H.R. 1907 — what changed

In this Act:

“(4) Information technology infrastructure

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

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

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

“(iii) not later than June 30, 2016, identifies and transmits to the Commissioner responsible for U.S. Customs and Border Protection the admissibility criteria and data elements required by the agency to authorize the release of cargo by U.S. Customs and Border Protection for incorporation into the operational functionality of the Automated Commercial Environment computer system authorized under section 13031(f)(4) of the Consolidated Omnibus Budget and Reconciliation Act of 1985 (19 U.S.C. 58c(f)(4)); and

“(iv) not later than December 31, 2016, utilizes the ITDS as the primary means of receiving from users the standard set of data and other relevant documentation, exclusive of applications for permits, licenses, or certifications required for the release of imported cargo and clearance of cargo for export.

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

“(3) Commercial targeting division and national targeting and analysis groups

“(A) Establishment of commercial targeting division

“(i) In general—The Secretary of Homeland Security shall establish and maintain within the Office of International Trade a Commercial Targeting Division.

“(ii) Composition—The Commercial Targeting Division shall be composed of—

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

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

“(iii) Duties—The Commercial Targeting Division shall be dedicated—

“(I) to the development and conduct of commercial risk assessment targeting with respect to cargo destined for the United States in accordance with subparagraph (C); and

“(II) to issuing Trade Alerts described in subparagraph (D).

“(B) National targeting and analysis groups

“(i) In general—A National Targeting and Analysis Group referred to in subparagraph (A)(ii)(II) shall, at a minimum, be established for each priority trade issue described in clause (ii).

“(ii) Priority trade issues

“(I) In general—The priority trade issues described in this clause are the following:

“(aa) Agriculture programs.

“(bb) Antidumping and countervailing duties.

“(cc) Import safety.

“(dd) Intellectual property rights.

“(ee) Revenue.

“(ff) Textiles and wearing apparel.

“(gg) Trade agreements and preference programs.

“(II) Modification—The Commissioner is authorized to establish new priority trade issues and eliminate, consolidate, or otherwise modify the priority trade issues described in this paragraph if the Commissioner—

“(aa) determines it necessary and appropriate to do so;

“(bb) submits to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a summary of proposals to consolidate, eliminate, or otherwise modify existing priority trade issues not later than 60 days before such changes are to take effect; and

“(cc) submits to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a summary of proposals to establish new priority trade issues not later than 30 days after such changes are to take effect.

“(iii) Duties—The duties of each National Targeting and Analysis Group shall include—

“(I) directing the trade enforcement and compliance assessment activities of U.S. Customs and Border Protection that relate to the Group’s priority trade issue;

“(II) facilitating, promoting, and coordinating cooperation and the exchange of information between U.S. Customs and Border Protection, U.S. Immigration and Customs Enforcement, and other relevant Federal departments and agencies regarding the Group’s priority trade issue; and

“(III) serving as the primary liaison between U.S. Customs and Border Protection and the public regarding United States Government activities regarding the Group’s priority trade issue, including—

“(aa) providing for receipt and transmission to the appropriate U.S. Customs and Border Protection office of allegations from interested parties in the private sector of violations of customs and trade laws of the United States of merchandise relating to the priority trade issue;

“(bb) obtaining information from the appropriate U.S. Customs and Border Protection office on the status of any activities resulting from the submission of any such allegation, including any decision not to pursue the allegation, and providing any such information to each interested party in the private sector that submitted the allegation every 90 days after the allegation was received by U.S. Customs and Border Protection unless providing such information would compromise an ongoing law enforcement investigation; and

“(cc) notifying on a timely basis each interested party in the private sector that submitted such allegation of any civil or criminal actions taken by U.S. Customs and Border Protection or other Federal department or agency resulting from the allegation.

“(C) Commercial risk assessment targeting—In carrying out its duties with respect to commercial risk assessment targeting, the Commercial Targeting Division shall—

“(i) establish targeted risk assessment methodologies and standards—

“(I) for evaluating the risk that cargo destined for the United States may violate the customs and trade laws of the United States, particularly those laws applicable to merchandise subject to the priority trade issues described in subparagraph (B)(ii); and

“(II) for issuing, as appropriate, Trade Alerts described in subparagraph (D); and

changed “(ii) to the extent practicable and otherwise authorized by law, use, to administer the methodologies and standards established under clause (i)—(i) —

“(I) publicly available information;

“(II) 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”), the case management system of U.S. Immigration and Customs Enforcement, and any successor systems; and

“(III) information made available to the Commercial Targeting Division, including information provided by private sector entities.

“(D) Trade alerts

“(i) Issuance—Based upon the application of the targeted risk assessment methodologies and standards established under subparagraph (C), the Executive Director of the Commercial Targeting Division and the Directors of the National Targeting and Analysis Groups may issue Trade Alerts to directors of United States ports of entry directing further inspection, or physical examination or testing, of specific merchandise to ensure compliance with all applicable customs and trade laws and regulations administered by U.S. Customs and Border Protection.

“(ii) Determinations not to implement trade alerts—The director of a United States port of entry may determine not to conduct further inspections, or physical examination or testing, pursuant to a Trade Alert issued under clause (i) if—

“(I) the director finds that such a determination is justified by security interests; and

“(II) notifies the Assistant Commissioner of the Office of Field Operations and the Assistant Commissioner of International Trade of U.S. Customs and Border Protection of the determination and the reasons for the determination not later than 48 hours after making the determination.

“(iii) Summary of determinations not to implement—The Assistant Commissioner of the Office of Field Operations of U.S. Customs and Border Protection shall—

“(I) compile an annual public summary of all determinations by directors of United States ports of entry under clause (ii) and the reasons for those determinations;

“(II) conduct an evaluation of the utilization of Trade Alerts issued under clause (i); and

“(III) submit the summary 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.

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

“(I) assessing duties;

“(II) identifying restricted or prohibited items; and

“(III) ensuring compliance with all applicable customs and trade laws and regulations administered by U.S. Customs and Border Protection.”

“(F) The information collected pursuant to the regulations shall be used exclusively for ensuring cargo safety and security, preventing smuggling, and commercial risk assessment targeting, and shall not be used for any commercial enforcement purposes, including for determining merchandise entry. Notwithstanding the preceding sentence, nothing in this section shall be treated as amending, repealing, or otherwise modifying title IV of the Tariff Act of 1930 or regulations prescribed thereunder.”

“484c. Requirements applicable to non-resident importers

“(a) In general—Except as provided in subsection (c), if an importer of record under section 484 of this Act is not a resident of the United States, the Commissioner of U.S. Customs and Border Protection shall require the non-resident importer to designate a resident agent in the United States subject to the requirements described in subsection (b).

“(b) Requirements—The requirements described in this subsection are the following:

“(1) The resident agent shall be authorized to accept service of process against the non-resident importer in connection with the importation of merchandise.

“(2) The Commissioner of U.S. Customs and Border Protection shall require the non-resident importer to establish a power of attorney with the resident agent in connection with the importation of merchandise.

changed “(c) Non-Applicability—The Non-applicability—The requirements of this section shall not apply with respect to a non-resident importer who is a validated Tier 2 or Tier 3 participant in the Customs-Trade Partnership Against Terrorism program established under subtitle B of title II of the SAFE Port Act (6 U.S.C. 961 et seq.).

“(d) Penalties

“(1) In general—It shall be unlawful for any person to import into the United States any merchandise in violation of this section.

“(2) Civil penalties—Any person who violates paragraph (1) shall be liable for a civil penalty of $50,000 for each such violation.

“(3) Other penalties—In addition to the penalties specified in paragraph (2), any violation of this section that violates any other customs and trade laws of the United States shall be subject to any applicable civil and criminal penalty, including seizure and forfeiture, that may be imposed under such customs or trade law or title 18, United States Code, with respect to the importation of merchandise.

“(4) Definition—In this subsection, the term customs and trade laws of the United States has the meaning given such term in section 2 of the Customs Trade Facilitation and Enforcement Act of 2015.”

“781A. Procedures for prevention of evasion of antidumping and countervailing duty orders

“(a) Definitions—In this section:

“(1) Administering authority—The term administering authority has the meaning given that term in section 771.

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

“(3) Covered merchandise—The term covered merchandise means merchandise that is subject to—

“(A) a countervailing duty order issued under section 706; or

“(B) an antidumping duty order issued under section 736.

“(4) Evasion

“(A) In general—Except as provided in subparagraph (B), the term evasion refers to entering covered merchandise into the customs territory of the United States by means of any document or electronically transmitted data or information, written or oral statement, or act that is material and false, or any omission that is material, and that results in any cash deposit or other security or any amount of applicable antidumping or countervailing duties being reduced or not being applied with respect to the merchandise.

“(B) Exception for clerical error

“(i) In general—Except as provided in clause (ii), the term evasion does not include entering covered merchandise into the customs territory of the United States by means of—

“(I) a document or electronically transmitted data or information, written or oral statement, or act that is false as a result of a clerical error; or

“(II) an omission that results from a clerical error.

“(ii) Patterns of negligent conduct—If the Commissioner determines that a person has entered covered merchandise into the customs territory of the United States by means of a clerical error referred to in subclause (I) or (II) of clause (i) and that the clerical error is part of a pattern of negligent conduct on the part of that person, the Commissioner may determine, notwithstanding clause (i), that the person has entered such covered merchandise into the customs territory of the United States through evasion.

“(iii) Electronic repetition of errors—For purposes of clause (ii), the mere nonintentional repetition by an electronic system of an initial clerical error does not constitute a pattern of negligent conduct.

“(iv) Rule of construction—A determination by the Commissioner that a person has entered covered merchandise into the customs territory of the United States by means of a clerical error referred to in subclause (I) or (II) of clause (i) rather than through evasion shall not be construed to excuse that person from the payment of any duties applicable to the merchandise.

“(b) Prevention by administering authority

“(1) Procedures for initiating investigations

“(A) Initiation by administering authority—An investigation under this subsection shall be initiated with respect to merchandise imported into the United States whenever the administering authority determines, from information available to the administering authority, that an investigation is warranted with respect to whether the merchandise is covered merchandise.

“(B) Initiation by petition or referral

“(i) In general—The administering authority shall determine whether to initiate an investigation under this subparagraph not later than 30 days after the date on which the administering authority receives a petition described in clause (ii) or a referral described in clause (iii).

“(ii) Petition described—A petition described in this clause is a petition that—

“(I) is filed with the administering authority by an interested party specified in subparagraph (A), (C), (D), (E), (F), or (G) of section 771(9);

“(II) alleges that merchandise imported into the United States is covered merchandise; and

“(III) is accompanied by information reasonably available to the petitioner supporting those allegations.

“(iii) Referral described—A referral described in this clause is a referral made by the Commissioner pursuant to subsection (c)(1).

“(2) Time limits for determinations

“(A) Preliminary determination

“(i) In general—Not later than 90 days after the administering authority initiates an investigation under paragraph (1) with respect to merchandise, the administering authority shall issue a preliminary determination, based on information available to the administering authority at the time of the determination, with respect to whether there is a reasonable basis to believe or suspect that the merchandise is covered merchandise.

“(ii) Expedited procedures—If the administering authority determines that expedited action is warranted with respect to an investigation initiated under paragraph (1), the administering authority may publish the notice of initiation of the investigation and the notice of the preliminary determination in the Federal Register at the same time.

“(B) Final determination by the administering authority—The administering authority shall issue a final determination with respect to whether merchandise is covered merchandise not later than 300 days after the date on which the administering authority initiates an investigation under paragraph (1) with respect to the merchandise.

“(3) Access to information

“(A) Entry documents, records, and other information—Upon receiving a request from the administering authority, and not later than 10 days after receiving the administering authority’s request, the Commissioner shall transmit to the administering authority copies of the documentation and information required by section 484(a)(1) with respect to the entry of the merchandise, as well as any other documentation or information requested by the administering authority.

“(B) Access of interested parties—Not later than 10 business days after the date on which the administering authority initiates an investigation under paragraph (1) with respect to merchandise, the administering authority shall provide to the authorized representative of each interested party that filed a petition under paragraph (1) or otherwise participates in a proceeding, pursuant to a protective order, the copies of the entry documentation and any other information received by the administering authority under subparagraph (A).

changed “(C) Business proprietary information from prior segments—Where an authorized representative to an interested party participating in an investigation under paragraph (1) has access to business proprietary information released pursuant to administrative protective order in a proceeding under 19 U.S.C. §§ 1671 et seq., 1673 et seq., or 1675 et seq. that is relevant to the investigation conducted under paragraph (1), that authorized representative may submit such information to the administering authority for its consideration in the context of the investigation conducted under paragraph (1).

“(4) Authority to collect and verify additional information—In making a determination under paragraph (2) with respect to covered merchandise, the administering authority may collect such additional information as is necessary to make the determination through such methods as the administering authority considers appropriate, including by—

“(A) issuing a questionnaire with respect to such covered merchandise to—

“(i) a person that filed an allegation under paragraph (1)(B)(ii) that resulted in the initiation of an investigation under paragraph (1)(A) with respect to such covered merchandise;

“(ii) a person alleged to have entered such covered merchandise into the customs territory of the United States through evasion;

“(iii) a person that is a foreign producer or exporter of such covered merchandise; or

changed “(iv) the government of a country from which such covered merchandise was exported; andexported;

“(B) conducting verifications, including on-site verifications, of any relevant information; and

“(C) requesting—

“(i) that the Commissioner provide any information and data available to U.S. Customs and Border Protection, and

“(ii) that the Commissioner gather additional necessary information from the importer of covered merchandise and other relevant parties.

“(5) Adverse inference—If the administering authority finds that a person described in clause (i), (ii), or (iii) of paragraph (4)(A) has failed to cooperate by not acting to the best of the person’s ability to comply with a request for information, the administering authority may, in making a determination under paragraph (2), use an inference that is adverse to the interests of that person in selecting from among the facts otherwise available to make the determination.

“(6) Effect of affirmative preliminary determination—If the administering authority makes a preliminary determination under paragraph (2)(A) that merchandise is covered merchandise, the administering authority shall instruct U.S. Customs and Border Protection—

“(A) to suspend liquidation of each entry of the merchandise that—

“(i) enters on or after the date of the preliminary determination; or

“(ii) enters before that date, if the liquidation of the entry is not final on that date; and

“(B) to require the posting of a cash deposit for each entry of the merchandise in an amount determined pursuant to the order or finding described in subsection (a)(2)(A)(i), or administrative review conducted under section 751, that applies to the merchandise.

“(7) Effect of affirmative final determination

“(A) In general—If the administering authority makes a final determination under paragraph (2)(B) that merchandise is covered merchandise, the administering authority shall instruct U.S. Customs and Border Protection—

“(i) to assess duties on the merchandise in an amount determined pursuant to the order or finding described in subsection (a)(2)(A)(i), or administrative review conducted under section 751, that applies to the merchandise;

“(ii) notwithstanding section 501, to reliquidate, in accordance with such order, finding, or administrative review, each entry of the merchandise that was liquidated and is determined to include covered merchandise; and

“(iii) to review and reassess the amount of bond or other security the importer is required to post for such merchandise entered on or after the date of the final determination to ensure the protection of revenue and compliance with the law.

“(B) Additional authority—If the administering authority makes a final determination under paragraph (2)(B) that merchandise is covered merchandise, the administering authority may instruct U.S. Customs and Border Protection to require the importer of the merchandise to post a cash deposit or bond on such merchandise entered on or after the date of the final determination in an amount the administering authority determines in the final determination to be owed with respect to the merchandise.

“(8) Effect of negative final determination—If the administering authority makes a final determination under paragraph (2)(B) that merchandise is not covered merchandise, the administering authority shall terminate the suspension of liquidation and refund any cash deposit imposed pursuant to paragraph (6) with respect to the merchandise.

“(9) Notification—Not later than 5 business days after making a determination under paragraph (2) with respect to covered merchandise, the administering authority may provide to importers, in such manner as the administering authority determines appropriate, information discovered in the investigation that the administering authority determines will help educate importers with respect to importing merchandise into the customs territory of the United States in accordance with all applicable laws and regulations.

“(10) Special rule for cases in which the producer or exporter is unknown—If the administering authority is unable to determine the actual producer or exporter of the merchandise with respect to which the administering authority initiated an investigation under paragraph (1), the administering authority shall, in requiring the posting of a cash deposit under paragraph (6) or assessing duties pursuant to paragraph (7)(A), impose the cash deposit or duties (as the case may be) in the highest amount applicable to any producer or exporter of the merchandise pursuant to any order or finding described in subsection (a)(2)(A)(i), or any administrative review conducted under section 751.

“(11) Publication of determinations—The administering authority shall publish each notice of initiation of investigation made under paragraph (1)(A), each preliminary determination made under paragraph (2)(A) and each final determination made under paragraph (2)(B) in the Federal Register.

“(12) Referrals to other agencies

“(A) After preliminary determination—Notwithstanding section 777 and subject to subparagraph (C), when the administering authority makes an affirmative preliminary determination under paragraph (2)(A), the administering authority shall—

“(i) transmit the administrative record to the Commissioner for such additional action as the Commissioner determines appropriate, including proceedings under section 592; and

“(ii) at the request of the head of another agency, transmit the administrative record to the head of that agency.

“(B) After final determination—Notwithstanding section 777 and subject to subparagraph (C), when the administering authority makes an affirmative final determination under paragraph (2)(B), the administering authority shall—

“(i) transmit the complete administrative record to the Commissioner; and

“(ii) at the request of the head of another agency, transmit the complete administrative record to the head of that agency.

“(c) Prevention by U.S. customs and border protection

changed “(1) Referrals—In “In the event the Commissioner receives information that a person is entered covered merchandise into the customs territory of the United States through evasion, but is not able to determine whether the merchandise is in fact covered merchandise, the Commissioner shall—

“(A) refer the matter to the administering authority for additional proceedings under subsection (b); and

“(B) transmit to the administering authority—

“(i) copies of the entry documents and information required by section 484(a)(1) relating to the merchandise; and

“(ii) any additional records or information that the Commissioner considers appropriate.

“(d) Cooperation between U.S. customs and border protection and the Department of Commerce

“(1) Notification of investigations—Upon receiving a petition and upon initiating an investigation under subsection (b), the administering authority shall notify the Commissioner.

changed “(2) Procedures for cooperation—Not later than 180 days after the date of the enactment of this Act, Act , the Commissioner and the administering authority shall establish procedures to ensure maximum cooperation and communication between U.S. Customs and Border Protection and the administering authority in order to quickly, efficiently, and accurately investigate allegations of evasion of antidumping and countervailing duty orders.

“(e) Annual report on preventing evasion of antidumping and countervailing duty orders

“(1) In general—Not later than February 28 of each year beginning in 2016, the Under Secretary for International Trade of the Department of Commerce shall submit to the Committee on Finance and the Committee on Appropriations of the Senate and the Committee on Ways and Means and the Committee on Appropriations of the House of Representatives a report on the efforts being taken under subsection (b) to prevent evasion of antidumping and countervailing duty orders.

“(2) Contents—Each report required by paragraph (1) shall include, for the year preceding the submission of the report—

“(A)

“(i) the number of investigations initiated pursuant to subsection (b); and

“(ii) a description of such investigations, including—

“(I) the results of such investigations; and

“(II) the amount of antidumping and countervailing duties collected as a result of such investigations; and

“(B) the number of referrals made by the Commissioner pursuant to subsection (c).”

“(ix) A determination by the administering authority under section 781A.”

Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1675(a)(2)(B)) is amended—

changed “(iv) Any Determinations based on bonafide sales—Any weighted average dumping margin or individual countervailing duty rate determined for an exporter or producer in a review conducted under clause (i) shall be based solely on the bona fide United States sales of an exporter or producer, as the case may be, made during the period covered by the review. In determining whether the United States sales of an exporter or producer made during the period covered by the review were bona fide, the administering authority shall consider, depending on the circumstances surrounding such sales—

“(I) the prices of such sales;

“(II) whether such sales were made in commercial quantities;

“(III) the timing of such sales;

“(IV) the expenses arising from such sales;

“(V) whether the subject merchandise involved in such sales were resold in the United States at a profit;

“(VI) whether such sales were made on an arms-length basis; and

“(VII) any other factor the administering authority determines to be relevant as to whether such sales are, or are not, likely to be typical of those the exporter or producer will make after completion of the review.”

“310. Trade enforcement priorities

“(a) Trade enforcement priorities, consultations, and report

“(1) Trade enforcement priorities consultations—Not later than May 31 of each calendar year that begins after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015, the United States Trade Representative (in this section referred to as the “Trade Representative”) shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the prioritization of acts, policies, or practices of foreign governments that raise concerns with respect to obligations under the WTO Agreements or any other trade agreement to which the United States is a party, or otherwise create or maintain barriers to United States goods, services, or investment.

“(2) Identification of trade enforcement priorities—In identifying acts, policies, or practices of foreign governments as trade enforcement priorities under this subsection, the United States Trade Representative shall focus on those acts, policies, and practices the elimination of which is likely to have the most significant potential to increase United States economic growth, and take into account all relevant factors, including—

“(A) the economic significance of any potential inconsistency between an obligation assumed by a foreign government pursuant to a trade agreement to which both the foreign government and the United States are parties and the acts, policies, or practices of that government;

“(B) the impact of the acts, policies, or practices of a foreign government on maintaining and creating United States jobs and productive capacity;

“(C) the major barriers and trade distorting practices described in the most recent National Trade Estimate required under section 181(b);

“(D) the major barriers and trade distorting practices described in other relevant reports addressing international trade and investment barriers prepared by a Federal agency or congressional commission during the 12 months preceding the date of the most recent report under paragraph (3);

“(E) a foreign government’s compliance with its obligations under any trade agreements to which both the foreign government and the United States are parties;

“(F) the implications of a foreign government’s procurement plans and policies; and

“(G) the international competitive position and export potential of United States products and services.

“(3) Report on trade enforcement priorities and actions taken to address

“(A) In general—Not later than July 31 of each calendar year that begins after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015, the Trade Representative shall report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on acts, policies, or practices of foreign governments identified as trade enforcement priorities based on the consultations under paragraph (1) and the criteria set forth in paragraph (2).

“(B) Report in subsequent years—The Trade Representative shall include, when reporting under subparagraph (A) in any calendar year after the calendar year that begins after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015, a description of actions taken to address any acts, policies, or practices of foreign governments identified as trade enforcement priorities under this subsection in the calendar year preceding that report and, as relevant, any year before that calendar year.

changed “(b) Semi-Annual Semi-annual enforcement consultations

“(1) In general—At the same time as the reporting under subsection (a)(3), and not later than January 31 of each following year, the Trade Representative shall consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives with respect to the identification, prioritization, investigation, and resolution of acts, policies, or practices of foreign governments of concern with respect to obligations under the WTO Agreements or any other trade agreement to which the United States is a party, or that otherwise create or maintain trade barriers.

“(2) Acts, policies, or practices of concern—The semi-annual enforcement consultations required by paragraph (1) shall address acts, policies, or practices of foreign governments that raise concerns with respect to obligations under the WTO Agreements or any other trade agreement to which the United States is a party, or otherwise create or maintain trade barriers, including—

“(A) engagement with relevant trading partners;

“(B) strategies for addressing such concerns;

“(C) availability and deployment of resources to be used in the investigation or resolution of such concerns;

“(D) the merits of any potential dispute resolution proceeding under the WTO Agreements or any other trade agreement to which the United States is a party relating to such concerns; and

“(E) any other aspects of such concerns.

“(3) Active investigations—The semi-annual enforcement consultations required by paragraph (1) shall address acts, policies, or practices that the Trade Representative is actively investigating with respect to obligations under the WTO Agreements or any other trade agreement to which the United States is a party, including—

“(A) strategies for addressing concerns raised by such acts, policies, or practices;

“(B) any relevant timeline with respect to investigation of such acts, policies, or practices;

“(C) the merits of any potential dispute resolution proceeding under the WTO Agreements or any other trade agreement to which the United States is a party with respect to such acts, policies, or practices;

“(D) barriers to the advancement of the investigation of such acts, policies, or practices; and

“(E) any other matters relating to the investigation of such acts, policies, or practices.

“(4) Ongoing enforcement actions—The semi-annual enforcement consultations required by paragraph (1) shall address all ongoing enforcement actions taken by or against the United States with respect to obligations under the WTO Agreements or any other trade agreement to which the United States is a party, including—

“(A) any relevant timeline with respect to such actions;

“(B) the merits of such actions;

“(C) any prospective implementation actions;

“(D) potential implications for any law or regulation of the United States;

“(E) potential implications for United States stakeholders, domestic competitors, and exporters; and

“(F) other issues relating to such actions.

“(5) Enforcement resources—The semi-annual enforcement consultations required by paragraph (1) shall address the availability and deployment of enforcement resources, resource constraints on monitoring and enforcement activities, and strategies to address those constraints, including the use of available resources of other Federal agencies to enhance monitoring and enforcement capabilities.

“(c) Investigation and resolution—In the case of any acts, policies, or practices of a foreign government identified as a trade enforcement priority under subsection (a), the Trade Representative shall, not later than the date of the first semi-annual enforcement consultations held under subsection (b) after the identification of the priority, take appropriate action to address that priority, including—

“(1) engagement with the foreign government to resolve concerns raised by such acts, policies, or practices;

“(2) initiation of an investigation under section 302(b)(1) with respect to such acts, policies, or practices;

“(3) initiation of negotiations for a bilateral agreement that provides for resolution of concerns raised by such acts, policies, or practices; or

“(4) initiation of dispute settlement proceedings under the WTO Agreements or any other trade agreement to which the United States is a party with respect to such acts, policies, or practices.

“(d) Enforcement notifications and consultation

“(1) Initiation of enforcement action—The Trade Representative shall notify and consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives in advance of initiation of any formal trade dispute by or against the United States taken in regard to an obligation under the WTO Agreements or any other trade agreement to which the United States is a party. With respect to a formal trade dispute against the United States, if advance notification and consultation are not possible, the Trade Representative shall notify and consult at the earliest practicable opportunity after initiation of the dispute.

“(2) Circulation of reports—The Trade Representative shall notify and consult with the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives in advance of the announced or anticipated circulation of any report of a dispute settlement panel or the Appellate Body of the World Trade Organization or of a dispute settlement panel under any other trade agreement to which the United States is a party with respect to a formal trade dispute by or against the United States.

“(e) Definitions—In this section:

“(1) WTO—The term WTO means the World Trade Organization.

“(2) WTO agreement—The term WTO Agreement has the meaning given that term in section 2(9) of the Uruguay Round Agreements Act (19 U.S.C. 3501(9)).

“(3) WTO agreements—The term WTO Agreements means the WTO Agreement and agreements annexed to that Agreement.”

changed “(c) Exercise of WTO authorization To to suspend concessions or other obligations—If—

“(1) action has terminated pursuant to section 307(c),

“(2) the petitioner or any representative of the domestic industry that would benefit from reinstatement of action has submitted to the Trade Representative a written request for reinstatement of action, and

“(3) the Trade Representatives has completed the requirements of subsection (d) and section 307(c)(3),”

“205. Trade monitoring

“(a) Monitoring tool for imports

“(1) In general—Not later than 180 days after the date of the enactment of this section, the United States International Trade Commission shall make available on a website of the Commission an import monitoring tool to allow the public access to data on the volume and value of goods imported to the United States for the purpose of assessing whether such data has changed with respect to such goods over a period of time.

“(2) Data described—For purposes of the monitoring tool under paragraph (1), the Commission shall use data compiled by the Department of Commerce and such other government data as the Commission considers appropriate.

“(3) Periods of time—The Commission shall ensure that data accessed through the monitoring tool under paragraph (1) includes data for the most recent quarter for which such data are available and previous quarters as the Commission considers practicable.

“(b) Monitoring reports

“(1) In general—Not later than 270 days after the date of the enactment of this section, and not less frequently than quarterly thereafter, the Secretary of Commerce shall publish on a website of the Department of Commerce, and notify the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives of the availability of, a monitoring report on changes in the volume and value of trade with respect to imports and exports of goods categorized based on the 6-digit subheading number of the goods under the Harmonized Tariff Schedule of the United States during the most recent quarter for which such data are available and previous quarters as the Secretary considers practicable.

changed “(2) Requests for Comment. Not Comment—Not later than one year after the date of the enactment of this section, the Secretary of Commerce shall solicit through the Federal Register public comment on the monitoring reports described in paragraph (1).

“(c) Sunset—The requirements under this section terminate on the date that is seven years after the date of the enactment of this section.”

“(f)

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

“(A) may be commingled; and

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

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

“(3) For the purposes of this paragraph—

“(A) the term fungible articles means merchandise or articles that, for commercial purposes, are identical or interchangeable in all situations; and

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

“(1) In general—If imported”

“(2) Requirements relating to transfer of merchandise

“(A) Manufacturers and producers—Drawback shall be allowed under paragraph (1) with respect to an article manufactured or produced using imported merchandise or other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise only if the manufacturer or producer of the article received such imported merchandise or such other merchandise, directly or indirectly, from the importer.

“(B) Exporters and destroyers—Drawback shall be allowed under paragraph (1) with respect to a manufactured or produced article that is exported or destroyed only if the exporter or destroyer received that article or an article classifiable under the same 8-digit HTS subheading number as that article, directly or indirectly, from the manufacturer or producer.

“(C) Evidence of transfer—Transfers of merchandise under subparagraph (A) and transfers of articles under subparagraph (B) may be evidenced by business records kept in the normal course of business and no additional certificates of transfer or manufacture shall be required.

“(3) Submission of bill of materials or formula

“(A) In general—Drawback shall be allowed under paragraph (1) with respect to an article manufactured or produced using imported merchandise or other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise only if the person making the drawback claim submits with the claim a bill of materials or formula identifying the merchandise and article by the 8-digit HTS subheading number and the quantity of the merchandise.

“(B) Bill of materials and formula defined—In this paragraph, the terms bill of materials and formula mean records kept in the normal course of business that identify each component incorporated into a manufactured or produced article or that identify the quantity of each element, material, chemical, mixture, or other substance incorporated into a manufactured article.

“(4) Special rule for sought chemical elements

“(A) In general—For purposes of paragraph (1), a sought chemical element may be—

“(i) considered imported merchandise, or merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise, used in the manufacture or production of an article as described in paragraph (1); and

“(ii) substituted for source material containing that sought chemical element, without regard to whether the sought chemical element and the source material are classifiable under the same 8-digit HTS subheading number, and apportioned quantitatively, as appropriate.

“(B) Sought chemical element defined—In this paragraph, the term sought chemical element means an element listed in the Periodic Table of Elements that is imported into the United States or a chemical compound consisting of those elements, either separately in elemental form or contained in source material.”

“(3) Evidence of transfers—Transfers of merchandise under paragraph (1) may be evidenced by business records kept in the normal course of business and no additional certificates of transfer shall be required.”

“(i) Proof of exportation—A person claiming drawback under this section based on the exportation of an article shall provide proof of the exportation of the article. Such proof of exportation—

“(1) shall establish fully the date and fact of exportation and the identity of the exporter; and

“(2) may be established through the use of records kept in the normal course of business or through an electronic export system of the United States Government, as determined by the Commissioner responsible for U.S. Customs and Border Protection.”

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

“(5)

“(A) For purposes of paragraph (2) and except as provided in subparagraph (B), merchandise may not be substituted for imported merchandise for drawback purposes based on the 8-digit HTS subheading number if the article description for the 8-digit HTS subheading number under which the imported merchandise is classified begins with the term other.

“(B) In cases described in subparagraph (A), merchandise may be substituted for imported merchandise for drawback purposes if—

“(i) the other merchandise and such imported merchandise are classifiable under the same 10-digit HTS statistical reporting number; and

“(ii) the article description for that 10-digit HTS statistical reporting number does not begin with the term other.

“(6)

“(A) For purposes of paragraph (2), a drawback claimant may use the first 8 digits of the 10-digit Schedule B number for merchandise or an article to determine if the merchandise or article is classifiable under the same 8-digit HTS subheading number as the imported merchandise, without regard to whether the Schedule B number corresponds to more than one 8-digit HTS subheading number.

“(B) In this paragraph, the term Schedule B means the Department of Commerce Schedule B, Statistical Classification of Domestic and Foreign Commodities Exported from the United States.”

“(k) Liability for drawback claims

“(1) In general—Any person making a claim for drawback under this section shall be liable for the full amount of the drawback claimed.

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

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

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

“(3) Joint and several liability—Persons described in paragraphs (1) and (2) shall be jointly and severally liable for the amount described in paragraph (2).”

“(l) Regulations

“(1) In general—Allowance of the privileges provided for in this section shall be subject to compliance with such rules and regulations as the Secretary of the Treasury shall prescribe.

“(2) Calculation of drawback

“(A) In general—Not later than the date that is 2 years after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015 (or, if later, the effective date provided for in section 406(q)(2)(B) of that Act), the Secretary shall prescribe regulations for determining the calculation of amounts refunded as drawback under this section.

changed “(B) Requirements—The regulations required by subparagraph (A) for determining the calculation of amounts refunded as drawback under this section shall provide for a refund of up equal to 99 percent of the duties, taxes, and fees paid with respect to the imported merchandise, except that where there is substitution of the merchandise or article, then—

“(i) in the case of an article that is exported, the amount of the refund shall be equal to 99 percent of the lesser of—

“(I) the amount of duties, taxes, and fees paid with respect to the imported merchandise; or

“(II) the amount of duties, taxes, and fees that would apply to the exported article if the exported article were imported; and

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

“(I) equal to 99 percent of the lesser of—

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

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

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

“(3) Status reports on regulations—Not later than the date that is one year after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015, and annually thereafter until the regulations required by paragraph (2) are final, the Secretary shall submit to Congress a report on the status of those regulations.”

“(4) All drawback claims filed on and after the date that is 2 years after the date of the enactment of the Trade Facilitation and Trade Enforcement Act of 2015 (or, if later, the effective date provided for in section 406(q)(2)(B) of that Act) shall be filed electronically.”

“(B) subject to paragraphs (5) and (6) of subsection (j), imported merchandise, other merchandise classifiable under the same 8-digit HTS subheading number as such imported merchandise, or any combination of such imported merchandise and such other merchandise, that the predecessor received, before the date of succession, from the person who imported and paid any duties, taxes, and fees due on the imported merchandise;”

“(z) Definitions—In this section:

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

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

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

“(C) the operation of all United States Trade Representative-led interagency programs during the preceding year and for the year in which the report is submitted.”

“(4) The report shall include, with respect to the matters referred to in paragraph (1)(C), information regarding—

“(A) the objectives and priorities of all United States Trade Representative-led interagency programs for the year, and the reasons therefor;

“(B) the actions proposed, or anticipated, to be undertaken during the year to achieve such objectives and priorities, including actions authorized under the trade laws and negotiations with foreign countries;

“(C) the role of each Federal agency participating in the interagency program in achieving such objectives and priorities and activities of each agency with respect to their participation in the program;

“(D) the United States Trade Representative’s coordination of each participating Federal agency to more effectively achieve such objectives and priorities;

“(E) any proposed legislation necessary or appropriate to achieve any of such objectives or priorities; and

“(F) the progress that was made during the preceding year in achieving such objectives and priorities and coordination activities included in the statement provided for such year under this paragraph.”

“(s) Israel trade and commerce boycott reporting

“(1) In general—Each foreign issuer required to file an annual or quarterly report under subsection (a) shall disclose in that report—

“(A) whether the issuer has discriminated against doing business with Israel in the last calendar year and in such cases an issuer shall provide a description of the discrimination.

“(B) whether the issuer has been advised by a foreign government or a non-member state of the United Nations to discriminate against doing business with Israel, entities owned or controlled by the government of Israel, or entities operating in Israel or Israeli-controlled territory; and

“(C) any instances where the issuer has learned that a person, foreign government, or a non-member state of the United Nations is boycotting the issuer, divesting themselves of an ownership interest in the issuer, or placing sanctions on the issuer because of the issuer’s relationship with Israel, entities owned or controlled by the government of Israel, or entities operating in Israel or Israeli-controlled territory.

“(2) Definitions—For purposes of this subsection:

“(A) Foreign issuer—The term foreign issuer means an issuer that is not incorporated in the United States.

“(B) Non-member states of the United Nations—The term non-member states of the United Nations has the meaning given such term by the United Nations.”