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Title II — Modernizing Customs Processes

S. 956 · 119th Congress · Mar 11, 2025 · Lineage

II Modernizing Customs Processes

Sec. 201 Simplification of drawback procedures

(a)
In general— Section 313 of the Tariff Act of 1930 (19 U.S.C. 1313) is amended by inserting after subsection (s) the following:

“(t) Simplification of drawback procedures

“(1) Accelerated payment

“(A) In general—A person that meets the requirements of paragraph (3) and files a claim for drawback under this section shall be paid all estimated duties, taxes, and fees covered by the claim while the liquidation of the claim is pending.

“(B) Estimated payment exceeds liquidated amount—If the amount of estimated duties, taxes, and fees paid by U.S. Customs and Border Protection under subparagraph (A) for a drawback claim exceeds an amount that is $20 more than the final liquidated amount for that claim, the person that filed the claim shall refund to U.S. Customs and Border Protection the amount by which the amount of estimated duties, taxes, and fees paid by U.S. Customs and Border Protection exceeds the final liquidated amount.

“(C) Liquidated amount exceeds estimated payment—If the final liquidated amount for a drawback claim exceeds an amount that is $20 more than the amount of estimated duties, taxes, and fees paid by U.S. Customs and Border Protection under subparagraph (A) for the claim, U.S. Customs and Border Protection shall provide to the person that filed the claim an additional refund in the amount by which the final liquidated amount exceeds the amount of estimated duties, taxes, and fees paid by U.S. Customs and Border Protection.

“(2) Prior notice of export not required—A person that meets the requirements of paragraph (3) shall not be required to provide notice to U.S. Customs and Border Protection of an export of merchandise to be used in a claim for drawback under this section before exporting the merchandise.

“(3) Requirements for claimants—A person meets the requirements of this paragraph if the person has completed the following:

“(A) Submitted to U.S. Customs and Border Protection information and supporting documentation kept by the person in the normal course of business that evidences the ability of the person to file for and claim drawback under this section, which submission shall—

“(i) be deemed complete when submitted to U.S. Customs and Border Protection by the person; and

“(ii) apply to all claims for drawback filed by the person under this section after the completion of the submission.

“(B) Obtained a properly executed bond securing, pending liquidation of a drawback claim, repayment of 100 percent of the estimated duties, taxes, and fees covered by the claim.

“(4) Electronic filings for drawback claims—A person making a claim for drawback under this section shall be allowed to file an amendment to, or perfection of, a drawback claim through electronic means.”

(b)
Prior approval not required for substitution drawback— Section 313(b) of the Tariff Act of 1930 (19 U.S.C. 1313(b)) is amended by adding at the end the following:

“(5) Advance approval of claims not required—A person filing a claim for drawback under paragraph (1) shall not be required to obtain any ruling or approval authorizing drawback under that paragraph from the U.S. Customs and Border Protection before filing the claim, but shall exercise reasonable care in determining whether to obtain such a ruling in advance of the filing.”

(c)
Regulations— Not later than 180 days after the date of the enactment of this Act, the Commissioner of U.S. Customs and Border Protection shall prescribe regulations specifying the information required to be included in submissions made under subsection (t) of section 313 of the Tariff Act of 1930, as added by subsection (a).

Sec. 202 Streamlined export processes

Section 304 of title 13, United States Code, is amended by adding at the end the following:

“(d) Regulations relating to advance information

“(1) In general—The Secretary of Commerce shall prescribe regulations to account for advance documentation or information and reports described in subsection (a) made available with respect to cargo before the exportation or transportation of the cargo.

“(2) Consideration of timelines for submission—In prescribing regulations under paragraph (1), the Secretary shall—

“(A) consider how the different business models of persons submitting advance documentation or information under subsection (a) impact the availability of the documentation or information; and

“(B) adjust the timelines required for the submission of that documentation or information as appropriate.

“(3) Avoidance of redundancy—If information relating to the exportation or transportation of cargo provided under this section or section 431 of the Tariff Act of 1930 (19 U.S.C. 1431) is redundant with information required to be provided under any other provision of law, the Secretary shall, pursuant to the regulations prescribed under paragraph (1), work jointly with the Commissioner of U.S. Customs and Border Protection to ensure that the provision of the information under this section or such section 431 satisfies the requirement to provide the information under such other provision of law, to the extent practicable.”

Sec. 203 Treatment of clerical errors in submission of export data

Section 305(b) of title 13, United States Code, is amended—
(1)
by striking “The Secretary” and inserting the following:

“(1) In general—The Secretary”

(2)
by adding at the end the following:

“(2) Treatment of clerical errors—For purposes of paragraph (1), clerical errors or mistakes of fact are not violations unless they are part of a pattern of violative conduct. The mere nonintentional repetition by an electronic system of an initial clerical error does not constitute a pattern of violative conduct.”

Sec. 204 Government Accountability Office report on fee schedule of U.S. Customs and Border Protection

Not later than one year after the date of the enactment of this Act, the Comptroller General of the United States shall submit to Congress a report on the fee schedule of U.S. Customs and Border Protection that includes—
(1)
an assessment of—
(A)
how that schedule might be restructured; and
(B)
ways—
(i)
to reduce costs for the entities in the trade community that are the most compliant with the customs and trade laws of the United States (as defined in section 2 of the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. 4301)); and
(ii)
to ensure that all entities that benefit from customs services provided by U.S. Customs and Border Protection pay for those services; and
(2)
recommendations for Congress.

Sec. 205 Improvements to Centers of Excellence and Expertise

Section 110(a) of the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. 4317(a)) is amended—
(1)
in paragraph (8), by striking “; and” and inserting a semicolon;
(2)
in paragraph (9), by striking the period and inserting a semicolon; and
(3)
by adding at the end the following:

“(10) develop procedures, informed compliance publications, or other guidance with respect to the entry of merchandise in compliance with the law; and

“(11) provide guidance to importers on the post-entry and clearance procedures for imported merchandise impacted by admissibility issues including alleged violations of section 307 of the Trade Act of 1930 (19 U.S.C. 1307).”