Bill Summary
The "Securing Accountability in Foreign Entries Act" aims to amend the Tariff Act of 1930 with the purpose of enhancing the accountability of importers of record in the United States. The key provisions of the bill include:
1. **Importer Requirements**: The legislation mandates that the importer of record must be located in the United States and can either be a U.S. citizen, lawful permanent resident, or a qualifying entity with a significant U.S. presence. This is intended to increase oversight of foreign entities and ensure they are held accountable.
2. **Payment of Duties**: It establishes strict requirements for the payment of duties, taxes, and fees associated with imports. Payments must be made electronically from verified accounts, enhancing financial transparency and reducing the risk of fraud.
3. **Increased Bonding Requirements**: The act also raises the bonding requirements for importers, specifying that continuous import bonds must be set at a minimum of $100,000. This aims to ensure that there are adequate financial guarantees for compliance with customs regulations and obligations.
4. **Regulatory Framework**: It requires U.S. Customs and Border Protection (CBP) to develop regulations for verifying compliance with these new standards, including penalties for false statements or omissions by importers.
Overall, the bill seeks to strengthen U.S. customs enforcement and improve the integrity of the importation process, thereby enhancing national security and protecting U.S. economic interests.
Possible Impacts
Certainly! Here are three examples of how the "Securing Accountability in Foreign Entries Act" could affect people:
1. **Impact on Importers**: The legislation requires that importers of record must be located in the United States and have specific ownership or employee criteria. This change may significantly affect foreign companies seeking to import goods into the U.S., as they will now need to partner with U.S.-based entities or meet stringent requirements to establish a local presence. This could increase operational costs and complicate logistics for these foreign businesses.
2. **Increased Compliance Costs**: The Act imposes additional bonding requirements for importers, mandating a continuous import bond of at least $100,000. This increase in the bonding requirement may result in higher upfront costs for businesses involved in importing goods. Small and medium-sized enterprises (SMEs) might find these costs burdensome, potentially affecting their cash flow and ability to compete in the market.
3. **Enhanced Accountability and Transparency**: The legislation enforces stricter payment methods for duties, taxes, and fees, requiring electronic transfers from verified accounts. This could lead to improved transparency and accountability in the importation process, reducing fraudulent activities and ensuring that only legitimate entities can participate in U.S. imports. However, this may also necessitate additional administrative efforts for importers to comply with new verification processes, thus impacting how they manage their import operations.
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4003 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
2d Session
S. 4003
To amend the Tariff Act of 1930 to impose additional requirements with
respect to importers of record, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 5, 2026
Mr. Cassidy introduced the following bill; which was read twice and
referred to the Committee on Finance
_______________________________________________________________________
A BILL
To amend the Tariff Act of 1930 to impose additional requirements with
respect to importers of record, and for other purposes.
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 ``Securing Accountability in Foreign
Entries Act''.
SEC. 2. REQUIREMENT THAT IMPORTER OF RECORD BE LOCATED IN THE UNITED
STATES.
(a) In General.--Section 484(a)(2)(B) of the Tariff Act of 1930 (19
U.S.C. 1484(a)(2)(B)) is amended--
(1) by inserting ``(i)'' before ``When an entry''; and
(2) by striking the third sentence and inserting the
following:
``(ii) For the purposes of this Act, the importer of record
is required to be--
``(I) a party that--
``(aa) is eligible under clause (i) to file
the documentation or information required by
this section; and
``(bb) participates in the filing of that
documentation or information; and
``(II)(aa) in the case of an individual, a United
States citizen or an alien lawfully admitted for
permanent residence to the United States; or
``(bb) in the case of an entity, is an entity
described in clause (iii).
``(iii) An entity described in this clause is an entity--
``(I) with--
``(aa) a physical location in the United
States; and
``(bb) at least 1 owner or full-time
employee who is a United States citizen or an
alien lawfully admitted for permanent residence
to the United States;
``(II) that is organized under the laws of Canada,
Australia, or a covered country; or
``(III) that is an affiliate of a United States
entity that--
``(aa) has been in continuous operation for
not less than 3 years;
``(bb) maintains not fewer than 1,500 full-
time employees in the United States;
``(cc) has annual gross receipts or assets
in the United States of not less than
$1,000,000; and
``(dd) has filed a certification with U.S.
Customs and Border Protection designating the
affiliate as its agent for service of process
and agreeing to joint and several liability for
all duties, taxes, fees, and penalties owed by
the affiliate when acting as importer of
record.
``(iv)(I) Except as provided in subclause (II), an
individual may not serve as the importer of record for more
than one entity.
``(II) The limitation under subclause (I) does not apply to
a customs broker designated as an importer of record by an
express consignment operator or carrier under section 4(d) of
the Securing Accountability in Foreign Entries Act.
``(v) A foreign entity that is not described in clause
(ii)(II)(bb), and has a United States subsidiary that is
described in that clause, is required to have the United States
subsidiary or another entity described in that clause serve as
the importer of record.
``(vi) In this subparagraph:
``(I) The term `affiliate', with respect to an
entity, means the entity controls, is controlled by, or
is under common control with another entity.
``(II) The term `control', with respect to an
entity, means ownership of more than 50 percent of the
voting securities or equivalent interests in the
entity.
``(III) The term `covered country' means a country
the government of which the United States Trade
Representative, in consultation with the Commissioner
of U.S. Customs and Border Protection, determines--
``(aa) imposes requirements on persons
serving as importers of record under the laws
of that country that are substantially
equivalent to the requirements imposed on
importers of record under this subparagraph;
and
``(bb) permits persons qualifying as
importers of record under this subparagraph and
customs brokers (as defined in section 641(a))
to act as importers of record in that country
on terms equal to the terms applicable to
importers of record under the laws of that
country.
``(IV) The term `full-time employee', with respect
to an individual, means--
``(aa) the written statement required under
section 6051 of the Internal Revenue Code of
1986 for the individual indicates that the
individual's employment status is full time;
and
``(bb) the individual is not employed by
more than one entity that is an importer of
record.
``(V) The term `physical location'--
``(aa) means a location, with a street
address, where the importer conducts
substantive business operations, including
maintaining the presence of employees; and
``(bb) does not include--
``(AA) a shared office space,
unless the importer permanently
occupies the office;
``(BB) an address associated with a
registered agent, other agent, customs
broker, or freight forwarder, or
mailbox services; or
``(CC) an address that exists
solely for the purpose of collecting
mail or establishing a virtual business
address.''.
(b) Regulations.--Not later than 360 days after the date of the
enactment of this Act, the Commissioner of U.S. Customs and Border
Protection, in consultation with the heads of relevant Federal
agencies, shall prescribe regulations specifying--
(1) measures and processes for verifying that importers of
record meet the requirements of clause (ii) of section
484(a)(2)(B) of the Tariff Act of 1930, as added by subsection
(a);
(2) how U.S. Customs and Border Protection will verify that
importers of record meet those requirements using investigative
tools of U.S. Customs and Border Protection and without relying
on customs brokers or sureties; and
(3) penalties for omissions or false statements with
respect to meeting those requirements.
(c) Applicability.--The amendments made by subsection (a) apply
with respect to importers of record on and after the date that is one
year after the date of the enactment of this Act.
SEC. 3. RESPONSIBILITY OF IMPORTER OF RECORD FOR PAYMENT OF DUTIES.
(a) In General.--Section 484(a)(1) of the Tariff Act of 1930 (19
U.S.C. 1484(a)(1)) is amended--
(1) in subparagraph (B), by redesignating clauses (i),
(ii), and (iii) as subclauses (I), (II), and (III),
respectively, and by moving such subclauses, as so
redesignated, 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses
(i) and (ii), respectively, and by moving such clauses, as so
redesignated, 2 ems to the right;
(3) by striking ``paragraph (2)(B), either'' and inserting
the following: ``paragraph (2)(B)--
``(A) either'';
(4) in subparagraph (A), as designated by paragraph (3)--
(A) in clause (i), as redesignated by paragraph
(2), by striking the semicolon and inserting ``; and'';
and
(B) in clause (ii)(III), as so redesignated, by
striking the period at the end and inserting ``; and'';
and
(5) by adding at the end the following:
``(B) shall, in accordance with paragraphs (3) and
(4), pay directly to U.S. Customs and Border Protection
all duties, taxes, and fees assessed with respect to
the entry of the merchandise.''.
(b) Requirements for Payment.--Section 484(a) of the Tariff Act of
1930 (19 U.S.C. 1484(a)) is amended by adding at the end the following:
``(3) An importer of record shall pay duties, taxes, and fees
assessed with respect to the entry of merchandise--
``(A) in the form of an electronic transfer of funds from a
depository institution (as defined in section 3 of the Federal
Deposit Insurance Act (12 U.S.C. 1813)) chartered or authorized
to do business in the United States; and
``(B) from a deposit account that--
``(i) is held--
``(I) if the importer of record is an
individual, in the legal name of the importer
of record; or
``(II) if the importer of record is an
entity, in the legal name of--
``(aa) the importer of record; or
``(bb) an entity organized under
the laws of the United States or a
jurisdiction within the United States
that U.S. Customs and Border Protection
verifies, pursuant to regulations
prescribed by the Commissioner of U.S.
Customs and Border Protection, is
wholly or majority-owned by the
importer of record; and
``(ii) has been verified by the depository
institution under an anti-money-laundering customer
identification program consistent with section 1020.220
of title 31, Code of Federal Regulations (or a
successor regulation) and applicable rules of the
Financial Crimes Enforcement Network.
``(4) An importer of record shall provide to U.S. Customs and
Border Protection, before the first entry of merchandise for which the
importer of record pays duties, taxes, and fees from an account--
``(A) the account number and routing number for the
account;
``(B) the name of the depository institution where the
account is held; and
``(C) an attestation from the depository institution
certifying that--
``(i) the account is held in the legal name of the
importer of record or an entity described in paragraph
(3)(B)(i)(II)(bb); and
``(ii) the depository institution has verified the
identity of the account holder under a customer
identification program described in paragraph
(3)(B)(ii).
``(5) A depository institution that holds an account from which an
importer of record intends to pay duties, taxes, and fees with respect
to an entry of merchandise shall, upon the request of the Commissioner
of U.S. Customs and Border Protection, provide to the Commissioner a
confirmation that the depository institution has verified the identity
of the account holder under a customer identification program described
in paragraph (3)(B)(ii).
``(6) U.S. Customs and Border Protection may not accept payment of
duties, taxes, and fees assessed with respect to an entry of
merchandise--
``(A) from any person other than the importer of record, a
surety of the importer of record, or a customs broker (as
defined in section 641(a));
``(B) in any form other than that required by paragraph
(3)(A); or
``(C) from an account that does not meet the requirements
under paragraph (3)(B).''.
(c) Applicability.--The amendments made by subsection (a) apply
with respect to articles entered on and after the date that is one year
after the date of the enactment of this Act.
SEC. 4. INCREASE IN BONDING REQUIREMENT FOR IMPORTERS OF RECORD.
(a) In General.--Except as provided by subsections (c) and (d), the
Commissioner of U.S. Customs and Border Protection shall require each
importer of record that elects to use a continuous import bond under
section 113.62 of title 19, Code of Federal Regulations--
(1) to maintain, in the name of the importer, a continuous
import bond of not less than $100,000; and
(2) to use that bond for purposes of entry of merchandise
by the importer.
(b) Implementation.--The dollar amount required under subsection
(a)(1) for a bond shall apply with respect to--
(1) each new continuous import bond issued on or after the
date that is 60 days after the date of the enactment of this
Act;
(2) each continuous import bond renewed on or after the
date that is 360 days after the date of the enactment of this
Act; and
(3) any importer of record that holds, on or after the date
that is 60 days after the date of the enactment of this Act, a
continuous import bond in an amount the Commissioner determines
is insufficient to adequately protect the revenue and ensure
compliance with applicable law and regulations.
(c) Role of Customs Brokers.--Under the regulations prescribed
under subsection (a), a customs broker may prepare and file entry
documentation, but may not use a bond held by the customs broker for
purposes of entry of merchandise unless the customs broker is acting as
the importer of record.
(d) Treatment of Express Consignment Operators and Carriers.--
(1) In general.--Notwithstanding any other provision of
this section, an express consignment operator or carrier that
meets the requirements of paragraph (2) may--
(A) designate a customs broker licensed under
section 641 of the Tariff Act of 1930 (19 U.S.C. 1641)
to serve as the importer of record with respect to
merchandise; and
(B) use the broker's bond for purposes of entry of
that merchandise.
(2) Requirements.--An express consignment operator or
carrier meets the requirements of this paragraph if the
operator or carrier--
(A) is organized under the laws of the United
States;
(B) maintains a significant physical operating
presence in the United States, including substantial
infrastructure for cargo handling, sorting, and customs
clearance operations;
(C) employs not fewer than 300,000 persons in the
United States; and
(D) designates under paragraph (1) only customs
brokers that are wholly owned by the operator or
carrier.
(3) Regulations.--The Commissioner of U.S. Customs and
Border Protection may prescribe regulations to implement this
subsection, including regulations specifying--
(A) procedures for express consignment operators or
carriers to demonstrate compliance with the
requirements of paragraph (2);
(B) the form and manner in which an express
consignment operator or carrier is required to
designate a customs broker under paragraph (1); and
(C) such other measures as the Commissioner
determines necessary to ensure accountability and
prevent abuse of the authority provided under this
subsection.
(4) Express consignment operator or carrier defined.--The
term ``express consignment operator or carrier'' has the
meaning given that term in section 128.1 of title 19, Code of
Federal Regulations.
<all>