Trade Facilitation and Trade Enforcement Act of 2015
Feb 24, 2016
Statute: 130 Stat. 122
Became law: Feb 24, 2016
Feb 24, 2016
Statute: 130 Stat. 122
Became law: Feb 24, 2016
Full breakdown available
This pages provides a high-level overview of this law. For full list of provisions, line-item appropriations, and specific funding allocations, please view our detailed breakdown.
Summary
Makes it easier for goods to move across borders while strengthening rules to stop illegal imports, unfair trade, and counterfeit products.
What problem does this solve?
Outdated customs rules made it hard to stop illegal goods and unfair trade, which slowed down legal business. This law modernizes customs, creates new tools to catch lawbreakers, and helps government agencies work together.
What does this law do?
Increases the duty-free value for imports
Raises the value of shipments that one person can import in one day without paying duties or taxes from $200 to $800.
Reference
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Elimination of consumptive demand exception to prohibition on importation of goods made with convict labor, forced labor, or indentured labor; report
Strengthens ban on goods made with forced labor
Removes a loophole that allowed the import of goods made by convicts or forced labor if the goods were not produced enough in the U.S. to meet demand.
Creates new process to investigate duty evasion
Establishes new procedures and deadlines for U.S. Customs and Border Protection to investigate claims that companies are evading antidumping and countervailing duties.
Formally establishes U.S. Customs and Border Protection (CBP)
Officially establishes U.S. Customs and Border Protection as a specific agency within the Department of Homeland Security and defines the roles of its leaders and offices.
Modernizes the duty refund (drawback) system
Simplifies and updates the process for companies to get refunds on duties paid for imported goods that are later exported or used to make exported products.
Establishes a center to fight intellectual property theft
Creates the National Intellectual Property Rights Coordination Center to coordinate investigations and enforcement against imported goods that infringe on copyrights and trademarks.
Makes the ban on internet access taxes permanent
Permanently prohibits state and local governments from taxing access to the internet.
Mandates modern electronic systems for trade
Requires the completion and use of the Automated Commercial Environment (ACE) and the International Trade Data System (ITDS) to create a single electronic window for trade processing.
Addresses foreign currency policies
Requires the Treasury Department to report on and engage with major trading partners whose currency policies may be creating unfair trade advantages.
Who does this affect?
- Importers and Exporters
- U.S. Manufacturers
- U.S. Customs and Border Protection Personnel
What is the real world impact?
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Streamlines and modernizes trade
Creates electronic systems like the Automated Commercial Environment (ACE) to speed up the processing of legal imports and exports. This reduces paperwork and costs for businesses.
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Protects U.S. businesses from unfair competition
Establishes stronger tools and faster investigation timelines to stop foreign companies from 'dumping' unfairly cheap goods in the U.S. or evading duties, which helps level the playing field for American manufacturers.
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Combats trafficking and counterfeit goods
Strengthens the power of U.S. Customs to seize counterfeit products and goods made with forced labor. It also creates a national center to coordinate the fight against intellectual property theft.
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Uses trade policy to advance foreign policy
Includes provisions that make it a U.S. goal in trade talks to discourage other countries from boycotting Israel. This could be seen as mixing political goals with economic agreements.
When does this start?
This law has multiple start dates for its different parts, with many taking effect in the months following its signing on February 24, 2016.
Higher duty-free shipment value
The value of shipments that can be imported by one person on one day free of duties and taxes increases from $200 to $800, starting 15 days after the law was signed.
Ban on forced labor goods strengthened
The rule closing a loophole that allowed goods made with forced labor to be imported becomes effective 15 days after the law was signed.
New evasion investigation rules
New procedures for U.S. Customs to investigate claims of duty evasion take effect 180 days after the law was signed.
Mandatory use of electronic trade system
Federal agencies must use the International Trade Data System (ITDS) as the main way to get import and export documents by December 31, 2016.
Drawback system transition
A new, modernized system for refunding duties (drawback) becomes mandatory for all claims filed on or after the date that is 3 years after the law was signed.