“A bill to identify and evaluate the compliance of foreign free trade zones with international standards, and for other purposes.”
No CRS summary available for this bill.
This section establishes definitions for terms used in the Act, including (1) Commissioner, meaning the Commissioner of U.S. Customs and Border Protection; (2) illicit international trade, meaning any practice or conduct prohibited by U.S. law or relevant international standards that relates to the production, shipment, receipt, possession, distribution, sale, or purchase of goods (or intended to facilitate such activity); (3) non-United States free trade zone (or zone), meaning a designated area within a foreign country's customs territory treated as outside that territory for duties or taxes purposes (synonymous terms include free zones, special economic zones, export processing zones, free economic zones, and freeports); and (4) person, meaning an individual or entity.
This section directs the Commissioner of U.S. Customs and Border Protection (CBP), in consultation with the Secretaries of Commerce, State, and the Treasury, and the U.S. Trade Representative, to identify and publish on a public website, not later than two years after enactment, a list of non-U.S. free trade zones (i.e., foreign facilities allowing duty-deferred import, storage, and processing of goods) that includes the identity, location, and administrators of each zone. The section further requires the Commissioner to review and update the list periodically, but not less frequently than annually, to verify accuracy, add new zones, and remove defunct ones.
This section directs the Commissioner of U.S. Customs and Border Protection (CBP), in consultation with the Secretaries of Commerce, State, and the Treasury, and the U.S. Trade Representative, to classify—within 180 days after publication of the free trade zone list required by section 3—countries containing those zones into four tiers based on the zones' compliance with specified standards combating illicit international trade (i.e., narcotics, arms, persons, tobacco, counterfeits, commodities, and wildlife). Tier I countries fully comply with the standards; tier II countries do not fully comply but make significant efforts; tier III countries make efforts but process significant volumes or types of goods without proportional actions or fail to show increasing efforts; and tier IV countries make no efforts. The Commissioner must publish the classification and methodology on a public website, notify each country's government within 240 days, and conduct periodic reviews at least annually, with reclassifications for progress or regression.
This section directs the Commissioner, with respect to countries classified as tier II, tier III, or tier IV under section 4, to (1) provide recommendations and best practices to improve law enforcement and combat illicit international trade in zones located in those countries; (2) consider the list of zones required by section 3 when developing strategies for foreign commercial service officers; and (3) monitor such countries to assess whether the President may impose measures under section 6 to ensure implementation of standards described in section 4(b). The section further requires the Commissioner to establish and maintain a publicly accessible telephone hotline and secure website for reporting illicit international trade in zones located in tier I, tier II, tier III, or tier IV countries that impacts operations or may justify reclassification under section 4(e).
This section authorizes the President to impose blocking sanctions under the International Emergency Economic Powers Act (IEEPA, 50 U.S.C. 1701 et seq.) and visa restrictions under the Immigration and Nationality Act (INA, 8 U.S.C. 1101 et seq.) on any foreign person determined, on or after enactment based on credible evidence, to have (1) organized, arranged, financed, conducted, or participated in illicit international trade in a zone of a tier II, tier III, or tier IV country (as classified under section 4); (2) acted as an agent facilitating such trade; (3) materially assisted, sponsored, or provided support for such trade; or (4) conducted or facilitated corruption or money laundering in such a zone. The measures include (1) blocking and prohibiting all transactions in the foreign person's property and interests in property subject to U.S. jurisdiction; and (2) rendering such noncitizens inadmissible to the United States, ineligible for visas, admission, parole, or other INA benefits, and subject to visa revocation under INA §221(i) (8 U.S.C. 1201(i)). The President may implement these measures using IEEPA §§203 and 205 authorities (50 U.S.C. 1702, 1704), with violators subject to IEEPA civil and criminal penalties under 50 U.S.C. 1705(b)-(c). Exceptions to visa restrictions apply if admission or parole furthers U.S. law enforcement objectives or complies with the U.N. Headquarters Agreement.
This section authorizes appropriations to the Commissioner, without fiscal year limitation, of such sums as necessary to carry out this Act. Amounts appropriated pursuant to such authorization remain available until expended and supplement, but do not supplant, other available funds.