[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5393 Introduced in House (IH)]
111th CONGRESS
2d Session
H. R. 5393
To provide U.S. Customs and Border Protection with authority to more
aggressively enforce trade laws relating to textile or apparel
articles, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 25, 2010
Mr. Kissell (for himself, Mr. Jones, Mr. Spratt, Mr. Coble, Mr.
Boucher, Mr. Hare, Mr. Schauer, Mr. Carney, Mr. Duncan, Mr. McHenry,
Mr. Michaud, Mr. Aderholt, Mr. McIntyre, Mr. Etheridge, Mr. Rogers of
Alabama, Mr. McCotter, Ms. Foxx, Mr. Inglis, Ms. Sutton, Mrs. Myrick,
Mr. Lipinski, Ms. Linda T. Sanchez of California, Ms. Kaptur, and Mr.
Holden) introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on the
Judiciary, for a period to be subsequently determined by the Speaker,
in each case for consideration of such provisions as fall within the
jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To provide U.S. Customs and Border Protection with authority to more
aggressively enforce trade laws relating to textile or apparel
articles, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Textile
Enforcement and Security Act of 2010''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Textile or apparel article defined.
TITLE I--ADDITIONAL AUTHORITIES FOR U.S. CUSTOMS AND BORDER PROTECTION
Sec. 101. Findings.
Sec. 102. Seizure and forfeiture of certain textile or apparel articles
and use of amounts from fines, penalties,
and forfeitures.
Sec. 103. Increase in certain TAPP positions and Import Specialist
positions and biennial review of staff
levels.
Sec. 104. Implementation report.
Sec. 105. Definitions.
TITLE II--AMENDMENTS TO THE TARIFF ACT OF 1930
Sec. 201. Additional requirements for importation of textile or apparel
articles.
Sec. 202. Definition of person for penalties for fraud, gross
negligence, and negligence relating to
import documentation.
Sec. 203. Special provisions regarding certain violations relating to
import documentation.
Sec. 204. Electronic preference verification system for origin of
textile or apparel articles under CAFTA,
NAFTA, and other free trade agreements.
Sec. 205. Nonresident importer declaration program for textile or
apparel articles.
TITLE III--MISCELLANEOUS PROVISIONS
Sec. 301. Establishment of Office of Textile and Apparel Trade
Enforcement within the Department of
Justice.
SEC. 2. TEXTILE OR APPAREL ARTICLE DEFINED.
(a) In General.--In this Act, the term ``textile or apparel
article'' means any of the following:
(1) Any good classifiable in chapters 50 through 63 of the
HTS.
(2) Any good classifiable under one of the following HTS
headings or subheadings:
(A) 3005.90.
(B) 3921.12.15.
(C) 3921.13.15.
(D) 3921.90.2550.
(E) 4202.12.40-80.
(F) 4202.22.40-80.
(G) 4202.32.40-95.
(H) 4202.92.05.
(I) 4202.92.15-30.
(J) 4202.92.60-90.
(K) 6405.20.60.
(L) 6406.10.77.
(M) 6406.10.90.
(N) 6406.99.15.
(O) 6501.
(P) 6502.
(Q) 6504.
(R) 6505.90.
(S) 6601.10-99.
(T) 7019.19.15.
(U) 7019.19.28.
(V) 7019.40-59.
(W) 8708.21.
(X) 8804.
(Y) 9113.90.40.
(Z) 9404.90.
(AA) 9612.10.9010.
(b) HTS Defined.--In subsection (a), the term ``HTS'' means the
Harmonized Tariff Schedule of the United States.
TITLE I--ADDITIONAL AUTHORITIES FOR U.S. CUSTOMS AND BORDER PROTECTION
SEC. 101. FINDINGS.
The Congress finds the following:
(1) The Textile and Apparel Policy and Programs division of
the Office of International Trade within U.S. Customs and
Border Protection (hereinafter in this title referred to as the
``TAPP'') has, with respect to textile or apparel articles, the
authority to direct the implementation and enforcement of free
trade agreements, multilateral agreements, bilateral textile
agreements, preference programs, and all other trade
legislation affecting textiles and apparel articles.
(2) The primary focus of the TAPP is to ensure the
effective implementation of all trade enforcement activities
involving textile or apparel articles, including preventing
origin fraud, preventing circumvention of the requirements to
obtain preferential trade treatment under free trade agreements
and trade preference programs in order to avoid quotas or
duties, providing for the collection of appropriate duties, and
providing for the correct valuation of articles.
(3) The TAPP headquarters office is currently below its
optimal staffing levels and the TAPP personnel efforts should
be targeted at retaining senior staff and hiring new qualified
personnel so that the division is brought up to optimal
staffing levels. These positions should be designated as not
only policy positions, but enforcement positions as well.
(4) The TAPP should implement special operations, Textile
Product Verification Teams (hereinafter in this title referred
to as ``TPVTs''), and other actions under U.S. Customs and
Border Protection authority to ensure enforcement of trade laws
relating to imports of textile or apparel articles in a timely
manner as concerns arise, specifically as they relate to
enforcement of the North American Free Trade Agreement, the
Dominican Republic-Central America-United States Free Trade
Agreement, and all other free trade agreements and preference
programs, in order to prevent transshipments and origin fraud.
(5) U.S. Customs and Border Protection should ensure that
seizures, detentions, special operations, and TPVTs remain the
primary focus of its textile or apparel articles enforcement
efforts.
SEC. 102. SEIZURE AND FORFEITURE OF CERTAIN TEXTILE OR APPAREL ARTICLES
AND USE OF AMOUNTS FROM FINES, PENALTIES, AND
FORFEITURES.
(a) Seizure and Forfeiture.--The following penalties shall apply
with respect to an importation of a textile or apparel article:
(1) In the case of importation for which a trade preference
has been claimed and with respect to which the textile or
apparel article has been either misdescribed on entry as to
country of origin or for which the importer of record does not
verify actual country of origin, for purposes of avoiding a
duty or other obligation to the United States Government, the
textile or apparel article shall be subject to seizure and
forfeiture consistent with United States customs laws.
(2) In the case of importation by an importer of record who
provides false information with respect to the physical address
of the importer or who does not meet the requirements of
section 484(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1484
(a)(2)(B)), the textile or apparel article shall be subject to
seizure and forfeiture consistent with United States customs
laws.
(b) Use of Amounts From Fines, Penalties, and Forfeitures.--
(1) In general.--Notwithstanding any other provision of
law, the Secretary of Homeland Security or the Secretary of the
Treasury--
(A) shall use amounts from fines, penalties, and
forfeitures of property for violations of any law
regarding the import of textile or apparel articles
enforced by the Secretary of Homeland Security to pay
for expenses directly related to investigations of, and
civil or criminal enforcement proceedings on,
violations of any law regarding the import of textile
or apparel articles, including any necessary expenses
for equipment, training, travel, witnesses, and
contracting services directly related to such
investigations or proceedings; and
(B) may use amounts from fines, penalties, and
forfeitures of property for violations of any law
regarding the import of textile or apparel articles
enforced by the Secretary of Homeland Security to pay
for a reward of not less than 20 percent of the amount
of the fine, penalty, or forfeiture of property
collected or $20,000, whichever is the lesser amount,
to any person who furnishes information that leads to
an arrest, conviction, civil penalty assessment, or
forfeiture of property for any violation of any law
regarding the import of textile or apparel articles
enforced by the Secretary.
(2) Liability for storage and disposal costs.--Any person
found in an administrative or judicial proceeding to have
violated a law regarding the import of textile or apparel
articles enforced by the Secretary of Homeland Security or the
Secretary of the Treasury shall be liable for the cost incurred
in the storage and disposal of any textile or apparel articles
seized in connection with the violation.
(3) Rule of construction.--Amounts from fines, penalties,
and forfeitures of property for violations of any law regarding
the import of textile or apparel articles enforced by the
Secretary of Homeland Security or the Secretary of the Treasury
to pay for expenses described in paragraph (1)(A) or a reward
described in paragraph (1)(B) are in addition to amounts
otherwise available for such purposes.
SEC. 103. INCREASE IN CERTAIN TAPP POSITIONS AND IMPORT SPECIALIST
POSITIONS AND BIENNIAL REVIEW OF STAFF LEVELS.
(a) Increase in Certain TAPP Positions.--As soon as practicable
after the date of the enactment of this Act, the Commissioner shall
ensure that--
(1) the Textile Operations Branch (or any successor or
related Branch) of the TAPP shall consist of, at a minimum, one
Branch Chief and seven Operations Staff, of which not less than
one Operations Staff shall be assigned to each of three
different CAFTA-DR countries and not less than one Operations
Staff shall be assigned to the People's Republic of China for
purposes of Customs services and textile or apparel preference
verification;
(2) the Textile/Apparel Policy Branch (or any successor or
related Branch) of the TAPP shall consist of, at a minimum, one
Branch Chief and three Operations Staff and two textile trade
analysts; and
(3) the Quota Branch (or any successor or related Branch)
of the TAPP shall consist of, at a minimum, one Branch Chief
and four Operations Staff.
(b) Increase in Certain Import Specialist Positions.--As soon as
practicable after the date of the enactment of this Act, the
Commissioner shall allocate, to the 15 largest (by value of entries)
United States ports of entry for textile or apparel articles, Import
Specialists that are trained in fraud relating to imports of textile or
apparel articles so that the level of Import Specialist positions is
not less than 150 percent of the level of Import Specialist positions
(as of the date of the enactment of this Act) at such ports of entry.
(c) Biennial Review of Staff Levels.--Not later than two years
after the date of the enactment of this Act, and every two years
thereafter, the Commissioner shall review the TAPP staff levels and
determine whether there is need for additional staff to carry out the
duties of the TAPP.
(d) CAFTA-DR Country Defined.--In this section, the term ``CAFTA-DR
country'' has the meaning given the term in section 3(2) of the
Dominican Republic-Central America-United States Free Trade Agreement
Implementation Act (19 U.S.C. 4002(2)).
SEC. 104. IMPLEMENTATION REPORT.
Not later than one year after the date of the enactment of this
Act, the Commissioner shall transmit to Congress a report on the
implementation of this title.
SEC. 105. DEFINITIONS.
For purposes of this title:
(1) Commissioner.--The term ``Commissioner'' means the
Commissioner responsible for U.S. Customs and Border
Protection.
(2) Enter; entry.--The terms ``enter'' and ``entry'' refer
to the entry, or withdrawal from warehouse for consumption, in
the customs territory of the United States.
(3) Importer of record.--The term ``importer of record''
has the meaning given the term in section 484 of the Tariff Act
of 1930 (19 U.S.C. 1484).
(4) Special operations.--The term ``special operations''
means an initiative that is--
(A) implemented to address specific instances of
transactions that do not comply with United States
trade laws with respect to textile or apparel articles;
(B) used to address any import violations involving
textile or apparel articles, including fraud, quota
requirements, revenue collection, trade preferences or
requirements under free trade agreements, product
safety, anti-dumping and countervailing duties, or
intellectual property rights; or
(C) initiated to address a singular instance or a
pattern of high-risk behavior, involving a particular
commodity or other trade issue, including valuation,
origin fraud, or trade preference violation, on the
part of a country, importer, or manufacturer.
(5) TAPP.--The term ``TAPP'' means the Textile and Apparel
Policy and Programs division of the Office of International
Trade within U.S. Customs and Border Protection.
(6) TPVTs.--The term ``TPVTs'' means Textile Product
Verification Teams.
TITLE II--AMENDMENTS TO THE TARIFF ACT OF 1930
SEC. 201. ADDITIONAL REQUIREMENTS FOR IMPORTATION OF TEXTILE OR APPAREL
ARTICLES.
(a) Affidavit Requirement.--Section 484(a) of the Tariff Act of
1930 (19 U.S.C. 1484(a)) is amended by adding at the end the following:
``(3) Affidavit requirement.--
``(A) In general.--The documentation or information
required under paragraph (1) with respect to imported
textile or apparel articles shall include an affidavit
with respect to each importation of such merchandise
that includes the information described in subparagraph
(B).
``(B) Required information.--The information
described in this paragraph is the following:
``(i) The physical address of the
manufacturer.
``(ii) The contact person's name and
complete contact information.
``(iii) A description of the articles, such
as fiber content, yarn content, fabric type.
``(iv) The purchase order or invoice number
issued for the sale with quantities included.
``(v) The date of sale or shipment of the
articles.
``(vi) If available, the container number
and bill of lading number for the articles
delivered to the customer.
``(C) Form.--The affidavit required under this
paragraph may be submitted to U.S. Customs and Border
Protection in electronic form.
``(D) Definition.--In this paragraph, the term
`textile or apparel article' has the meaning given the
term in section 2 of the Textile Enforcement and
Security Act of 2010.''.
(b) Bonding Requirement.--Section 623(b) of the Tariff Act of 1930
(19 U.S.C. 1623(b)) is amended by adding at the end the following:
``(5) In the case of importation of textile or apparel
articles, the Secretary of the Treasury shall by regulation or
specific instruction require, or authorize Customs officers to
require, the amount of the bond to include amounts equal to any
duties, fees, and penalties estimated to be payable on such
articles. For purposes of this paragraph, amounts equal to any
penalties estimated to be payable on such articles shall be
based on a risk assessment of the importer. In this paragraph,
the term `textile or apparel article' has the meaning given the
term in section 2 of the Textile Enforcement and Security Act
of 2010.''.
(c) Effective Date.--The amendments made by subsections (a) and (b)
shall apply with respect to articles entered, or withdrawn from
warehouse for consumption, on or after the date that is 180 days after
the date of the enactment of this Act.
SEC. 202. DEFINITION OF PERSON FOR PENALTIES FOR FRAUD, GROSS
NEGLIGENCE, AND NEGLIGENCE RELATING TO IMPORT
DOCUMENTATION.
(a) In General.--Section 592(a)(1) of the Tariff Act of 1930 (19
U.S.C. 1592(a)(1)) is amended in the matter preceding subparagraph (A)
by striking ``no person'' and inserting ``no producer, manufacturer,
supplier, seller, importer, exporter, or other person''.
(b) Conforming Amendment.--Section 592A(a)(1) of the Tariff Act of
1930 (19 U.S.C. 1592a(a)(1)) is amended by inserting ``importer,''
after ``exporter,''.
SEC. 203. SPECIAL PROVISIONS REGARDING CERTAIN VIOLATIONS RELATING TO
IMPORT DOCUMENTATION.
(a) Publication of Names of Certain Violators.--Section 592A(a)(1)
of the Tariff Act of 1930 (19 U.S.C. 1592a(a)(1)), as amended by this
Act, is further amended in the matter preceding subparagraph (A) by
striking ``is authorized to'' and inserting ``shall''.
(b) List of High-Risk Countries.--Section 592A(b)(1) of the Tariff
Act of 1930 (19 U.S.C. 1592a(b)(1)) is amended in the first sentence--
(1) by striking ``is authorized to'' and inserting
``shall''; and
(2) by inserting after ``quotas'' the following: ``or
duties''.
SEC. 204. ELECTRONIC PREFERENCE VERIFICATION SYSTEM FOR ORIGIN OF
TEXTILE OR APPAREL ARTICLES UNDER CAFTA, NAFTA, AND OTHER
FREE TRADE AGREEMENTS.
(a) Establishment.--Not later than 180 days after the date of the
enactment of this Act, the President, acting through the Commissioner
responsible for U.S. Customs and Border Protection and in coordination
with the head of the Office of Textiles and Apparel of the Department
of Commerce, shall establish an electronic verification system for
tracking textile or apparel articles imported or exported under the
Dominican Republic-Central America-United States Free Trade Agreement,
the North American Free Trade Agreement, or any other free trade
agreement to which the United States is a party to ensure compliance
with the respective requirements of such agreements.
(b) Implementation.--The President shall seek to enter into
consultations and agreements as appropriate with the government of each
foreign country that is party to any agreement described in subsection
(a) for purposes of implementing the system established under
subsection (a).
(c) Confidentiality.--The system established under subsection (a)
shall ensure that proprietary information, such as information about
supply chain participants, are coded so that only U.S. Customs and
Border Protection and the Office of Textiles and Apparel personnel can
access such information.
(d) Sense of Congress.--It is the sense of Congress that the
President should seek to make the integration of the system established
under subsection (a) in future free trade agreements a priority in
negotiations for such agreements.
SEC. 205. NONRESIDENT IMPORTER DECLARATION PROGRAM FOR TEXTILE OR
APPAREL ARTICLES.
(a) Establishment of Program.--The President shall establish and
maintain a nonresident importer declaration program with respect to the
importation of textile or apparel articles. The program shall require
nonresident importers of textile or apparel articles to provide the
information required under subsection (b) and declare the information
required under subsection (c), and require that such information
accompany the entry summary documentation for such textile or apparel
articles.
(b) Information Required.--The President shall require the
following information to be submitted by any nonresident importer
seeking to import textile or apparel articles:
(1) An identification of a resident agent in the State in
which the port of entry is located who is authorized to accept
service of process against the nonresident importer in
connection with the importation of the textile or apparel
articles.
(2) A certification that the resident agent described in
paragraph (1) has assets in the United States in sufficient
amounts for the purpose of ensuring the payment of any
additional loss of revenue not covered by any surety bond or
for any civil penalties levied by the Federal Government in
connection with the importation of the textile or apparel
articles.
(3) A copy of the commercial invoice accompanying the
shipment of the textile or apparel articles, including the
name, address, and contact information for each person in the
transaction, such as the trading house, the freight forwarder,
and the ultimate purchaser of the goods.
(c) Declarations Required.--Pursuant to procedures prescribed by
the President, any nonresident importer seeking to import textile or
apparel articles shall declare the following:
(1) The nonresident importer has secured a bond in
connection with the importation of the textile or apparel
articles as required by section 623(b)(5) of the Tariff Act of
1930 (as added by section 201(b) of this Act).
(2) The nonresident importer has established a power of
attorney in connection with the importation of the textile or
apparel articles.
(d) Penalties.--
(1) In general.--It shall be unlawful for any person to
import into the United States textile or apparel articles in
knowing violation of this section.
(2) Civil penalties.--Any person who violates paragraph (1)
shall be liable for a civil penalty of not more than $50,000
for each such violation.
(3) Other penalties.--In addition to the penalties provided
for in paragraph (2), any violation of this section that
violates any other customs law of the United States shall be
subject to any applicable civil and criminal penalty, including
seizure and forfeiture, that may be imposed under such customs
law or title 18, United States Code, with respect to the
importation of textile or apparel articles.
(e) Nonresident Importer Defined.--In this section, the term
``nonresident importer'' means--
(1) an individual that is not a citizen of the United
States or an alien lawfully admitted for permanent residence in
the United States; or
(2) a partnership, corporation, or other commercial entity
that is not organized under the laws of a jurisdiction within
the customs territory of the United States (as such term is
defined in General Note 2 of the Harmonized Tariff Schedule of
the United States) or in the Virgin Islands of the United
States.
TITLE III--MISCELLANEOUS PROVISIONS
SEC. 301. ESTABLISHMENT OF OFFICE OF TEXTILE AND APPAREL TRADE
ENFORCEMENT WITHIN THE DEPARTMENT OF JUSTICE.
(a) Establishment.--The Attorney General shall establish within the
Department of Justice the Office of Textile and Apparel Trade
Enforcement.
(b) Timing.--The Attorney General shall establish the Office by not
later than the end of the 180-day period beginning on the date of the
enactment of this Act.
(c) Staff.--The Office shall have a director, at least three
attorneys, and such other staff as may be necessary.
(d) Functions.--The Office shall be responsible for carrying out
all functions of the Department of Justice relating to relevant
enforcement cases.
(e) Venue.--Notwithstanding the provisions of chapter 87 of title
28, United States Code, relating to venue, a relevant enforcement case
may be prosecuted only in the United States District Court for the
Middle District of North Carolina.
(f) Relevant Enforcement Cases.--In this section, a case is a
``relevant enforcement case'' if the case--
(1) is referred to the Department of Justice by the
Department of Homeland Security; and
(2) relates to the enforcement of laws with respect to the
importation of textile or apparel articles.
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