,,ii #aaith ,,congress #ast ,session ,s4 #abia ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,april #c1 #bjbe,mr4 ,cassidy 7for himself and ,mr4 ,whitehouse7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to identify and evaluate the compliance of foreign free trade zones with international standards1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,containing and ,limiting the ,extensive ,abuses ,noticed in ,free ,trade ,zones ,act of #bjbeor the ,,clean ,,ftz ,act of #bjbe4 #b4 ,definitions ,in this ,act3 7#a7 ,commissioner ,the term ,commissioner means the ,commissioner of ,u4,s4 ,customs and ,border ,protection4 7#b7 ,illicit international trade ,the term illicit international trade means any practice or conduct that-- 7,a7 is prohibited by ,united ,states law or in violation of relevant international standards1 including the guidelines and standards described in section #d7;b77#c72 and 7,b7 relates to production1 shipment1 receipt1 possession1 distribution1 sale1 or purchase of any goods1 including any practice or conduct intended to facilitate such activity4 7#c7 ,non-,united ,states free trade zone2 zone 7,a7 ,in general ,the terms non-,united ,states free trade zone and zone mean a designated area within the customs territory of a foreign country that is treated for purposes of payment of duties or taxes as though the area were located outside the customs territory of that country4 7,b7 ,synonymous terms ,synonymous terms commonly used to refer to zones described in subparagraph 7,a7 include free zones1 special economic zones1 export processing zones1 free economic zones1 and freeports4 7#d7 ,person ,the term person means an individual or entity4 #c4 ,identification of international free trade zones 7a7 ,in general ,not later than #b years after the date of the enactment of this ,act1 the ,commissioner1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the ,united ,states ,trade ,representative1 shall identify and publish1 on a publicly accessible internet website1 a list of non-,united ,states free trade zones that includes the identity1 location1 and administrators of each such zone4 7b7 ,periodic reviews ,the ,commissioner shall review the list of non-,united ,state free trade zones required by subsection 7a7 on a periodic basis1 and not less frequently than annually-- 7#a7 to ensure the information included for each zone is correct2 7#b7 to add new zones to the list2 and 7#c7 to remove zones no longer in existence from the list4 #d4 ,classification of countries into tiers 7a7 ,in general ,not later than #ahj days after the list of zones required by section #c is published1 the ,commissioner1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the ,united ,states ,trade ,representative1 shall publish1 on a publicly accessible internet website1 a classification of the countries in which those zones are located into tiers as provided by this section4 7b7 ,methodology ,the ,commissioner shall base the tier classification of countries under subsection 7a7 on the following standards3 7#a7 ,maintenance of a low level of transnational criminal activity in illegally trading narcotics1 arms1 persons1 tobacco1 counterfeit consumer goods1 commodities1 and wildlife occurring in zones located in a country4 7#b7 ,effective efforts by the government of the country to counter illicit international trade in zones located in the country1 including the effectiveness of penalties and sanctions imposed on countering such trade1 compliance with ,united ,states and ,united ,nations sanctions regimes1 screening practices to detect illicit goods1 and eliminating criminal activities related to illicit international trade4 7#c7 ,the compliance of zones located in the country with the international guidelines and standards set forth in-- 7,a7 the document of the ,organisation for ,economic ,co-operation and ,development entitled ,recommendation on ,countering ,illicit ,trade3 ,enhancing ,transparency in ,free ,trade ,zones2 7,b7 chapter #b of ,specific ,annex ,d of the ,international ,convention on the ,simplification and ,harmonization of ,customs ,procedures1 done at ,kyoto1 ,japan1 on ,may #ah1 #aigc1 as amended by the ,protocol of ,amendment1 done at ,brussels1 ,belgium1 on ,june #bf1 #aiii 7commonly referred to as the ,revised ,kyoto ,convention72 7,c7 the ,united ,nations ,convention against ,transnational ,organized ,crime1 done at ,new ,york ,november #ae1 #bjjj1 and entered into force ,september #bi1 #bjjc 7,,tias #acabg72 7,d7 the ,united ,nations ,convention against ,illicit ,traffic in ,narcotic ,drugs and ,psychotropic ,substances1 done at ,vienna ,december #bj1 #aihh2 7,e7 the international standards on combating money laundering and the financing of terrorism and proliferation of the ,financial ,action ,task ,force2 7,f7 the ,united ,nations ,convention against ,corruption1 signed at ,merida ,december #i1 #bjjc2 7,g7 the ,practical ,guidance on ,free ,zones of the ,world ,customs ,organization2 7,h7 the ,agreement on ,trade ,facilitation of the ,world ,trade ,organization2 7,i7 the ,agreement on ,trade-,related ,aspects of ,intellectual ,property ,rights of the ,world ,trade ,organization 7commonly referred to as the ,,trips ,agreement72 and 7,j7 best practices and guidelines of multilateral export control regimes of which the ,united ,states is a member1 including practices and guidelines related to implementation of controls on transit and transshipment of export-controlled commodities1 software1 and technology4 7#d7 ,such other standards as the ,commissioner considers relevant4 7c7 ,tiers ,the ,commissioner1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the ,united ,states ,trade ,representative1 shall classify each country in which zones on the list required by section #c are located into one of the following #d tiers3 7#a7 ,countries with zones that fully comply with standards described in subsection 7b7 7to be known as tier ,i countries74 7#b7 ,countries with zones that do not fully comply with those standards but are making significant efforts to bring themselves into compliance with those standards 7to be known as tier ,,ii countries74 7#c7 ,countries 7to be known as tier ,,iii countries7 with zones that do not fully comply with those standards and are making efforts to bring themselves into compliance with those standards1 but-- 7,a7 the volume of goods or type of goods processed in those zones is significant and the country is not taking proportional concrete actions2 or 7,b7 there is a failure to provide evidence of increasing efforts to combat illicit international trade in those zones from the previous year4 7#d7 ,countries with zones that do not comply with those standards and are not making efforts to bring themselves into compliance with those standards 7to be known as tier ,,iv countries74 7d7 ,publication of classification criteria ,the ,commissioner shall publish the assessment criteria and methodology used to classify countries into the tiers described in subsection 7c74 7e7 ,classification change 7#a7 ,progress in meeting standards ,a tier ,,ii1 tier ,,iii1 or tier ,,iv country may be reclassified as a tier ,i1 tier ,,ii1 or tier ,,iii country1 respectively1 if the zones located in the country show significant progress in complying with the standards described in subsection 7b71 as determined by the ,commissioner1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the ,united ,states ,trade ,representative4 7#b7 ,decreasing compliance with standards ,a tier ,i1 tier ,,ii1 or tier ,,iii country may be reclassified as a tier ,,ii1 tier ,,iii1 or tier ,,iv country1 respectively1 if the zones located in the country show decreasing compliance with the standards described in subsection 7b71 as determined by the ,commissioner1 in consultation with the ,secretary of ,commerce1 the ,secretary of ,state1 the ,secretary of the ,treasury1 and the ,united ,states ,trade ,representative4 7f7 ,notification to zones ,not later than #bdj days after publishing the classification of countries required by subsection 7a71 the ,commissioner shall notify the government of each country of the tier to which the country was classified4 7g7 ,periodic reviews ,the ,commissioner shall review each country in which zones on the list required by section #c are located on a periodic basis1 and not less frequently than annually1 to determine whether the country is correctly classified under this section4 #e4 ,assistance with respect to tier ,,ii1 tier ,,iii1 and tier ,,iv countries 7a7 ,in general ,the ,commissioner may provide recommendations and best practice methodologies to countries classified as tier ,,ii1 tier ,,iii1 or tier ,,iv countries under section #d to improve the effectiveness of law enforcement and to combat illicit international trade in the zones located in those countries4 7b7 ,foreign commercial service strategy ,the ,commissioner shall consider the list of zones required by section #c in the development of strategies regarding the distribution1 priorities1 and activities of foreign commercial service officers in countries classified as tier ,,ii1 tier ,,iii1 or tier ,,iv countries under section #d4 7c7 ,scrutiny under sanctions laws ,the ,commissioner shall monitor countries classified as tier ,,ii1 tier ,,iii1 or tier ,,iv countries under section #d to determine if the ,president may impose the measures under section #f to ensure greater implementation in the zones located in those countries of the standards described in section #d7;b74 7d7 ,phone hotline and secure website for reporting ,the ,commissioner shall establish and maintain a dedicated1 publicly accessible telephone hotline and secure internet website for entities operating in a zone located in a tier ,i1 tier ,,ii1 tier ,,iii1 or tier ,,iv country to report instances of illicit international trade in that zone that-- 7#a7 impact or potentially impact their operations2 or 7#b7 may justify reclassification of the country under section #d7;e74 #f4 ,imposition of economic sanctions and visa restrictions with respect to facilitation and support of illicit international trade in tier ,,ii1 tier ,,iii1 and tier ,,iv countries 7a7 ,in general ,the ,president may impose the measures described in subsection 7b7 with respect to any foreign person that the ,president determines1 on or after the date of the enactment of this ,act and based on credible evidence-- 7#a7 has organized1 arranged1 financed1 conducted1 or participated in illicit international trade within a zone located in a country classified as a tier ,,ii1 tier ,,iii1 or tier ,,iv country under section #d2 7#b7 has acted as an agent of or on behalf of another foreign person in facilitating an action leading to illicit international trade occurring in such a zone2 7#c7 has materially assisted1 sponsored1 or provided financial1 material1 or technological support for1 or goods or services in support of1 illicit international trade occurring in such a zone2 or 7#d7 has conducted or facilitated corruption or money laundering occurring in such a zone4 7b7 ,measures described ,the measures described in this subsection are the following3 7#a7 ,blocking of property ,the ,president may exercise all of the powers granted to the ,president under the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agja et seq47 to the extent necessary to block and prohibit all transactions in property and interests in property of a foreign person described in subsection 7a7 if such property and interests in property are in the ,united ,states1 come within the ,united ,states1 or are or come within the possession or control of a ,united ,states person4 7#b7 ,ineligibility for visas1 admission1 or parole 7,a7 ,visas1 admission1 or parole ,a noncitizen described in subsection 7a7 is-- 7i7 inadmissible to the ,united ,states2 7ii7 ineligible to receive a visa or other documentation to enter the ,united ,states2 and 7iii7 otherwise ineligible to be admitted or paroled into the ,united ,states or to receive any other benefit under the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja et seq474 7,b7 ,current visas revoked ,a noncitizen described in subparagraph 7,a7 is subject to revocation and cancellation1 in accordance with section #bba7;i7 of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #abja7;i771 of any visa or other entry documentation in the possession of the noncitizen1 regardless of when the visa or other entry documentation is or was issued4 7c7 ,implementation2 penalties 7#a7 ,implementation ,the ,president may exercise all authorities provided under sections #bjc and #bje of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agjb and #agjd7 to carry out this section1 including investigating1 regulating1 or prohibiting-- 7,a7 any transactions in foreign exchange by any person1 or with respect to any property1 subject to the jurisdiction of the ,united ,states2 7,b7 transfers of credit or payments between1 by1 through1 or to any banking institution1 to the extent that such transfers or payments involve-- 7i7 any interest of any foreign country or national of a foreign country2 and 7ii7 any person1 or with respect to any property1 subject to the jurisdiction of the ,united ,states2 and 7,c7 the importing or exporting of currencies or securities any person1 or with respect to any property1 subject to the jurisdiction of the ,united ,states4 7#b7 ,penalties ,any person that violates1 attempts to violate1 conspires to violate1 or causes a violation of subsection 7b77#a7 or a regulation1 license1 or order issued to carry out that subsection shall be subject to the penalties set forth in subsections 7b7 and 7c7 of section #bjf of the ,international ,emergency ,economic ,powers ,act 7#ej ,u4,s4,c4 #agje7 to the same extent as a person that commits an unlawful act described in subsection 7a7 of that section4 7d7 ,exception ,to comply with ,united ,nations headquarters agreement and law enforcement objectives ,subsection 7b77#b7 shall not apply with respect to a noncitizen if admitting or paroling the noncitizen into the ,united ,states-- 7#a7 would further important law enforcement objectives2 or 7#b7 is necessary to permit the ,united ,states to comply with the ,agreement regarding the ,headquarters of the ,united ,nations1 signed at ,lake ,success ,june #bf1 #aidg1 and entered into force ,november #ba1 #aidg1 between the ,united ,nations and the ,united ,states1 or other applicable international obligations of the ,united ,states4 7e7 ,definitions ,in this section3 7#a7 ,admission2 admitted ,the terms admission and admitted have the meanings given those terms in section #aja of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja74 7#b7 ,foreign person ,the term foreign person means an individual or entity that is not a ,united ,states person4 7#c7 ,noncitizen ,the term noncitizen means an individual who is not a citizen or national of the ,united ,states 7as defined in section #aja of the ,immigration and ,nationality ,act 7#h ,u4,s4,c4 #aaja774 7#d7 ,united ,states person ,the term ,united ,states person means-- 7,a7 an individual who is a ,united ,states citizen or an alien lawfully admitted for permanent residence to the ,united ,states2 or 7,b7 an entity organized under the laws of the ,united ,states or any jurisdiction within the ,united ,states1 including a foreign branch of such an entity4 #g4 ,authorization of appropriations 7a7 ,in general ,there are authorized to be appropriated to the ,commissioner1 without fiscal year limitation1 such sums as may be necessary to carry out this ,act4 7b7 ,availability of amounts ,amounts appropriated pursuant to the authorization of appropriations under subsection 7a7 shall remain available until expended4 7c7 ,supplement not supplant ,amounts appropriated pursuant to the authorization of appropriations under subsection 7a7 shall supplement and not supplant other amounts available for such purposes4