US Codex
Bill
Notes

Title IV — Miscellaneous provisions

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

IV Miscellaneous provisions

Sec. 401 Consultation on trade and customs revenue functions

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

Sec. 402 Drawback simplification

(a)
In general— Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended to read as follows:

“313. Drawback

“(a) Definitions—In this section:

“(1) Bill of materials; formula—The terms bill of materials and formula mean records kept in the ordinary course of business that identify each component incorporated into merchandise or that identify the quantity of each element, material, chemical, mixture, or other substance incorporated into merchandise.

“(2) Commissioner—The term Commissioner means the Commissioner of U.S. Customs and Border Protection.

“(3) Destroyed merchandise—The term destroyed merchandise means merchandise that has undergone destruction.

“(4) Destruction—The term destruction means a process by which merchandise loses all commercial value, other than the value of any material that may be recovered when the merchandise is destroyed.

“(5) Direct identification—The term direct identification means the identification of merchandise that is exported or destroyed to claim drawback with respect to imported merchandise as the imported merchandise or merchandise into which the imported merchandise is incorporated using—

“(A) the serial number or other unique identifier of the exported merchandise or destroyed merchandise and the imported merchandise; or

“(B) such accounting methods as are provided for by regulation by the Commissioner.

“(6) Directly—The term directly means a transfer of merchandise from one person to another person without any intermediate transfer.

“(7) Fungible—The term fungible means, with respect to merchandise, merchandise that is interchangeable for commercial purposes with other merchandise and has properties that are essentially identical to the properties of the other merchandise.

“(8) Good subject to Chile FTA drawback—The term good subject to Chile FTA drawback has the meaning given that term in section 203(a) of the United States-Chile Free Trade Agreement Implementation Act (19 U.S.C. 3805 note).

“(9) Good subject to NAFTA drawback—The term good subject to NAFTA drawback has the meaning given that term in section 203(a) of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3333(a)).

“(10) HTS—The term HTS means the Harmonized Tariff Schedule of the United States.

“(11) Incorporated—The term incorporated means any operation by which merchandise becomes classifiable in a different 8-digit HTS subheading number.

“(12) Indirectly—The term indirectly means a transfer of merchandise from one person to another person with one or more intermediate transfers.

“(13) Line item

“(A) Imported merchandise—The term line item, with respect to imported merchandise, means the identification, in an entry filed pursuant to section 484, of merchandise imported from one country by net quantity, entered value, 8-digit HTS subheading number, and applicable duties, taxes, and fees.

“(B) Exported merchandise—The term line item, with respect to exported merchandise, means the identification of the merchandise by 8-digit HTS subheading number or Schedule B number, declared value, and quantity.

“(14) NAFTA country—The term NAFTA country has the meaning given that term in section 2 of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3301).

“(15) Schedule B—The term Schedule B means the Department of Commerce Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States.

“(16) Substitute merchandise—The term substitute merchandise means merchandise that is substituted for other merchandise for drawback purposes pursuant to subsection (g).

“(17) Vessel—The term vessel includes vessels, parts of vessels, aircraft, and parts of aircraft.

“(b) Eligibility for drawback

“(1) In general—A person described in subsection (c) is eligible for drawback of duties, taxes, and fees imposed under Federal law paid on imported merchandise in an amount determined under subsection (h) if—

“(A) the imported merchandise meets the requirements of subsection (d);

“(B)

“(i) merchandise that meets the requirements of subsection (e) is exported; or

“(ii) merchandise that meets the requirements of subsection (f) is destroyed; and

“(C) the person files a claim for drawback with respect to the imported merchandise in accordance with subsection (i).

“(2) Multiple drawback claims—If a person claims drawback under paragraph (1) with respect to imported merchandise based on exported merchandise or destroyed merchandise, the exported merchandise or destroyed merchandise (as the case may be) may not be the basis of any other claim for drawback, except that appropriate credit and deductions for claims covering components or ingredients of exported merchandise or destroyed merchandise shall be made in determining the amount of drawback under subsection (h).

“(c) Persons eligible To claim drawback

“(1) In general—A person may claim drawback under this section if the person—

“(A)

“(i) imports the merchandise on which the claim is based; or

“(ii) obtains the authorization of the importer to claim the drawback; and

“(B)

“(i) exports or destroys the merchandise that was exported or destroyed to claim drawback with respect to the imported merchandise; or

“(ii) obtains the authorization of the exporter or the person that destroyed the merchandise (as the case may be) to claim drawback.

“(2) Liability for claims

“(A) In general—Any person making a claim for drawback with respect to imported merchandise shall be liable for the full amount of the drawback claimed against the imported merchandise.

“(B) Liability of importers—An importer shall be liable for any drawback claim made by another person with respect to imported merchandise in an amount equal to the lesser of—

“(i) the amount of duties, taxes, and fees that the person claimed with respect to the imported merchandise; or

“(ii) the amount of duties, taxes, and fees that the importer authorized the other person to claim with respect to the imported merchandise.

“(C) Joint and several liability—Persons described in subparagraph (A) and (B) shall be jointly and severally liable for the amount described in subparagraph (B).

“(D) Order of recovery—The Secretary of the Treasury shall seek to recover the amount of the drawback from a person described in subparagraph (A) before seeking recovery from an importer described in subparagraph (B).

“(d) Requirements for imported merchandise—Imported merchandise meets the requirements of this subsection if—

“(1) all applicable duties, taxes, and fees have been paid on the imported merchandise; and

“(2) the imported merchandise is entered or withdrawn from warehouse for consumption.

“(e) Requirements for exported merchandise

“(1) In general—Exported merchandise meets the requirements of this subsection if the exported merchandise is—

“(A) the imported merchandise;

“(B) merchandise that is substituted for the imported merchandise pursuant to subsection (g);

“(C) merchandise into which the imported merchandise or substitute merchandise is incorporated; or

“(D) merchandise that is substituted, pursuant to subsection (g), for merchandise into which the imported merchandise or substitute merchandise is incorporated.

“(2) Special rules with respect to incorporation of merchandise into other merchandise—For purposes of subparagraphs (C) and (D) of paragraph (1), imported merchandise or substitute merchandise is incorporated into other merchandise—

“(A) if the bill of materials or formula for such other merchandise submitted with the claim for drawback under subsection (i) includes the imported merchandise or substitute merchandise; and

“(B) without regard to the number of times the imported merchandise or substitute merchandise is incorporated into such other merchandise.

“(f) Requirements for destroyed merchandise

“(1) In general—Destroyed merchandise meets the requirements of this subsection if—

“(A) the merchandise is—

“(i) the imported merchandise;

“(ii) merchandise that is substituted for the imported merchandise pursuant to subsection (g);

“(iii) merchandise into which the imported merchandise or substitute merchandise is incorporated; or

“(iv) merchandise that is substituted, pursuant to subsection (g), for merchandise into which the imported merchandise or substitute merchandise is incorporated; and

“(B) the merchandise—

“(i) is not exported because of its destruction; and

“(ii) was not used in the United States before its destruction.

“(2) Treatment of returned merchandise—For purposes of paragraph (1)(B)(ii), merchandise is not used in the United States solely because the merchandise is—

“(A) sold at retail by the importer or another person that received the merchandise from the importer under a certificate of delivery; and

“(B) subsequently returned to and accepted by the importer or other person described in subparagraph (A).

“(g) Substitution

“(1) In general—Except as provided in this subsection, merchandise may be substituted for other merchandise if it can be demonstrated that the merchandise was classifiable under the same 8-digit HTS subheading number as such other merchandise at some point during the 5-year period beginning on the date on which the merchandise was imported.

“(2) Classification—The Schedule B number for merchandise may be used for purposes of determining under paragraph (1) if the merchandise is or has been classified under the same 8-digit HTS subheading number as other merchandise, without regard to whether the Schedule B number encompasses more than one 8-digit HTS subheading number.

“(3) Special substitution rules

“(A)

“(i) Merchandise that is classifiable under any heading or subheading of the HTS specified in clause (ii) may be substituted for other merchandise if the merchandise is classifiable under the same 8-digit HTS subheading number as the other merchandise under the HTS as in effect on January 1, 2000.

“(ii) A heading or subheading of the HTS specified in this clause is—

“(I) any of headings 2707 through 2715, 2901, or 2902;

“(II) any of headings 3901 through 3914 (as such headings apply to the primary forms provided under Note 6 to chapter 39 of the HTS); or

“(III) subheading 2903.21.00, 2909.19.14, 2917.36, 2917.39.04, 2917.39.15, 2926.10.00, 3811.21.00, or 3811.90.00.

“(B) Merchandise that is classifiable under subheading 2204.21.50, 2204.29.20, or 2204.29.60 of the HTS may be substituted for other merchandise that is classifiable under any such subheading.

“(C) Merchandise that is classifiable under subheading 2204.21.80, 2204.29.40, or 2204.29.80 of the HTS may be substituted for other merchandise that is classifiable under any such subheading.

“(4) Special rule for ethyl alcohol—Notwithstanding any other provision of law, in the case of any duty paid under subheading 9901.00.50 of the HTS on imports of ethyl alcohol or a mixture of ethyl alcohol, such duty may not be refunded if the exported merchandise upon which a drawback claim is based does not contain ethyl alcohol or a mixture of ethyl alcohol.

“(h) Amount of drawback

“(1) Claims based on exportation of imported or substitute merchandise—If a person claims drawback with respect to imported merchandise based on the exportation of the imported merchandise or substitute merchandise, the amount of drawback paid pursuant to this section shall be equal to 99 percent of the product of—

“(A) the number of units of the imported merchandise or substitute merchandise exported to claim drawback with respect to the imported merchandise, and

“(B) the lesser of—

“(i) the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the total number of units of the imported merchandise included in the line item, or

“(ii) the amount of duties, taxes, and fees that would apply to the exported merchandise if the exported merchandise were imported divided by the number of units of the exported merchandise.

“(2) Claims based on destruction of imported merchandise, merchandise into which imported merchandise is incorporated, or merchandise substituted for merchandise into which imported merchandise is incorporated—If a person claims drawback with respect to imported merchandise based on the destruction of the imported merchandise, merchandise into which the imported merchandise is incorporated, or merchandise substituted for merchandise into which the imported merchandise is incorporated, the amount of drawback paid pursuant to this section shall be equal to 99 percent of—

“(A) the product of—

“(i) the number of units of the imported merchandise destroyed to claim drawback with respect to the imported merchandise or incorporated into merchandise for which the destroyed merchandise is substituted, and

“(ii) the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the total number of units of the imported merchandise included in the line item, minus

“(B) the value of any materials recovered during the destruction of the destroyed merchandise (including the value of any tax benefit or royalty payment with respect to such materials).

“(3) Claims based on exportation of merchandise into which imported or substitute merchandise is incorporated or merchandise substituted for merchandise into which imported or substitute merchandise is incorporated—If a person claims drawback with respect to imported merchandise based on the exportation of merchandise into which the imported merchandise or substitute merchandise is incorporated, or merchandise substituted for merchandise into which the imported merchandise or substitute merchandise is incorporated, the amount of drawback paid pursuant to this section shall be equal to 99 percent of the product of—

“(A) the number of units of the imported merchandise or substitute merchandise incorporated into the exported merchandise or the merchandise for which the exported merchandise is substituted, and

“(B)

“(i) in the case of exported merchandise into which the imported merchandise is incorporated or exported merchandise substituted for merchandise into which the imported merchandise is incorporated, the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the number of units of the imported merchandise included in the line item, or

“(ii) in the case of exported merchandise into which substitute merchandise is incorporated or exported merchandise substituted for merchandise into which substitute merchandise is incorporated, the lesser of—

“(I) the amount of duties, taxes, and fees paid with respect to the line item for the imported merchandise divided by the total number of units of the imported merchandise included in the line item, or

“(II) the amount of duties, taxes, and fees that would apply to the substitute merchandise, if the substitute merchandise were imported, divided by the number of units of the substitute merchandise incorporated into the exported merchandise or the merchandise for which the exported merchandise is substituted.

“(4) Claims based on destruction of substitute merchandise, merchandise into which substitute merchandise is incorporated, or merchandise substituted for merchandise into which substitute merchandise is incorporated—If a person claims drawback with respect to imported merchandise based on the destruction of substitute merchandise, merchandise into which substitute merchandise is incorporated, or merchandise substituted for merchandise into which substitute merchandise is incorporated, the amount of drawback paid pursuant to this section shall be equal to 99 percent of the lesser of—

“(A) the amount of—

“(i) duties, taxes, and fees that would apply to the substitute merchandise destroyed, incorporated into destroyed merchandise, or incorporated into merchandise for which the destroyed merchandise is substituted, if the substitute merchandise were imported, minus

“(ii) the value of any materials recovered during the destruction of the destroyed merchandise (including the value of any tax benefit or royalty payment with respect to such materials), or

“(B) the amount of drawback the person could have claimed under paragraph (2) if the person had destroyed the imported merchandise.

“(5) Limitation for duties, taxes, and fees previously refunded—The amount of duties, taxes, and fees that may be refunded as drawback with respect to imported merchandise pursuant to this subsection shall be reduced by the amount of any duties, taxes, and fees previously refunded to a person with respect to such merchandise.

“(i) Filing requirements—The requirements for filing a claim for drawback under this subsection are the following:

“(1) Electronic filing—The claim shall be filed electronically.

“(2) Time limit for claim—The claim shall be filed not later than 5 years after the date—

“(A) on which the merchandise with respect to which drawback is claimed is imported; or

“(B) if the claim is based on merchandise imported on more than one date, the earliest date on which any such merchandise was imported.

“(3) Identification of merchandise—The claim shall include an identification of the merchandise with respect to which the claim is filed as follows:

“(A) If drawback is claimed with respect to imported merchandise based on the exportation of merchandise, a demonstration that the exported merchandise meets the requirements of subsection (e) using—

“(i)

“(I) the information contained in the line item for the imported merchandise and information contained in the line item for the exported merchandise; and

“(II) in the case of imported merchandise or substitute merchandise incorporated into the exported merchandise or merchandise that is substituted for merchandise into which imported merchandise or substitute merchandise is incorporated, a bill of materials or formula identifying the imported merchandise or substitute merchandise and the exported merchandise by the 8-digit HTS subheading number and the quantity of the imported merchandise or substitute merchandise and the exported merchandise; or

“(ii) direct identification.

“(B) If drawback is claimed with respect to imported merchandise based on the destruction of merchandise, an identification of the imported merchandise and the destroyed merchandise using—

“(i)

“(I) the information contained in the line item for the imported merchandise and information identifying the destroyed merchandise by 8-digit HTS subheading number and quantity; and

“(II) in the case of imported merchandise or substitute merchandise incorporated into the destroyed merchandise or merchandise that is substituted for merchandise into which imported merchandise or substitute merchandise is incorporated, a bill of materials or formula identifying the imported merchandise or substitute merchandise and the destroyed merchandise by the 8-digit HTS subheading number and the quantity of the imported merchandise or substitute merchandise and the destroyed merchandise; or

“(ii) using direct identification.

“(4) Proof of exportation—If drawback is claimed with respect to imported merchandise based on the exportation of merchandise, the claim shall include, as proof of exportation, one of the following:

“(A) The record of exportation entered in the automated export system of the United States Government or, if the exporter is unable to use that system, information similar to the information contained in such a record that is kept by the exporter in the ordinary course of business.

“(B) In the case of a deemed export, any record that establishes the deemed export, or a copy of such a record, that is kept by the exporter in the ordinary course of business.

“(5) Proof of authorization—The claim shall include, as proof of the authorization under subsection (c)(1) of the importer, exporter, or person who destroyed merchandise, as appropriate, for another person to claim drawback, records kept in the ordinary course of business demonstrating the authorization.

“(j) Special rules

“(1) Vessels built for residents of a foreign country—Drawback under this section may be claimed for materials imported and used in the construction and equipment of vessels built for foreign account and ownership, or for the government of any foreign country, notwithstanding that such vessels may not within the strict meaning of the term be exported.

“(2) Agricultural products—No drawback may be claimed under this section for an agricultural product with respect to which an over-quota rate of duty has been paid, unless the product is identified as the imported agricultural product using direct identification.

“(3) Certain exported merchandise

“(A) In general—Except as provided in subparagraph (B), upon the exportation of flavoring extracts, flavors, medicines, medicinal preparations, or perfumes manufactured or produced in the United States in part from domestic alcohol on which an internal revenue tax has been paid, there shall be allowed a drawback in an amount equal to the tax found to have been paid on the alcohol so used.

“(B) Limitation—If drawback has been claimed under section 5114 of the Internal Revenue Code of 1986 with respect to flavoring extracts, flavors, medicines, medicinal preparations, or perfumes manufactured or produced in the United States, the amount of drawback under this paragraph shall be limited to $1 per proof gallon.

“(C) Form of claim—A claim for drawback under this paragraph shall be submitted in such form, at such times, and under such conditions as the Secretary of the Treasury shall prescribe by regulation.

“(4) Payment from receipts of Puerto Rico—A drawback under this section for merchandise shall be paid from the customs receipts of Puerto Rico if the duties for such merchandise were originally paid into the Treasury of Puerto Rico.

“(k) Drawback on exported goods under certain free trade agreements

“(1) Special rules for NAFTA countries

“(A) In general—Subject to section 508(b)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1508(b)(2)(B)), and for purposes of this section, if merchandise that is exported to a NAFTA country is a good subject to NAFTA drawback, no customs duties on the good may be refunded, waived, or reduced in an amount that exceeds the lesser of—

“(i) the total amount of customs duties paid or owed on the good on importation into the United States; or

“(ii) the total amount of customs duties paid on the good on importation into the NAFTA country.

“(B) Special rule for Canada—If Canada ceases to be a NAFTA country and the suspension of the operation of the United States-Canada Free-Trade Agreement thereafter terminates, then for purposes of this section, the shipment to Canada during the period such Agreement is in operation of merchandise made from or substituted for a good eligible for drawback under section 204(a) of the United States-Canada Free-Trade Agreement Implementation Act of 1988 (Public Law 100–449; 19 U.S.C. 2112 note) does not constitute an exportation.

“(C) Fungible merchandise exported to NAFTA countries—The exportation to a NAFTA country of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (8) of section 203(a) of the North American Free Trade Agreement Implementation Act (19 U.S.C. 3333(a)), shall not be treated as an exportation of substitute merchandise for purposes of drawback under this section.

“(D) Proof of exportation to Canada or Mexico—Notwithstanding subsection (i)(4), a person filing a claim under this paragraph shall submit, as proof of exportation, the entry records from Canada or Mexico.

“(2) Special rules for Chile

“(A) In general—For purposes of this section, if merchandise that is exported to Chile is a good subject to Chile FTA drawback, no customs duties on the good may be refunded, waived, or reduced, except as provided in subparagraph (B).

“(B) Amount of customs duties—The customs duties referred to in subparagraph (A) may be refunded, waived, or reduced by—

“(i) 100 percent during the 8-year period beginning on January 1, 2004;

“(ii) 75 percent during the 1-year period beginning on January 1, 2012;

“(iii) 50 percent during the 1-year period beginning on January 1, 2013; and

“(iv) 25 percent during the 1-year period beginning on January 1, 2014.

“(C) Fungible merchandise exported to Chile—Beginning on January 1, 2015, the exportation to Chile of merchandise that is fungible with and substituted for imported merchandise, other than merchandise described in paragraphs (1) through (5) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act (19 U.S.C. 3805 note), shall not be treated as an exportation of substitute merchandise for purposes of drawback under this section. The preceding sentence shall not be construed to permit the substitution of merchandise under this section with respect to merchandise described in paragraph (2) of section 203(a) of the United States-Chile Free Trade Agreement Implementation Act.”

(b)
Technical and conforming amendments—
(1)
Refunds— Section 505(b) of the Tariff Act of 1930 (19 U.S.C. 1505(b)) is amended by adding at the end the following: “Refunds of excess moneys deposited, as determined on a liquidation or reliquidation, shall be reduced by any amount paid, on an accelerated basis or otherwise, to a person claiming drawback pursuant to section 313.”
(2)
Review of protests— The second sentence of section 515(a) of the Tariff Act of 1930 (19 U.S.C. 1515(a)) is amended by striking the period at the end and inserting “in accordance with section 505.”.
(3)
Refunds, waivers, and reductions of duty under NAFTA— Section 508(b)(2)(B)(i)(III) of the Tariff Act of 1930 (19 U.S.C. 1508(b)(2)(B)(i)(III)) is amended by striking “section 313(n)(2) or (o)(1)” and inserting “section 313(k)(1)”.
(c)
Effective date—
(1)
In general— Except as provided in paragraph (2), the amendments made by this section shall apply to drawback claims filed with respect to merchandise that enters the United States on or after the date that is 2 years after the date of the enactment of this Act.
(2)
Transition rule— During the 1-year period beginning on the date specified in paragraph (1), a person may elect to file a claim for drawback under—
(A)
section 313 of the Tariff Act of 1930, as amended by this section; or
(B)
section 313 of the Tariff Act of 1930, as in effect on the day before the date specified in paragraph (1).
(d)
Government Accountability Office report— Not later than the date that is 4 years after the date of the enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report that contains—
(1)
an evaluation of the costs and benefits to the Federal Government, and the benefits to the private sector, resulting from the implementation of section 313 of the Tariff Act of 1930, as amended by this section; and
(2)
an assessment of the extent to which the implementation of that section may permit a person claiming drawback with respect to imported merchandise to receive drawback in excess of the duties, taxes, or fees paid on the imported merchandise.

Sec. 403 Penalties for customs brokers

(a)
In general— Section 641(d)(1) of the Tariff Act of 1930 (19 U.S.C. 1641(d)(1)) is amended—
(1)
in subparagraph (E), by striking “; or” and inserting a semicolon;
(2)
in subparagraph (F), by striking the period and inserting “; or”; and
(3)
by adding at the end the following:

“(G) has been convicted of committing or conspiring to commit an act of terrorism described in section 2332b of title 18, United States Code.”

(b)
Technical amendments— Section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) is amended—
(1)
in subsection (g)(2)(B), by striking “Secretary's notice” and inserting “notice under subparagraph (A)”; and
(2)
by striking “Customs Service” each place it appears and inserting “U.S. Customs and Border Protection Agency”.

Sec. 404 Amendments to chapter 98 of the Harmonized Tariff Schedule of the United States

(a)
Articles exported and returned, advanced or improved abroad— Subchapter II of chapter 98 of the Harmonized Tariff Schedule of the United States is amended by adding at the end of U.S. Note 3 the following:

“(f)

“(i) For purposes of subheadings 9802.00.40 and 9802.00.50, fungible articles exported from the United States for the purposes described in such subheadings—

“(A) may be commingled; and

“(B) the origin, value, and classification of such articles may be accounted for using an inventory management method.

“(ii) If a person chooses to use an inventory management method under this subdivision with respect to fungible articles, the person shall use the same inventory management method for those articles with respect to which the person claims fungibility.

“(iii) For purposes of this subdivision—

“(A) the term fungible articles means articles that are interchangeable for commercial purposes and have essentially identical properties; and

“(B) the term inventory management method means any method for managing inventory that is based on generally accepted accounting principles.”

(b)
Modification of provisions relating to returned property— The article description for subheading 9801.00.10 of the Harmonized Tariff Schedule of the United States is amended by inserting after “exported” the following: “, or any other products when returned within 3 years after having been exported”.
(c)
Duty-Free treatment for certain United States Government property returned to the United States— Subchapter I of chapter 98 of the Harmonized Tariff Schedule of the United States is amended by inserting in numerical sequence the following new subheading:

Sec. 405 Charter flights

Section 13031(e)(1) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(e)(1)) is amended—
(1)
by striking “(1) Notwithstanding section 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of law (other than paragraph (2))” and inserting the following:

“(1)

“(A) Notwithstanding section 451 of the Tariff Act of 1930 (19 U.S.C. 1451) or any other provision of law (other than subparagraph (B) and paragraph (2))”

(2)
by adding at the end the following:

“(B)

“(i) An appropriate officer of the U.S. Customs and Border Protection Agency may assign a sufficient number of employees from the Agency (if available) to perform services described in clause (ii) for a charter air carrier (as defined in section 40102 of title 49, United States Code) for a charter flight arriving after normal operating hours at an airport that is an established port of entry serviced by the Agency, notwithstanding that overtime funds for those services are not available, if the charter air carrier—

“(I) not later than 4 hours before the flight arrives, specifically requests that such services be provided; and

“(II) pays any overtime fees incurred in connection with such services.

“(ii) Services described in this clause are customs services for passengers and their baggage or any other such service that could lawfully be performed during regular hours of operation.”

Sec. 406 Pilot program to designate additional 24-hour commercial ports of entry

(a)
Establishment of pilot program— The President shall establish a pilot program under which the President shall—
(1)
pursuant to the Act of August 1, 1914 (38 Stat. 623, chapter 223; 19 U.S.C. 2), designate certain land border crossings as 24-hour commercial ports of entry in accordance with subsections (b) and (c); and
(2)
ensure that each land border crossing designated as a commercial port of entry under the pilot program has sufficient resources—
(A)
to carry out the functions of a commercial port of entry, including accepting entries of merchandise, collecting duties, and enforcing the customs and trade laws of the United States; and
(B)
to perform those functions 24 hours a day.
(b)
Designation— Not later than 180 days after the date of the enactment of this Act, the President shall, after considering the criteria set forth in subsection (c) and any input provided by the public, designate not fewer than 2 and not more than 6 land border crossings, equally divided between land border crossings on the northern and southern borders of the United States, as 24-hour commercial ports of entry under the pilot program established under subsection (a).
(c)
Criteria— In designating a land border crossing as a 24-hour commercial port of entry under the pilot program established under subsection (a), the President shall consider the following:
(1)
The number of 24-hour commercial ports of entry already located in the State in which the land border crossing is located.
(2)
The costs associated with operating the land border crossing as a 24-hour commercial port of entry, including whether the Federal Government would be required to acquire or lease additional land.
(3)
The positive economic impact of designating the land border crossing as a 24-hour commercial port of entry on the community in which the land border crossing is located.
(4)
Any commitment of resources by the government of Canada or Mexico, as applicable, to a similar designation of a corresponding foreign port of entry.
(5)
The support demonstrated by the government of the State or locality in which the land border crossing is located, including through infrastructure improvements, to facilitate the operation of the land border crossing as a 24-hour commercial port of entry.
(d)
Termination—
(1)
Determination of economic benefit— Not later than the date that is 2 years after the date on which a land border crossing designated as a 24-hour commercial port of entry under the pilot program established under subsection (a) becomes fully operational as a 24-hour commercial port of entry, the President shall—
(A)
determine whether the operation of the land border crossing as a port of entry 24 hours a day provides a net economic benefit to the United States; and
(B)
submit to the Committee on Finance of the Senate and Committee on Ways and Means of the House of Representatives a report on that determination and the reasons for that determination.
(2)
Termination— If the President determines under paragraph (1) that operating a land border crossing as a port of entry 24 hours a day does not provide a net economic benefit to the United States, the land border crossing shall cease to operate as a port of entry 24 hours a day on the date on which the President submits the report under paragraph (1)(B).
(e)
Report— Not later than 90 days before the President makes a determination under subsection (d)(1) with respect to a land border crossing designated as a 24-hour commercial port of entry under the pilot program established under subsection (a), the President shall submit to the Committee on Finance of the Senate and Committee on Ways and Means of the House of Representatives a report that provides—
(1)
a comparison of the vehicle traffic, the estimated total volume of commercial merchandise entered, and the wait times at the land border crossing—
(A)
during the 2-year period preceding the designation of the land border crossing as a 24-hour commercial port of entry; and
(B)
after the land border crossing becomes fully operational as a 24-hour commercial port of entry;
(2)
a comparison of the total value of commercial merchandise transported through the land border crossing—
(A)
during the 2-year period preceding the designation of the land border crossing as a 24-hour commercial port of entry; and
(B)
after the land border crossing becomes fully operational as a 24-hour commercial port of entry; and
(3)
a comparison of wait times at other ports of entry in the State in which the land border crossing is located—
(A)
during the 2-year period preceding the designation of the land border crossing as a 24-hour commercial port of entry; and
(B)
after the land border crossing becomes fully operational as a 24-hour commercial port of entry.

Sec. 407 Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; report

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

Sec. 408 Honey transshipment

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

Sec. 409 Contraband archaeological or ethnological materials

(a)
In general— The Commissioner shall ensure that appropriate personnel of the U.S. Customs and Border Protection Agency are trained in the detection, identification, and detention of archaeological or ethnological materials the importation of which violates the customs and trade laws of the United States.
(b)
Training— The Commissioner is authorized to accept training and other support services from experts outside of the Federal Government in the detection, identification, and detention of archaeological or ethnological materials described in subsection (a).

Sec. 410 De minimis value and entry under regulations

(a)
Increase in maximum value of articles that may be imported duty-Free by one person on one day—
(1)
In general— Section 321(a)(2)(C) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) is amended by striking “$200” and inserting “$800”.
(2)
Effective date— The amendment made by paragraph (1) shall apply with respect to articles entered, or withdrawn from warehouse for consumption, on or after the 15th day after the date of the enactment of this Act.
(b)
Entry under regulations— Section 498 of the Tariff Act of 1930 (19 U.S.C. 1498) is amended—
(1)
in subsection (a), by striking paragraph (1) and inserting the following:

“(1) Merchandise, when different commercial facilitation and risk considerations that may vary for different classes or kinds of merchandise or different classes of transactions may dictate;”

(2)
by redesignating subsection (b) as subsection (c); and
(3)
by inserting after subsection (a) the following:

“(b) Entry of merchandise valued at $2,500 or less

“(1) In general—Except as provided in paragraph (2), the Secretary of the Treasury shall prescribe rules and regulations for the declaration and entry of merchandise if the aggregate value of the shipment of merchandise does not exceed $2,500.

“(2) Exception—The rules and regulations prescribed under paragraph (1) shall not apply to merchandise that—

“(A) has a value in excess of $250; and

“(B) is classified under section VII, VIII, XI, or XII, chapter 94, or subchapter III or IV of chapter 99 of the Harmonized Tariff Schedule of the United States.”

Sec. 411 Repeal of authority of U.S. Customs and Border Protection Agency to enter into certain reimbursable fee agreements

Section 560 of the Department of Homeland Security Appropriations Act, 2013 (division D of the Consolidated and Further Continuing Appropriations Act, 2013) is repealed.