HR 322 — Import Security and Fairness Act

Summary

Import Security and Fairness ActThis bill excludes imported articles from nonmarket economy countries or countries on the Priority Watch List from receiving de minimis treatment. (Current law allows for imports under a de minimis threshold to enter the United States free of tariffs and taxes with minimal inspection. In 2016, Congress raised this threshold from $200 to $800.)Under current law, a nonmarket economy country is any foreign country that the Department of Commerce determines does not operate on market principles of cost or pricing structures, so that sales of merchandise in such country do not reflect the fair value of the merchandise. There are currently 12 countries (e.g., China and Russia) that Commerce has designated as nonmarket economy countries. This bill prohibits imports from receiving de minimis treatment if those imports are from nonmarket economy countries.Additionally, under current law, the Office of the U.S. Trade Representative must annually review and report on foreign countries that deny adequate and effective protection of intellectual property rights or deny fair and equitable market access to U.S. persons who rely on intellectual property protection. There are currently seven counties (e.g., Argentina and Indonesia) on this list, known as the Priority Watch List. This bill prohibits imports from receiving de minimis treatment if those imports are from countries on the Priority Watch List.The bill also directs U.S. Customs and Border Protection to collect additional information on merchandise that may qualify for de minimis treatment and establishes requirements related to detained merchandise.

Bill Text

• Introduced Introduced in House Current html January 09, 2025

Compared against current U.S. Code AI-generated reading aid — verify against the official bill.

The bill introduces new exceptions to the de minimis exemptions for articles imported under the Tariff Act of 1930 and specifies additional documentation requirements for such exemptions.

• 19 U.S.C. 1321(a)

  (a) The Secretary → (a) In General.--The Secretary

  This change clarifies the introductory language of the section.

• 19 U.S.C. 1321(a)(2)(C)

  $800 → except as provided in subsection (b)(1), $800

  This establishes a condition under which the $800 exemption may not apply.

• 19 U.S.C. § 1321(b)

  (b) The Secretary → (b) Exceptions.--

  This rephrases the subsection heading for clarity.

• 19 U.S.C. § 1321(b)

  (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))).

  This adds new exceptions that restrict the de minimis treatment for articles from certain countries.

• 19 U.S.C. § 1321(c)

  (c) Submission of Documentation and Information.--

  This introduces a new subsection requiring the submission of documentation for administrative exemptions.

• 19 U.S.C. § 1321(c)(1)

  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.

  This mandates the creation of regulations regarding documentation for certain articles exempt under existing law.

• 19 U.S.C. § 1321(c)(2)(A)

  the regulations prescribed under paragraph (1)-- (i) 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;

  This specifies the minimum documentation requirements for claiming administrative exemptions.

• 19 U.S.C. § 1321(c)(3)

  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.

  This establishes civil penalties for non-compliance with the new documentation requirements.

• 19 U.S.C. § 1499(c)

  the Customs Service → U.S. Customs and Border Protection

  This updates the terminology to reflect the current name of the agency.

• 19 U.S.C. § 1499(c)(2)(A)

  The Customs Service → (A) In general.--U.S. Customs and Border Protection

  This further modernizes the text to consistently use the updated agency name.

• 19 U.S.C. § 1499(c)(2)

  (C) Additional requirements relating to merchandise that may qualify for certain administrative exemptions.--

  This adds new requirements for handling merchandise that may qualify for exemptions.

Action History

1. January 09, 2025

   Introduced in House

2. January 09, 2025

   Introduced in House

3. January 09, 2025

   Referred to the House Committee on Ways and Means.

Sponsors

• Thomas R. Suozzi · Primary
• Neal P. Dunn · Cosponsor
• Rick W. Allen · Cosponsor
• Andrea Salinas · Cosponsor

Subjects

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