[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 3431 Introduced in Senate (IS)]
<DOC>
118th CONGRESS
1st Session
S. 3431
To amend the Tariff Act of 1930 to strengthen the authorities of U.S.
Customs and Border Protection to enforce the customs and trade laws of
the United States, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 7, 2023
Mr. Cassidy (for himself and Mr. Whitehouse) introduced the following
bill; which was read twice and referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Tariff Act of 1930 to strengthen the authorities of U.S.
Customs and Border Protection to enforce the customs and trade laws of
the United States, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Customs
Modernization Act of 2023''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--IMPROVED COLLECTION AND USE OF INFORMATION
Sec. 101. Modification of requirements for filing of entry
documentation.
Sec. 102. Expansion of recordkeeping requirements relating to
importation.
Sec. 103. Expansion of authority of U.S. Customs and Border Protection
to obtain information relating to
importation and trade enforcement.
Sec. 104. Use of mandatory advance electronic information for cargo.
TITLE II--STRENGTHENED ENFORCEMENT OF IMPORT AND EXPORT PROHIBITIONS
Sec. 201. Examination and testing of merchandise that infringes
intellectual property rights.
Sec. 202. Seizure and forfeiture and disposition of, and expanded
liability for, merchandise bearing a
counterfeit mark or infringing a copyright.
Sec. 203. Summary forfeiture of certain merchandise.
TITLE III--LIABILITY FOR VIOLATIONS OF CUSTOMS AND TRADE LAWS
Sec. 301. Expansion of liability for certain violations of arrival,
reporting, entry, and clearance
requirements.
Sec. 302. Modification of standards and penalties for fraud and
negligence.
Sec. 303. Expansion of liability for aiding unlawful importation and
exportation.
Sec. 304. Procedures for investigating claims of evasion of antidumping
and countervailing duty orders.
Sec. 305. Obstruction of investigations.
Sec. 306. Modification of bonding requirements.
Sec. 307. Treatment of importations involving suspended or debarred
persons.
TITLE IV--ADMINISTRATIVE EXEMPTIONS FROM DUTIES
Sec. 401. Collection and use of data relating to eligibility for
administrative exemption to duties.
Sec. 402. Streamlined disposition of merchandise subject to
administrative exemptions.
TITLE V--OTHER MATTERS
Sec. 501. Protests against decisions of U.S. Customs and Border
Protection.
Sec. 502. Reduction of administrative burdens.
Sec. 503. Authority to conduct communications electronically.
Sec. 504. Disclosure of vessel, aircraft, or vehicle manifest
information.
TITLE I--IMPROVED COLLECTION AND USE OF INFORMATION
SEC. 101. MODIFICATION OF REQUIREMENTS FOR FILING OF ENTRY
DOCUMENTATION.
(a) Electronic Filing.--Section 484(a) of the Tariff Act of 1930
(19 U.S.C. 1484(a)) is amended--
(1) in paragraph (1)--
(A) in the matter preceding subparagraph (A)--
(i) by inserting ``with respect to
merchandise'' after ``paragraph (2)(B)''; and
(ii) by inserting after ``reasonable care''
the following: ``make entry therefor by filing
with U.S. Customs and Border Protection,
pursuant to an authorized electronic data
interchange system'';
(B) in subparagraph (A)--
(i) by striking ``make entry'' and all that
follows through ``interchange system, such''
and inserting ``such documentation or''; and
(ii) by striking the semicolon and
inserting ``; and''; and
(C) in subparagraph (B)--
(i) by striking ``complete the entry'' and
all that follows through ``with the Customs
Service''; and
(ii) by striking ``, pursuant to an
electronic data interchange system, such
other'';
(2) in paragraph (2)--
(A) in subparagraph (A)--
(i) in the second sentence, by striking
``regulations shall provide'' and inserting
``regulations may provide''; and
(ii) in the third sentence, by striking
``paragraph (1)(A)'' and inserting ``paragraph
(1)''; and
(B) in subparagraph (B), in the first sentence, by
striking ``filed or electronically transmitted'' and
inserting ``electronically filed''; and
(3) by adding at the end the following:
``(3) Exemptions from electronic filing requirement.--The
Secretary may, for such reasons as the Secretary deems
necessary, exempt the filing of documentation or information
required under this section from the requirement that the
documentation or information be filed through an authorized
electronic data interchange system, including by providing for
temporary exemptions to that requirement.''.
(b) Provision of Advance Information.--Section 484(a)(2) of the
Tariff Act of 1930, as amended by subsection (a)(2), is further amended
by adding at the end the following:
``(D) Provision of advance information.--
``(i) In general.--Upon request by a party that
would qualify as an importer of record or an authorized
agent of that party and under such regulations as the
Secretary may prescribe, U.S. Customs and Border
Protection may--
``(I) permit the party or agent, or a party
other than the party or agent, to provide to
U.S. Customs and Border Protection
documentation or information with respect to
merchandise in advance of entry of the
merchandise; and
``(II) permit the importer of record to,
using reasonable care, convert that
documentation or information into a filing
under subparagraph (B), subject to the
certification requirement under subsection (d).
``(ii) Type of documentation or information and
usage.--Documentation or information with respect to
merchandise provided to U.S. Customs and Border
Protection pursuant to regulations prescribed by the
Secretary under clause (i) may be used by U.S. Customs
and Border Protection for any lawful purpose.
``(iii) Accuracy of documentation and
information.--
``(I) In general.--A party providing
documentation or information under clause
(i)(I) shall ensure that the documentation or
information is true and correct to the best of
the knowledge and belief of the party, subject
to any penalties authorized by law.
``(II) Exception.--The Secretary shall, in
the regulations prescribed under clause (i),
permit a party to provide to U.S. Customs and
Border Protection documentation or information
under clause (i)(I) on the basis of the
reasonable belief of the party that the
documentation or information is true and
correct if the party is not reasonably able to
verify the documentation or information.
``(iv) Civil penalty.--
``(I) In general.--Any person who violates
the regulations prescribed under this
subparagraph is liable for a civil penalty in
an amount not to exceed--
``(aa) $5,000 for the first
violation; and
``(bb) $10,000 for each subsequent
violation.
``(II) Assessment per unit.--A penalty
imposed under this clause shall be assessed per
item on the bill of lading.
``(III) Additional penalties.--A penalty
imposed under this clause may be in addition to
any other penalty provided by law.
``(IV) Remission; mitigation.--A penalty
imposed under this clause may be remitted or
mitigated, as appropriate, under section 618.
``(v) Regulations.--Except with respect to
merchandise the importation of which into the United
States is prohibited or merchandise subject to a
presumption of inadmissibility by operation of law, the
Secretary, in promulgating such regulations as may be
necessary to carry out the provisions of this
subparagraph, shall give due consideration, where
appropriate, with respect to the manner in which
documentation or information that is provided to U.S.
Customs and Border Protection prior to entry of the
merchandise to which the documentation or information
relates, and pursuant to such regulations, will support
trade facilitation (as defined in section 2 of the
Trade Facilitation and Trade Enforcement Act of 2015
(19 U.S.C. 4301)), including whether such documentation
or information would--
``(I) facilitate the priority processing
and expedited release of merchandise from
customs custody;
``(II) reduce redundancies in the trade
data that parties in a supply chain are
required to provide; and
``(III) allow for the opportunity to
resolve requests for additional information
prior to departure or arrival of the
merchandise.
``(vi) Definition.--In this subparagraph, the terms
`provide', `providing', and `provision', with respect
to documentation or information provided to U.S.
Customs and Border Protection, include--
``(I) the submission or transmission of the
documentation or information;
``(II) the provision of the documentation
or information in a manner that is progressive
over time, as long as such provision concludes
prior to conversion into an entry filing under
subparagraph (B), and may include documentation
or information that is also provided to U.S.
Customs and Border Protection pursuant to other
requirements or authorities; and
``(III) otherwise making available to U.S.
Customs and Border Protection the documentation
or information in accordance with such terms
and conditions as the Secretary may by
regulation prescribe.''.
(c) Release of Merchandise.--Section 484(c) of the Tariff Act of
1930 is amended to read as follows:
``(c) Release of Merchandise.--
``(1) In general.--U.S. Customs and Border Protection may
permit the entry and release of merchandise from customs
custody in accordance with such regulations as the Secretary
may prescribe.
``(2) Liability of customs officers.--No employee of U.S.
Customs and Border Protection shall be liable to any person
with respect to the delivery of merchandise released from
customs custody in accordance with regulations prescribed under
paragraph (1).''.
(d) Certification of Entry Filings.--Section 484(d) of the Tariff
Act of 1930 is amended--
(1) in the subsection heading, by striking ``Signing'' and
inserting ``Certification'';
(2) in paragraph (1)--
(A) by striking ``Entries shall be'' and all that
follows through ``transmission of data'' and inserting
``Each filing under subsection (a)(2)(B)'';
(B) by striking ``his agent'' and inserting ``an
agent of the importer of record'';
(C) by striking ``his knowledge and belief'' and
inserting ``the knowledge and belief of the importer of
record or agent''; and
(D) by striking ``The entry shall'' and inserting
``If exempt from electronic filing, the entry shall be
signed by the importer of record or agent. The entry
shall''; and
(3) in paragraph (2)--
(A) by striking ``imported merchandise bears'' and
inserting the following: ``imported merchandise--
``(A) bears'';
(B) by striking the period at the end and inserting
``; or''; and
(C) by adding at the end the following:
``(B) infringes a copyright in violation of section 602 of
title 17, United States Code.''.
(e) Technical and Conforming Amendments.--Section 484 of the Tariff
Act of 1930, as amended by this section, is further amended--
(1) in subsection (b)(1), in the third sentence, by
striking ``subsection (a)(1)(B)'' and inserting ``subsection
(a)(1)'';
(2) by striking ``the Bureau of Customs and Border
Protection'' each place it appears and inserting ``U.S. Customs
and Border Protection''; and
(3) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border Protection''.
SEC. 102. EXPANSION OF RECORDKEEPING REQUIREMENTS RELATING TO
IMPORTATION.
Section 508(a) of the Tariff Act of 1930 (19 U.S.C. 1508(a)) is
amended--
(1) in paragraph (1)(B), by inserting ``, directs, or
facilitates'' after ``causes'';
(2) in paragraph (2), by striking ``; or'' and inserting a
semicolon;
(3) in paragraph (3)--
(A) by striking ``person whose'' and inserting the
following: ``person--
``(A) whose'';
(B) by striking the semicolon and inserting ``;
or''; and
(C) by adding at the end the following:
``(B) that submits, transmits, or otherwise makes
available or visible to U.S. Customs and Border
Protection documentation or information under 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)) administered
by U.S. Customs and Border Protection or U.S.
Immigration and Customs Enforcement; or'';
(4) by inserting after paragraph (3) the following:
``(4) owner or operator of a commercial or marketing
platform or marketplace, including an electronic commerce
platform or marketplace, through which merchandise that is
imported into the United States is offered for sale or purchase
within the United States;''; and
(5) in the flush text following paragraph (4), as so
inserted, by striking subparagraph (A) and inserting the
following:
``(A) pertain to--
``(i) any such activity;
``(ii) the role of the party in a transaction
resulting in the sale or purchase of imported
merchandise within the United States; or
``(iii) the information contained in the records
required by the customs and trade laws of the United
States in connection with any such activity or
transaction; and''.
SEC. 103. EXPANSION OF AUTHORITY OF U.S. CUSTOMS AND BORDER PROTECTION
TO OBTAIN INFORMATION RELATING TO IMPORTATION AND TRADE
ENFORCEMENT.
(a) In General.--Section 509(a) of the Tariff Act of 1930 (19
U.S.C. 1509(a)) is amended--
(1) in the matter preceding paragraph (1), by striking
``insuring'' and all that follows through ``charge)'' and
inserting the following: ``ensuring compliance 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)) administered by U.S. Customs and Border
Protection or U.S. Immigration and Customs Enforcement, the
Secretary (but no delegate of the Secretary below the rank of
port director, director of a Center of Excellence and
Expertise, field director of regulatory audit, or special agent
in charge)'';
(2) in paragraph (1)--
(A) in the matter preceding subparagraph (A), by
striking ``except that'' and inserting ``and'';
(B) in subparagraph (A), by striking ``by law'' and
all that follows through ``Customs Service within'' and
inserting the following: ``to be kept under section
508, the record shall be provided to the agency
demanding the record within''; and