Section 1 Short title
This Act may be cited as the “U.S. Foreign Trade Zone Parity Act of 2024”.
U.S. Foreign Trade Zone Parity Act of 2024
A BILL
To eliminate the incentive to distribute e-commerce shipments from foreign countries by providing parity to United States foreign-trade zones, and for other purposes.
Sec. 2 Customs entry procedures for articles withdrawn from a foreign-trade zone
in subsection (a)(2), in the matter preceding subparagraph (A)—
by inserting “or withdrawal from a foreign trade zone and subsequent entry for consumption” after “by reason of importation”;
by inserting “or in a foreign-trade zone” after “in the country of shipment”;
by inserting “, or if withdrawn from a foreign-trade zone on one invoice or order for one ultimate consignee on one day,” after “one person on one day”; and
by striking “subdivision (2)” each place it appears and inserting “paragraph (2)”; and
by adding at the end the following:
“(c) In this section, the term “foreign-trade zone” means a zone established pursuant to the Act of June 18, 1934 (commonly known as the ‘Foreign-Trade Zones Act’) (19 U.S.C. 81a et seq.).”
Effective date— The amendments made by subsection (a) shall take effect on the date of the enactment of this Act and apply with respect to articles entered on or after the 30th day after the date on which final regulations to implement this Act and the amendments made by this Act take effect in accordance with section 4(b).
Sec. 3 Treatment of e-commerce under Foreign-Trade Zones Act
In general— Section 15(d) of the Act of June 18, 1934 (commonly known as the “Foreign-Trade Zones Act”) (19 U.S.C. 81o(d)) is amended—
by inserting “(1)” after “(d)”; and
by adding at the end the following:
“(2)
“(A) In this subsection, the term “retail trade” does not include any electronic commerce transaction in which articles with a fair retail value in the country of shipment or in a foreign-trade zone of less than the amount specified in section 321(a)(2)(C) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) are withdrawn from a zone.
“(B) For purposes of subparagraph (A), the term ‘electronic commerce’ means the production, distribution, marketing, sale, or delivery of goods and services by electronic means.”
Effective date— The amendments made by subsection (a) shall take effect on the date on which the final regulations to implement this Act and the amendments made by this Act take effect in accordance with section 4(b).
Sec. 4 Proposed and final regulations
Proposed regulations—
In general— Not later than 120 days after the date of the enactment of this Act, the Secretary of the Treasury, in coordination with the Secretary of Homeland Security and the Secretary of Commerce, shall prescribe proposed regulations to implement this Act and the amendments made by this Act in accordance with the requirements described in this section.
Matters to be included— The regulations described in paragraph (1) shall, at minimum—
use a distinct valuation method under section 146.65(b)(2) of title 19, Code of Federal Regulations, for calculation of dutiable value of entries made under section 321(a)(2) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)), as amended by section 2(a)(1), from the foreign trade zone; and
require such calculation of dutiable value to be based on the transaction value at the time of withdrawal from the foreign trade zone.
Requirements— The Secretary of the Treasury, in coordination with the Secretary of Homeland Security and the Secretary of Commerce, shall—
publish the proposed regulations described in paragraph (1) in the Federal Register and provide for a 60-day period for public review and comment on such regulations; and
not later than 90 days after the expiration of the 60-day period described in subparagraph (A), submit the proposed regulations to Congress for review and consultation by Congress on such regulations.
Final regulations— Final regulations to implement this Act and the amendments made by this Act may take effect only if a period of not less than 60 days, beginning on the first day on which the requirements described in subparagraphs (A) and (B) of subsection (a)(3) have been met, has expired.
Sec. 5 Rule of construction
Nothing in Act or the amendments made by this Act may be construed to affect the administration of section 484(i) of the Tariff Act of 1930 (19 U.S.C. 1484(i)) or section 15(d) of the Act of June 18, 1934 (commonly known as the “Foreign-Trade Zones Act”) (19 U.S.C. 81o(d)).