,,ii #aaith ,,congress #ast ,session ,s4 #aahe ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bg1 #bjbe,mr4 ,wyden introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend section #cba of the ,tariff ,act of #aicj to enhance transparency with respect to shipments seeking an administrative exemption from duties for low-value entries1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,fighting ,illicit ,goods1 ,helping ,trustworthy ,importers1 and ,netting ,gains for ,america ,act of #bjbe or the ,,fighting for ,america ,act of #bjbe4 #b4 ,sense of ,congress ,it is the sense of ,congress that-- 7#a7 driven by the ,,covid-#ai pandemic and other global factors1 the volume of low-value imports into the ,united ,states that are eligible for an administrative exemption from duties under section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba71 known as the de minimis exemption1 has accelerated in recent years2 7#b7 as the patterns of trade change1 it is necessary to periodically review customs procedures to ensure that those procedures are sufficient to protect the revenue of the ,united ,states1 provide for the interdiction of illicit goods1 and otherwise facilitate legitimate trade and the appropriate use of customs resources2 7#c7 since the amendment to section #cba of the ,tariff ,act of #aicj made by section #ija of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7,public ,law #aad-abe2 #acj ,stat4 #bbc71 growth in the direct-to-consumer model of business has accelerated attempts to ship illicit drugs and other unauthorized products through low-value shipments and tariff-based remedies seeking to ensure a level playing field for ,united ,states workers have increased2 and 7#d7 as such1 the conditions of trade require ,congress to reevaluate the purpose and intent of the powers delegated to the ,secretary of the ,treasury under section #cba of the ,tariff ,act of #aicj1 as so amended1 to both protect the revenue of the ,united ,states and properly scrutinize shipments subject to an administrative exemption established under that section4 #c4 ,designation of priority trade issue ,section #aag7;a7 of the ,trade ,facilitation and ,trade ,enforcement ,act of #bjae 7#ai ,u4,s4,c4 #dcbb7;a77 is amended by adding at the end the following3 7#h7 ,the smuggling of fentanyl1 other illicit drugs1 and related material by abusing entry procedures for merchandise qualifying for an administrative exemption pursuant to section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba74 4 #d4 ,enhanced transparency for shipments ,section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7 is amended by adding at the end the following3 7c7 ,documentation and information supporting eligibility for exemption 7#a7 ,in general ,not later than #ahj days after the date of the enactment of this subsection1 the ,secretary of the ,treasury1 in consultation with the ,postmaster ,general1 shall prescribe regulations to require the provision to ,u4,s4 ,customs and ,border ,protection1 separate from any entry filing1 of such documentation or information with respect to an article that may qualify for an administrative exemption under subsection 7a77#b77;,c7 as the ,secretary determines is reasonably necessary for ,u4,s4 ,customs and ,border ,protection to determine the admissibility of the article and the eligibility of the article for the exemption when in a postal or other shipment4 7#b7 ,included documentation or information ,pursuant to paragraph 7#a71 the ,secretary may require1 with respect to an article that may qualify for an administrative exemption under subsection 7a77#b77;,c71 documentation or information regarding-- 7,a7 the offer for sale or purchase1 or the subsequent sale1 purchase1 transportation1 importation1 or warehousing of1 the article1 including documentation or information related to the offering of the article for sale or purchase within the ,united ,states through a commercial or marketing platform1 including an electronic commerce platform or marketplace1 if applicable2 7,b7 the identity of the seller1 the shipper1 the carrier1 the final delivery party1 or the purchaser of the article1 as applicable2 7,c7 the fair retail value in the country of shipment2 and 7,d7 other information determined to be necessary to protect the revenue and prevent unlawful importations4 7#c7 ,identification of ,harmonized ,tariff ,schedule classification ,notwithstanding any other provision of law1 the ,secretary1 in consultation with the ,postmaster ,general1 shall require1 with respect to an article claimed as qualifying for an administrative exemption under subsection 7a77#b77;,c71 the submission of the following information as part of the entry filing3 7,a7 ,the identification of the #aj-;digit statistical reporting number of the ,harmonized ,tariff ,schedule of the ,united ,states under which the article is classifiable4 7,b7 ,a description of the article with sufficient specificity to allow ,u4,s4 ,customs and ,border ,protection to evaluate the correctness of the statistical reporting number for the article identified under subparagraph 7,a74 7,c7 ,the country of origin of the article4 7#d7 ,parties providing documentation and information ,the documentation or information required pursuant to paragraph 7#a7 with respect to an article that may qualify for an administrative exemption under subsection 7a77#b77;,c7 may be provided by a party or parties other than one of the parties qualifying to make entry1 as specified by the ,secretary by regulations prescribed under section #dih4 7#e7 ,veracity of documentation and information ,a person providing documentation or information to ,u4,s4 ,customs and ,border ,protection pursuant to paragraph 7#a7 shall ensure that the documentation or information is true and correct to the best of the person's knowledge and belief1 subject to any penalties authorized by law4 7#f7 ,use of information ,u4,s4 ,customs and ,border ,protection may use documentation or information provided pursuant to paragraph 7#a7 for any lawful purpose necessary to fulfill the mission of ,u4,s4 ,customs and ,border ,protection4 7#g7 ,penalties 7,a7 ,violation of regulations 7i7 ,civil penalty ,any person that violates the regulations prescribed under this subsection is liable for a civil penalty in an amount not to exceed-- 7,i7 #a1jjj for the first violation2 and 7,,ii7 #e1jjj for each subsequent violation4 7ii7 ,additional penalties ,a penalty imposed under this subparagraph shall be in addition to any other penalty provided by law4 7iii7 ,remission2 mitigation 7,i7 ,in general ,except as provided by subclause 7,,ii71 a penalty imposed under this subparagraph may be remitted or mitigated on a per package or shipment basis1 as appropriate1 under section #fah4 7,,ii7 ,exception ,if a penalty is being considered with respect to a fourth or subsequent violation described in clause 7i7 by the same person1 the maximum penalty under clause 7i77,,ii7 shall be imposed with respect to the violation4 7,b7 ,additional violations 7i7 ,in general ,a person commits fraud if the person provides a false statement to ,u4,s4 ,customs and ,border ,protection with respect to an article and ,u4,s4 ,customs and ,border ,protection-- 7,i7 permits the entry of that article at less than the proper rate of duty2 or 7,,ii7 improperly treats that article as qualifying for an administrative exemption under subsection 7a77#b77;,c74 7ii7 ,civil penalty ,a person that engages in conduct described in clause 7i7 is liable for a civil penalty in an amount not to exceed-- 7,i7 #e1jjj for the first instance of such conduct2 and 7,,ii7 #aj1jjj for each subsequent instance of such conduct4 7iii7 ,additional penalties ,a penalty imposed under this subparagraph shall be in addition to any other penalty provided by section #eib or any other provision of law4 7iv7 ,remission2 mitigation 7,i7 ,in general ,except as provided by subclause 7,,ii71 a penalty imposed under this subparagraph may be remitted or mitigated on a per package or shipment basis1 as appropriate1 under section #fah4 7,,ii7 ,exception ,if a penalty is being considered with respect to a fourth or subsequent violation described in clause 7i7 by the same person1 the maximum penalty under clause 7ii77,,ii7 shall be imposed with respect to the violation4 7#h7 ,definition ,in this subsection1 the terms provide1 providing1 and provision1 with respect to documentation or information provided to ,u4,s4 ,customs and ,border ,protection1 include the submission1 transmission1 or otherwise making available of the documentation or information to ,u4,s4 ,customs and ,border ,protection4 4 #e4 ,limitations on exemption from duties ,section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7 is amended by striking 7b7 ,the ,secretary of the ,treasury and inserting the following3 7b7 ,exceptions 7#a7 ,in general ,the ,secretary of the ,treasury may not exempt from duties and taxes under subsection 7a77#b77;,c7-- 7,a7 any article that is-- 7i7 subject to an antidumping or countervailing duty determination1 instruction1 or order under title ,,vii of this ,act2 7ii7 subject to a tariff-rate quota or other quota2 7iii7 subject to a tax imposed under the ,internal ,revenue ,code of #aihf that is collected by ,u4,s4 ,customs and ,border ,protection2 7iv7 subject to an action taken under-- 7,i7 section #bja7;a7 or #cja7;c7 of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bbea7;a7 and #bdaa7;c772 or 7,,ii7 section #bcb7;c7 of the ,trade ,expansion ,act of #aifb 7#ai ,u4,s4,c4 #ahfb7;c772 or 7v7 as of ,january #a1 #bjbe1 not designated by the ,president under section #ejc of the ,trade ,act of #aigd 7#ai ,u4,s4,c4 #bdfc7 as an eligible article for purposes of the ,generalized ,system of ,preferences under title ,v of that ,act 7#ai ,u4,s4,c4 #bdfa et seq471 as reflected in the ,harmonized ,tariff ,schedule of the ,united ,states1 without regard to whether the ,generalized ,system of ,preferences otherwise applies to the article1 including for reasons of country of origin of the article or expiration of the ,generalized ,system of ,preferences2 or 7,b7 any article of a type or class that the ,secretary determines is not able to be exempted from duties and taxes under subsection 7a7 in a manner that will protect the revenue and prevent unlawful importations because the type or class is subject to-- 7i7 a significant increase in imports over the trend for a recent representative base period2 or 7ii7 persistent and significant evidence of hiding the shipment of illicit goods1 fraud1 counterfeiting1 or other malfeasance4 7#b7 ,list of articles determined unable to be exempted ,the ,secretary shall identify any article of a type or class that the ,secretary determines under paragraph 7#a77;,b7 is not able to be exempted from duties and taxes under subsection 7a7 on a list maintained on a publicly accessible website and reviewed not less frequently than annually by the ,secretary4 7#c7 ,other exceptions ,the ,secretary 4 #f4 ,disposition of detained merchandise ,section #dii of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #adii7 is amended-- 7#a7 in subsection 7c7-- 7,a7 in paragraph 7#b7-- 7i7 by redesignating subparagraphs 7,a7 through 7,e7 as clauses 7i7 through 7v71 respectively1 and by moving such clauses1 as so redesignated1 #b ems to the right2 7ii7 by striking ,the ,customs ,service shall and inserting the following3 7,a7 ,in general ,u4,s4 ,customs and ,border ,protection shall 2 and 7iii7 by adding at the end the following3 7,b7 ,merchandise for which entry sought under administrative exemption from duties ,in the case of detained merchandise for which entry under an administrative exemption under section #cba7;a77#b77;,c7 is claimed-- 7i7 ,u4,s4 ,customs and ,border ,protection shall provide the notice required by subparagraph 7,a7 to each party that appears to have an interest in the merchandise1 based on information reasonably available to ,u4,s4 ,customs and ,border ,protection1 in such form and manner as the ,secretary shall by regulation prescribe2 7ii7 in addition to the matter required by clauses 7i7 through 7v7 of subparagraph 7,a71 the notice shall advise the interested party that1 instead of providing information in response to subparagraph 7,a77v71 the interested party may voluntarily abandon the merchandise2 and 7iii7 if ,u4,s4 ,customs and ,border ,protection does not receive a response from an interested party by the date that is #ae days after the date of the notice-- 7,i7 the merchandise shall be deemed abandoned2 and 7,,ii7 title to the merchandise shall be vested in the ,united ,states and disposed of in accordance with law4 2 and 7,b7 in paragraph 7#e71 by adding at the end the following3 7,d7 ,subparagraphs 7,a71 7,b71 and 7,c7 do not apply with respect to merchandise for which entry under an administrative exemption under section #cba7;a77#b77;,c7 is claimed4 2 7#b7 by striking ,the ,customs ,service each place it appears and inserting ,u4,s4 ,customs and ,border ,protection2 and 7#c7 by striking the ,customs ,service each place it appears and inserting ,u4,s4 ,customs and ,border ,protection4 #g4 ,report on review of merchandise by partner government agencies ,not later than #bgj days after the date of the enactment of this ,act1 the ,secretary of the ,treasury shall submit to ,congress a report on the engagement of partner government agencies of ,u4,s4 ,customs and ,border ,protection in the review and detention of merchandise for which an administrative exemption under section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7 is claimed that includes recommendations for improving such engagement and the interdiction of merchandise inconsistent with the requirements of such agencies4 #h4 ,summary forfeiture of certain merchandise imported contrary to law ,section #eif of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aeie;a7 is amended by adding at the end the following3 7e7 ,summary forfeiture 7#a7 ,in general ,merchandise described in paragraph 7#b7 may be summarily forfeited to the ,united ,states and title shall vest immediately in the ,united ,states4 7#b7 ,merchandise described ,merchandise described in this paragraph is merchandise being imported or attempted to be imported-- 7,a7 for which an administrative exemption under section #cba7;a77#b77;,c7 is claimed2 and 7,b7 that is described in paragraph 7#a71 7#b71 or 7#c7 of section #eif7;c74 7#c7 ,notice ,in any case in which merchandise is summarily forfeited pursuant to this subsection1 ,u4,s4 ,customs and ,border ,protection shall notify the carrier of the merchandise1 and may notify a customs broker involved in the importation or attempted importation of the merchandise1 in such form and manner as the ,secretary shall prescribe by regulation1 which may include communication through an authorized electronic data interchange system4 4 #i4 ,modification of penalty for aiding unlawful importation ,section #eif7;b7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #aeie;a7b77 is amended by striking the preceding subsection and all that follows and inserting the following3 8subsection 7a7 shall be liable1 without regard to whether the article or articles introduced or attempted to be introduced were seized1 for a penalty equal to the greater of-- 7#a7 the domestic value of the article or articles2 or 7#b7 #e1jjj4 4 #aj4 ,sharing of information with respect to suspected violations of intellectual property rights ,section #fbh;,a7a7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #afbh;a7a77 is amended-- 7#a7 in the matter preceding paragraph 7#a7-- 7,a7 by striking suspects and inserting has a reasonable suspicion2 and 7,b7 by striking testing-- and inserting testing1 may--2 7#b7 in paragraph 7#a7-- 7,a7 by striking shall2 and 7,b7 by striking 2 and and inserting a semicolon2 7#c7 in paragraph 7#b7-- 7,a7 by striking may12 and 7,b7 by striking the period at the end and inserting 2 and2 and 7#d7 by adding at the end the following3 7#c7 provide to the person nonpublic information about the merchandise that was-- 7,a7 generated by an online marketplace or other similar market platform1 an express consignment operator1 a freight forwarder1 or any other entity that plays a role in the sale or importation of merchandise into the ,united ,states or the facilitation of such sale or importation1 including copies or images of packaging1 materials1 labeling1 or containers2 and 7,b7 provided to1 shared with1 or obtained by1 ,u4,s4 ,customs and ,border ,protection4 4 #aa4 ,customs user fee for processing shipments 7a7 ,in general ,section #acjca7;a77#aj7 of the ,consolidated ,omnibus ,budget ,reconciliation ,act of #aihe 7#ai ,u4,s4,c4 #eh;c7a77#aj77 is amended-- 7#a7 in subparagraph 7,c7-- 7,a7 in clause 7ii71 by striking 2 or and inserting a semicolon2 7,b7 in clause 7iii71 by striking the period at the end and inserting 2 or2 and 7,c7 by inserting after clause 7iii7 the following3 7iv7 #b for each shipment1 to be paid by the party making entry1 if the entry or release of that shipment1 whether automated or manual1 is made under section #cba7;a77#b77;,c7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7;a77#b77;,c774 2 and 7#b7 in the flush text at the end1 by adding at the end the following3 ,in the case of shipments the entry or release of which is made under section #cba7;a77#b77;,c7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7;a77#b77;,c77 that are sent to the ,united ,states through the international postal network1 the ,secretary1 in consultation with the ,postmaster ,general1 shall determine whether it is appropriate to impose fees that are the same or similar as the fees applicable to shipments under subparagraph 7,c77iv7 on shipments by the ,united ,states ,postal ,service4 ,if the ,secretary determines that such requirements are appropriate1 such requirements shall be prescribed by regulation44 7b7 ,payment ,section #acjca7;b77#h77;,d77i7 of the ,consolidated ,omnibus ,budget ,reconciliation ,act of #aihe 7#ai ,u4,s4,c4 #eh;c7b77#h77;,d77i77 is amended by inserting after merchandise the following3 1 except in the case of fees charged under subsection 7a77#aj77;,c77iv71 in which case such fees shall be paid by the party making entry4 #ab4 ,report on use of administrative exemptions and enforcement actions 7a7 ,in general ,not later than one year after the date of the enactment of this ,act1 and annually thereafter1 the ,secretary of the ,treasury1 in consultation with the ,commissioner of ,u4,s4 ,customs and ,border ,protection1 shall submit to the ,committee on ,finance of the ,senate and the ,committee on ,ways and ,means of the ,house of ,representatives a report1 followed by a briefing1 on the use of administrative exemptions under section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba74 7b7 ,elements ,each report required by subsection 7a7 shall include1 for the year preceding submission of the report1 the following3 7#a7 ,an assessment of the volume of imports claiming an administrative exemption under section #cba7;a77#b77;,c7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7;a77#b77;,c771 including-- 7,a7 the total number of shipments of imports claiming such an exemption2 and 7,b7 the volume of merchandise claiming such an exemption1 identified by-- 7i7 the #d-;digit heading of the ,harmonized ,tariff ,schedule of the ,united ,states under which the merchandise was classified2 and 7ii7 the country of origin of the merchandise4 7#b7 ,an assessment of the total revenue forgone by the ,united ,states ,government as a result of permitting the entry of merchandise free of duty pursuant to that section4 7#c7 ,the number and a description of the type of violations of the regulations prescribed under subsection 7c7 of section #cba of the ,tariff ,act of #aicj1 as added by section #d1 identified in shipments claiming an administrative exemption under that section1 and penalties applied to such shipments1 including a description of the type and frequency of mitigation actions applicable to such shipments4 7#d7 ,a detailed description of shipments1 disaggregated by port of entry1 for which an administrative exemption under section #cba7;a77#b77;,c7 of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7;a77#b77;,c77 was claimed that were subject to detention or forfeiture and the reasons for the detention or forfeiture4 7#e7 ,a description of any merchandise or shipments under evaluation as ineligible1 under subsection 7b77#a77;,b7 of section #cba of the ,tariff ,act of #aicj1 as amended by section #e1 for such an administrative exemption4 7#f7 ,the average number of referrals of criminal matters to the ,department of ,justice or ,homeland ,security ,investigations made on a monthly basis for merchandise for which such an administrative exemption was claimed4 7#g7 ,a description of the use of administrative exemptions under section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7 for merchandise shipped from ,mexico or ,canada to the ,united ,states1 including the volume and type of such merchandise for which such an exemption was claimed1 and any trends in the use of such exemptions4 7#h7 ,a description of current staffing1 risk mitigation1 and other actions to ensure that administrative exemptions under section #cba of the ,tariff ,act of #aicj 7#ai ,u4,s4,c4 #acba7 are used in compliance with ,united ,states law4 #ac4 ,effective date2 applicability ,the amendments made by this ,act shall-- 7#a7 take effect on the date that is #fj days after the date of the enactment of this ,act2 and 7#b7 apply with respect to articles entered on or after the date that is #cj days after the effective date of the regulations prescribed under subsection 7c7 of section #cba of the ,tariff ,act of #aicj1 as added by section #d4