Exclusion of persons that have committed fraudulent or grossly negligent violations of United States customs laws from participation in the importer of record program

Section 114 of the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. 4320) is amended— (1) by redesignating subsections (c) and (d) as subsections (d) and (e), respectively; and (2) by inserting after subsection (b) the following: (c) Exclusion (1) In general The following persons shall be ineligible to participate in the importer of record program: (A) Any person determined by U.S. Customs and Border Protection or a court of competent jurisdiction to have committed a fraudulent or grossly negligent violation of section 592(a) of the Tariff Act of 1930 (19 U.S.C. 1592(a)). (B) Any person that is an affiliated person of a person described in subparagraph (A). (2) Revocation The Secretary shall revoke the importer of record number assigned to any person under the importer of record program if the Secretary subsequently determines that the person is a person described in subparagraph (A) or (B) of paragraph (1). (3) Affiliated person defined (A) In general For purposes paragraph (1)(B), the term affiliated person has the meaning given that term in section 771(33) of the Tariff Act of 1930 (19 U.S.C. 1677(33)). (B) Deemed affiliated persons In order to prevent commercial fraud, protect the revenue, and help prevent the use of shell companies by importers that seek to evade the customs and trade laws of the United States, a person may be deemed to be an affiliated person for purposes of paragraph (1)(B) based upon information declared to U.S. Customs and Border Protection suggesting a formal or ongoing relationship between that person and a person described in paragraph (1)(A), including similarities in imported merchandise (including article classification upon importation), common declared exporters and shippers, and historical import volumes..