruling or decision shall become effective
60 days after the date of its publication.
``(d) Publication of Customs Decisions That Limit Court
Decisions.--A decision that proposes to limit the application of a
court decision shall be published in the Customs Bulletin together with
notice of opportunity for public comment thereon prior to a final
decision.
``(e) Public Information.--The Secretary may make available in
writing or through electronic media, in an efficient, comprehensive and
timely manner, all information, including directives, memoranda,
electronic messages and telexes which contain instructions,
requirements, methods or advice necessary for importers and exporters
to comply with the Customs laws and regulations. All information which
may be made available pursuant to this subsection shall be subject to
any exemption from disclosure provided by section 552 of title 5,
United States Code.''.
SEC. 114. SEIZURE AUTHORITY.
Section 596(c) (19 U.S.C. 1595a(c)) is amended to read as follows:
``(c) Merchandise which is introduced or attempted to be introduced
into the United States contrary to law shall be treated as follows:
``(1) The merchandise shall be seized and forfeited if it--
``(A) is stolen, smuggled, or clandestinely
imported or introduced;
``(B) is a controlled substance, as defined in the
Controlled Substances Act (21 U.S.C. 801 et seq.), and
is not imported in accordance with applicable law; or
``(C) is a contraband article, as defined in
section 1 of the Act of August 9, 1939 (49 U.S.C. App.
781).
``(2) The merchandise may be seized and forfeited if--
``(A) its importation or entry is subject to any
restriction or prohibition which is imposed by law
relating to health, safety, or conservation and the
merchandise is not in compliance with the applicable
rule, regulation, or statute;
``(B) its importation or entry requires a license,
permit or other authorization of an agency of the
United States Government and the merchandise is not
accompanied by such license, permit, or authorization;
``(C) it is merchandise or packaging in which
copyright, trademark, or trade name protection
violations are involved (including, but not limited to,
violations of section 42, 43, or 45 of the Act of July
5, 1946 (Public Law 95-410; 15 U.S.C. 1124, 1125, or
1127), section 506 or 509 of title 17, United States
Code, or section 2318 or 2320 of title 18, United
States Code);
``(D) it is trade dress merchandise involved in the
violation of a court order citing section 43 of such
Act of July 5, 1946 (15 U.S.C. 1125);
``(E) it is merchandise which is marked
intentionally in violation of section 304; or
``(F) it is merchandise for which the importer has
received written notices that previous importations of
identical merchandise from the same supplier were found
to have been marked in violation of section 304.
``(3) If the importation or entry of the merchandise is
subject to quantitative restrictions requiring a visa, permit,
license or other similar document, or stamp from the United
States Government or from a foreign government or issuing
authority pursuant to a bilateral or multilateral agreement,
the merchandise shall be subject to detention in accordance
with section 499 unless the appropriate visa, license, permit,
or similar document or stamp is presented to the Customs
Service; but if the visa, permit, license or similar document
or stamp which is presented in connection with the importation
or entry of the merchandise is counterfeit, the merchandise may
be seized and forfeited.
``(4) If the merchandise is imported or introduced contrary
to a provision of law which governs the classification or value
of merchandise and there are no issues as to the admissibility
of the merchandise into the United States, it shall not be
seized except in accordance with section 592.
``(5) In any case where the seizure and forfeiture of
merchandise are required or authorized by this section, the
Secretary may--
``(A) remit the forfeiture under section 618, or
``(B) permit the exportation of the merchandise,
unless its release would adversely affect health,
safety, or conservation or be in contravention of a
bilateral or multilateral agreement or treaty.''.
TITLE II--NATIONAL CUSTOMS AUTOMATION PROGRAM
SEC. 201. NATIONAL CUSTOMS AUTOMATION PROGRAM.
Part I of title IV is amended--
(1) by striking out
``PART I--DEFINITIONS
and inserting
``PART I--DEFINITIONS AND NATIONAL CUSTOMS AUTOMATION PROGRAM
``Subpart A--Definitions''; and
(2) by inserting after section 402 the following:
``Subpart B--National Customs Automation Program
``SEC. 411. NATIONAL CUSTOMS AUTOMATION PROGRAM.
``(a) Establishment.--The Secretary shall establish the National
Customs Automation Program (hereinafter in this subpart referred to as
the `Program') which shall be an automated and electronic system for
processing commercial importations and shall include the following
existing and planned components:
``(1) Existing components:
``(A) The electronic entry of merchandise.
``(B) The electronic entry summary of required
information.
``(C) The electronic transmission of invoice
information.
``(D) The electronic transmission of manifest
information.
``(E) Electronic payments of duties, fees, and
taxes.
``(F) The electronic status of liquidation and
reliquidation.
``(G) The electronic selection of high risk entries
for examination (cargo selectivity and entry summary
selectivity).
``(2) Planned components:
``(A) The electronic filing and status of protests.
``(B) The electronic filing (including remote
filing under section 414) of entry information with the
Customs Service at any location.
``(C) The electronic filing of import activity
summary statements and reconciliation.
``(D) The electronic filing of bonds.
``(E) The electronic penalty process.
``(F) The electronic filing of drawback claims,
records, or entries.
``(G) Any other component initiated by the Customs
Service to carry out the goals of this subpart.
``(b) Participation in Program.--The Secretary shall by regulation
prescribe the eligibility criteria for participation in the Program.
Participation in the Program is voluntary.
``SEC. 412. PROGRAM GOALS.
``The goals of the Program are to ensure that all regulations and
rulings that are administered or enforced by the Customs Service are
administered and enforced in a manner that--
``(1) is uniform and consistent;
``(2) is as minimally intrusive upon the normal flow of
business activity as practicable; and
``(3) improves compliance.
``SEC. 413. IMPLEMENTATION AND EVALUATION OF PROGRAM.
``(a) Overall Program Plan.--
``(1) In general.--Before the 180th day after the date of
the enactment of this Act, the Secretary shall develop and
transmit to the Committees an overall plan for the Program. The
overall Program plan shall set forth--
``(A) a general description of the ultimate
configuration of the Program;
``(B) a description of each of the existing
components of the Program listed in section 411(a)(1);
and
``(C) estimates regarding the stages on which
planned components of the Program listed in section
411(a)(2) will be brought on-line.
``(2) Additional information.--In addition to the
information required under paragraph (1), the overall Program
plan shall include a statement regarding--
``(A) the extent to which the existing components
of the Program currently meet, and the planned
components will meet, the Program goals set forth in
section 412; and
``(B) the effects that the existing components are
currently having, and the effects that the planned
components will likely have, on--
``(i) importers, brokers, and other users
of the Program, and
``(ii) Customs Service occupations,
operations, processes, and systems.
``(b) Implementation Plan, Testing, and Evaluation.--
``(1) Implementation plan.--For each of the planned
components of the Program listed in section 411(a)(2), the
Secretary shall--
``(A) develop an implementation plan;
``(B) test the component in order to assess its
viability;
``(C) evaluate the component in order to assess its
contribution toward achieving the program goals; and
``(D) transmit to the Committees the implementation
plan, the testing results, and an evaluation report.
In developing an implementation plan under subparagraph (A) and
evaluating components under subparagraph (C), the Secretary
shall publish a request for comments in the Customs Bulletin
and shall consult with the trade community, including
importers, brokers, shippers, and other affected parties.
``(2) Implementation.--
``(A) The Secretary may implement on a permanent
basis any Program component referred to in paragraph
(1) on or after the date which is 30 days after
paragraph (1)(D) is complied with.
``(B) For purposes of subparagraph (A), the 30 days
shall be computed by excluding--
``(i) the days either House is not in
session because of an adjournment of more than
3 days to a day certain or an adjournment of
the Congress sine die, and
``(ii) any Saturday and Sunday, not
excluded under clause (i), when either House is
not in session.
``(3) Evaluation and report.--The Secretary shall--
``(A) develop a user satisfaction survey of parties
participating in the Program;
``(B) evaluate the results of the user satisfaction
survey on a biennial basis (fiscal years) and transmit
a report to the Committees on the evaluation by no
later than the 90th day after the close of each 2d
fiscal year;
``(C) with respect to the existing Program
component listed in section 411(a)(1)(G) transmit to
the Committees--
``(i) a written evaluation of such
component before the 180th day after the date
of the enactment of this section and before the
implementation of the planned Program
components listed in section 411(a)(2) (B) and
(C), and
``(ii) a report on such component for each
of the 3 full fiscal years occurring after the
date of the enactment of this section, which
report shall be transmitted not later than the
90th day after the close of each such year; and
``(D) not later than the 90th day after the close
of fiscal year 1993, and annually thereafter through
fiscal year 1999, transmit to the Committees a written
evaluation with respect to the implementation and
effect on users of each of the planned Program
components listed in section 411(a)(2).
In carrying out the provisions of this paragraph, the Secretary
shall publish requests for comments in the Customs Bulletin and
shall consult with the trade community, including importers,
brokers, shippers, and other affected parties.
``(c) Committees.--For purposes of this section, the term
`Committees' means the Committee on Ways and Means of the House of
Representatives and the Committee on Finance of the Senate.
``SEC. 414. REMOTE LOCATION FILING.
``(a) Core Entry Information.--
``(1) In general.--A Program participant may file an entry
of merchandise with the Customs Service from a location other
than the district designated in the entry for examination
(hereafter in this section referred to as a `remote location')
if--
``(A) the Customs Service is satisfied that the
participant has the capabilities referred to in
paragraph (2) regarding such method of filing; and
``(B) the participant elects to file from the
remote location.
``(2) Requirements.--In order to qualify for filing from a
remote location, a Program participant must have the capability
to provide, on an entry-by-entry basis, for the following:
``(A) The electronic entry of merchandise.
``(B) The electronic entry summary of required
information.
``(C) The electronic transmission of invoice
information (when required by the Customs Service).
``(D) The electronic payment of duties, fees, and
taxes.
``(E) Such other electronic capabilities within the
existing or planned components of the Program as the
Secretary shall by regulation require.
``(3) Alternative filing.--Any Program participant that is
eligible under paragraph (1) to file entry information
electronically from a remote location but chooses not to do so
in the case of any entry must file any paper documentation for
the entry at the designated location referred to in subsection
(d).
``(b) Additional Entry Information.--
``(1) In general.--A Program participant that is eligible
under subsection (a) to file entry information from a remote
location may, if the Customs Service is satisfied that the
participant meets the requirements under paragraph (2), also
electronically file from the remote location additional
information that is required by the Customs Service to be
presented before the acceptance of entry summary information
and at the time of acceptance of entry summary information.
``(2) Requirements.--The Secretary shall publish, and
periodically update, a list of those capabilities within the
existing and planned components of the Program that a Program
participant must have for purposes of this subsection.
``(3) Filing of additional information.--
``(A) If information electronically acceptable.--A
Program participant that is eligible under paragraph
(1) to file additional information from a remote
location shall electronically file all such information
that the Customs Service can accept electronically.
``(B) Alternative filing.--If the Customs Service
cannot accept additional information electronically,
the Program participant shall file the paper
documentation with respect to the information at the
appropriate filing location.
``(C) Appropriate location.--For purposes of
subparagraph (B), the `appropriate location' is--
``(i) before January 1, 1999, a designated
location; and
``(ii) after December 31, 1998--
``(I) if the paper documentation is
required for release, a designated
location; or
``(II) if the paper documentation
is not required for release, a remote
location designated by the Customs
Service or a designated location.
``(D) Other.--A Program participant that is
eligible under paragraph (1) to file additional
information electronically from a remote location but
chooses not to do so must file the paper documentation
with respect to the information at a designated
location.
``(c) Post-Entry Summary Information.--A Program participant that
is eligible to file electronically entry information under subsection
(a) and additional information under subsection (b) from a remote
location may file at any remote location designated by the Customs
Service any information required by the Customs Service after entry
summary.
``(d) Definition of Designated Location.--For purposes of this
section, the term `designated location' means a customs office located
in the customs district designated by the entry filer for purposes of
customs examination of the merchandise.''.
SEC. 202. DRAWBACK AND REFUNDS.
(a) Amendments.--Section 313 (19 U.S.C. 1313) is amended as
follows:
(1) Subsection (a) is amended--
(A) by inserting ``or destruction under customs
supervision'' after ``Upon the exportation'';
(B) by inserting ``provided that those articles
have not been used prior to such exportation or
destruction,'' after ``manufactured or produced in the
United States with the use of imported merchandise,'';
(C) by inserting ``or destruction'' after
``refunded upon the exportation''; and
(D) by striking out ``wheat imported after ninety
days after the date of the enactment of this Act'' and
inserting ``imported wheat''.
(2) Subsection (b) is amended--
(A) by striking out ``duty-free or domestic
merchandise'' and inserting ``any other merchandise
(whether imported or domestic)'';
(B) by inserting ``, or destruction under customs
supervision,'' after ``there shall be allowed upon the
exportation'';
(C) by inserting ``or destroyed'' after
``notwithstanding the fact that none of the imported
merchandise may actually have been used in the
manufacture or production of the exported'';
(D) by inserting ``, but only if those articles
have not been used prior to such exportation or
destruction'' after ``an amount of drawback equal to
that which would have been allowable had the
merchandise used therein been imported''; and
(E) by inserting ``or destruction under customs
supervision'' after ``but the total amount of drawback
allowed upon the exportation''.
(3) Subsection (c) is amended to read as follows:
``(c) Merchandise Not Conforming to Sample or Specifications.--Upon
the exportation, or destruction under the supervision of the Customs
Service, of merchandise--
``(1) not conforming to sample or specifications, shipped
without the consent of the consignee, or determined to be
defective as of the time of importation;
``(2) upon which the duties have been paid;
``(3) which has been entered or withdrawn for consumption;
and
``(4) which, within 3 years after release from the custody
of the Customs Service, has been returned to the custody of the
Customs Service for exportation or destruction under the
supervision of the Customs Service;
the full amount of the duties paid upon such merchandise, less 1
percent, shall be refunded as drawback.''.
(4) Subsection (j) is amended to read as follows:
``(j) Unused Merchandise Drawback.--
``(1) If imported merchandise, on which was paid any duty,
tax, or fee imposed under Federal law because of its
importation--
``(A) is, before the close of the 3-year period
beginning on the date of importation--
``(i) exported, or
``(ii) destroyed under customs supervision;
and
``(B) is not used within the United States before
such exportation or destruction;
then upon such exportation or destruction 99 percent of the
amount of each duty, tax, or fee so paid shall be refunded as
drawback.
``(2) If there is, with respect to imported merchandise on
which was paid any duty, tax, or fee imposed under Federal law
because of its importation, any other merchandise (whether
imported or domestic), that--
``(A) is commercially interchangeable with such
imported merchandise;
``(B) is, before the close of the 3-year period
beginning on the date of importation of the imported
merchandise, either exported or destroyed under customs
supervision; and
``(C) before such exportation or destruction--
``(i) is not used within the United States,
and
``(ii) is in the possession of, including
ownership while in bailment, in leased
facilities, in transit to, or in any other
manner under the operational control of, the
party claiming drawback under this paragraph
(if that party paid the duty, tax, or fee on
the imported merchandise (established by means
of either an entry summary or a certificate of
delivery));
then upon the exportation or destruction of such other
merchandise the amount of each such duty, tax, and fee paid
regarding the imported merchandise shall be refunded as
drawback, but in no case may the total drawback on the imported
merchandise, whether available under this paragraph or any
other provision of law or any combination thereof, exceed 99
percent of that duty, tax, or fee.
``(3) The performing of any operation or combination of
operations (including, but not limited to, testing, cleaning,
repacking, inspecting, sorting, refurbishing, freezing,
blending, repairing, reworking, cutting, slitting, adjusting,
replacing components, relabeling, disassembling, and
unpacking), not amounting to manufacture or production for
drawback purposes under the preceding provisions of this
section on--
``(A) the imported merchandise itself in cases to
which paragraph (1) applies, or
``(B) the commercially interchangeable merchandise
in cases to which paragraph (2) applies,
shall not be treated as a use of that merchandise for purposes
of applying paragraph (1)(B) or (2)(C).''.
(5) Subsection (l) is amended by striking out ``the fixing
of a time limit within which drawback entries or entries for
refund under any of the provisions of this section or section
309(b) shall be filed and completed,'' and inserting ``the
authority for the electronic submission of drawback entries''.
(6) The following new subsections are inserted after
subsection (p):
``(q) Packaging Material.--Packaging material, when used on or for
articles or merchandise exported or destroyed under subsection (a),
(b), (c), or (j), shall be eligible under such subsection for refund,
as drawback, of 99 percent of any duty, tax, or fee imposed under
Federal law on the importation of such material.
``(r) Filing Drawback Claims.--
``(1) A drawback entry and all documents necessary to
complete a drawback claim, including those issued by one
customs officer to another, shall be filed or applied for, as
applicable, within 3 years after the date of exportation or
destruction of the articles on which drawback is claimed,
except that any landing certificate required by regulation
shall be filed within the time limit prescribed in such
regulation. Claims not completed within the 3-year period shall
be considered abandoned. No extension will be granted unless it
is established that a customs officer was responsible for the
untimely filing.
``(2) A drawback entry for refund filed pursuant to any
subsection of this section shall be deemed filed pursuant to
any other subsection of this section should it be determined
that drawback is not allowable under the entry as originally
filed but is allowable under such other subsection.
``(s) Designation of Merchandise by Successor.--
``(1) For purposes of subsection (b), a drawback successor
may designate imported merchandise used by the predecessor
before the date of succession as the basis for drawback on
articles manufactured by the drawback successor after the date
of succession.
``(2) For purposes of subsection (j)(2), a drawback
successor may designate imported merchandise upon which the
predecessor, before the date of succession, paid the duty, tax,
or fee related to the importation of the merchandise as the
basis for drawback on merchandise possessed by the drawback
successor after the date of succession.
``(3) For purposes of this subsection, the term `drawback
successor' means an entity to which another entity (in this
subsection referred to as the `predecessor') has transferred by
written agreement, merger, or corporate resolution all or
substantially all of the rights, privileges, immunities,
powers, duties, and liabilities of the predecessor, or all or
substantially all of the assets and other business interests of
a division, plant, or other business unit of such predecessor,
but only if in such transfer the value of the transferred
realty and personalty exceeds the value of all transferred
intangibles.
``(4) No drawback shall be paid under this subsection until
either the predecessor or the drawback successor (who shall
also certify that it has the predecessor's records) certifies
that--
``(A) the transferred merchandise was not and will
not be claimed by the predecessor, and
``(B) the predecessor did not and will not issue
any certificate to any other person that would enable
that person to claim drawback.
``(t) Drawback Certificates.--Any person who issues a certificate
which would enable another person to claim drawback shall be subject to
the recordkeeping provisions of this chapter, with the retention period
beginning on the date that such certificate is issued.
``(u) Eligibility of Entered or Withdrawn Merchandise.--Imported
merchandise that has not been regularly entered or withdrawn for
consumption shall not satisfy any requirement for use, exportation, or
destruction under this section.
``(v) Multiple Drawback Claims.--Merchandise that is exported or
destroyed to satisfy any claim for drawback shall not be the basis of
any other claim for drawback; except that appropriate credit and
deductions for claims covering components or ingredients of such
merchandise shall be made in computing drawback payments.''.
(b) Effective Date.--The amendments made by subsection (a) apply
to--
(1) any drawback entry made after September 30, 1993; and
(2) any drawback entry made before October 1, 1993, if the
liquidation of the entry is not final as of that date.
SEC. 203. EFFECTIVE DATE OF RATES OF DUTY.
Section 315 (19 U.S.C. 1315) is amended--
(1) by striking out ``appropriate customs officer in the
form and manner prescribed by regulations of the Secretary of
the Treasury,'' in the first sentence of subsection (a) and
inserting ``Customs Service by written, electronic or such
other means as the Secretary by regulation shall prescribe,'';
(2) by striking out ``customs custody'' in the first
sentence of subsection (b) and inserting ``custody of the
Customs Service''; and
(3) by striking out ``section 1001, paragraph 813'' in
subsection (c) and inserting ``chapter 98 of the Harmonized
Tariff Schedule of the United States''.
SEC. 204. DEFINITIONS.
Section 401 (19 U.S.C. 1401) is amended--
(1) by amending subsection (k) to read as follows:
``(k) The term `hovering vessel' means--
``(1) any vessel which is found or kept off the coast of
the United States within or without the customs waters, if,
from the history, conduct, character, or location of the
vessel, it is reasonable to believe that such vessel is being
used or may be used to introduce or promote or facilitate the
introduction or attempted introduction of merchandise into the
United States in violation of the laws of the United States;
and
``(2) any vessel which has visited a vessel described in
paragraph (1).''; and
(2) by inserting at the end thereof the following new
subsections:
``(n) The term `electronic transmission' means the transfer of data
or information through an authorized electronic data interchange system
consisting of, but not limited to, computer modems and computer
networks.
``(o) The term `electronic entry' means the electronic transmission
to the Customs Service of--
``(1) entry information required for the entry of
merchandise, and
``(2) entry summary information required for the
classification and appraisement of the merchandise, the
verification of statistical information, and the determination
of compliance with applicable law.
``(p) The term `electronic data interchange system' means any
established mechanism approved by the Commissioner of Customs through
which information can be transferred electronically.
``(q) The term `National Customs Automation Program' means the
program established under section 411.
``(r) The term `import activity summary statement' refers to data
or information transmitted electronically to the Customs Service, in
accordance with such regulations as the Secretary prescribes, at the
end of a specified period of time which enables the Customs Service to
assess properly the duties, taxes and fees on merchandise imported
during that period, collect accurate statistics and determine whether
any other applicable requirement of law (other than a requirement
relating to release from customs custody) is met.
``(s) The term `reconciliation' means an electronic process,
initiated at the request of an importer, under which the elements of an
entry, other than those elements related to the admissibility of the
merchandise, that are undetermined at the time of entry summary are
provided to the Customs Service at a later time. A reconciliation is
treated as an entry for purposes of liquidation, reliquidation, and
protest.''.
SEC. 205. MANIFESTS.
Section 431 (19 U.S.C. 1431) is amended--
(1) by amending subsections (a) and (b) to read as follows:
``(a) In General.--Every vessel required to make entry under
section 434 or obtain clearance under section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91) shall have a manifest
that complies with the requirements prescribed under subsection (d).
``(b) Production of Manifest.--Any manifest required by the Customs
Service shall be signed, produced, delivered or electronically
transmitted by the master or person in charge of the vessel, aircraft,
or vehicle, or by any other authorized agent of the owner or operator
of the vessel, aircraft, or vehicle in accordance with the requirements
prescribed under subsection (d). A manifest may be supplemented by bill
of lading data supplied by the issuer of such bill. If any irregularity
of omission or commission occurs in any way in respect to any manifest
or bill of lading data, the owner or operator of the vessel, aircraft
or vehicle, or any party responsible for such irregularity, shall be
liable for any fine or penalty prescribed by law with respect to such
irregularity. The Customs Service may take appropriate action against
any of the parties.''; and
(2) by inserting after subsection (c) the following new
subsection:
``(d) Regulations.--
``(1) In general.--The Secretary shall by regulation--
``(A) specify the form for, and the information and
data that must be contained in, the manifest required
by subsection (a);
``(B) allow, at the option of the individual
producing the manifest and subject to paragraph (2),
letters and documents shipments to be accounted for by
summary manifesting procedures;
``(C) prescribe the manner of production for, and
the delivery for electronic transmittal of, the
manifest required by subsection (a); and
``(D) prescribe the manner for supplementing
manifests with bill of lading data under subsection
(b).
``(2) Letters and documents shipments.--For purposes of
paragraph (1)(B)--
``(A) the Customs Service may require with respect
to letters and documents shipments--
``(i) that they be segregated by country of
origin, and
``(ii) additional examination procedures
that are not necessary for individually
manifested shipments;
``(B) standard letter envelopes and standard
document packs shall be segregated from larger document
shipments for purposes of customs inspections; and
``(C) the term `letters and documents' means--
``(i) data described in General Headnote
4(c) of the Harmonized Tariff Schedule of the
United States,
``(ii) securities and similar evidences of
value described in heading 4907 of such
Schedule, but not monetary instruments defined
pursuant to chapter 53 of title 31, United
States Code, and
``(iii) personal correspondence, whether on
paper, cards, photographs, tapes, or other
media.''.
SEC. 206. INVOICE CONTENTS.
Section 481 (19 U.S.C. 1481) is amended--
(1) by amending subsection (a)--
(A) by amending the matter preceding paragraph (1)
to read as follows: ``In General.--All invoices of
merchandise to be imported into the United States and
any electronic equivalent thereof considered acceptable
by the Secretary in regulations prescribed under this
section shall set forth, in written, electronic, or
such other form as the Secretary shall prescribe, the
following:'',
(B) by amending paragraph (3) to read as follows:
``(3) A detailed description of the merchandise, including
the commercial name by which each item is known, the grade or
quality, and the marks, numbers, or symbols under which sold by
the seller or manufacturer in the country of exportation,
together with the marks and numbers of the packages in which
the merchandise is packed;'', and
(C) by amending paragraph (10) to read as follows:
``(10) Any other fact that the Secretary may by regulation
require as being necessary to a proper appraisement,
examination and classification of the merchandise.'';
(2) by amending subsection (c) to read as follows:
``(c) Importer Provision of Information.--Any information required
to be set forth on an invoice may alternatively be provided by any of
the parties qualifying as an `importer of record' under section
484(a)(2)(B) by such means, in such form or manner, and within such
time as the Secretary shall by regulation prescribe.''; and
(3) by inserting before the period at the end of subsection
(d) the following: ``and may allow for the submission or
electronic transmission of partial invoices, electronic
equivalents of invoices, bills, or other documents or parts
thereof, required under this section''.
SEC. 207. ENTRY OF MERCHANDISE.
Section 484 (19 U.S.C. 1484) is amended to read as follows:
``SEC. 484. ENTRY OF MERCHANDISE.
``(a) Requirement and Time.--
``(1) Except as provided in sections 490, 498, 552, 553,
and 336(j), one of the parties qualifying as `importer of
record' under paragraph (2)(B), either in person or by an agent
authorized by the party in writing, shall, using reasonable
care--
``(A) make entry therefor by filing with the
Customs Service--
``(i) such documentation or, pursuant to an
electronic data interchange system, such
information as is necessary to enable the
Customs Service to determine whether the
merchandise may be released from customs
custody, and
``(ii) notification whether an import
activity summary statement will be filed; and
``(B) complete the entry by filing with the Customs
Service the declared value, classification and rate of
duty applicable to the merchandise, and such other
documentation or, pursuant to an electronic data
interchange system, such other information as is
necessary to enable the Customs Service to--
``(i) properly assess duties on the
merchandise,
``(ii) collect accurate statistics with
respect to the merchandise, and
``(iii) determine whether any other
applicable requirement of law (other than a
requirement relating to release from customs
custody) is met.
``(2)(A) The documentation or information required under
paragraph (1) with respect to any imported merchandise shall be
filed or transmitted in such manner and within such time
periods as the Secretary shall by regulation prescribe. Such
regulations shall provide for the filing of import activity
summary statements, covering entries made during a calendar
month, within such time period as is prescribed in regulations
but not to exceed the 20th day following such calendar month.
``(B) When an entry of merchandise is made under this
section, the required documentation or information shall be
filed or electronically transmitted either by the owner or
purchaser of the merchandise or, when appropriately designated
by the owner, purchaser, or consignee of the merchandise, a
person holding a valid license under section 641. When a
consignee declares on entry that he is the owner or purchaser
of merchandise the Customs Service may, without liability,
accept the declaration. For the purposes of this Act, the
importer of record must be one of the parties who is eligible
to file the documentation or information required by this
section.
``(C) The Secretary, in prescribing regulations to carry
out this subsection, shall establish procedures which insure
the accuracy and timeliness of import statistics, particularly
statistics relevant to the classification and valuation of
imports. Corrections of errors in such statistical data shall
be transmitted immediately to the Director of the Bureau of the
Census, who shall make corrections in the statistics maintained
by the Bureau. The Secretary shall also provide, to the maximum
extent practicable, for the protection of the revenue, the
enforcement of laws governing the importation and exportation
of merchandise, the facilitation of the commerce of the United
States, and the equal treatment of all importers of record of
imported merchandise.
``(b) Reconciliation.--A party that electronically transmits an
entry summary or import activity summary statement may at the time of
filing such summary or statement notify the Customs Service of his
intention to file a reconciliation pursuant to such regulations as the
Secretary may prescribe. Such reconciliation must be filed by the
importer of record within such time period as is prescribed by
regulation but no later than 15 months following the filing of the
entry summary or import activity summary statement. Before filing a
reconciliation, an importer of record shall post bond or other security
pursuant to such regulations as the Secretary may prescribe.
``(c) Release of Merchandise.--The Customs Service may permit the
entry and release of merchandise from customs custody in accordance
with such regulations as the Secretary may prescribe. No officer of the
Customs Service shall be liable to any person with respect to the
delivery of merchandise released from customs custody in accordance
with such regulations.
``(d) Signing and Contents.--Entries shall be signed by the
importer of record, or his agent, unless filed pursuant to an
electronic data interchange system. If electronically filed, each
transmission of data shall be certified by an importer of record or his
agent, one of whom shall be resident in the United States for purposes
of receiving service of process, as being true and correct to the best
of his knowledge and belief, and such transmission shall be binding in
the same manner and to the same extent as a signed document. The entry
shall set forth such facts in regard to the importation as the
Secretary may require and shall be accompanied by such invoices, bills
of lading, certificates, and documents, or their electronically
submitted equivalents, as are required by regulation.
``(e) Production of Invoice.--The Secretary may provide by
regulation for the production of an invoice, parts thereof, or the
electronic equivalents thereof, in such manner and form, and under such
terms and conditions, as the Secretary considers necessary.
``(f) Statistical Enumeration.--The Secretary, the Secretary of
Commerce, and the United States International Trade Commission shall
establish from time to time for statistical purposes an enumeration of
articles in such detail as in their judgment may be necessary,
comprehending all merchandise imported into the United States and
exported from the United States, and shall seek, in conjunction with
statistical programs for domestic production and programs for achieving
international harmonization of trade statistics, to establish the
comparability thereof with such enumeration of articles. All import
entries and export declarations shall include or have attached thereto
an accurate statement specifying, in terms of such detailed
enumeration, the kinds and quantities of all merchandise imported and
exported and the value of the total quantity of each kind of article.
``(g) Statement of Cost of Production.--Under such regulations as
the Secretary may prescribe, the Customs Service may require a verified
statement from the manufacturer or producer showing the cost of
producing the imported merchandise, if the Customs Service considers
such verification necessary for the appraisement of such merchandise.
``(h) Admissibility of Data Electronically Transmitted.--Any entry
or other information transmitted by means of an authorized electronic
data interchange system shall be admissible in any and all
administrative and judicial proceedings as evidence of such entry or
information.''.
SEC. 208. APPRAISEMENT AND OTHER PROCEDURES.
Section 500 (19 U.S.C. 1500) is amended--
(1) by striking out ``The appropriate customs officer'' and
inserting ``The Customs Service'';
(2) by striking out ``appraise'' in subsection (a) and
inserting ``fix the final appraisement of'';
(3) by striking out ``ascertain the'' in subsection (b) and
inserting ``fix the final'';
(4) by amending subsection (c)--
(A) by inserting ``final'' after ``fix the'', and
(B) by inserting ``, taxes, and fees'' after
``duties'' wherever it appears; and
(5) by amending subsections (d) and (e) to read as follows:
``(d) liquidate the entry and reconciliation, if any, of
such merchandise; and
``(e) give or transmit, pursuant to an electronic data
interchange system, notice of such liquidation to the importer,
his consignee, or agent in such form and manner as the
Secretary shall by regulation prescribe.''.
SEC. 209. VOLUNTARY RELIQUIDATIONS.
Section 501 (19 U.S.C. 1501) is amended--
(1) by striking out ``the appropriate customs officer on
his own initiative'' and inserting ``the Customs Service'';
(2) by inserting ``or transmitted'' after ``given''
wherever it appears; and
(3) by amending the section heading to read as follows:
``SEC. 501. VOLUNTARY RELIQUIDATIONS BY THE CUSTOMS SERVICE.''.
SEC. 210. APPRAISEMENT REGULATIONS.
Section 502 (19 U.S.C. 1502) is amended--
(1) by amending subsection (a)--
(A) by inserting ``(including regulations
establishing procedures for the issuance of binding
rulings prior to the entry of the merchandise
concerned)'' after ``law'',
(B) by striking out ``ports of entry, and''
inserting ``ports of entry. The Secretary'',
(C) by inserting ``or classifying'' after
``appraising'' wherever it appears, and
(D) by striking out ``such port'' and inserting
``any port, and may direct any customs officer at any
port to review entries of merchandise filed at any
other port''; and
(2) by striking out subsection (b) and redesignating
subsection (c) as subsection (b).
SEC. 211. LIMITATION ON LIQUIDATION.
Section 504 (19 U.S.C. 1504) is amended--
(1) by amending subsection (a)--
(A) by striking out ``Except as provided in
subsection (b),'' and inserting ``Unless an entry is
extended under subsection (b) or suspended as required
by statute or court order,'',
(B) by striking out ``or'' at the end of paragraph
(2),
(C) by inserting ``or'' after the semicolon at the
end of paragraph (3), and
(D) by inserting the following new paragraph after
paragraph (3):
``(4) if a reconciliation is filed, or should have been
filed, the date of the filing under section 484 or the date the
reconciliation should have been filed;''; and
(2) by amending subsections (b), (c), and (d) to read as
follows:
``(b) Extension.--The Secretary may extend the period in which to
liquidate an entry if--
``(1) the information needed for the proper appraisement or
classification of the merchandise, or for insuring compliance
with applicable law, is not available to the Customs Service;
or
``(2) the importer of record requests such extension and
shows good cause therefor.
The Secretary shall give notice of an extension under this subsection
to the importer of record and the surety of such importer of record.
Notice shall be in such form and manner (which may include electronic
transmittal) as the Secretary shall by regulation prescribe. Any entry
the liquidation of which is extended under this subsection shall be
treated as having been liquidated at the rate of duty, value, quantity,
and amount of duty asserted at the time of entry by the importer of
record at the expiration of 4 years from the applicable date specified
in subsection (a).
``(c) Notice of Suspension.--If the liquidation of any entry is
suspended, the Secretary shall by regulation require that notice of the
suspension be provided, in such manner as the Secretary considers
appropriate, to the importer of record and to any authorized agent and
surety of such importer of record.
``(d) Removal of Suspension.--When a suspension required by statute
or court order is removed, the Customs Service shall liquidate the
entry within 6 months after receiving notice of the removal from the
Department of Commerce, other agency, or a court with jurisdiction over
the entry. Any entry not liquidated by the Customs Service within 6
months after receiving such notice shall be treated as having been
liquidated at the rate of duty, value, quantity, and amount of duty
asserted at the time of entry by the importer of record.''.
SEC. 212. PAYMENT OF DUTIES AND FEES.
(a) Amendment to Section 505.--Section 505 (U.S.C. 1505) is amended
to read as follows:
``SEC. 505. PAYMENT OF DUTIES AND FEES.
``(a) Deposit of Estimated Duties, Fees, and Interest.--Unless
merchandise is entered for warehouse or transportation, or under bond,
the importer of record shall deposit with the Customs Service at the
time of making entry, or at such later time as the Secretary may
prescribe by regulation, the amount of duties and fees estimated to be
payable thereon. Such regulations may provide that estimated duties and
fees shall be deposited before or at the time an import activity
summary statement is filed. If an import activity summary statement is
filed, the estimated duties and fees shall be deposited together with
interest, at a rate determined by the Secretary, accruing from the
first date of the month the statement is required to be filed until the
date such statement is actually filed.
``(b) Collection or Refund of Duties, Fees, and Interest Due Upon
Liquidation or Reliquidation.--The Customs Service shall collect any
increased or additional duties and fees due, together with interest
thereon, or refund any excess moneys deposited, together with interest
thereon, as determined on a liquidation or reliquidation. Duties, fees,
and interest determined to be due upon liquidation or reliquidation are
due 30 days after issuance of the bill for such payment. Refunds of
excess moneys deposited, together with interest thereon, shall be paid
within 30 days of liquidation or reliquidation.
``(c) Interest.--Interest assessed due to an underpayment of
duties, fees, or interest shall accrue, at a rate determined by the
Secretary, from the date the importer of record is required to deposit
estimated duties, fees, and interest to the date of liquidation or
reliquidation of the applicable entry or reconciliation. Interest on
excess moneys deposited shall accrue, at a rate determined by the
Secretary, from the date the importer of record deposits estimated
duties, fees, and interest to the date of liquidation or reliquidation
of the applicable entry or reconciliation.
``(d) Delinquency.--If duties, fees, and interest determined to be
due or refunded are not paid in full within the 30-day period specified
in subsection (b), any unpaid balance shall be considered delinquent
and bear interest by 30-day periods, at a rate determined by the
Secretary, from the date of liquidation or reliquidation until the full
balance is paid. No interest shall accrue during the 30-day period in
which payment is actually made.''.
(b) Conforming Amendment.--Subsection (d) of section 520 (19 U.S.C.
1520(d)) is repealed.
SEC. 213. ABANDONMENT AND DAMAGE.
Section 506 (19 U.S.C. 1506) is amended--
(1) by striking out ``the appropriate customs officer'' and
``such customs officer'' wherever they appear and inserting
``the Customs Service'';
(2) by amending paragraph (1)--
(A) by striking out ``not sent to the appraiser's
stores for'' and inserting ``released without an'',
(B) by striking out ``of the examination packages
or quantities of merchandise'',
(C) by striking out ``the appraiser's stores'' and
inserting ``the Customs Service'', and
(D) by inserting ``or entry'' after ``invoice'',
and
(3) by amending paragraph (2)--
(A) by inserting ``, electronically or otherwise,''
after ``files'', and
(B) by striking out ``written''.
SEC. 214. CUSTOMS OFFICER'S IMMUNITY.
Section 513 (19 U.S.C. 1513) is amended to read as follows:
``SEC. 513. CUSTOMS OFFICER'S IMMUNITY.
``No customs officer shall be liable in any way to any person for
or on account of--
``(1) any ruling or decision regarding the appraisement or
the classification of any imported merchandise or regarding the
duties, fees, and taxes charged thereon,
``(2) the collection of any dues, charges, duties, fees,
and taxes on or on account of any imported merchandise, or
``(3) any other matter or thing as to which any person
might under this Act be entitled to protest or appeal from the
decision of such officer.''.
SEC. 215. PROTESTS.
Section 514 (19 U.S.C. 1514) is amended--
(1) by amending subsection (a)--
(A) by striking out ``appropriate customs officer''
in the text preceding paragraph (1) and inserting
``Customs Service'',
(B) by inserting ``or reconciliation as to the
issues contained therein,'' after ``entry,'' in
paragraph (5),
(C) by striking out ``and'' and inserting ``or'' at
the end of paragraph (6),
(D) by striking out the comma at the end of
paragraph (7) and inserting a semicolon, and
(E) by striking out ``appropriate customs officer,
who'' in the text following paragraph (7) and inserting
``Customs Service, which'';
(2) by amending subsection (b) by striking out
``appropriate customs officer'' and inserting ``Customs
Service'';
(3) by amending the first sentence of subsection (c)(1) to
read as follows: ``A protest of a decision made under
subsection (a) shall be filed in writing, or transmitted
electronically pursuant to an electronic data interchange
system, in accordance with regulations prescribed by the
Secretary. A protest must set forth distinctly and
specifically--
``(A) each decision described in subsection (a) as
to which protest is made;
``(B) each category of merchandise affected by each
decision set forth under paragraph (1);
``(C) the nature of each objection and the reasons
therefor; and
``(D) any other matter required by the Secretary by
regulation.'';
(4) by redesignating paragraph (2) of subsection (c) as
paragraph (3) and by striking out ``such customs officer'' in
such redesignated paragraph and inserting ``the Customs
Service'';
(5) by designating the last sentence of paragraph (1) of
subsection (c) as paragraph (2);
(6) by striking out ``customs officer'' in subsection (d)
and inserting ``Customs Service''; and
(7) by amending the section heading to read as follows:
``SEC. 514. PROTEST AGAINST DECISIONS OF THE CUSTOMS SERVICE.''.
SEC. 216. REFUNDS AND ERRORS.
Section 520 (19 U.S.C. 1520) is amended--
(1) by inserting ``or reconciliation'' after ``entry'' in
paragraphs (1) and (4) of subsection (a); and
(2) by amending subsection (c)--
(A) by striking out ``appropriate customs officer''
wherever it appears and inserting ``Customs Service'',
(B) by inserting ``or reconciliation'' after
``reliquidate an entry'', and
(C) by inserting ``, whether or not resulting from
or contained in electronic transmission,'' after
``inadvertence'' the first place it appears in
paragraph (1).
SEC. 217. BONDS AND OTHER SECURITY.
Section 623 (19 U.S.C. 1623) is amended--
(1) by inserting ``and the manner in which the bond may be
filed with or, pursuant to an authorized electronic data
interchange system, transmitted to the Customs Service'' after
``form of such bond'' in subsection (b)(1); and
(2) by inserting at the end of subsection (d) the following
new sentence: ``Any bond transmitted to the Customs Service
pursuant to an authorized electronic data interchange system
shall have the same force and effect and be binding upon the
parties thereto as if such bond were manually executed, signed,
and filed.''.
SEC. 218. CUSTOMHOUSE BROKERS.
Section 641 (19 U.S.C. 1641) is amended--
(1) by adding at the end of subsection (a)(2) the following
new sentence: ``It also includes the preparation of documents
or forms in any format and the electronic transmission of
documents, invoices, bills, or parts thereof, intended to be
filed with the Customs Service in furtherance of such
activities, whether or not signed or filed by the preparer, or
activities relating to such preparation, but does not include
the mere electronic transmission of data received for
transmission to Customs.'';
(2) by amending subsection (c)(1) to read as follows:
``(1) In general.--Each person granted a customs broker's
license under subsection (b) shall be issued, in accordance
with such regulations as the Secretary shall prescribe, either
or both of the following:
``(A) A national permit for the conduct of such
customs business as the Secretary prescribes by
regulation.
``(B) A permit for each customs district in which
that person conducts customs business and, except as
provided in paragraph (2), regularly employs at least 1
individual who is licensed under subsection (b)(2) to
exercise responsible supervision and control over the
customs business conducted by that person in that
district.'';
(3) by inserting at the end of subsection (c) the following
new paragraph:
``(4) Appointment of subagents.--Notwithstanding subsection
(c)(1), upon the implementation by the Secretary under section
413(b)(2) of the component of the National Customs Automation
Program referred to in section 411(a)(2)(B), a licensed broker
may appoint another licensed broker holding a permit in a
customs district to act on its behalf as its subagent in that
district if such activity relates to the filing of information
that is permitted by law or regulation to be filed
electronically. A licensed broker appointing a subagent
pursuant to this paragraph shall remain liable for any and all
obligations arising under bond and any and all duties, taxes,
and fees, as well as any other liabilities imposed by law, and
shall be precluded from delegating to a subagent such
liability.'';
(4) by amending subsection (d)(2)(B)--
(A) by striking out ``appropriate customs officer''
and inserting ``Customs Service'' in the first and
third sentences,
(B) by striking out ``he'' and inserting ``it'' in
the third sentence,
(C) by striking out ``15 days'' and inserting ``30
days'' in the third sentence,
(D) by striking out ``the appropriate customs
officer and the customs broker; they'' and inserting
``the Customs Service and the customs broker; which''
in the sixth sentence,
(E) by striking out ``his'' and inserting ``the''
in the seventh sentence, and
(F) by striking out ``for his decision'' and
inserting ``for the decision'' in the eighth sentence;
and
(5) by amending subsection (f) by striking out ``United
States Customs Service.'' and inserting ``Customs Service. The
Secretary may not prohibit customs brokers from limiting their
liability to other persons in the conduct of customs business.
For purposes of this subsection or any other provision of this
Act pertaining to recordkeeping, all data required to be
retained by a customs broker may be kept on microfilm, optical
disc, magnetic tapes, disks or drums, video files or any other
electrically generated medium. Pursuant to such regulations as
the Secretary shall prescribe, the conversion of data to such
storage medium may be accomplished at any time subsequent to
the relevant customs transaction and the data may be retained
in a centralized basis according to such broker's business
system.''.
SEC. 219. CONFORMING AMENDMENTS.
(a) Place of Entry and Unlading.--Section 447 (19 U.S.C. 1447) is
amended by striking out ``the appropriate customs officer shall
consider'' and inserting ``the Customs Service considers''.
(b) Unlading.--Section 449 (19 U.S.C. 1449) is amended by striking
out ``appropriate customs officer of such port issues a permit for the
unlading of such merchandise or baggage,'' and inserting ``Customs
Service issues a permit for the unlading of such merchandise or baggage
at such port,''.
TITLE III--MISCELLANEOUS AMENDMENTS TO THE TARIFF ACT OF 1930
SEC. 301. ADMINISTRATIVE EXEMPTIONS.
Section 321 (19 U.S.C. 1321) is amended--
(1) by amending subsection (a)(1)--
(A) by striking out ``of less than $10'' and
inserting ``of an amount specified by the Secretary by
regulation, but not less than $20,'',
(B) by inserting ``, fees,'' after ``duties''
wherever it appears, and
(C) by striking out ``and'' at the end thereof;
(2) by amending subsection (a)(2)--
(A) by striking out ``shall not exceed--'' and
inserting ``shall not exceed an amount specified by the
Secretary by regulation, but not less than--'',
(B) by striking out ``$50'' and ``$100'' in
subparagraph (A) and inserting ``$100'' and ``$200'',
respectively,
(C) by striking out ``$25'' in subparagraph (B) and
inserting ``$200'',
(D) by striking out ``$5'' in subparagraph (C) and
inserting ``$200'', and
(E) by striking the period at the end thereof and
inserting ``; and'';
(3) by inserting a new paragraph (3) at the end of
subsection (a) to read as follows:
``(3) waive the collection of duties, fees, and taxes due
on entered merchandise when such duties, fees, or taxes are
less than $20 or such greater amount as may be specified by the
Secretary by regulation.''; and
(4) by amending subsection (b)--
(A) by striking out ``to diminish any dollar amount
specified in subsection (a) and''; and
(B) by striking out ``such subsection'' wherever it
appears and inserting ``subsection (a)''.
SEC. 302. REPORT OF ARRIVAL.
Section 433 (19 U.S.C. 1433) is amended--
(1) by amending subsection (a)(1)--
(A) by striking out ``or'' at the end of
subparagraph (B),
(B) by inserting ``or'' after the semicolon at the
end of subparagraph (C), and
(C) by adding after subparagraph (C) the following:
``(D) any vessel which has visited a hovering
vessel or received merchandise while outside the
territorial sea;'';
(2) by striking out ``present to customs officers such'' in
subsection (d) and inserting ``present, or transmit pursuant to
an electronic data interchange system, to the Customs Service
such information, data,''; and
(3) by amending subsection (e) to read as follows:
``(e) Prohibition on Departures and Discharge.--Unless otherwise
authorized by law, a vessel, aircraft or vehicle after arriving in the
United States or Virgin Islands may, but only in accordance with
regulations prescribed by the Secretary--
``(1) depart from the port, place, or airport of arrival;
or
``(2) discharge any passenger or merchandise (including
baggage).''.
SEC. 303. ENTRY OF VESSELS.
Section 434 (19 U.S.C. 1434) is amended to read as follows:
``SEC. 434. ENTRY; VESSELS.
``(a) Formal Entry.--Within 24 hours (or such other period of time
as may be provided under subsection (c)(2)) after the arrival at any
port or place in the United States of--
``(1) any vessel from a foreign port or place;
``(2) any foreign vessel from a domestic port;
``(3) any vessel of the United States having on board
bonded merchandise or foreign merchandise for which entry has
not been made; or
``(4) any vessel which has visited a hovering vessel or has
delivered or received merchandise while outside the territorial
sea;
the master of the vessel shall, unless otherwise provided by law, make
formal entry at the nearest customs facility or such other place as the
Secretary may prescribe by regulation.
``(b) Preliminary Entry.--The Secretary may by regulation permit
the master to make preliminary entry of the vessel with the Customs
Service in lieu of formal entry or before formal entry is made. In
permitting preliminary entry, the Customs Service shall board a
sufficient number of vessels to ensure compliance with the laws it
enforces.
``(c) Regulations.--The Secretary may by regulation--
``(1) prescribe the manner and format in which entry under
subsection (a) or subsection (b), or both, must be made, and
such regulations may provide that any such entry may be made
electronically pursuant to an electronic data interchange
system;
``(2) provide that--
``(A) formal entry must be made within a greater or
lesser time than 24 hours after arrival, but in no case
more than 48 hours after arrival, and
``(B) formal entry may be made before arrival; and
``(3) authorize the Customs Service to permit entry or
preliminary entry of any vessel to be made at a place other
than a designated port of entry, under such conditions as may
be prescribed.''.
SEC. 304. UNLAWFUL RETURN OF FOREIGN VESSEL PAPERS.
Section 438 (19 U.S.C. 1438) is amended--
(1) by striking out ``section 435'' and inserting ``section
434'';
(2) by inserting ``, or regulations issued thereunder,''
after ``of this Act''; and
(3) by striking out ``the appropriate customs officer of
the port where such vessel has been entered.'' and inserting
``the Customs Service in the port in which such vessel has
entered.''.
SEC. 305. VESSELS NOT REQUIRED TO ENTER.
Section 441 (19 U.S.C. 1441) is amended--
(1) by amending the text preceding paragraph (1) to read as
follows: ``The following vessels shall not be required to make
entry under section 434 or to obtain clearance under section
4197 of the Revised Statutes of the United States (46 U.S.C.
App. 91):'';
(2) by amending paragraph (3) to read as follows:
``(3) Any vessel carrying passengers on excursion from the United
States Virgin Islands to the British Virgin Islands and returning, if--
``(A) the vessel does not in any way violate the customs or
navigation laws of the United States;
``(B) the vessel has not visited any hovering vessel; and
``(C) the master of the vessel, if there is on board any
article required by law to be entered, reports the article to
the Customs Service immediately upon arrival.'';
(3) by redesignating paragraphs (4) and (5) as paragraphs
(5) and (6), respectively, and inserting after paragraph (3)
the following:
``(4) Any United States documented vessel with recreational
endorsement or any undocumented United States pleasure vessel not
engaged in trade, if--
``(A) the vessel complies with the reporting requirements
of section 433, and with the customs and navigation laws of the
United States;
``(B) the vessel has not visited any hovering vessel; and
``(C) the master of, and any other person on board, the
vessel, if the master or such person has on board any article
required by law to be entered or declared, reports such article
to the Customs Service immediately upon arrival;''; and
(4) by amending the section heading to read as follows:
``Sec. 441. Exceptions to vessel entry and clearance requirements.''.
SEC. 306. UNLADING.
Section 448(a) (19 U.S.C. 1448(a)) is amended--
(1) by amending the first sentence--
(A) by striking out ``enter)'' and inserting
``enter or clear)'',
(B) by striking out ``or vehicle arriving from a
foreign port or place'' and inserting ``required to
make entry under section 434, or vehicle required to
report arrival under section 433,'',
(C) by inserting ``or transmitted pursuant to an
electronic data interchange system'' after ``issued'',
and
(D) by striking out the colon after ``officer'' and
the proviso and inserting a period;
(2) by amending the second sentence--
(A) by striking out ``, preliminary or
otherwise,'', and
(B) by inserting ``, electronically pursuant to an
authorized electronic data interchange system or
otherwise,'' after ``may issue a permit'';
(3) by striking out the last sentence and inserting the
following: ``The owner or master of any vessel or vehicle, or
agent thereof, shall notify the Customs Service of any
merchandise or baggage so unladen for which entry is not made
within the time prescribed by law or regulation. The Secretary
shall by regulation prescribe administrative penalties not to
exceed $1,000 for each bill of lading for which notice is not
given. Any such administrative penalty shall be subject to
mitigation and remittance under section 618. Such unentered
merchandise or baggage shall be the responsibility of the
master or person in charge of the importing vessel or vehicle,
or agent thereof, until it is removed from the carrier's
control in accordance with section 490.''; and
(4) by striking out ``the appropriate customs officer'' and
``such customs officer'' wherever they appear and inserting
``the Customs Service''.
SEC. 307. DECLARATIONS.
Section 485 (19 U.S.C. 1485) is amended--
(1) by amending subsection (a)--
(A) by inserting ``or transmit electronically''
after ``file'', and
(B) by inserting ``and manner'' after ``form'';
(2) by amending subsection (d)--
(A) by striking out ``A importer'' and inserting
``An importer'', and
(B) by striking out ``a importer'' and inserting
``an importer''; and
(3) by inserting after subsection (f) the following new
subsection:
``(g) Exported Merchandise Returned as Undeliverable.--With respect
to any importation of merchandise to which General Headnote 4(e) of the
Harmonized Tariff Schedule of the United States applies, any person who
gained any benefit from, or met any obligation to, the United States as
a result of the prior exportation of such merchandise shall, in
accordance with regulations prescribed by the Secretary, within a
reasonable time inform the Customs Service of the return of the
merchandise.''.
SEC. 308. GENERAL ORDERS.
Section 490 (19 U.S.C. 1490) is amended--
(1) by amending subsection (a) to read as follows:
``(a) Incomplete Entry.--
``(1) Whenever--
``(A) the entry of any imported merchandise is not
made within the time provided by law or by regulation
prescribed by the Secretary;
``(B) the entry of imported merchandise is
incomplete because of failure to pay the estimated
duties, fees, or interest;
``(C) in the opinion of the Customs Service, the
entry of imported merchandise cannot be made for want
of proper documents or other cause; or
``(D) the Customs Service believes that any
merchandise is not correctly and legally invoiced;
the carrier (unless subject to subsection (c)) shall notify the
bonded warehouse of such unentered merchandise.
``(2) After notification under paragraph (1), the bonded
warehouse shall arrange for the transportation and storage of
the merchandise at the risk and expense of the consignee. The
merchandise shall remain in the bonded warehouse until--
``(A) entry is made or completed and the proper
documents are produced;
``(B) the information and data necessary for entry
are transmitted to the Customs Service pursuant to an
authorized electronic data interchange system; or
``(C) a bond is given for the production of
documents or the transmittal of data.'';
(2) by amending subsection (b)--
(A) by amending the heading for subsection (b) to
read as follows: ``(b) Request for Possession by
Customs.--'', and
(B) by striking out ``appropriate customs officer''
and inserting ``Customs Service''; and
(3) by adding at the end the following new subsection:
``(c) Government Merchandise.--Any imported merchandise that--
``(1) is described in any of paragraphs (1) through (4) of
subsection (a); and
``(2) is consigned to, or owned by, the United States
Government;
shall be stored and disposed of in accordance with such rules and
procedures as the Secretary shall by regulation prescribe.''.
SEC. 309. UNCLAIMED MERCHANDISE.
Section 491 (19 U.S.C. 1491) is amended--
(1) by amending subsection (a)--
(A) by striking out ``customs custody for one
year'' in the first sentence and inserting ``in a
bonded warehouse pursuant to section 490 for 6
months'',
(B) by striking out ``public store or bonded
warehouse for a period of one year'' in the second
sentence and inserting ``pursuant to section 490 in a
bonded warehouse for 6 months'',
(C) by striking out ``estimated duties and
storage'' in the first sentence and inserting
``estimated duties, taxes, fees, interest, storage,'',
(D) by inserting ``taxes, fees, interest,'' after
``duties,'' wherever it appears, and
(E) by striking out ``duties'' in the last sentence
and inserting ``duties, taxes, interest, and fees'';
and
(2) by redesignating subsection (b) as subsection (e) and
inserting after subsection (a) the following new subsections:
``(b) Notice of Title Vesting in the United States.--At the end of
the 6-month period referred to in subsection (a), the Customs Service
may, in lieu of sale of the merchandise, provide notice to all known
interested parties that the title to such merchandise shall be
considered to vest in the United States free and clear of any liens or
encumbrances, on the 30th day after the date of the notice unless,
before such 30th day--
``(1) the subject merchandise is entered or withdrawn for
consumption; and
``(2) payment is made of all duties, taxes, fees, transfer
and storage charges, and other expenses that may have accrued
thereon.
``(c) Retention, Transfer, Destruction, or Other Disposition.--If
title to any merchandise vests in the United States by operation of
subsection (b), such merchandise may be retained by the Customs Service
for official use, transferred to any other Federal agency or to any
State or local agency, destroyed, or otherwise disposed of in
accordance with such regulations as the Secretary shall prescribe. All
transfer and storage charges or expenses accruing on transferred
merchandise shall be paid by the receiving agency, otherwise the
charges and expenses on such merchandise shall be paid out of the
Customs Forfeiture Fund.
``(d) Petition.--Whenever any party, having lost a substantial
interest in merchandise by virtue of title vesting in the United States
under subsection (b), can establish such title or interest to the
satisfaction of the Secretary within 30 days after the day on which
title vests in the United States under subsection (b), or can establish
to the satisfaction of the Secretary that the party did not receive
notice under subsection (b), the Secretary may, upon receipt of a
timely and proper petition and upon finding that the facts and
circumstances warrant, pay such party out of the Customs Forfeiture
Fund the amount the Secretary believes the party would have received
under section 493 had the merchandise been sold and a proper claim
filed. The decision of the Secretary with respect to any such petition
is final and conclusive on all parties.''; and
(3) by amending subsection (e) (as so redesignated) by
striking out ``appropriate customs officer'' in paragraph (3)
and inserting ``Customs Service''.
SEC. 310. DESTRUCTION OF MERCHANDISE.
Section 492 (19 U.S.C. 1492) is amended--
(1) by inserting ``, retained for official use, or
otherwise disposed of'' after ``destroyed''; and
(2) by striking out ``appropriate customs officer'' and
inserting ``Customs Service''.
SEC. 311. PROCEEDS OF SALE.
Section 493 (19 U.S.C. 1493) is amended--
(1) by inserting ``taxes, and fees,'' after ``duties,'';
(2) by striking out ``by the appropriate customs officer in
the Treasury of the United States'' and inserting ``in the
Customs Forfeiture Fund''; and
(3) by striking out ``such customs officer'' and inserting
``the Customs Service''.
SEC. 312. ENTRY UNDER REGULATIONS.
Section 498(a) (19 U.S.C. 1498(a)) is amended--
(1) by amending paragraph (1) to read as follows:
``(1) Merchandise, when--
``(A) the aggregate value of the shipment does not
exceed an amount specified by the Secretary by
regulation, but not more than $2,500; or
``(B) different commercial facilitation and risk
considerations that may vary for different classes or
kinds of merchandise or different classes of
transactions may dictate;''; and
(2) by striking out ``$10,000'' in paragraph (2) and
inserting ``such amounts as the Secretary may prescribe''.
SEC. 313. AMERICAN TRADEMARKS.
Section 526(e)(3) (19 U.S.C. 1526(e)(3)) is amended--
(1) by striking out ``1 year'' and inserting ``90 days'';
and
(2) by striking out ``appropriate customs officers'' and
inserting ``the Customs Service''.
SEC. 314. SEIZURE.
Section 612 (19 U.S.C. 1612) is amended--
(1) by amending subsection (a)--
(A) by striking out ``the appropriate customs
officer'', ``such officer'' and ``the customs officer''
wherever they appear and inserting ``the Customs
Service'', and
(B) by striking out ``the appraiser's return and
his'' and inserting ``its''; and
(2) by amending subsection (b) to read as follows:
``(b) If the Customs Service determines that the expense of keeping
the vessel, vehicle, aircraft, merchandise, or baggage is
disproportionate to the value thereof, the Customs Service may promptly
order the destruction or other appropriate disposition of such property
under regulations prescribed by the Secretary. No customs officer shall
be liable for the destruction or other disposition of property made
pursuant to this section.''.
SEC. 315. CUSTOMS FORFEITURE FUND.
(a) Amendment.--Section 613A (19 U.S.C. 1613b) is amended--
(1) by redesignating subparagraphs (E) and (F) of
subsection (a)(3) as subparagraphs (G) and (H), respectively;
(2) by inserting after subparagraph (D) of subsection
(a)(3) the following new subparagraphs:
``(E) the payment of transfer and storage charges
and expenses under section 491(c);
``(F) the payment of claims against employees of
the Customs Service settled by the Secretary under
section 630;''; and
(3) by striking out ``shall'' in subsection (d) and
inserting ``may''.
(b) Reference.--After the effective date of section 9703 of title
31, United States Code, any reference in the Tariff Act of 1930 to the
Customs Forfeiture Fund shall be treated as being a reference to the
Department of the Treasury Forfeiture Fund established by such section
9703.
SEC. 316. LIMITATION ON ACTIONS.
Section 621 (19 U.S.C. 1621) is amended--
(1) by inserting ``any duty under section 592(d), 593A(d),
or'' before ``any pecuniary penalty''; and
(2) by striking out ``discovered:'' and all that follows
thereafter and inserting the following: ``discovered; except
that--
``(1) in the case of an alleged violation of section 592 or
593A, no suit or action (including a suit or action for
restoration of lawful duties under subsection (d) of such
sections) may be instituted unless commenced within 5 years
after the date of the alleged violation or, if such violation
arises out of fraud, within 5 years after the date of discovery
of fraud, and
``(2) the time of the absence from the United States of the
person subject to the penalty or forfeiture, or of any
concealment or absence of the property, shall not be reckoned
within the 5-year period of limitation.''.
SEC. 317. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.
The Tariff Act of 1930 is amended by inserting after section 528
the following new section:
``SEC. 529. COLLECTION OF FEES ON BEHALF OF OTHER AGENCIES.
``The Customs Service shall be reimbursed from the fees collected
for the cost and expense, administrative and otherwise, incurred in
collecting any fees on behalf of any government agency for any
reason.''.
SEC. 318. AUTHORITY TO SETTLE CLAIMS.
The Tariff Act of 1930 is amended by inserting after section 629
the following new section:
``SEC. 630. AUTHORITY TO SETTLE CLAIMS.
``(a) In General.--Notwithstanding any other provision of law and
subject to subsection (b), the Secretary may settle, for not more than
$50,000 in any one case, a claim for personal injury, death, or damage
to, or loss of, privately owned property caused by an investigative or
law enforcement officer (as defined in section 2680(h) of title 28,
United States Code) who is employed by the Customs Service and acting
within the scope of his or her employment.
``(b) Limitations.--The Secretary may not pay a claim under
subsection (a) that--
``(1) concerns commercial property;
``(2) is presented to the Secretary more than 1 year after
it occurs; or
``(3) is presented by an officer or employee of the United
States Government and arose within the scope of employment.
``(c) Final Settlement.--A claim may be paid under this section
only if the claimant accepts the amount of settlement in complete
satisfaction of the claim.''.
SEC. 319. USE OF PRIVATE COLLECTION AGENCIES.
The Tariff Act of 1930 is amended by inserting after section 630
the following new section:
``SEC. 631. USE OF PRIVATE COLLECTION AGENCIES.
``(a) In General.--Notwithstanding any other provision of law, the
Secretary, under such terms and conditions as the Secretary considers
appropriate, shall enter into contracts and incur obligations with one
or more persons for collection services to recover indebtedness arising
under the customs laws and owed the United States Government, but only
after the Customs Service has exhausted all administrative efforts,
including all claims against applicable surety bonds, to collect the
indebtedness.
``(b) Contract Requirements.--Any contract entered into under
subsection (a) shall provide that--
``(1) the Secretary retains the authority to resolve a
dispute, compromise a claim, end collection action, and refer a
matter to the Attorney General to bring a civil action; and
``(2) the person is subject to--
``(A) section 552a of title 5, United States Code,
to the extent provided in subsection (m) of such
section; and
``(B) laws and regulations of the United States
Government and State governments related to debt
collection practices.''.
TITLE IV--MISCELLANEOUS PROVISIONS AND CONSEQUENTIAL AND CONFORMING
AMENDMENTS TO OTHER LAWS
SEC. 401. AMENDMENTS TO THE HARMONIZED TARIFF SCHEDULE.
(a) Return Shipments.--General Note 4 of the Harmonized Tariff
Schedule of the United States is amended--
(1) by striking out ``and'' at the end of subdivision (c);
(2) by inserting ``and'' after ``1930,'' in subdivision
(d);
(3) by inserting after subdivision (d) the following:
``(e) articles exported from the United States which are
returned within 45 days after such exportation from the United
States as undeliverable and which have not left the custody of
the carrier or foreign customs service,''; and
(4) by adding at the end the following new sentence: ``No
exportation referred to in subdivision (e) may be treated as
satisfying any requirement for exportation in order to receive
a benefit from, or meet an obligation to, the United States as
a result of such exportation.''.
(b) Entry Not Required for Locomotives and Railway Freight Cars.--
(1) The Notes to chapter 86 of such Schedule are amended by
inserting after note 3 the following new note:
``4. Railway locomotives (provided for in headings 8601 and 8602) and
railway freight cars (provided for in heading 8606) on which no duty is
owed are not subject to the entry or release requirements for imported
merchandise set forth in sections 448 and 484 of the Tariff Act of
1930. The Secretary of the Treasury may by regulation establish
appropriate reporting requirements, including the requirement that a
bond be posted to ensure compliance.''.
(2) The U.S. Notes to subchapter V of chapter 99 of such
Schedule are amended by inserting after note 8 the following
new note:
``9. Railway freight cars provided for in subheadings 9905.86.05 and
9905.86.10 are not subject to the entry or release requirements for
imported merchandise set forth in sections 448 and 484 of the Tariff
Act of 1930. The Secretary of the Treasury may by regulation establish
appropriate reporting requirements, including the requirement that a
bond be posted to ensure compliance.''.
(c) Instruments of International Traffic.--The U.S. Notes to
subchapter III of chapter 98 of such Schedule is amended by inserting
after note 3 the following new note:
``4. Instruments of international traffic, such as containers, life
vans, rail cars and locomotives, truck cabs and trailers, etc. are
exempt from formal entry procedures but are required to be accounted
for when imported and exported into and out of the United States,
respectively, through the manifesting procedures required for all
international carriers by the United States Customs Service. Fees
associated with the importation of such instruments of international
traffic shall be reported and paid on a periodic basis as required by
regulations issued by the Secretary of the Treasury and in accordance
with 1956 Customs Convention on Containers (20 UST 30; TIAS 6634).''.
SEC. 402. AMENDMENT TO THE INTERNAL REVENUE CODE OF 1986.
Section 9505(c) of the Internal Revenue Code of 1986 is amended to
read as follows:
``(c) Expenditures From the Harbor Maintenance Trust Fund.--
``(1) Amounts in the Harbor Maintenance Trust Fund shall be
available, as provided by appropriations Acts, for making
expenditures--
``(A) to carry out section 210(a) of the Water
Resources Development Act of 1986 (as amended by the
Water Resources Development Act of 1990),
``(B) for payments of rebates of tolls or charges
pursuant to section 13(b) of the Act of May 13, 1954
(as in effect on April 1, 1987), and
``(C) for the payments of all administrative
expenses incurred by the Department of the Army, the
Department of the Treasury and the Department of
Commerce in administering the tax imposed by section
4461.
``(2) There are authorized to be appropriated to the
Department of the Army, out of the Harbor Maintenance Trust
Fund established by subsection (a), for each fiscal year not to
exceed $5,000,000 to be used by the Department of the Army to
provide payment of all administrative expenses incurred by the
Department of the Army, the Department of the Treasury, and the
Department of Commerce in administering the tax imposed by
section 4461.''.
SEC. 403. AMENDMENTS TO TITLE 28, UNITED STATES CODE.
(a) Amendments Relating to Accreditation of Private Laboratories.--
Title 28 of the United States Code is amended as follows:
(1) Section 1581(g) is amended by--
(A) striking out ``and'' at the end of paragraph
(1);
(B) by striking out the period at the end of
paragraph (2) and inserting ``; and''; and
(C) by adding at the end the following:
``(3) any decision or order of the Customs Service to deny,
suspend, or revoke accreditation of a private laboratory under
section 499(b) of the Tariff Act of 1930.''.
(2) Section 2631(g) is amended by inserting at the end the
following new paragraph:
``(3) A civil action to review any decision or order of the Customs
Service to deny, suspend, or revoke accreditation of a private
laboratory under section 499(b) of the Tariff Act of 1930 may be
commenced in the Court of International Trade by the person whose
accreditation was denied, suspended, or revoked.''.
(3) Section 2636 is amended--
(A) by redesignating subsection (h) as subsection
(i); and
(B) by inserting after subsection (g) the following
new subsection:
``(h) A civil action contesting the denial, suspension, or
revocation by the Customs Service of a private laboratory's
accreditation under section 499(b) of the Tariff Act of 1930 is barred
unless commenced in accordance with the rules of the Court of
International Trade within 60 days after the date of the decision or
order of the Customs Service.''.
(4) Section 2640 is amended--
(A) by redesignating subsection (d) as subsection
(e); and
(B) by inserting after subsection (c) the following
new subsection:
``(d) In any civil action commenced to review any order or decision
of the Customs Service under section 499(b) of the Tariff Act of 1930,
the court shall review the action on the basis of the record before the
Customs Service at the time of issuing such decision or order.''.
(5) Section 2642 is amended by inserting before the period
the following: ``or laboratories accredited by the Customs
Service under section 499(b) of the Tariff Act of 1930''.
(b) Application of Subsection (a) Amendments.--For purposes of
applying the amendments made by subsection (a), any decision or order
of the Customs Service denying, suspending, or revoking the
accreditation of a private laboratory on or after the date of the
enactment of this Act and before regulations to implement section
499(b) of the Tariff Act of 1930 are issued shall be treated as having
been denied, suspended, or revoked under such section 499(b).
(c) Jurisdiction of Court.--Section 1582(1) of title 28, United
States Code, is amended by inserting ``593A,'' after ``592,''.
(d) Filing of Official Documents.--Section 2635(a) of title 28,
United States Code, is amended to read as follows:
``(a) In any action commenced in the Court of International Trade
contesting the denial of a protest under section 515 of the Tariff Act
of 1930 or the denial of a petition under section 516 of such Act, the
Customs Service, as prescribed by the rules of the court, shall file
with the clerk of the court, as part of the official record, any
document, paper, information or data relating to the entry of
merchandise and the administrative determination that is the subject of
the protest or petition.''.
SEC. 404. AMENDMENTS TO THE REVISED STATUTES OF THE UNITED STATES.
(a) Enrolled or Licensed Vessels.--Section 2793 of the Revised
Statutes of the United States (19 U.S.C. 288; 46 U.S.C. App. 111, 123)
is amended by striking out the first semicolon and all the text that
follows thereafter and inserting a period.
(b) Registered Vessels at Foreign Ports.--Section 3126 of such
Revised Statutes (19 U.S.C. 293) is amended--
(1) by striking out ``Any vessel, on being duly registered
in pursuance of the laws of the United States,'' and inserting
``Any United States documented vessel with a registry and
coastwise endorsements''; and
(2) by striking out all the text occurring after the first
sentence.
(c) Clearance Requirements.--Section 4197 of such Revised Statutes
(46 U.S.C. App. 91) is amended to read as follows:
``SEC. 4197. CLEARANCE; VESSELS.
``(a) When Required; Vessels of the United States.--Except as
otherwise provided by law, any vessel of the United States shall obtain
clearance from the Customs Service before proceeding from a port or
place in the United States--
``(1) for a foreign port or place;
``(2) for another port or place in the United States if the
vessel has on board bonded merchandise or foreign merchandise
for which entry has not been made; or
``(3) outside the territorial sea to visit a hovering
vessel or to receive merchandise while outside the territorial
sea.
``(b) When Required; Other Vessels.--Except as otherwise provided
by law, any vessel that is not a vessel of the United States shall
obtain clearance from the Customs Service before proceeding from a port
or place in the United States--
``(1) for a foreign port or place;
``(2) for another port or place in the United States; or
``(3) outside the territorial sea to visit a hovering
vessel or to receive or deliver merchandise while outside the
territorial sea.
``(c) Regulations.--The Secretary of the Treasury may by
regulation--
``(1) prescribe the manner in which clearance under this
section is to be obtained, including the documents, data or
information which shall be submitted or transmitted, pursuant
to an authorized data interchange system, to obtain the
clearance;
``(2) permit the Customs Service to grant clearance for a
vessel under this section before all requirements for clearance
are complied with, but only if the owner or operator of the
vessel files a bond in an amount set by the Secretary of the
Treasury conditioned upon the compliance by the owner or
operator with all specified requirements for clearance within a
time period (not exceeding 4 business days) established by the
Secretary of the Treasury; and
``(3) authorize the Customs Service to permit clearance of
any vessel to be obtained at a place other than a designated
port of entry, under such conditions as he may prescribe.''.
SEC. 405. AMENDMENTS TO TITLE 18, UNITED STATES CODE.
Section 965(a) of title 18, United States Code, is amended--
(1) by striking out ``sections 91, 92, and 94 of Title 46''
and inserting ``section 431 of the Tariff Act of 1930 (19
U.S.C. 1431) and section 4197 of the Revised Statutes of the
United States (46 U.S.C. App. 91),'';
(2) by striking out ``the collector of customs for the
district wherein such vessel is then located'' and inserting
``the Customs Service''; and
(3) by striking out ``the collector like'' and inserting in
lieu thereof ``the Customs Service like''.
SEC. 406. AMENDMENT TO THE ACT TO PREVENT POLLUTION FROM SHIPS.
Section 9(e) of the Act to Prevent Pollution from Ships (94 Stat.
2301, 33 U.S.C. 1908(e)) is amended by striking out ``shall refuse or
revoke'' and all of the text following thereafter and inserting ``shall
refuse or revoke the clearance required by section 4197 of the Revised
Statutes of the United States (46 U.S.C. App. 91). Clearance may be
granted upon the filing of a bond or other surety satisfactory to the
Secretary.''.
SEC. 407. AMENDMENTS TO THE ACT OF NOVEMBER 6, 1966.
Sections 2(e) and 3(e) of the Act of November 6, 1966 (46 U.S.C.
App. 817d(e) and 817e(e)) are each amended--
(1) by striking out ``The collector of customs at'' and
inserting ``At''; and
(2) by inserting ``, the Customs Service'' after
``subsection (a) of this section''.
SEC. 408. REPEAL OF OBSOLETE PROVISIONS OF LAW.
(a) Revised Statutes.--The following provisions of the Revised
Statutes of the United States are repealed:
(1) So much of section 2792 as is codified at 19 U.S.C. 289
and 46 U.S.C. App. 110 and 112 (as in effect on the date of the
enactment of this Act).
(2) Section 3111 (19 U.S.C. 282).
(3) Section 3118 (19 U.S.C. 286).
(4) Section 3119 (19 U.S.C. 287).
(5) Section 3122 (19 U.S.C. 290).
(6) Section 3124 (19 U.S.C. 291).
(7) Section 3125 (19 U.S.C. 292).
(8) Section 4198 (46 U.S.C. App. 94).
(9) Section 4199 (46 U.S.C. App. 93).
(10) Section 4201 (46 U.S.C. App. 96).
(11) Section 4207.
(12) Section 4208 (46 U.S.C. App. 102).
(13) Section 4213 (46 U.S.C. App. 101).
(14) So much of section 4221 as is codified at 46 U.S.C.
App. 113 (as in effect on the date of the enactment of this
Act).
(15) Section 4222 (46 U.S.C. App. 126).
(16) Section 4332 (46 U.S.C. App. 274).
(17) Section 4348 (46 U.S.C. App. 293).
(18) Section 4358 (46 U.S.C. App. 306).
(19) Section 4361 (46 U.S.C. App. 307).
(20) Sections 4362 through 4369 (46 U.S.C. App. 308 through
315).
(21) Sections 4573 through 4576 (46 U.S.C. App. 674 through
677).
(b) Tariff Act of 1930.--The following sections of the Tariff Act
of 1930 are repealed:
(1) Section 432 (19 U.S.C. 1432).
(2) Section 435 (19 U.S.C. 1435).
(3) Section 437 (19 U.S.C. 1437).
(4) Section 439 (19 U.S.C. 1439).
(5) Section 440 (19 U.S.C. 1440).
(6) Sections 443, 444, and 445 (19 U.S.C. 1443, 1444, and
1445).
(7) Section 465 (19 U.S.C. 1465).
(8) Section 482 (19 U.S.C. 1482).
(9) Section 583 (19 U.S.C. 1583).
(10) Section 585 (19 U.S.C. 1585).
(c) Miscellaneous Provisions.--The following provisions are
repealed:
(1) The last undesignated paragraph of section 201 of the
Act of August 5, 1935 (19 U.S.C. 1432a), is repealed.
(2) The Act of June 16, 1937 (19 U.S.C. 1435b).
(3) Section 1 of the Act of July 3, 1926 (46 U.S.C. App.
293a).
(4) The Act of May 4, 1934 (46 U.S.C. App. 91a).
(5) Section 1403(b) of the Water Resources Development Act
of 1986 (Public Law 99-662; 26 U.S.C. 4461 note).
SEC. 409. REPORTS TO CONGRESS.
(a) Antidumping and Countervailing Duty Collections.--The
Commissioner of Customs shall before the 60th day of each fiscal year
after fiscal year 1992 submit to Congress a report regarding the
collection during the preceding fiscal year of duties imposed under the
antidumping and countervailing duty laws.
(b) CES Fee Report.--
(1) Amendment.--Section 9501(c) of the Omnibus Budget
Reconciliation Act of 1987 (19 U.S.C. 3 note) is amended by
adding at the end the following new paragraph:
``(3) The Commissioner of Customs is authorized to obtain
from the operators of centralized cargo examination stations
information regarding the fees paid to them for the provision
of services at these stations.''.
(2) Report.--Within 9 months after the date of the
enactment of this subsection, the Commissioner of Customs shall
submit to the Committees referred to in section 9501(c) of the
Omnibus Budget Reconciliation Act of 1987, a report setting
forth--
(A) an estimate of the aggregate amount of fees
paid to operators of centralized cargo examination
stations during fiscal year 1992; and
(B) the variations, if any, among customs districts
with respect to the amounts of the fees charged for
centralized cargo examination station services.
(c) Compliance With Customs Laws.--Section 123 of the Customs and
Trade Act of 1990 (19 U.S.C. 2083) is amended--
(1) by redesignating subsection (d) as subsection (e), and
(2) by inserting after subsection (c) the following:
``(d) Compliance Program.--The Commissioner of Customs shall--
``(1) devise and implement a methodology for estimating the
level of compliance with the laws administered by the Customs
Service; and
``(2) include as an additional part of the report required
to be submitted under subsection (a) for each of fiscal years
1993, 1994, and 1995, an evaluation of the extent to which such
compliance was obtained during the 12-month period preceding
the 60th day before each such fiscal year.''.
(d) Courier Services Compliance Report.--The Commissioner of
Customs shall initiate a compliance review of certain courier services
which may not be eligible for benefits under the regulations of the
Customs Service prescribed in part 128 of title 19 of the Code of
Federal Regulations and shall submit a report to Congress on the
results of such review within 1 year after the date of the enactment of
this Act.
SEC. 410. APPLICABILITY OF AMENDMENTS TO ENTRY OR WITHDRAWAL OF GOODS.
Any amendment made by this subtitle that is applicable to the
entry, or withdrawal from warehouse for consumption, of goods applies
to any such entry or withdrawal that is made on or after the 15th day
after the date of the enactment of this Act.
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