IN THE SENATE OF THE UNITED STATES
September 20, 2011
Mrs. McCaskill introduced the following bill; which was read twice and referred to the Committee on Finance
To improve the importer of record program and the collection of fees and duties in connection with the importation of merchandise into the United States, and for other purposes.
This Act may be cited as
Fighting for American Industry's
Right to Enforcement Against Duty Evasion Act or the
FAIR Enforcement Against Duty Evasion
Act of 2011.
Termination of availability of bonds for new shippers
Section 751(a)(2)(B) of the Tariff Act of 1930 (19 U.S.C. 1675(a)(2)(B)) is amended—
by striking clause (iii); and
by redesignating clause (iv) as clause (iii).
Collection of identification relating to importers
Section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) is amended by adding at the end the following:
Identification of customers
Subject to the requirements of this subsection, the Secretary shall prescribe regulations setting forth the minimum standards for customs brokers and their customers regarding the identity of the customer that shall apply in connection with the importation of merchandise into the United States.
The regulations shall, at a minimum, require customs brokers to implement, and customers (after being given adequate notice) to comply with, reasonable procedures for—
collecting the identity of any person seeking to import merchandise into the United States to the extent reasonable and practicable;
collecting the identity of any non-United States person seeking to import merchandise into the United States to the extent reasonable and practicable; and
maintaining records of the information used to substantiate a person's identity, including name, address, and other identifying information.
Any customs broker who fails to collect information required under the regulations prescribed under this subsection shall be liable to the United States, at the discretion of the Secretary, for a monetary penalty not to exceed $10,000 for each violation of those regulations and to revocation or suspension of license or permit pursuant to the procedures set forth in subsection (d).
Establishment of safe harbors
Not later than 60 days after the date of the enactment of this subsection, the Secretary shall publish a notice in the Federal Register soliciting proposals, which shall be accepted during a 60-day period, for the specification of practices for which penalties will not be imposed under this subsection. After considering the proposals so submitted, the Secretary, shall publish in the Federal Register, including a 60-day period for comment, proposed specified practices for which such penalties will not be imposed. After considering any public comments received during such period, the Secretary shall issue final regulations specifying such practices.
Final regulations prescribed under this subsection shall take effect before the end of the 1-year period beginning on the date of the enactment of this subsection.
Study and report required
Not later than 180 days after the date of the enactment of this Act, the Secretary, in consultation with relevant Federal regulators shall submit a report to the Congress containing recommendations for—
determining the most timely and effective way to require foreign nationals to provide customs brokers and agencies with appropriate and accurate information, comparable to that which is required of United States nationals, concerning the identity, address, and other related information about such foreign nationals necessary to enable customs brokers and agencies to comply with the requirements of section 641(i) of the Tariff Act of 1930 (as added by subsection (a)); and
establishing a system for customs brokers and agencies to review information maintained by relevant Government agencies for purposes of verifying the identities of foreign nationals and United States nationals seeking to import merchandise into the United States.
Importer of record database
Improvement of importer of record database
Not later than 180 days after the date of the enactment of this Act, the Secretary of Homeland Security shall implement the following improvements to the importer of record database:
Include a history of importer of record numbers associated with each importer of record.
Provide a system to evaluate the accuracy of the database maintained with respect to each importer of record.
Establish a system that ensures that duplicate importer of record numbers are not issued.
Establish a system for updating the database described in this subsection on a regular basis, but not less frequently than once a year.
Establish a system that enables customs brokers to verify the information required under section 641(i) of the Tariff Act of 1930 (as added by section 3(a) of this Act).
Not later than 1 year after the date of the enactment of this Act, the Secretary of Homeland Security shall submit to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives a report on the improvements made to the importer of record program pursuant to this section.