H.R. 7812

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7812 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7812

To amend the Tariff Act of 1930 to impose additional requirements with 
respect to importers of record, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 5, 2026

Mr. Arrington introduced the following bill; which was referred to the 
Committee on Ways and Means

_______________________________________________________________________

A BILL

To amend the Tariff Act of 1930 to impose additional requirements with 
respect to importers of record, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Securing Accountability in Foreign 
Entries Act''.

SEC. 2. 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.

SEC. 3. RESPONSIBILITY OF IMPORTER OF RECORD FOR PAYMENT OF DUTIES.

(a) In General.--Section 484(a)(1) of the Tariff Act of 1930 (19 
U.S.C. 1484(a)(1)) is amended--
(1) in subparagraph (B), by redesignating clauses (i), 
(ii), and (iii) as subclauses (I), (II), and (III), 
respectively, and by moving such subclauses, as so 
redesignated, 2 ems to the right;
(2) by redesignating subparagraphs (A) and (B) as clauses 
(i) and (ii), respectively, and by moving such clauses, as so 
redesignated, 2 ems to the right;
(3) by striking ``paragraph (2)(B), either'' and inserting 
the following: ``paragraph (2)(B)--
``(A) either'';
(4) in subparagraph (A), as designated by paragraph (3)--
(A) in clause (i), as redesignated by paragraph 
(2), by striking the semicolon and inserting ``; and''; 
and
(B) in clause (ii)(III), as so redesignated, by 
striking the period at the end and inserting ``; and''; 
and
(5) by adding at the end the following:
``(B) shall, in accordance with paragraphs (3) and 
(4), pay directly to U.S. Customs and Border Protection 
all duties, taxes, and fees assessed with respect to 
the entry of the merchandise.''.
(b) Requirements for Payment.--Section 484(a) of the Tariff Act of 
1930 (19 U.S.C. 1484(a)) is amended by adding at the end the following:
``(3) An importer of record shall pay duties, taxes, and fees 
assessed with respect to the entry of merchandise--
``(A) in the form of an electronic transfer of funds from a 
depository institution (as defined in section 3 of the Federal 
Deposit Insurance Act (12 U.S.C. 1813)) chartered or authorized 
to do business in the United States; and
``(B) from a deposit account that--
``(i) is held--
``(I) if the importer of record is an 
individual, in the legal name of the importer 
of record; or
``(II) if the importer of record is an 
entity, in the legal name of--
``(aa) the importer of record; or
``(bb) an entity organized under 
the laws of the United States or a 
jurisdiction within the United States 
that U.S. Customs and Border Protection 
verifies, pursuant to regulations 
prescribed by the Commissioner of U.S. 
Customs and Border Protection, is 
wholly or majority-owned by the 
importer of record; and
``(ii) has been verified by the depository 
institution under an anti-money-laundering customer 
identification program consistent with section 1020.220 
of title 31, Code of Federal Regulations (or a 
successor regulation), and applicable rules of the 
Financial Crimes Enforcement Network.
``(4) An importer of record shall provide to U.S. Customs and 
Border Protection, before the first entry of merchandise for which the 
importer of record pays duties, taxes, and fees from an account--
``(A) the account number and routing number for the 
account;
``(B) the name of the depository institution where the 
account is held; and
``(C) an attestation from the depository institution 
certifying that--
``(i) the account is held in the legal name of the 
importer of record or an entity described in paragraph 
(3)(B)(i)(II)(bb); and
``(ii) the depository institution has verified the 
identity of the account holder under a customer 
identification program described in paragraph 
(3)(B)(ii).
``(5) A depository institution that holds an account from which an 
importer of record intends to pay duties, taxes, and fees with respect 
to an entry of merchandise shall, upon the request of the Commissioner 
of U.S. Customs and Border Protection, provide to the Commissioner a 
confirmation that the depository institution has verified the identity 
of the account holder under a customer identification program described 
in paragraph (3)(B)(ii).
``(6) U.S. Customs and Border Protection may not accept payment of 
duties, taxes, and fees assessed with respect to an entry of 
merchandise--
``(A) from any person other than the importer of record, a 
surety of the importer of record, or a customs broker (as 
defined in section 641(a));
``(B) in any form other than that required by paragraph 
(3)(A); or
``(C) from an account that does not meet the requirements 
under paragraph (3)(B).''.
(c) Applicability.--The amendments made by subsection (a) apply 
with respect to articles entered on and after the date that is one year 
after the date of the enactment of this Act.

SEC. 4. INCREASE IN BONDING REQUIREMENT FOR IMPORTERS OF RECORD.

(a) In General.--Except as provided by subsections (c) and (d), the 
Commissioner of U.S. Customs and Border Protection shall require each 
importer of record that elects to use a continuous import bond under 
section 113.62 of title 19, Code of Federal Regulations--
(1) to maintain, in the name of the importer, a continuous 
import bond of not less than $100,000; and
(2) to use that bond for purposes of entry of merchandise 
by the importer.
(b) Implementation.--The dollar amount required under subsection 
(a)(1) for a bond shall apply with respect to--
(1) each new continuous import bond issued on or after the 
date that is 60 days after the date of the enactment of this 
Act;
(2) each continuous import bond renewed on or after the 
date that is 360 days after the date of the enactment of this 
Act; and
(3) any importer of record that holds, on or after the date 
that is 60 days after the date of the enactment of this Act, a 
continuous import bond in an amount the Commissioner determines 
is insufficient to adequately protect the revenue and ensure 
compliance with applicable law and regulations.
(c) Role of Customs Brokers.--Under the regulations prescribed 
under subsection (a), a customs broker may prepare and file entry 
documentation, but may not use a bond held by the customs broker for 
purposes of entry of merchandise unless the customs broker is acting as 
the importer of record.
(d) Treatment of Express Consignment Operators and Carriers.--
(1) In general.--Notwithstanding any other provision of 
this section, an express consignment operator or carrier that 
meets the requirements of paragraph (2) may--
(A) designate a customs broker licensed under 
section 641 of the Tariff Act of 1930 (19 U.S.C. 1641) 
to serve as the importer of record with respect to 
merchandise; and
(B) use the broker's bond for purposes of entry of 
that merchandise.
(2) Requirements.--An express consignment operator or 
carrier meets the requirements of this paragraph if the 
operator or carrier--
(A) is organized under the laws of the United 
States;
(B) maintains a significant physical operating 
presence in the United States, including substantial 
infrastructure for cargo handling, sorting, and customs 
clearance operations;
(C) employs not fewer than 300,000 persons in the 
United States; and
(D) designates under paragraph (1) only customs 
brokers that are wholly owned by the operator or 
carrier.
(3) Regulations.--The Commissioner of U.S. Customs and 
Border Protection may prescribe regulations to implement this 
subsection, including regulations specifying--
(A) procedures for express consignment operators or 
carriers to demonstrate compliance with the 
requirements of paragraph (2);
(B) the form and manner in which an express 
consignment operator or carrier is required to 
designate a customs broker under paragraph (1); and
(C) such other measures as the Commissioner 
determines necessary to ensure accountability and 
prevent abuse of the authority provided under this 
subsection.
(4) Express consignment operator or carrier defined.--The 
term ``express consignment operator or carrier'' has the 
meaning given that term in section 128.1 of title 19, Code of 
Federal Regulations.
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