Ensuring Safe and Lawful E-Commerce for United States Consumers, Businesses, Government Supply Chains, and Intellectual Property Rights Holders

[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]

[Presidential Documents]

[Pages 6725-6729]

From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

[FR Doc No: 2020-02439]

Presidential Documents

Federal Register / Vol. 85 , No. 24 / Wednesday, February 5, 2020 /

Presidential Documents

[[Page 6725]]

Executive Order 13904 of January 31, 2020

Ensuring Safe and Lawful E-Commerce for United

States Consumers, Businesses, Government Supply Chains,

and Intellectual Property Rights Holders

By the authority vested in me as President by the

Constitution and the laws of the United States of

America, it is hereby ordered as follows:

Section 1. Policy. E-commerce, including transactions

involving smaller express-carrier or international mail

packages, is being exploited by traffickers to

introduce contraband into the United States, and by

foreign exporters and United States importers to avoid

applicable customs duties, taxes, and fees.

It is the policy of the United States Government to

protect consumers, intellectual property rights

holders, businesses, and workers from counterfeit

goods, narcotics (including synthetic opioids such as

fentanyl), and other contraband now being introduced

into the United States as a result of the recent growth

in e-commerce. The United States Government must also

protect the revenue of the United States from

individuals and entities who evade customs duties,

taxes, and fees.

hetic opioids such as

fentanyl), and other contraband now being introduced

into the United States as a result of the recent growth

in e-commerce. The United States Government must also

protect the revenue of the United States from

individuals and entities who evade customs duties,

taxes, and fees.

It is the policy of the United States Government that

any person who knowingly, or with gross negligence,

imports, or facilitates the importation of, merchandise

into the United States in material violation of Federal

law evidences conduct of so serious and compelling a

nature that it should be referred to U.S. Customs and

Border Protection (CBP) of the Department of Homeland

Security for a determination whether such conduct

affects that person's present responsibility to

participate in transactions with the Federal

Government.

It is the policy of the United States Government, as

reflected in Executive Order 12549 of February 18, 1986

(Debarment and Suspension), and elsewhere, to protect

the public interest and ensure the integrity of Federal

programs by transacting only with presently responsible

persons. In furtherance of this policy, the

nonprocurement debarment and suspension system enables

executive departments and agencies to exclude from

Federal programs persons who are not presently

responsible. CBP implements this system by suspending

and debarring persons who flout the customs laws, among

other persons who lack present responsibility

nonprocurement debarment and suspension system enables

executive departments and agencies to exclude from

Federal programs persons who are not presently

responsible. CBP implements this system by suspending

and debarring persons who flout the customs laws, among

other persons who lack present responsibility. To

achieve the policy goals stated herein, the United

States Government shall consider all appropriate

actions that it can take to ensure that persons that

CBP suspends or debars are excluded from participating

in the importation of merchandise into the United

States.

It is the policy of the United States Government that

express consignment operators, carriers, hub

facilities, international posts, customs brokers, and

other entities, including e-commerce platform

operators, should not facilitate importation involving

persons who are suspended or debarred by CBP.

It is the policy of the United States Government to

ensure that parcels containing contraband be kept

outside of the United States to the greatest extent

possible and that all parties who participate in the

introduction or attempted introduction of such parcels

into the United States be held accountable under the

laws of the United States.

Sec. 2. Criteria for the Importer of Record Program,

Including Exclusion of Trade Violators. (a) The

Secretary of Homeland Security shall issue a

[[Page 6726]]

notice of proposed rulemaking to establish criteria

importers must meet in order to obtain an importer of

record number.

e United States.

Sec. 2. Criteria for the Importer of Record Program,

Including Exclusion of Trade Violators. (a) The

Secretary of Homeland Security shall issue a

[[Page 6726]]

notice of proposed rulemaking to establish criteria

importers must meet in order to obtain an importer of

record number.

(b) Such criteria shall include a criterion

providing that any person debarred or suspended by CBP

for lack of present responsibility for reasons related

to importation or trade shall be ineligible to obtain

an importer of record number for the duration of such

person's suspension or debarment by CBP.

Sec. 3. Responsibilities of Express Consignment

Operators, Carriers, Hub Facilities, and Licensed

Customs Brokers. (a) Consistent with applicable law,

the Secretary of Homeland Security, through the

Commissioner of CBP, shall take steps to ensure that,

within 60 days of the publication in the System for

Award Management by CBP of the name of any debarred or

suspended person, express consignment operators,

carriers, hub facilities, and licensed customs brokers

notify CBP of any attempt, of which they know or have

reason to believe, by any persons who may not obtain an

importer of record number based on any criteria

established by the Secretary under section 2 of this

order, to re-establish business activity requiring an

importer of record number through a different name or

address associated with the debarred or suspended

person.

y persons who may not obtain an

importer of record number based on any criteria

established by the Secretary under section 2 of this

order, to re-establish business activity requiring an

importer of record number through a different name or

address associated with the debarred or suspended

person.

(b) The Secretary of Homeland Security, through the

Commissioner of CBP, shall consider appropriate

measures, consistent with applicable law, to ensure

that express consignment operators, carriers, hub

facilities, and licensed customs brokers cease to

facilitate business activity that requires an importer

of record number by any person who may not obtain an

importer of record number, as provided by any criteria

established by the Secretary under section 2 of this

order. Depending on the criteria established, such

consideration shall include whether CBP may take any of

the following measures: limiting an express consignment

operator's, carrier's, or hub facility's participation

in any CBP trusted trader programs; taking appropriate

action with regard to an express consignment

operator's, carrier's, or hub facility's operating

privileges; or suspending or revoking a customs

broker's license.

ing an express consignment

operator's, carrier's, or hub facility's participation

in any CBP trusted trader programs; taking appropriate

action with regard to an express consignment

operator's, carrier's, or hub facility's operating

privileges; or suspending or revoking a customs

broker's license.

Sec. 4. Items Sent to the United States through the

International Postal Network. (a) The United States

Postal Service (USPS) should collaborate with the

Secretary of State to notify the international postal

network, via circular or the functional equivalent, of

the policy of the United States Government set forth in

section 1 of this order and the key provisions of this

order. USPS should make all reasonable efforts to

include provisions regarding any criteria for

participating in the importer of record program

established under section 2 of this order in any new

contractual instruments it executes with international

posts.

(b) Within 90 days from the date of this order, the

Secretary of Homeland Security, through the

Commissioner of CBP, and in consultation with USPS,

shall submit to the President a report on any

appropriate measures the Federal Government could take,

including negotiating with international posts, to

prevent the importation or attempted importation into

the United States through the international postal

network of shipments containing goods, when such

importation or attempted importation is known to have

been facilitated by any person who may not obtain an

importer of record numb

nal posts, to

prevent the importation or attempted importation into

the United States through the international postal

network of shipments containing goods, when such

importation or attempted importation is known to have

been facilitated by any person who may not obtain an

importer of record number under any criteria

established by the Secretary under section 2 of this

order.

Sec. 5. Non-Compliant International Posts. (a) The

Secretary of Homeland Security, through the

Commissioner of CBP, and in consultation with the

United States Trade Representative, shall develop an

International Mail Non-Compliance metric, based on

relevant factors, to formulate an overall compliance

score for each international post. This score shall

take into account rates of trafficking of counterfeit

goods, narcotics (including synthetic opioids such as

fentanyl), and other contraband through a particular

international post, effectiveness of the international

post in reducing such trafficking, including

cooperation with CBP, as well as such other factors the

Secretary, through the Commissioner, determines

advisable. The Secretary shall update

[[Page 6727]]

overall compliance scores on a quarterly basis. The

Secretary shall determine a minimum threshold

compliance score for each quarter and shall deem non-

compliant any international post that scores below such

threshold in that quarter.

determines

advisable. The Secretary shall update

[[Page 6727]]

overall compliance scores on a quarterly basis. The

Secretary shall determine a minimum threshold

compliance score for each quarter and shall deem non-

compliant any international post that scores below such

threshold in that quarter.

(b) The Secretary of Homeland Security shall

prioritize targeted inspection of imports into the

United States from any international post that for two

or more consecutive quarters is deemed a non-compliant

international post.

(c) Consistent with applicable law, the Secretary

of Homeland Security, through the Commissioner of CBP,

in consultation with USPS, may require additional

information for any shipment from any international

post that for six or more consecutive quarters is

deemed a non-compliant international post. The

Secretary of Homeland Security, through the

Commissioner of CBP, shall, to the extent consistent

with applicable law and international agreements,

implement all appropriate measures to prevent

importation into the United States of any shipments

dispatched from any international post that is deemed a

non-compliant international post for six or more

consecutive quarters and for which the additional

information required consistent with this subsection is

not promptly provided. USPS should collaborate with CBP

in implementing these measures.

dispatched from any international post that is deemed a

non-compliant international post for six or more

consecutive quarters and for which the additional

information required consistent with this subsection is

not promptly provided. USPS should collaborate with CBP

in implementing these measures.

(d) The Secretary of Homeland Security, through the

Commissioner of CBP, and in consultation with USPS,

shall, to the maximum extent permitted by applicable

law, take measures to protect the United States from

shipments from any international post that for eight or

more consecutive quarters is deemed a non-compliant

international post. To the extent consistent with

applicable law and as appropriate, such measures might

include preventing the importation into the United

States of shipments dispatched from such posts,

regardless of whether additional information required

by CBP is provided. Within 90 days of the date of this

order, the Secretary of Homeland Security, through the

Commissioner of CBP, and in consultation with USPS,

shall submit a report to the President analyzing what

measures CBP may take consistent with its existing

authorities.

formation required

by CBP is provided. Within 90 days of the date of this

order, the Secretary of Homeland Security, through the

Commissioner of CBP, and in consultation with USPS,

shall submit a report to the President analyzing what

measures CBP may take consistent with its existing

authorities.

(e) Within 90 days of the date of this order, the

Secretary of Homeland Security, through the

Commissioner of CBP, shall publish and regularly update

appropriate guidance related to CBP's implementation of

this section, including the process by which an

international post is deemed a non-compliant

international post and the process by which an

international post is removed from the list of non-

compliant international posts.

Sec. 6. Publication of Violation Information; Enhanced

Enforcement Efforts. (a) On a periodic basis, and

consistent with Federal law and executive branch policy

reflecting non-disclosure of sensitive information, the

Secretary of Homeland Security, through the

Commissioner of CBP and the Director of United States

Immigration and Customs Enforcement, shall publish

information about seizures arising in the international

mail and express consignment environments that involve

intellectual property rights violations, illegal drugs

and other contraband, incorrect country of origin,

under-valuation, or other violations of law of

particular concern

, shall publish

information about seizures arising in the international

mail and express consignment environments that involve

intellectual property rights violations, illegal drugs

and other contraband, incorrect country of origin,

under-valuation, or other violations of law of

particular concern. In determining which information to

publish, the Secretary shall give greatest

consideration to repeat offenses affecting priority

trade issues as defined in 19 U.S.C. 4322.

(b) Within 60 days of the date of this order, the

Attorney General shall assign appropriate resources to

ensure that Federal prosecutors accord a high priority

to prosecuting offenses related to import violations as

described in this order, including, as appropriate and

within existing appropriations, increasing the number

of Department of Justice officials who will enforce

criminal or civil laws, as appropriate, related to the

importation of merchandise.

Sec. 7. Report on Sufficiency of Fees. Within 210 days

of the date of this order, the Secretary of Homeland

Security, in coordination with the heads of other

executive departments and agencies, as appropriate,

shall submit a report to the President, through the

Director of the Office of Management and Budget:

[[Page 6728]]

(a) analyzing whether the fees collected by CBP are

currently set at a sufficient level to reimburse the

Federal Government's costs associated with processing,

inspecting, and collecting duties, taxes, and fees for

parcels; and

he

Director of the Office of Management and Budget:

[[Page 6728]]

(a) analyzing whether the fees collected by CBP are

currently set at a sufficient level to reimburse the

Federal Government's costs associated with processing,

inspecting, and collecting duties, taxes, and fees for

parcels; and

(b) providing recommendations, consistent with

applicable law, regarding any fee adjustments that are

necessary to reimburse the Federal Government's costs

associated with processing, inspecting, and collecting

duties, taxes, and fees for parcels.

Sec. 8. Definitions. For the purposes of this order:

(a) ``Customs broker'' has the meaning given to

that term in 19 U.S.C. 1641(a)(1).

(b) ``Express consignment operator, carrier, or hub

facility'' has the meaning given to those terms in 19

CFR 128.1.

(c) ``International post'' means any foreign public

or private entity providing various types of postal

services, including mailing and delivery services.

(d) ``Contraband'' has the meaning given to that

term in 49 U.S.C. 80302(a), and also means any goods or

merchandise otherwise prohibited from importation or

entry under the Tariff Act of 1930, as amended.

or private entity providing various types of postal

services, including mailing and delivery services.

(d) ``Contraband'' has the meaning given to that

term in 49 U.S.C. 80302(a), and also means any goods or

merchandise otherwise prohibited from importation or

entry under the Tariff Act of 1930, as amended.

(e) ``E-commerce platform'' means any web-based

platform that includes features primarily designed for

arranging the sale, purchase, payment, or shipping of

goods, or that enables sellers not directly affiliated

with an operator of a web-based platform to sell

physical goods through the web to consumers located in

the United States.

(f) ``Person'' means any individual, corporation,

partnership, association, or legal entity, however

organized.

Sec. 9. General Provisions. (a) Nothing in this order

shall be construed to impair or otherwise affect:

(i) the authority granted by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

[[Page 6729]]

d by law to an executive department or agency, or

the head thereof; or

(ii) the functions of the Director of the Office of Management and Budget

relating to budgetary, administrative, or legislative proposals.

(b) This order shall be implemented consistent with

applicable law and subject to the availability of

appropriations.

[[Page 6729]]

(c) This order is not intended to, and does not,

create any right or benefit, substantive or procedural,

enforceable at law or in equity by any party against

the United States, its departments, agencies, or

entities, its officers, employees, or agents, or any

other person.

(Presidential Sig.)

THE WHITE HOUSE,

January 31, 2020.

[FR Doc. 2020-02439

Filed 2-4-20; 11:15 am]

Billing code 3295-F0-P