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.