Title II — Trade facilitation, trade enforcement, and transparency

S. 662 · 113th Congress · Mar 22, 2013 · Lineage

II Trade facilitation, trade enforcement, and transparency

A Trade facilitation and transparency

Sec. 201 Improving partnership programs

(a)

In general— In order to advance the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency, the Commissioner shall ensure that partnership programs of the Agency established before the date of the enactment of this Act, such as the Customs–Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.), and partnership programs of the Agency established after such date of enactment, provide trade benefits to private sector entities that meet the requirements for participation in those programs established by the Commissioner under this section.

(b)

Elements— In developing and operating partnership programs under subsection (a), the Commissioner shall—

(1)

consult with private sector entities, the public, and other Federal agencies when appropriate, to ensure that participants in those programs receive commercially significant and measurable trade benefits;

(2)

ensure an integrated and transparent system of trade benefits and compliance requirements for all partnership programs of the U.S. Customs and Border Protection Agency;

(3)

consider consolidating partnership programs in situations in which doing so would support the objectives of such programs, increase participation in such programs, enhance the trade benefits provided to participants in such programs, and enhance the allocation of the resources of the Agency;

(4)

coordinate with other Federal agencies with authority to detain and release merchandise entering the United States—

(A)

to ensure coordination in the release of such merchandise through the Automated Commercial Environment computer system, or its predecessor, and the International Trade Data System;

(B)

to ensure that the partnership programs of those agencies are compatible with the partnership programs of the U.S. Customs and Border Protection Agency; and

(C)

to develop criteria for authorizing the release, on an expedited basis, of merchandise for which documentation is required from one or more of those agencies to clear or license the merchandise for entry into the United States; and

(5)

ensure that trade benefits are provided to participants in partnership programs.

(c)

Report required— Not later than the date that is 180 days after the date of the enactment of this Act, and December 31 of each year thereafter, the Commissioner shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that—

(1)

identifies each partnership program referred to in subsection (a), including the program referred to in section 499A of the Tariff Act of 1930, as added by section 202;

(2)

for each such program, identifies—

(A)

the requirements for participants in the program;

(B)

the commercially significant and measurable trade benefits provided to participants in the program;

(C)

the number of participants in the program; and

(D)

in the case of a program that provides for participation at multiple tiers, the number of participants at each such tier;

(3)

identifies the number of participants enrolled in more than one such partnership program;

(4)

assesses the effectiveness of each such partnership program in advancing the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency, based on historical developments, the level of participation in the program, and the evolution of benefits provided to participants in the program;

(5)

summarizes the efforts of the Agency to work with other Federal agencies with authority to detain and release merchandise entering the United States to ensure that partnership programs of those agencies are compatible with partnership programs of the Agency;

(6)

identifies from among those agencies the agencies that are collaborating with the Commissioner to provide benefits pursuant to subsection (f) of section 499A of the Tariff Act of 1930, as added by section 202;

(7)

summarizes criteria developed with those agencies for authorizing the release, on an expedited basis, of merchandise for which documentation is required from one or more of those agencies to clear or license the merchandise for entry into the United States;

(8)

summarizes the efforts of the Agency to work with private sector entities and the public to develop and improve partnership programs referred to in subsection (a);

(9)

describes measures taken by the Agency to make private sector entities aware of the trade benefits available to participants in such programs; and

(10)

summarizes the plans, targets, and goals of the Agency with respect to such programs for the 2 years following the submission of the report.

Sec. 202 Trade facilitation partnership program

(a)

In general— Title IV of the Tariff Act of 1930 (19 U.S.C. 1401 et seq.) is amended by adding at the end the following:

“499A. Trade facilitation partnership program

“(a) In general—The Commissioner of U.S. Customs and Border Protection (in this section referred to as the Commissioner) shall establish a voluntary government–private sector program or modify an existing such program to enhance trade facilitation and trade enforcement and to provide trade benefits developed under subsection (c) to qualified persons.

“(b) Qualified person defined—For purposes of this section, the term qualified person means a person that—

“(1) is involved in the entry of merchandise into the United States, including as an intermodal transportation system provider, contract logistics provider, air, land, or sea carrier, customs broker, importer, or forwarder; and

“(2) demonstrates compliance with the requirements established under subsection (e) in accordance with the procedures established under subsection (d).

“(c) Trade benefits

“(1) In general—The Commissioner shall, in consultation with the entities specified in paragraph (3), develop enhanced commercially significant and measurable trade benefits to be provided to qualified persons.

“(2) Requirements—The trade benefits developed under paragraph (1) shall—

“(A) be designed to expedite the release of merchandise of qualified persons upon arrival of the merchandise in the United States; and

“(B) include—

“(i) consideration of the status of persons as qualified persons for the purposes of commercial targeting under section 211(c) of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013;

“(ii) to the extent practicable, giving priority to qualified persons with respect to the clearance of merchandise during activities to resume trade after any disruption to the processing of merchandise entering the United States;

“(iii) providing preclearance of merchandise for qualified persons that demonstrate the highest levels of compliance with the customs and trade laws of the United States, regulations of the U.S. Customs and Border Protection Agency, and requirements established under subsection (e); and

“(iv) any other trade benefits the Commissioner determines appropriate for achieving the goals of the program under subsection (a).

“(3) Entities specified—The entities specified in this paragraph are—

“(A) the Customs Operations Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013;

“(B) the Trade Support Network (as defined in section 2 of that Act);

“(C) the Committee on Finance of the Senate; and

“(D) the Committee on Ways and Means of the House of Representatives.

“(d) Procedures—The Commissioner shall establish procedures with respect to the following:

“(1) Submission and approval of applications to receive trade benefits under the program under subsection (a).

“(2) Verification that an applicant to receive trade benefits under the program is a qualified person.

“(3) Reverification that a person receiving trade benefits under the program continues to be a qualified person.

“(4) Withdrawal of trade benefits from a person that the Commissioner determines is not a qualified person.

“(5) Appeals of decisions of the Commissioner under this section.

“(e) Requirements

“(1) In general—The Commissioner, in consultation with the entities specified in subsection (c)(3)—

“(A) shall establish requirements for receiving trade benefits under the program under subsection (a); and

“(B) may establish multiple tiers of requirements and trade benefits under the program.

“(2) Minimum requirements—The minimum requirements for a person to receive trade benefits under the program under subsection (a) are the following:

“(A) The certification of the person as a member of the Customs–Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.) or an equivalent certification in a successor program.

“(B) A history of compliance by the person with the customs and trade laws of the United States and regulations of the U.S. Customs and Border Protection Agency.

“(f) Interagency program benefits—The Commissioner shall collaborate with the head of each Federal agency with authority to detain and release merchandise entering the United States to develop benefits to be provided to persons that receive trade benefits under the program under subsection (a) and that import merchandise into the United States that requires clearance by that agency, including—

“(1) the submission to, and retrieval of information from, that agency relating to the entry and release of that merchandise through the Automated Commercial Environment, or its predecessor, and the International Trade Data System;

“(2) the preclearance of that merchandise by that agency through the Automated Commercial Environment or its predecessor to the extent possible; and

“(3) any other benefits that the Commissioner and the head of that agency determine appropriate.

“(g) Confidential information safeguards—The Commissioner, in consultation with the Customs Operations Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013, shall establish procedures to safeguard confidential data collected, stored, or shared with the U.S. Customs and Border Protection Agency or any other Federal agency pursuant to this section.

“(h) Customs and trade laws of the United States defined—In this section, the term customs and trade laws of the United States has the meaning given that term in section 2 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013.”

(b)

Federal Register notice— Not later than 90 days after the date of the enactment of this Act, the Commissioner shall publish a notice in the Federal Register setting forth the requirements of section 499A of the Tariff Act of 1930, as added by subsection (a), and seeking public comments on the development and implementation of the program under that section.

Sec. 203 Centers of Excellence and Expertise

The Commissioner shall, in consultation with private sector entities, develop and implement Agency-wide Centers of Excellence and Expertise that—

(1)

build the expertise of the U.S. Customs and Border Protection Agency in particular industry operations, supply chains, and compliance requirements;

(2)

ensure the uniform implementation across United States ports of entry of policies and regulations affecting major import sectors;

(3)

centralize decisionmaking of the Agency that impacts particular industries;

(4)

enhance trade facilitation and trade enforcement; and

(5)

formalize an account-based approach to the importation of merchandise into the United States by persons the Commissioner determines have a history of compliance with the customs and trade laws of the United States.

Sec. 204 Mutual recognition agreements

(a)

Negotiating objective— It shall be a negotiating objective of the United States in any negotiation for a mutual recognition agreement with a foreign country on partnership programs, such as the Customs–Trade Partnership Against Terrorism established under subtitle B of title II of the Security and Accountability for Every Port Act of 2006 (6 U.S.C. 961 et seq.), to seek to ensure the compatibility of the partnership programs of that country with the partnership programs of the U.S. Customs and Border Protection Agency to enhance trade facilitation and trade enforcement.

(b)

Consultations— Not later than 30 days before entering into a mutual recognition agreement described in subsection (a), the Secretary of Homeland Security shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to how the provisions of the agreement will advance the security, trade facilitation, and trade enforcement missions of the U.S. Customs and Border Protection Agency.

Sec. 205 Customs Operations Advisory Committee

(a)

Establishment— Not later than December 31, 2013, the Secretary of the Treasury and the Secretary of Homeland Security shall jointly establish a Customs Operations Advisory Committee (in this section referred to as the Advisory Committee).

(b)

Membership—

(1)

In general— The Advisory Committee shall be comprised of—

(A)

20 individuals appointed under paragraph (2);

(B)

the Commissioner and the Assistant Secretary for Tax Policy of the Department of the Treasury, who shall jointly co-chair meetings of the Advisory Committee; and

(C)

the Assistant Secretary for Policy of the Department of Homeland Security and the Director of U.S. Immigration and Customs Enforcement, who shall serve as deputy co-chairs of meetings of the Advisory Committee.

(2)

Appointment—

(A)

In general— Not later than 180 days after the date of the enactment of this Act, the Secretary of the Treasury and the Secretary of Homeland Security shall jointly appoint 20 individuals from the private sector to the Advisory Committee, not more than 10 of whom shall be of the same political party.

(B)

Terms— Each individual appointed to the Advisory Committee under this paragraph shall be appointed for a term of up to 3 years, and may be reappointed to subsequent terms, but may not serve more than 2 terms sequentially.

(3)

Qualifications— The individuals appointed to the Advisory Committee shall be broadly representative of the sectors of the United States economy affected by the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency.

(4)

Transfer of membership— The Secretary of the Treasury and the Secretary of Homeland Security may transfer members serving on the Advisory Committee on Commercial Operations of the United States Customs Service established under section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) on the day before the date of the enactment of this Act to the Advisory Committee established under subsection (a).

(c)

Duties— The Advisory Committee established under subsection (a) shall—

(1)

advise the Secretary of the Treasury and the Secretary of Homeland Security on all matters involving the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency, including advising with respect to significant changes that are proposed with respect to policies or regulations of either such Agency;

(2)

provide recommendations to the Secretary of the Treasury and the Secretary of Homeland Security on improvements to the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency; and

(3)

perform such other functions relating to the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency as prescribed by law or as the Secretary of the Treasury and the Secretary of Homeland Security jointly direct.

(d)

Meetings—

(1)

In general— The Advisory Committee shall meet at the call of the Secretary of the Treasury and the Secretary of Homeland Security or at the call of not less than 2/3 of the membership of the Advisory Committee.

(2)

Number of meetings— The Advisory Committee shall, at a minimum, meet at least 4 times each calendar year. Additional meetings may be called of such special task forces or other groups made up of members of the Advisory Committee as the Advisory Committee determines appropriate.

(3)

Addition of agenda items— Any member of the Advisory Committee may recommend additional items for the agenda of a meeting before the meeting.

(4)

Open meetings— A meeting of the Advisory Committee shall be open to the public unless the Secretary of the Treasury and the Secretary of Homeland Security determine that the meeting will include matters the disclosure of which would seriously compromise the development of policies, priorities, or negotiating objectives or positions that could impact the commercial operations of the U.S. Customs and Border Protection Agency or the investigations of the U.S. Immigration and Customs Enforcement Agency.

(e)

Reports—

(1)

Annual report— Not later than December 31 of each calendar year, the Advisory Committee shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that—

(A)

describes the activities of the Advisory Committee during the preceding fiscal year; and

(B)

sets forth any recommendations of the Advisory Committee regarding the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency during the preceding fiscal year.

(2)

Additional reports— The members of the Advisory Committee appointed under subsection (b)(2) may submit directly to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives such additional reports on the commercial operations of the U.S. Customs and Border Protection Agency and the investigations of the U.S. Immigration and Customs Enforcement Agency as such members determine appropriate.

(f)

Applicability of Federal Advisory Committee Act— The provisions of the Federal Advisory Committee Act (5 U.S.C. App.) shall apply to the Advisory Committee, except as follows:

(1)

Subsections (a) and (b) of section 10 of such Act (relating to open meetings and availability of information) shall not apply.

(2)

Section 11 of such Act (relating to the availability of transcripts of meetings) shall not apply.

(3)

Section 14(a)(2) of such Act (relating to termination) shall be applied by substituting “4-year period” for “two-year period”.

(g)

Conforming repeal— Effective January 31, 2014, section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) is repealed.

(h)

References— On or after January 31, 2014, any reference in law to the Advisory Committee on Commercial Operations of the United States Customs Service established under section 9503(c) of the Omnibus Budget Reconciliation Act of 1987 (19 U.S.C. 2071 note) shall be deemed to be a reference to the Customs Operations Advisory Committee established under subsection (a).

(i)

Conforming amendments—

(1)

SAFE Port Act— The Security and Accountability for Every Port Act of 2006 (6 U.S.C. 901 et seq.) is amended—

(A)

in section 2, by striking paragraph (2) and inserting the following:

“(2) Customs Operations Advisory Committee—The term Customs Operations Advisory Committee means the Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 or any successor committee.”

(B)

by striking “Commercial Operations Advisory Committee” each place it appears and inserting “Customs Operations Advisory Committee”.

(2)

Tariff Act of 1930— Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is amended—

(A)

in paragraph (1)(D), by striking “Commercial Operations Advisory Committee” and inserting “Customs Operations Advisory Committee”; and

(B)

by striking paragraph (7) and inserting the following:

“(7) Customs Operations Advisory Committee defined—In this section, the term Customs Operations Advisory Committee means the Advisory Committee established under section 205 of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013 or any successor committee.”

(3)

Effective date— The amendments made by this subsection shall take effect on January 1, 2014.

Sec. 206 Automated Commercial Environment computer system

(a)

Funding— Section 13031(f)(5) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)) is amended—

(1)

in subparagraph (A)—

(A)

by striking “2003, 2004, and 2005” and inserting “2014 through 2018”; and

(B)

by striking “$350,000,000” and inserting “$325,000,000”; and

(2)

by striking subparagraph (B) and inserting the following:

“(B)

“(i) From amounts that are available in the Account, there are authorized to be appropriated—

“(I) for each of fiscal years 2014 through 2016, $140,000,000 to complete the development of the Automated Commercial Environment computer system;

“(II) for each of fiscal years 2017 and 2018, $115,000,000 for the operation and maintenance of the Automated Commercial Environment computer system; and

“(III) for fiscal years 2014 through 2018, such amounts as are available in the Account after the obligation of amounts pursuant to the authorizations of appropriations under subclauses (I) and (II) and subparagraph (C) for other purposes related to the functions of the Department of Homeland Security.

“(ii) Amounts authorized to be appropriated pursuant to this subparagraph shall remain available until expended.

“(iii) Not more than 1 percent of the amounts authorized to be appropriated from the Account under subclauses (I) and (II) of clause (i) may be used as matching funds to assist Federal agencies (other than the Department of Homeland Security) with authority to detain and release merchandise entering the United States in developing their respective automated release programs that are integrated with the Automated Commercial Environment computer system.”

(b)

Report— Section 311(b)(3) of the Customs Border Security Act of 2002 (19 U.S.C. 2075 note) is amended to read as follows:

“(3) Report

“(A) In general—Not later than December 31, 2013, the Commissioner of U.S. Customs and Border Protection shall submit to the Committee on Appropriations and the Committee on Finance of the Senate and the Committee on Appropriations and the Committee on Ways and Means of the House of Representatives a report—

“(i) describing the plans of the U.S. Customs and Border Protection Agency, including deadlines, for incorporating all cargo release data elements into the Automated Commercial Environment computer system not later than September 30, 2015, to conform with the admissibility criteria of agencies participating in the International Trade Data System identified pursuant to subsection (d)(4)(A)(iii) of section 411 of the Tariff Act of 1930;

“(ii) identifying the components of the National Customs Automation Program specified in subsection (a)(2) of such section 411 that have not been implemented;

“(iii) identifying the priorities of the Agency for incorporating entry summary data elements, cargo manifest data elements, and cargo financial data elements into the Automated Commercial Environment computer system;

“(iv) describing the objectives, plans, and deadlines of the Agency for implementing the components identified under clause (ii) and the priorities identified under cause (iii) not later than September 30, 2016; and

“(v) describing any additional component of the National Customs Automation Program initiated by the Commissioner to complete the development, establishment, and implementation of the Automated Commercial Environment computer system.

“(B) Update of reports—Not later than June 30, 2014, and every 180 days thereafter, the Commissioner shall submit to the Committee on Appropriations and the Committee on Finance of the Senate and the Committee on Appropriations and the Committee on Ways and Means of the House of Representatives an updated report addressing each of the matters referred to in subparagraph (A).”

(c)

Government accountability office report— Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Appropriations and the Committee on Finance of the Senate and the Committee on Appropriations and the Committee on Ways and Means of the House of Representatives a report—

(1)

evaluating the cost and effectiveness of the efforts of the U.S. Customs and Border Protection Agency to complete the development, establishment, and implementation of the Automated Commercial Environment computer system;

(2)

assessing the extent to which any additional functionality may be added into the Automated Commercial Environment computer system at a reasonable cost; and

(3)

assessing the progress of other Federal agencies in accessing and utilizing the Automated Commercial Environment computer system.

Sec. 207 International Trade Data System

(a)

Information technology infrastructure— Section 411(d) of the Tariff Act of 1930 (19 U.S.C. 1411(d)) is amended—

(1)

by redesignating paragraphs (4) through (7) as paragraphs (5) through (8), respectively; and

(2)

by inserting after paragraph (3) the following:

“(4) Information technology infrastructure

“(A) In general—The Secretary shall work with the head of each agency participating in the ITDS and the Interagency Steering Committee to ensure that each such agency—

“(i) develops and maintains the necessary information technology infrastructure to support the operation of the ITDS and to submit all data to the ITDS electronically;

“(ii) enters into a memorandum of understanding, or takes such other action as is necessary, to provide for the information sharing between the agency and the U.S. Customs and Border Protection Agency necessary for the operation and maintenance of the ITDS; and

“(iii) not later than June 30, 2014, identifies and transmits to the Commissioner of U.S. Customs and Border Protection the admissibility criteria and data elements required by the agency to authorize the release of cargo by the U.S. Customs and Border Protection Agency for incorporation into the operational functionality of the Automated Commercial Environment computer system.

“(B) Rule of construction—Nothing in this paragraph shall be construed to require any action to be taken that would compromise an ongoing law enforcement investigation or national security.”

(b)

Authorization of appropriations— Section 13031(f)(5) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(5)), as amended by section 206(a), is further amended by striking subparagraph (C) and inserting the following:

“(C) There are authorized to be appropriated to the Secretary of the Treasury from amounts available in the Account $25,000,000 for each of fiscal years 2014 through 2018, to remain available until expended, to carry out the provisions of section 411(d)(4) of the Tariff Act of 1930.”

(c)

Government accountability office report— Not later than June 30, 2015, the Comptroller General of the United States shall submit to the Committee on Appropriations and the Committee on Finance of the Senate and the Committee on Appropriations and the Committee on Ways and Means of the House of Representatives a report—

(1)

evaluating the development and maintenance of the information technology infrastructure necessary to support the operations of the International Trade Data System; and

(2)

assessing the number of memoranda of understanding and other actions taken by the U.S. Customs and Border Protection Agency and other Federal agencies to ensure the sharing of electronic import and export data.

Sec. 208 Electronic submission of public comments

Not later than one year after the date of the enactment of this Act, the Commissioner shall provide—

(1)

for the electronic submission and posting of any public comments solicited by the U.S. Customs and Border Protection Agency on the Internet website of the Agency; and

(2)

for the prompt posting of public comments associated with any rulemaking of the Agency on the Federal Government Internet website for Federal regulations, www.regulations.gov, or any successor website.

B Trade enforcement

1 Commercial targeting

Sec. 211 Commercial Targeting Division and National Targeting and Analysis Groups

(a)

Establishment of commercial targeting division—

(1)

In general— The Secretary of Homeland Security shall establish and maintain within the Office of Trade of the U.S. Customs and Border Protection Agency, established under section 4 of the Act of March 3, 1927, as added by section 102, a Commercial Targeting Division.

(2)

Composition— The Commercial Targeting Division shall be composed of—

(A)

headquarters personnel led by an Executive Director, who shall report to the Assistant Commissioner for Trade; and

(B)

individual National Targeting and Analysis Groups, each led by a Director who shall report to the Executive Director of the Commercial Targeting Division.

(3)

Duties— The Commercial Targeting Division shall be dedicated—

(A)

to the development and conduct of commercial targeting with respect to cargo destined for the United States in accordance with subsection (c); and

(B)

to issuing Trade Alerts described in subsection (d).

(b)

National targeting and analysis groups—

(1)

In general— The Commissioner shall determine the priorities of the National Targeting and Analysis Groups referred to in subsection (a)(2)(B), to include the enforcement, with respect to the importation of merchandise into the United States, of—

(A)

intellectual property rights;

(B)

health and safety laws and regulations;

(C)

agriculture-related laws and regulations;

(D)

textile- and apparel-related laws and regulations;

(E)

general revenue laws and regulations; and

(F)

non-general revenue laws and regulations, including with respect to antidumping and countervailing duties.

(c)

Commercial targeting— In carrying out its duties with respect to commercial targeting, the Commercial Targeting Division shall—

(1)

establish targeting methodologies and standards for—

(A)

assessing the risk that cargo destined for the United States may violate the customs and trade laws of the United States; and

(B)

issuing, as appropriate, Trade Alerts described in subsection (d);

(2)

to the extent practicable and otherwise authorized by law, use, to administer the methodologies and standards established under paragraph (1)—

(A)

publicly available information;

(B)

information available from the Automated Commercial System, the Automated Commercial Environment computer system, the Automated Targeting System, the Automated Export System, the International Trade Data System, the TECS (formerly known as the Treasury Enforcement Communications System), and the case management system of the U.S. Immigration and Customs Enforcement Agency, and any successors to those systems; and

(C)

information made available to the Commercial Targeting Division, including information provided by private sector entities; and

(3)

coordinate targeting efforts with other Federal agencies with authority to detain and release merchandise entering the United States.

(d)

Trade alerts—

(1)

Issuance— Based upon the application of the targeting methodologies and standards established under subsection (c), the Executive Director of the Commercial Targeting Division and the Directors of the National Targeting and Analysis Groups may issue Trade Alerts to port directors providing guidance for further inspection, physical examination, or testing, of specific merchandise if certain risk-assessment thresholds are met to improve compliance with the customs and trade laws of the United States and regulations administered by the U.S. Customs and Border Protection Agency.

(2)

Determinations not to implement Trade Alerts— A port director may determine not to follow a Trade Alert issued under paragraph (1) that requires further inspection, physical examination, or testing if the port director—

(A)

finds that such a determination is justified by security interests; and

(B)

notifies the Trade Facilitation and Trade Enforcement Division of the Office of Field Operations of the determination not to follow the Trade Alert and the reasons for the determination not later than 48 hours after making the determination.

(3)

Summary of determinations not to implement— The Trade Facilitation and Trade Enforcement Division shall—

(A)

compile an annual summary of all determinations by port directors under paragraph (2) and the reasons for those determinations;

(B)

conduct an evaluation of the utilization of Trade Alerts issued under paragraph (1); and

(C)

submit the summary compiled under subparagraph (A) and the evaluation conducted under subparagraph (B) to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives not later than December 31 of each year.

(4)

Inspection defined— In this subsection, the term inspection means the comprehensive evaluation process used by the U.S. Customs and Border Protection Agency, other than physical examination or testing, to permit the entry of merchandise into the United States, or the clearance of merchandise for transportation in bond through the United States, for purposes of—

(A)

assessing duties;

(B)

identifying restricted or prohibited items; and

(C)

ensuring compliance with the customs and trade laws of the United States and regulations administered by the Agency.

(e)

Use of trade data for commercial enforcement purposes— Section 343(a)(3)(F) of the Trade Act of 2002 (19 U.S.C. 2071 note) is amended to read as follows:

“(F) The information collected pursuant to the regulations shall be used for ensuring aviation, maritime, and surface transportation safety and security, and may be used for commercial enforcement purposes. A person that provides information pursuant to the regulations that is used to detect a violation of any statute or regulation relating to commercial enforcement shall be subject to commercial penalties pursuant to that statute or regulation only if the person is found to have committed fraud in providing the information.”

Sec. 212 Annual illegal drug control law enforcement strategy

(a)

In general— Section 123 of the Customs and Trade Act of 1990 (19 U.S.C. 2083) is amended to read as follows:

“123. Annual illegal drug control law enforcement strategy

“(a) Reports on violation estimates—Not later than one year after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013, and annually thereafter, the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall jointly develop and submit to the chairperson and ranking member of the Committee on Finance of the Senate and of the Committee on Ways and Means of the House of Representatives (in this section referred to as the Committees) in accordance with subsection (d) a report that contains an estimate of—

“(1) the number and extent of violations of the illegal drug control laws specified in subsection (b) that are likely to occur during the year following the report; and

“(2) the relative incidence of the violations described in paragraph (1) among the various United States ports of entry and customs regions within the customs territory of the United States during the year preceding the report.

“(b) Illegal drug control laws specified—The Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement, after consultation with the Committees—

“(1) shall, not later than 180 days after the date of the enactment of the Trade Facilitation and Trade Enforcement Reauthorization Act of 2013, prepare a list of those provisions of the illegal drug control laws of the United States with respect to which the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency have enforcement responsibility and to which the reports required by subsection (a) will apply; and

“(2) may periodically update the list developed under paragraph (1), as warranted.

“(c) Enforcement strategy—Not later than 90 days after submitting a report under subsection (a), the Commissioner of U.S. Customs and Border Protection and the Director of U.S. Immigration and Customs Enforcement shall jointly—

“(1) develop or update a strategy for enforcing the illegal drug control laws specified in subsection (b) in a nationally uniform manner and addressing the violations estimated in the report during the period covered by the report; and

“(2) submit to the chairperson and ranking member of each of the Committees a confidential report setting forth the details of the strategy described in paragraph (1).

“(d) Confidentiality—The contents of any report submitted to the chairperson and ranking member of each of the Committees under subsection (a) or (c) are confidential and the disclosure of the contents is restricted to—

“(1) officers and employees of the United States designated by the Commissioner of U.S. Customs and Border Protection or the Director of U.S. Customs and Immigration Enforcement to have access to the contents of the report;

“(2) the chairperson and ranking member of each of the Committees; and

“(3) such Members of Congress and staff of such Members as the chairperson or ranking member of either of the Committees may authorize to have access to the contents of the report.”

(b)

Conforming amendment— The table of contents for the Customs and Trade Act of 1990 is amended by striking the item relating to section 123 and inserting the following:

Sec. 213 Report on oversight of revenue protection and enforcement measures by the inspector general

Not later than June 30, 2015, the Inspector General of the Department of the Treasury shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report assessing the following:

(1)

The effectiveness of the measures taken by the U.S. Customs and Border Protection Agency with respect to revenue protection, including—

(A)

the collection of countervailing and antidumping duties;

(B)

the assessment and collection of commercial fines and penalties; and

(C)

the adequacy of the policies of the Agency with respect to monitoring and tracking of merchandise transported in bond and collecting duties, as appropriate.

(2)

The effectiveness of actions taken by the Agency to measure accountability and performance with respect to revenue protection.

(3)

The number of entries resulting in the underpayment of duties and a summary of the actions taken to address the underpayment of duties.

(4)

The effectiveness of training with respect to the collection of duties provided for personnel of the Agency.

Sec. 214 Report on security and revenue measures with respect to merchandise transported in bond

(a)

In general— Not later than December 31 of 2014, 2015, and 2016, the Secretary of Homeland Security and the Secretary of the Treasury shall jointly submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on efforts undertaken by the U.S. Customs and Border Protection Agency to ensure the secure transportation of merchandise in bond through the United States and the collection of revenue owed upon the entry of such merchandise into the United States for consumption.

(b)

Contents— The report required by subsection (a) shall include information, for the 2 fiscal years preceding the submission of the report, on—

(1)

the overall number of entries of merchandise for transportation in bond through the United States;

(2)

the ports at which merchandise arrives in the United States for transportation in bond and at which records of the arrival of such merchandise are generated;

(3)

the average time taken to reconcile such records with the records at the final destination of the merchandise in the United States to demonstrate that the merchandise reaches its final destination or is reexported;

(4)

the average time taken to transport merchandise in bond from the port at which the merchandise arrives in the United States to the final destination of the merchandise in the United States;

(5)

the total amount of duties, taxes, and fees owed with respect to shipments of merchandise transported in bond and the total amount of such duties, taxes, and fees paid;

(6)

the total number of notifications by carriers of merchandise being transported in bond that the destination of the merchandise has changed while in transit in the United States; and

(7)

the number of entries that remain unreconciled.

Sec. 215 Importer of record program

(a)

Establishment— Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall establish an importer of record program to assign and maintain importer of record numbers.

(b)

Requirements— The Secretary of Homeland Security shall ensure that, as part of the importer of record program, the U.S. Customs and Border Protection Agency—

(1)

develops criteria that importers must meet in order to obtain an importer of record number;

(2)

provides a process by which importers are assigned importer of record numbers;

(3)

maintains a centralized database of importer of record numbers, including a history of importer of record numbers associated with each importer;

(4)

evaluates the accuracy of the database on a regular basis; and

(5)

takes measures to ensure that duplicate importer of record numbers are not issued to the same importer.

(c)

Report— Not later than one year after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the importer of record program established under subsection (a).

(d)

Number defined— In this subsection, the term number, with respect to an importer of record, means a filing identification number described in section 24.5 of title 19, Code of Federal Regulations (or any corresponding similar regulation).

2 Import health and safety

Sec. 221 Interagency Import Safety Working Group

(a)

Establishment— There is established an interagency Import Safety Working Group.

(b)

Membership— The interagency Import Safety Working Group shall consist of the following officials or their designees:

(1)

The Secretary of Homeland Security, who shall serve as the Chair.

(2)

The Secretary of Health and Human Services, who shall serve as the Vice Chair.

(3)

The Secretary of the Treasury.

(4)

The Secretary of Commerce.

(5)

The Secretary of Agriculture.

(6)

The United States Trade Representative.

(7)

The Director of the Office of Management and Budget.

(8)

The Commissioner of Food and Drugs.

(9)

The Commissioner of U.S. Customs and Border Protection.

(10)

The Chairman of the Consumer Product Safety Commission.

(11)

The Director of U.S. Immigration and Customs Enforcement.

(12)

The head of any other Federal agency designated by the President to participate in the interagency Import Safety Working Group, as appropriate.

(c)

Duties— The duties of the interagency Import Safety Working Group shall include—

(1)

consulting on the development of the joint import safety rapid response plan required by section 222;

(2)

periodically evaluating the adequacy of the plans, practices, and resources of the Federal Government dedicated to ensuring the safety of merchandise imported in the United States and the expeditious entry of such merchandise, including—

(A)

minimizing the duplication of efforts among agencies the heads of which are members of the interagency Import Safety Working Group and ensuring the compatibility of the policies and regulations of those agencies; and

(B)

recommending additional administrative actions, as appropriate, designed to ensure the safety of merchandise imported into the United States and the expeditious entry of such merchandise and considering the impact of those actions on private sector entities;

(3)

reviewing the engagement and cooperation of foreign governments and foreign manufacturers in facilitating the inspection and certification, as appropriate, of such merchandise to be imported into the United States and the facilities producing such merchandise to ensure the safety of the merchandise and the expeditious entry of the merchandise into the United States; and

(4)

identifying best practices, in consultation with private sector entities as appropriate, to assist United States importers in taking all appropriate steps to ensure the safety of merchandise imported into the United States, including with respect to—

(A)

the inspection of manufacturing facilities in foreign countries;

(B)

the inspection of merchandise destined for the United States before exportation from a foreign country or before distribution in the United States; and

(C)

the protection of the international supply chain (as defined in section 2 of the Security and Accountability For Every Port Act of 2006 (6 U.S.C. 901));

(5)

identifying best practices to assist Federal, State, and local governments and agencies, and port authorities, to improve communication and coordination among such agencies and authorities with respect to ensuring the safety of merchandise imported into the United States and the expeditious entry of such merchandise; and

(6)

otherwise identifying appropriate steps to increase the accountability of United States importers and the engagement of foreign government agencies with respect to ensuring the safety of merchandise imported into the United States and the expeditious entry of such merchandise.

Sec. 222 Joint import safety rapid response plan

(a)

In general— Not later than December 31, 2014, the Secretary of Homeland Security, in consultation with the interagency Import Safety Working Group, shall develop a plan (to be known as the joint import safety rapid response plan) that sets forth protocols and defines practices for the U.S. Customs and Border Protection Agency to use—

(1)

in taking action in response to, and coordinating Federal responses to, an incident in which cargo destined for or merchandise entering the United States has been identified as posing a threat to the health or safety of consumers in the United States; and

(2)

in recovering from or mitigating the effects of actions and responses to an incident described in paragraph (1).

(b)

Contents— The joint import safety rapid response plan shall address—

(1)

the statutory and regulatory authorities and responsibilities of the U.S. Customs and Border Protection Agency and other Federal agencies in responding to an incident described in subsection (a)(1);

(2)

the protocols and practices to be used by the Agency when taking action in response to, and coordinating Federal responses to, such an incident;

(3)

the measures to be taken by the Agency and other Federal agencies in recovering from or mitigating the effects of actions taken in response to such an incident after the incident to ensure the resumption of the entry of merchandise into the United States; and

(4)

exercises that the Agency may conduct in conjunction with Federal, State, and local agencies, and private sector entities, to simulate responses to such an incident.

(c)

Updates of plan— The Secretary of Homeland Security shall review and update the joint import safety rapid response plan, as appropriate, after conducting exercises under subsection (d).

(d)

Import health and safety exercises—

(1)

In general— The Secretary of Homeland Security and the Commissioner shall periodically engage in the exercises referred to in subsection (b)(4), in conjunction with Federal, State, and local agencies and private sector entities, as appropriate, to test and evaluate the protocols and practices identified in the joint import safety rapid response plan at United States ports of entry.

(2)

Requirements for exercises— In conducting exercises under paragraph (1), the Secretary and the Commissioner shall—

(A)

make allowance for the resources, needs, and constraints of United States ports of entry of different sizes in representative geographic locations across the United States;

(B)

base evaluations on current risk assessments of merchandise entering the United States at representative United States ports of entry located across the United States;

(C)

ensure that such exercises are conducted in a manner consistent with the National Incident Management System, the National Response Plan, the National Infrastructure Protection Plan, the National Preparedness Guidelines, the Maritime Transportation System Security Plan, and other such national initiatives of the Department of Homeland Security, as appropriate; and

(D)

develop metrics with respect to the resumption of the entry of merchandise into the United States after an incident described in subsection (a)(1).

(3)

Requirements for testing and evaluation— The Secretary and the Commissioner shall ensure that the testing and evaluation carried out in conducting exercises under paragraph (1)—

(A)

are performed using clear and objective performance measures; and

(B)

result in the identification of specific recommendations or best practices for responding to an incident described in subsection (a)(1).

(4)

Dissemination of recommendations and best practices— The Secretary and the Commissioner shall—

(A)

share the recommendations or best practices identified under paragraph (3)(B) among the members of the interagency Import Safety Working Group and with, as appropriate—

(i)

State, local, and tribal governments;

(ii)

foreign governments; and

(iii)

private sector entities; and

(B)

use such recommendations and best practices to update the joint import safety rapid response plan.

Sec. 223 Training

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

3 Import-Related protection of intellectual property rights

A National Intellectual Property Rights Coordination Center

Sec. 231 National Intellectual Property Rights Coordination Center

(a)

Establishment— The Secretary of Homeland Security shall—

(1)

establish within the U.S. Immigration and Customs Enforcement Agency a National Intellectual Property Rights Coordination Center; and

(2)

appoint an Assistant Director to head the National Intellectual Property Rights Coordination Center.

(b)

Duties— The Assistant Director of the National Intellectual Property Rights Coordination Center shall—

(1)

coordinate the investigation of sources of merchandise that infringes intellectual property rights to identify organizations that produce, smuggle, or distribute such merchandise;

(2)

coordinate training with other domestic and international law enforcement agencies on investigative best practices—

(A)

to develop and expand the capability of such agencies to enforce intellectual property rights; and

(B)

to develop metrics to assess whether the training improved enforcement of intellectual property rights;

(3)

coordinate, with the U.S. Customs and Border Protection Agency, activities conducted by the United States to prevent the importation or exportation of merchandise that infringes intellectual property rights;

(4)

support the international interdiction of merchandise destined for the United States that infringes intellectual property rights;

(5)

collect and integrate information regarding infringements of intellectual property rights from domestic and international law enforcement agencies and other non-Federal sources;

(6)

develop a single platform or portal to receive information regarding infringements of intellectual property rights from such agencies and other sources and a database to organize and search that information;

(7)

disseminate information regarding infringements of intellectual property rights to other Federal agencies, as appropriate;

(8)

develop and implement risk-based alert systems to be shared with the U.S. Customs and Border Protection Agency to improve the targeting of persons that repeatedly infringe intellectual property rights;

(9)

coordinate with the United States attorneys' offices to develop expertise in, and assist with the investigation and prosecution of, crimes relating to the infringement of intellectual property rights; and

(10)

carry out such other duties as the Secretary of Homeland Security may assign.

(c)

Coordination with other agencies— In carrying out the duties described in subsection (b), the Assistant Director of the National Intellectual Property Rights Coordination Center shall coordinate with—

(1)

the U.S. Customs and Border Protection Agency;

(2)

the Food and Drug Administration;

(3)

the Department of Justice;

(4)

the Department of Commerce, including the United States Patent and Trademark Office;

(5)

the United States Postal Inspection Service;

(6)

the Office of the United States Trade Representative;

(7)

any Federal, State, local, or international law enforcement agencies the Director of U.S. Immigration and Customs Enforcement considers appropriate; and

(8)

any other entities the Director considers appropriate.

(d)

Private sector outreach—

(1)

In general— The Assistant Director of the National Intellectual Property Rights Coordination Center shall work with the U.S. Customs and Border Protection Agency and other Federal agencies to conduct outreach to private sector entities to determine trends in and methods of infringing intellectual property rights.

(2)

Information sharing— The Assistant Director shall share information and best practices with respect to the enforcement of intellectual property rights with private sector entities, as appropriate, to coordinate public and private sector efforts to combat the infringement of intellectual property rights.

B Amendments to the Tariff Act of 1930

Sec. 241 Provision to rights owners of information about and samples of merchandise suspected of infringing trademarks or copyrights

The Tariff Act of 1930 is amended by inserting after section 526 (19 U.S.C. 1526) the following:

“526A. Provision to rights owners of information about and samples of merchandise suspected of infringing trademarks or copyrights

“(a) In general—Subject to subsections (c) and (d), if the Commissioner of U.S. Customs and Border Protection suspects that merchandise is being imported into the United States in violation of section 526 or section 602, 1201(a)(1), or 1201(b)(1) of title 17, United States Code, and determines that the examination or testing of the merchandise by a person described in subsection (b) would assist the Commissioner in determining if the merchandise is being imported in violation of that section, the Commissioner, to permit the person to conduct the examination and testing—

“(1) shall provide to the person information that appears on the merchandise and its packaging and labels, including unredacted images of the merchandise and its packaging and labels; and

“(2) may, subject to any applicable bonding requirements, provide to the person unredacted samples of the merchandise.

“(b) Person described—A person described in this subsection is—

“(1) in the case of merchandise suspected of being imported in violation of section 526, the owner of the trademark suspected of being copied or simulated by the merchandise;

“(2) in the case of merchandise suspected of being imported in violation of section 602 of title 17, United States Code, the owner of the copyright suspected of being infringed by the merchandise;

“(3) in the case of merchandise suspected of being primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to a work protected under that title, and being imported in violation of section 1201(a)(2) of that title, the owner of a copyright in the work; and

“(4) in the case of merchandise suspected of being primarily designed or produced for the purpose of circumventing protection afforded by a technological measure that effectively protects a right of an owner of a copyright in a work or a portion of a work, and being imported in violation of section 1201(b)(1) of that title, the owner of the copyright.

“(c) Limitation—Subsection (a) applies only with respect to merchandise suspected of infringing a trademark or copyright that is recorded with the U.S. Customs and Border Protection Agency.

“(d) Exception—The Commissioner of U.S. Customs and Border Protection may not provide under subsection (a) information, photographs, or samples to a person described in subsection (b) if providing such information, photographs, or samples would compromise an ongoing law enforcement investigation or national security.”

Sec. 242 Enforcement by the U.S. Customs and Border Protection Agency of works for which a copyright registration is pending

Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall establish a process pursuant to which the Commissioner shall enforce a copyright for which the owner has submitted an application for registration under title 17, United States Code, with the Copyright Office of the Library of Congress to the same extent and in the same manner as if the copyright were registered with the Copyright Office, including by sharing information, images, and samples of merchandise suspected of infringing the copyright under section 526A of the Tariff Act of 1930, as added by section 241.

Sec. 243 Seizure of circumvention devices

(a)

In general— Section 596(c)(2) of the Tariff Act of 1930 (19 U.S.C. 1595a(c)(2)) is amended—

(1)

in subparagraph (E), by striking “or”;

(2)

in subparagraph (F), by striking the period and inserting “; or”; and

(3)

by adding at the end the following:

“(G) the U.S. Customs and Border Protection Agency determines it is a technology, product, service, device, component, or part thereof the importation of which is prohibited under subsection (a)(2) or (b)(1) of section 1201 of title 17, United States Code.”

(b)

Publication—

(1)

In general— Except as provided in paragraph (2), not later than 30 days after seizing merchandise pursuant to subparagraph (G) of section 596(c)(2) of the Tariff Act of 1930, as added by subsection (a), the Commissioner shall publish on the Internet website of the U.S. Customs and Border Protection Agency information regarding the merchandise seized to permit any person to identify the merchandise and determine whether the merchandise is—

(A)

a technology, product, service, device, component, or part thereof described in section 1201(a)(2) of title 17, United States Code, that—

(i)

is primarily designed or produced for the purpose of circumventing a technological measure that effectively controls access to a work for which the person has a copyright that is registered under title 17, United States Code, or that is otherwise recorded with the Agency;

(ii)

has only limited commercially significant purpose or use other than to circumvent such a technological measure; or

(iii)

is marketed for use in circumventing such a technological measure; or

(B)

a technology, product, service, device, component, or part thereof described in section 1201(b)(1) of title 17, United States Code, that—

(i)

is primarily designed or produced for the purpose of circumventing protection afforded by a technological measure that effectively protects a right of the person in a work or a portion of a work that is registered under title 17, United States Code, or that is otherwise recorded with the Agency;

(ii)

has only limited commercially significant purpose or use other than to circumvent protection afforded by such a technological measure; or

(iii)

is marketed for use in circumventing protection afforded such a technological measure.

(2)

Exception— The Commissioner may not publish information under paragraph (1) if publishing that information would compromise an ongoing law enforcement investigation or national security.

(c)

Application— Not later than 30 days after publishing the information required under subsection (b) with respect to seized merchandise, any person that determines that the seized merchandise is merchandise that infringes a right of the person as described in subsection (b) (or an agent of such a person) may submit to the U.S. Customs and Border Protection Agency an application that—

(1)

identifies the person as a person that holds such a right (or an agent of such a person); and

(2)

requests the information described in subsection (d).

(d)

Disclosure— Subject to subsection (f), the Commissioner shall disclose to a person that submitted an application described in subsection (c) with respect to seized merchandise the following information:

(1)

The date of importation of the seized merchandise.

(2)

The United States port of entry at which the merchandise was seized.

(3)

A description of the merchandise.

(4)

The quantity of merchandise seized.

(5)

The country of origin of the merchandise.

(6)

The name and address of the foreign manufacturer of the merchandise.

(7)

The name and address of the exporter of the merchandise.

(8)

The name and address of the importer of the merchandise.

(e)

Expedited disclosure— Subject to subsection (f), the Commissioner may, on an expedited basis, disclose information pursuant to subsection (d) with respect to merchandise seized pursuant to subparagraph (G) of section 526(c)(2) of the Tariff Act of 1930, as added by subsection (a), and with respect to which information is published pursuant to subsection (b), to a person that has previously submitted an application under subsection (c) with respect to such merchandise.

(f)

Limitation on disclosure— The Commissioner may not disclose information under subsection (d) or (e) with respect to merchandise seized pursuant to subparagraph (G) of section 526(c)(2) of the Tariff Act of 1930, as added by subsection (a), until the Commissioner has made a final determination with respect to whether the merchandise is a technology, product, service, device, component, or part thereof the importation of which is prohibited under subsection (a)(2) or (b)(1) of section 1201 of title 17, United States Code.

C Other matters

Sec. 251 Definition of intellectual property rights

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

Sec. 252 Joint strategic plan for the enforcement of intellectual property rights

The Commissioner and the Director of U.S. Immigration and Customs Enforcement shall include in the joint strategic plan on trade facilitation and trade enforcement required by section 123A of the Customs and Trade Act of 1990, as amended by section 131—

(1)

a description of the efforts of the Department of Homeland Security to enforce intellectual property rights;

(2)

a list of the 10 United States ports of entry at which the U.S. Customs and Border Protection Agency has seized the most merchandise, both by volume and by value, that infringes intellectual property rights during the most recent 2-year period for which data are available; and

(3)

a recommendation for the optimal allocation of personnel, resources, and technology to ensure that the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency are adequately enforcing intellectual property rights.

Sec. 253 Personnel dedicated to the enforcement of intellectual property rights

(a)

Personnel of the U.S. Customs and Border Protection Agency— The Commissioner and the Director of U.S. Immigration and Customs Enforcement shall ensure that sufficient personnel are assigned throughout the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency, respectively, who have responsibility for preventing the importation of merchandise that infringes intellectual property rights into the United States.

(b)

Staffing of National Intellectual Property Rights Coordination Center— The Commissioner shall—

(1)

assign not fewer than 3 full-time employees of the U.S. Customs and Border Protection Agency to the National Intellectual Property Rights Coordination Center established under section 231; and

(2)

ensure that sufficient personnel are assigned to United States ports of entry to carry out the directives of the Center.

Sec. 254 Training with respect to the enforcement of intellectual property rights

(a)

Training— The Commissioner shall ensure that officers of the U.S. Customs and Border Protection Agency are trained to effectively detect and identify merchandise destined for the United States that infringes intellectual property rights, including through the use of technologies identified under subsection (c).

(b)

Consultation with private sector— The Commissioner shall consult with private sector entities to better identify opportunities for collaboration between the U.S. Customs and Border Protection Agency and such entities with respect to training for officers of the Agency to enforce intellectual property rights.

(c)

Identification of new technologies— In consultation with private sector entities, the Commissioner shall identify—

(1)

technologies with the cost-effective capability to detect and identify merchandise at United States ports of entry that infringes intellectual property rights; and

(2)

cost-effective programs for training officers of the U.S. Customs and Border Protection Agency to use such technologies.

(d)

Donations of technology— Not later than 180 days after the date of the enactment of this Act, the Commissioner shall promulgate regulations to enable the U.S. Customs and Border Protection Agency to receive donations of hardware, software, equipment, and similar technologies, and to accept training and other support services from private sector entities, for the purpose of enforcing intellectual property rights.

Sec. 255 Information for travelers regarding violations of intellectual property rights

(a)

In general— The Secretary of Homeland Security shall develop and carry out an educational campaign to inform travelers entering or leaving the United States about the legal, economic, and public health and safety implications of acquiring merchandise that infringes intellectual property rights outside the United States and importing such merchandise into the United States in violation of United States law.

(b)

Declaration forms— The Commissioner shall ensure that all versions of Declaration Form 6059B of the U.S. Customs and Border Protection Agency, or a successor form, printed on or after the date that is 30 days after the date of the enactment of this Act include a written warning to inform travelers arriving in the United States that importation of merchandise into the United States that infringes intellectual property rights may subject travelers to civil or criminal penalties and may pose serious risks to safety or health.

Sec. 256 International cooperation and information sharing

(a)

Cooperation— The Secretary of Homeland Security shall coordinate with the competent law enforcement and customs authorities of foreign countries, including by sharing information relevant to enforcement actions, to enhance the efforts of United States and such authorities to enforce intellectual property rights.

(b)

Technical Assistance— The Secretary of Homeland Security shall provide technical assistance to competent law enforcement and customs authorities of foreign countries to enhance the ability of such authorities to enforce intellectual property rights.

(c)

Interagency collaboration— The Commissioner and the Director of U.S. Immigration and Customs Enforcement shall lead interagency efforts to collaborate with law enforcement and customs authorities of foreign countries to enforce intellectual property rights.

Sec. 257 Sense of Congress regarding recordation process

It is the sense of Congress that the Commissioner should work with the Under Secretary for Intellectual Property and Director of the United States Patent and Trademark Office of the Department of Commerce and the Register of Copyrights of the Library of Congress to consider a system under which—

(1)

a trademark may be recorded with the U.S. Customs and Border Protection Agency simultaneously with the issuance of trademark registration by the United States Patent and Trademark Office; and

(2)

a copyright may be recorded with the U.S. Customs and Border Protection Agency simultaneously with the registration of a copyright by the Register of Copyrights.

Sec. 258 Report on intellectual property rights enforcement

Not later than June 30, 2014, and annually thereafter, the Commissioner and the Director of U.S. Immigration and Customs Enforcement shall jointly submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that contains the following:

(1)

With respect to the enforcement of intellectual property rights, the following:

(A)

The number of referrals from the U.S. Customs and Border Protection Agency to the U.S. Immigration and Customs Enforcement Agency relating to infringements of intellectual property rights during the preceding year.

(B)

The number of investigations relating to the infringement of intellectual property rights referred by the U.S. Immigration and Customs Enforcement Agency to a United States Attorney's office for prosecution and the United States Attorneys' offices to which those investigations were referred.

(C)

The number of such investigations accepted by each such United States Attorney's office and the status or outcome of each such investigation.

(D)

The number of such investigations that resulted in the imposition of civil or criminal penalties.

(E)

A description of the efforts of the U.S. Custom and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to improve the success rates of investigations and prosecutions relating to the infringement of intellectual property rights.

(2)

An estimate of the average time required by the Office of Trade of the U.S. Customs and Border Protection Agency to respond to a request from port personnel for advice with respect to whether merchandise detained by the Agency infringed intellectual property rights, distinguished by types of intellectual property rights infringed.

(3)

A summary of the outreach efforts of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency with respect to—

(A)

the interdiction and investigation of, and the sharing of information between those Agencies and other Federal agencies to prevent the infringement of intellectual property rights;

(B)

collaboration with private sector entities—

(i)

to identify trends in the infringement of, and technologies that infringe, intellectual property rights;

(ii)

to identify opportunities for enhanced training of officers of those Agencies; and

(iii)

to develop best practices to enforce intellectual property rights; and

(C)

coordination with foreign governments and international organizations with respect to the enforcement of intellectual property rights.

(4)

A summary of the efforts of the U.S. Customs and Border Protection Agency and the U.S. Immigration and Customs Enforcement Agency to address the challenges with respect to the enforcement of intellectual property rights presented by Internet commerce and the transit of small packages and an identification of the volume, value, and type of merchandise seized for infringing intellectual property rights as a result of such efforts.

(5)

A summary of training relating to the enforcement of intellectual property rights conducted under section 254 and expenditures for such training.

4 Coordination of trade enforcement priorities

Sec. 261 Establishment of priority trade enforcement coordination centers

The Secretary of Homeland Security may establish in the U.S. Immigration and Customs Enforcement Agency additional enforcement coordination centers—

(1)

to address the issues relating to trade enforcement designated as priority trade issues in the joint strategic plan on trade facilitation and trade enforcement required by section 123A of the Customs and Trade Act of 1990, as added by section 131; and

(2)

that are modeled on the structure of the National Intellectual Property Rights Coordination Center established under section 231.