,i #aacth ,,congress #ast ,session ,h4 ,r4 #aiaj ,,in ,,the ,,house ,,of ,,representatives ,may #i1 #bjac ,mr4 ,cartwright 7for himself1 ,mr4 ,turner1 ,mr4 ,brady of ,pennsylvania1 ,mr4 ,braley of ,iowa1 ,mr4 ,conyers1 ,mr4 ,courtney1 ,mr4 ,doggett1 ,mr4 ,ellison1 ,mr4 ,enyart1 ,mr4 ,gene ,green of ,texas1 ,mr4 ,hastings of ,florida1 ,mr4 ,johnson of ,georgia1 ,mr4 ,jones1 ,mrs4 ,mc,carthy of ,new ,york1 ,ms4 ,norton1 ,mr4 ,peters of ,michigan1 ,mr4 ,ryan of ,ohio1 ,ms4 ,linda ,t4 ,snchez of ,california1 ,ms4 ,shea-,porter1 ,mr4 ,tierney1 ,mr4 ,vela1 ,mr4 ,yarmuth1 ,mr4 ,michaud1 ,mr4 ,grayson1 ,mr4 ,joyce1 ,mr4 ,keating1 ,mr4 ,perlmutter1 ,mr4 ,cohen1 ,mr4 ,andrews1 ,ms4 ,bonamici1 ,ms4 ,kuster1 ,ms4 ,edwards1 and ,mr4 ,pocan7 introduced the following bill2 which was referred to the ,committee on ,energy and ,commerce1 and in addition to the ,committees on ,ways and ,means and ,agriculture1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to require foreign manufacturers of products imported into the ,united ,states to establish registered agents in the ,united ,states who are authorized to accept service of process against such manufacturers4 #a4 ,short title ,this ,act may be cited as the ,foreign ,manufacturers ,legal ,accountability ,act of #bjac4 #b4 ,findings ,congress makes the following findings3 7#a7 ,each year1 many people in the ,united ,states are injured by defective products manufactured or produced by foreign entities and imported into the ,united ,states4 7#b7 ,both consumers and businesses in the ,united ,states have been harmed by injuries to people in the ,united ,states caused by defective products manufactured or produced by foreign entities4 7#c7 ,people in the ,united ,states injured by defective products manufactured or produced by foreign entities often have difficulty recovering damages from the foreign manufacturers and producers responsible for such injuries4 7#d7 ,the difficulty described in paragraph 7#c7 is caused by the obstacles in bringing a foreign manufacturer or producer into a ,united ,states court and subsequently enforcing a judgment against that manufacturer or producer4 7#e7 ,obstacles to holding a responsible foreign manufacturer or producer liable for an injury to a person in the ,united ,states undermine the purpose of the tort laws of the ,united ,states4 7#f7 ,the difficulty of applying the tort laws of the ,united ,states to foreign manufacturers and producers puts ,united ,states manufacturers and producers at a competitive disadvantage because ,united ,states manufacturers and producers must-- 7,a7 abide by common law and statutory safety standards2 and 7,b7 invest substantial resources to ensure that they do so4 7#g7 ,foreign manufacturers and producers can avoid the expenses necessary to make their products safe if they know that they will not be held liable for violations of ,united ,states product safety laws4 7#h7 ,businesses in the ,united ,states undertake numerous commercial relationships with foreign manufacturers1 exposing the businesses to additional tort liability when foreign manufacturers or producers evade ,united ,states courts4 7#i7 ,businesses in the ,united ,states engaged in commercial relationships with foreign manufacturers or producers often cannot vindicate their contractual rights if such manufacturers or producers seek to avoid responsibility in ,united ,states courts4 7#aj7 ,one of the major obstacles facing businesses and individuals in the ,united ,states who are injured and who seek compensation for economic or personal injuries caused by foreign manufacturers and producers is the challenge of serving process on such manufacturers and producers4 7#aa7 ,an individual or business injured in the ,united ,states by a foreign company must rely on a foreign government to serve process when that company is located in a country that is a signatory to the ,convention on the ,service ,abroad of ,judicial and ,extrajudicial ,documents in ,civil or ,commercial ,matters done at ,the ,hague ,november #ae1 #aife 7#bj ,,ust #cfa2 ,,tias #ffch74 7#ab7 ,an injured person in the ,united ,states must rely on the cumbersome system of letters rogatory to effect service in a country that did not sign the ,convention on the ,service ,abroad of ,judicial and ,extrajudicial ,documents in ,civil or ,commercial ,matters4 ,these countries do not have an enforceable obligation to serve process as requested4 7#ac7 ,the procedures described in paragraphs 7#aa7 and 7#ab7 add time and expense to litigation in the ,united ,states1 thereby discouraging or frustrating meritorious lawsuits brought by persons injured in the ,united ,states against foreign manufacturers and producers4 7#ad7 ,foreign manufacturers and producers often seek to avoid judicial consideration of their actions by asserting that ,united ,states courts lack personal jurisdiction over them4 7#ae7 ,the due process clauses of the fifth amendment to and section #a of the fourteenth amendment to the ,constitution govern ,united ,states courts' personal jurisdiction over defendants4 7#af7 ,the due process clauses described in paragraph 7#ae7 are satisfied when a defendant consents to the jurisdiction of a court4 7#ag7 ,united ,states markets present many opportunities for foreign manufacturers4 7#ah7 ,in choosing to export products to the ,united ,states1 a foreign manufacturer or producer subjects itself to the laws of the ,united ,states4 ,such a foreign manufacturer or producer thereby acknowledges that it is subject to the personal jurisdiction of the ,state and ,federal courts in at least one ,state4 #c4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 foreign manufacturers and producers whose products are sold in the ,united ,states should not be able to avoid liability simply because of difficulties relating to serving process upon them2 7#b7 to avoid such lack of accountability1 foreign manufacturers and producers of foreign products distributed in the ,united ,states should be required1 by regulation1 to register an agent in the ,united ,states who is authorized to accept service of process for such manufacturer or producer2 7#c7 it is unfair to ,united ,states consumers and businesses that foreign manufacturers and producers often seek to avoid judicial consideration of their actions by asserting that ,united ,states courts lack personal jurisdiction over them2 7#d7 those who benefit from exporting products to ,united ,states markets should expect to be subject to the jurisdiction of at least one court within the ,united ,states2 7#e7 exporting products to the ,united ,states should be understood as consent to the accountability that the legal system of the ,united ,states ensures for all manufacturers and producers1 foreign1 and domestic2 7#f7 exporters recognize the scope of opportunities presented to them by ,united ,states markets but also should recognize that products imported into the ,united ,states must satisfy ,federal and ,state safety standards established by statute1 regulation1 and common law2 7#g7 foreign manufacturers should recognize that they are responsible for the contracts they enter into with ,united ,states companies2 7#h7 foreign manufacturers should act responsibly and recognize that they operate within the constraints of the ,united ,states legal system when they export products to the ,united ,states2 7#i7 ,united ,states laws and the laws of ,united ,states trading partners should not put burdens on foreign manufacturers and producers that do not apply to domestic companies2 7#aj7 it is fair to ensure that foreign manufacturers1 whose products are distributed in commerce in the ,united ,states1 are subject to the jurisdiction of ,state and ,federal courts in at least one ,state because all ,united ,states manufacturers are subject to the jurisdiction of the ,state and ,federal courts in at least one ,state2 and 7#aa7 it should be understood that1 by registering an agent for service of process in the ,united ,states1 the foreign manufacturer or producer acknowledges consent to the jurisdiction of the ,state in which the registered agent is located4 #d4 ,definitions ,in this ,act3 7#a7 ,applicable agency ,the term applicable agency means1 with respect to covered products-- 7,a7 described in subparagraphs 7,a7 and 7,b7 of paragraph 7#d71 the ,food and ,drug ,administration2 7,b7 described in paragraph 7#d77;,c71 the ,consumer ,product ,safety ,commission2 7,c7 described in subparagraphs 7,d7 and 7,e7 of paragraph 7#d71 the ,environmental ,protection ,agency2 and 7,d7 described in subparagraph 7,f7 of paragraph 7#d7-- 7i7 the ,food and ,drug ,administration1 if the item is intended to be a component part of a product described in subparagraphs 7,a7 and 7,b7 of paragraph 7#d72 7ii7 the ,consumer ,product ,safety ,commission1 if the item is intended to be a component part of a product described in paragraph 7#d77;,c72 and 7iii7 the ,environmental ,protection ,agency1 if the item is intended to be a component part of a product described in subparagraphs 7,d7 and 7,e7 of paragraph 7#d74 7#b7 ,commerce ,the term commerce means trade1 traffic1 commerce1 or transportation-- 7,a7 between a place in a ,state and any place outside of the ,state2 or 7,b7 which affects trade1 traffic1 commerce1 or transportation described in subparagraph 7,a74 7#c7 ,commissioner of ,u4,s4 ,customs and ,border ,protection ,the term ,commissioner of ,u4,s4 ,customs and ,border ,protection means the ,commissioner responsible for ,u4,s4 ,customs and ,border ,protection of the ,department of ,homeland ,security4 7#d7 ,covered product ,the term covered product means any of the following3 7,a7 ,drugs1 devices1 and cosmetics1 as such terms are defined in section #bja of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cba74 7,b7 ,a biological product1 as such term is defined in section #cea7;i7 of the ,public ,health ,service ,act 7#db ,u4,s4,c4 #bfb7;i774 7,c7 ,a consumer product1 as such term is used in section #c7;a7 of the ,consumer ,product ,safety ,act 7#ae ,u4,s4,c4 #bjeb74 7,d7 ,a chemical substance or new chemical substance1 as such terms are defined in section #c of the ,toxic ,substances ,control ,act 7#ae ,u4,s4,c4 #bfjb74 7,e7 ,a pesticide1 as such term is defined in section #b of the ,federal ,insecticide1 ,fungicide1 and ,rodenticide ,act 7#g ,u4,s4,c4 #acf74 7,f7 ,an item that is intended to be a component part of a product described in subparagraph 7,a71 7,b71 7,c71 7,d71 or 7,e7 but is not yet a component part of such product4 7#e7 ,distribute in commerce ,the term distribute in commerce means to sell in commerce1 to introduce or deliver for introduction into commerce1 or to hold for sale or distribution after introduction into commerce4 #e4 ,registration of agents of foreign manufacturers authorized to accept service of process in the ,united ,states 7a7 ,registration 7#a7 ,in general ,beginning on the date that is #ahj days after the date on which the regulations are prescribed pursuant to subsection 7e77#a7 and except as otherwise provided in this subsection1 the head of each applicable agency shall require foreign manufacturers and producers of covered products distributed in commerce to establish a registered agent in the ,united ,states who is authorized to accept service of process on behalf of such manufacturer or producer for the purpose of any ,state or ,federal regulatory proceeding or any civil action in any ,state or ,federal court relating to such covered product1 if such service is made in accord with the ,state or ,federal rules for service of process in the ,state in which the regulatory action or case is brought4 7#b7 ,location ,the head of each applicable agency shall require that an agent of a foreign manufacturer or producer registered under this subsection with respect to a covered product be located in a ,state with a substantial connection to the importation1 distribution1 or sale of the covered product4 7#c7 ,designation and acceptance 7,a7 ,designation by foreign manufacturers and producers ,the head of each applicable agency shall require each foreign manufacturer and producer described in paragraph 7#a7 to provide to the applicable agency a written designation of the agent established by the foreign manufacturer or producer pursuant to paragraph 7#a7 that-- 7i7 is signed by an official or employee of the foreign manufacturer or producer who has authority to appoint an agent2 7ii7 contains the full legal name1 principal place of business1 and mailing address of the foreign manufacturer or producer2 and 7iii7 contains a statement that the designation is valid and binding on the foreign manufacturer or producer for the purposes of this section4 7,b7 ,acceptance by agents ,the head of each applicable agency shall require each agent established pursuant to paragraph 7#a7 with respect to a foreign manufacturer or producer to provide to the applicable agency a written acceptance of such establishment that-- 7i7 is signed by the agent or1 in the case in which a domestic firm or domestic corporation is designated as an agent1 an official or employee of the firm or corporation with authority to sign for the firm or corporation2 7ii7 contains the agent's full legal name1 physical address1 mailing address1 and telephone number2 7iii7 contains a statement that the agent accepts such establishment and the designation by the foreign manufacturer or producer under subparagraph 7,a72 and 7iv7 contains a statement that the agent acknowledges that the duties of the agent-- 7,i7 may not be assigned to another person2 and 7,,ii7 remain in effect until withdrawn or replaced by the foreign manufacturer or producer4 7#d7 ,minimum size ,this subsection shall only apply to foreign manufacturers and producers that manufacture or produce covered products in excess of a minimum value or quantity the head of the applicable agency shall prescribe by rule for purposes of this section4 ,such rules may include different minimum values or quantities for different subcategories of covered products prescribed by the head of the applicable agency for purposes of this section4 7b7 ,registry of agents of foreign manufacturers 7#a7 ,in general ,the ,secretary of ,commerce shall1 in cooperation with each head of an applicable agency1 establish and keep up to date a registry of agents registered under subsection 7a74 7#b7 ,availability ,the ,secretary of ,commerce shall make the registry established under paragraph 7#a7 available-- 7,a7 to the public through the ,internet website of the ,department of ,commerce2 and 7,b7 to the ,commissioner of ,u4,s4 ,customs and ,border ,protection4 7c7 ,consent to jurisdiction 7#a7 ,in general ,a foreign manufacturer or producer of a covered product that registers an agent under this section thereby consents to the personal jurisdiction of the ,state or ,federal courts of the ,state in which the registered agent is located for the purpose of any regulatory proceeding or civil action relating to such covered product4 7#b7 ,rule of construction ,paragraph 7#a7 shall not be construed to apply to actions brought by foreign plaintiffs in which the alleged injury or damage occurred outside the ,united ,states4 7d7 ,declarations 7#a7 ,in general ,beginning on the date that is #ahj days after the date on which the regulations are prescribed pursuant to subsection 7e71 any person importing a covered product manufactured or produced outside the ,united ,states shall provide to ,u4,s4 ,customs and ,border ,protection a declaration that-- 7,a7 the person has made appropriate inquiry as to whether the manufacturer or producer of the covered product has complied with the requirements of this section1 including by seeking appropriate documentation from the exporter of the covered product and by consulting the registry established pursuant to subsection 7b72 and 7,b7 to the best of the person's knowledge1 with respect to each importation of a covered product1 the foreign manufacturer or producer of the product has registered an agent in the ,united ,states as required under subsection 7a74 7#b7 ,electronic submission ,not later than #a year after the date of the enactment of this ,act1 the ,commissioner of ,u4,s4 ,customs and ,border ,protection shall establish a mechanism whereby declarations made pursuant to paragraph 7#a7 may be submitted electronically and maintained as an electronic record within the data management systems of ,u4,s4 ,customs and ,border ,protection4 7#c7 ,regulations 7,a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 the ,commissioner of ,u4,s4 ,customs and ,border ,protection shall prescribe regulations to carry out this subsection4 7,b7 ,summary declaration ,the regulations required by subparagraph 7,a7 shall require that each declaration of an importer made pursuant to paragraph 7#a7 with respect to a covered product shall accompany the entry summary documentation for such product or1 in the case of repeated transactions1 may be submitted on an annual basis4 7#d7 ,penalties ,any person who fails to provide a declaration required under paragraph 7#a71 or files a false declaration1 shall be subject to any appropriate penalty under section #eib of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aeib7 or title #ah1 ,united ,states ,code1 with respect to importation of a covered product4 7e7 ,regulations 7#a7 ,in general ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,commerce1 the ,commissioner of ,u4,s4 ,customs and ,border ,protection1 and each head of an applicable agency shall prescribe regulations to carry out this section1 including the establishment of minimum values and quantities under subsection 7a77#d74 7#b7 ,interagency cooperation ,the ,secretary of ,commerce1 the ,commissioner responsible for ,u4,s4 ,customs and ,border ,protection1 and each head of an applicable agency shall cooperate and consult with one another for the purpose of-- 7,a7 prescribing consistent regulations to the extent necessary for the effective and efficient sharing of information and establishment of systems and procedures necessary to carry out this section2 and 7,b7 establishing minimum values and quantities under subsection 7a77#d71 and to the extent advisable and practicable for the purpose of establishing consistent minimum requirements4 #f4 ,study on registration of agents of foreign food producers authorized to accept service of process in the ,united ,states ,not later than #a year after the date of the enactment of this ,act1 the ,secretary of ,agriculture and the ,commissioner of ,food and ,drugs shall jointly-- 7#a7 complete a study on the feasibility and advisability of requiring foreign producers of food distributed in commerce to establish a registered agent in the ,united ,states who is authorized to accept service of process on behalf of such producers for the purpose of all civil and regulatory actions in ,state and ,federal courts2 and 7#b7 submit to ,congress a report on the findings of the ,secretary with respect to such study4 #g4 ,study on registration of agents of foreign manufacturers and producers of component parts within covered products ,not later than #b years after the date of the enactment of this ,act1 the head of each applicable agency shall-- 7#a7 complete a study on determining feasible and advisable methods of requiring manufacturers or producers of component parts within covered products manufactured or produced outside the ,united ,states and distributed in commerce to establish registered agents in the ,united ,states who are authorized to accept service of process on behalf of such manufacturers or producers for the purpose of all civil and regulatory actions in ,state and ,federal courts2 and 7#b7 submit to ,congress a report on the findings of the head of the applicable agency with respect to the study4 #h4 ,relationship with other laws ,nothing in this ,act shall affect the authority of any ,state to establish or continue in effect a provision of ,state law relating to service of process or personal jurisdiction1 except to the extent that such provision of law is inconsistent with the provisions of this ,act1 and then only to the extent of such inconsistency4