Bill Summary
The "Import Security and Fairness Act" is proposed legislation aimed at amending the Tariff Act of 1930 to enhance regulations regarding de minimis treatment of imported goods, which allows for duty-free entry of items valued below a certain threshold. Key provisions include:
1. **Modification of Duty-Free Threshold**: The bill introduces additional exceptions to the existing de minimis exemptions, particularly targeting goods originating from nonmarket economy countries or countries on a priority watch list. It specifies that certain articles from these locations cannot be admitted free of duty or tax.
2. **Documentation Requirements**: The Secretary of the Treasury is mandated to establish regulations requiring detailed documentation for articles seeking administrative exemptions. This will include information such as a description of the article, its classification, country of origin, and transaction value.
3. **Enforcement and Penalties**: The bill outlines civil penalties for violations of the new regulations, starting at $5,000 for the first infraction and $10,000 for subsequent violations, in addition to any other legal penalties.
4. **Examination of Merchandise**: U.S. Customs and Border Protection (CBP) will have enhanced authority to detain merchandise that may qualify for exemptions, with requirements for notifying interested parties about the detention.
5. **Effective Date**: The changes will take effect 180 days after the enactment of the Act, applying to all articles entered or withdrawn for consumption after that date.
Overall, the Act aims to strengthen import regulations to ensure fair practices and enhance the security of U.S. imports.
Possible Impacts
The "Import Security and Fairness Act" as described has several potential impacts on individuals and businesses. Here are three examples:
1. **Increased Documentation Requirements for Importers**: The legislation introduces stricter documentation requirements for items that may qualify for de minimis treatment (imports valued below a certain threshold). This means that individuals and small businesses importing goods, especially from nonmarket economy countries or those on a priority watch list, will need to submit detailed information about the products they are importing. This could lead to increased administrative burden and costs for small importers who may not have the resources to manage the additional paperwork.
2. **Potential for Higher Costs Due to Duty Imposition**: By amending the exemptions related to de minimis treatment, the act could result in higher duties and taxes for goods that previously qualified for duty-free treatment. Consumers may see increased prices for imported goods, particularly if they come from countries that are now restricted under the new regulations. This could affect their purchasing decisions and overall spending power.
3. **Penalties for Non-compliance**: The bill outlines civil penalties for failing to comply with the new documentation and information requirements, with fines escalating for repeated violations. Individuals and businesses that do not accurately provide the necessary information or fail to meet deadlines may face significant financial penalties. This could discourage some businesses from importing goods altogether or lead to increased caution and compliance costs, ultimately affecting market dynamics and consumer choices.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 322 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 322
To amend the Tariff Act of 1930 relating to de minimis treatment under
that Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 9, 2025
Mr. Suozzi (for himself and Mr. Dunn of Florida) introduced the
following bill; which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Tariff Act of 1930 relating to de minimis treatment under
that Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Import Security and Fairness Act''.
SEC. 2. ADDITIONAL EXCEPTIONS TO EXEMPTIONS FOR DE MINIMIS TREATMENT
UNDER THE TARIFF ACT OF 1930.
Section 321 of the Tariff Act of 1930 (19 U.S.C. 1321) is amended--
(1) in subsection (a)--
(A) in the matter preceding paragraph (1), by
striking ``(a) The Secretary'' and inserting ``(a) In
General.--The Secretary'';
(B) in paragraph (2)--
(i) in subparagraph (C), by striking
``$800'' and inserting ``except as provided in
subsection (b)(1), $800''; and
(ii) in the matter following subparagraph
(C), as so amended, by striking ``subdivision
(2)'' each place it appears and inserting
``paragraph''; and
(2) by striking ``(b) The Secretary'' and inserting the
following:
``(b) Exceptions.--
``(1) In general.--An article may not be admitted free of
duty or tax under the authority provided by subsection
(a)(2)(C) if the country of origin of such article, or the
country from which such article is shipped, is--
``(A) a nonmarket economy country (as such term is
defined in section 771(18)); and
``(B) a country included in the priority watch list
(as such term is defined in section 182(g)(3) of the
Trade Act of 1974 (19 U.S.C. 2242(g)(3))).
``(2) Other exceptions.--The Secretary''.
SEC. 3. ADDITIONAL ADMINISTRATIVE PROVISIONS RELATING TO DE MINIMIS
TREATMENT UNDER THE TARIFF ACT OF 1930.
(a) Administrative Exemptions.--Section 321 of the Tariff Act of
1930 (19 U.S.C. 1321), as amended by section 2, is further amended by
adding at the end the following:
``(c) Submission of Documentation and Information.--
``(1) In general.--For any articles that may qualify for an
administrative exemption pursuant to subsection (a)(2), the
Secretary of the Treasury shall, not later than 180 days after
the date of the enactment of the Import Security and Fairness
Act, prescribe regulations to require the submission,
transmission, or otherwise making available of such
documentation or information to U.S. Customs and Border
Protection as the Secretary determines is reasonably necessary
for U.S. Customs and Border Protection to determine the
eligibility of such articles to qualify for such exemption.
``(2) Matters to be included.--The regulations prescribed
under paragraph (1)--
``(A) shall require that documentation or
information with respect to an article described in
that paragraph include, at a minimum--
``(i) a description of the article;
``(ii) the appropriate classification of
the article under the Harmonized Tariff
Schedule of the United States;
``(iii) the country of origin of the
article;
``(iv) the country from which the article
is shipped;
``(v) the identity of the shipper;
``(vi) the identity of the importer; and
``(vii) the transaction value of the
article in the United States; and
``(B) may provide that such documentation or
information include other documentation or information
regarding the offer for sale or purchase, or the
subsequent sale, purchase, transportation, importation
or warehousing of an article described in paragraph
(1), including such documentation or information
relating to the offering of the article for sale or
purchase in the United States through a commercial or
marketing platform, including an electronic commercial
or marketing platform.
``(3) Veracity of documentation and information.--
``(A) In general.--The regulations prescribed
pursuant to paragraph (1) shall provide that--
``(i) the documentation or information
described in that paragraph is true and correct
to the best of the knowledge and belief of the
party submitting, transmitting, or otherwise
making available such documentation or
information, subject to any penalties
authorized by law; or
``(ii) if such party is not able to
reasonably verify whether such documentation or
information is true and correct to the best of
the knowledge and belief of the party, such
documentation or information may be submitted,
transmitted, or otherwise made available on the
basis of what the party reasonably believes to
be true and correct.
``(B) Use for any lawful purpose.--Such
documentation or information may be used by U.S.
Customs and Border Protection for any lawful purpose.
``(4) Civil penalties.--Any person who violates the
regulations prescribed pursuant to paragraph (1) is liable for
a civil penalty of $5,000 for the first violation, and $10,000
for each subsequent violation. A penalty imposed under this
paragraph is in addition to any other penalty provided by law.
``(d) Importations Involving Suspended or Debarred Persons.--The
Secretary of the Treasury is authorized to prescribe regulations to
authorize exceptions to any administrative exemption pursuant to
subsection (a) for any articles the importation of which is caused or
otherwise facilitated by any person suspended or debarred from doing
business with the Federal Government at the time of the importation.''.
(b) Examination of Merchandise.--Section 499(c) of the Tariff Act
of 1930 (19 U.S.C. 1499(c)) is amended--
(1) by striking ``the Customs Service'' each place it
appears and inserting ``U.S. Customs and Border Protection'';
and
(2) in paragraph (2)--
(A) in the first sentence, by striking ``The
Customs Service'' and inserting the following:
``(A) In general.--U.S. Customs and Border
Protection'';
(B) in the second sentence--
(i) by striking ``The'' and inserting the
following:
``(B) Information to be included.--The''; and
(ii) by redesignating the subsequent
subparagraphs (A), (B), (C), (D), and (E) as
clauses (i), (ii), (iii), (iv), and (v),
respectively, and moving such clauses, as
redesignated, 2 ems to the right; and
(C) by adding at the end the following:
``(C) Additional requirements relating to
merchandise that may qualify for certain administrative
exemptions.--
``(i) In general.--In a case in which U.S.
Customs and Border Protection has made a
decision to detain merchandise that may qualify
for an administrative exemption pursuant to
section 321(a)(2)(C), U.S. Customs and Border
Protection shall issue such notice to each
party that U.S. Customs and Border Protections
determines may have an interest in the detained
merchandise, based on information reasonably
available to U.S. Customs and Border
Protection, in such form and manner as the
Secretary of the Treasury shall by regulation
prescribe.
``(ii) Voluntary abandonment of
merchandise.--In the case of merchandise
described in clause (i), such notice shall also
advise each such interested party that, in lieu
of supplying information to U.S. Customs and
Border Protection in accordance with
subparagraph (B)(v), the interested parties may
voluntarily abandon the merchandise.
``(iii) Abandonment or export due to lack
of response.--If U.S. Customs and Border
Protection does not receive a response from
each interested party in merchandise described
in clause (i) within 30 days of the date on
which such notice is issued to the interested
parties, the merchandise may--
``(I) be denied entry and be
permitted to be exported, with the
importer responsible for paying all
expenses of exportation; or
``(II) be deemed to be abandoned,
in which case title to such merchandise
shall be vested in the United States
and the merchandise shall be disposed
of in accordance with law.''.
SEC. 4. EFFECTIVE DATE.
The amendments made by this Act shall apply with respect to
articles entered, or withdrawn from warehouse for consumption, on or
after the 180th day after the date of the enactment of this Act.
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