1300 Pennsylvania Avenue NW Washington, DC 20229 U.S. Customs and Border Protection Released via FOIAonline account. February 28, 2019 CBP-2018-005705 Austin Evers American Oversight Washington, DC 20005 Dear Mr. Evers: As agreed to in American Oversight v. U.S. Customs and Border Protection, Case No. 1: 18-cv-01337, this is the thirteenth interim response to your Freedom of Information Act (FOIA) request to U.S. Customs and Border Protection (CBP), on behalf of American Oversight, in which you are seeking: 1.) All electronic mail containing any of the following terms: a. Catch of the Day b. #CatchOfTheDay c. Keeping America Safe d. #KeepingAmericaSafe 2.) All electronic mail containing the word “hashtag” and any of the following words or phrases: a. S1 b. S2 c. Secretary d. Deputy Secretary e. DepSec f. Kelly g. Duke 3.) All electronic mail containing any hashtags (“#”) and any of the following words or phrases: a. Illegal b. Illegals c. Alien A\11 ICA PVERSIGHT d. Aliens e. Felon f. Felons g. Criminal h. Criminals A search of CBP databases has identified records responsive to your request, 500 pages of which are now being produced. CBP has determined that 334 pages of the records are partially releasable, pursuant to Title 5 U.S.C. § 552 (b)(5), (b)(6),(b)(7)(C), and (b)(7)(E), 122 pages have been withheld in full pursuant to Title 5 U.S.C. § 552 (b)(2), (b)(5), (b)(6),(b)(7)(C), and (b)(7)(E) and 212 pages have been released in full. Uploaded to your FOIAonline account are 500 pages with certain information withheld as described below: FOIA Exemption (b)(2) exempts from disclosure documents related solely to the internal personnel rules and practices of any agency. FOIA Exemption (b)(5) exempts from disclosure those inter- or intra-agency documents that are normally privileged in the civil discovery context. The three most frequently invoked privileges are the deliberative process privilege, the attorney work-product privilege, and the attorney-client privilege. After carefully reviewing the responsive documents, I have determined that portions of the responsive documents qualify for protection under the Deliberative Process Privilege: The types of records withheld under this privilege include Issue Papers, briefings, drafts, and expressions of candid opinions, the release of which would discourage or inhibit the free and frank exchange of information among agency personnel. FOIA Exemption (b)(6) exempts from disclosure personnel or medical files and similar files the release of which would cause a clearly unwarranted invasion of personal privacy. This requires a balancing of the public’s right to disclosure against the individual’s right privacy. The types of documents and/or information that we have withheld may consist of names, email address, and phone numbers. The privacy interests of the individuals in the records you have requested outweigh any minimal public interest in disclosure of the information. Any private interest you may have in that information does not factor into the aforementioned balancing test. FOIA Exemption (b)(7)(C) protects records or information compiled for law enforcement purposes that could reasonably be expected to constitute an unwarranted invasion of personal privacy. This exemption takes particular note of the strong interests AMERICAN PVERSIGHT of individuals, whether they are suspects, witnesses, or investigators, in not being unwarrantably associated with alleged criminal activity. That interest extends to persons who are not only the subjects of the investigation, but those who may have their privacy invaded by having their identities and information about them revealed in connection with an investigation. Based upon the traditional recognition of strong privacy interest in law enforcement records, categorical withholding of information that identifies third parties in law enforcement records is ordinarily appropriate. FOIA Exemption (b)(7)(E) protects records compiled for law enforcement purposes, the release of which would disclose techniques and/or procedures for law enforcement investigations or prosecutions, or would disclose guidelines for law enforcement investigations or prosecutions if such disclosure could reasonably be expected to risk circumvention of the law. CBP has determined that disclosure could reasonably be expected to risk circumvention of the law. This completes CBP’s thirteenth interim response to your request. If you have questions or concerns regarding this interim response, you may contact Assistant United States Attorney Denise M. Clark at (202) 252-6605. Please notate file number CBP-2018-005705 on any future correspondence to CBP related to this request. Sincerely, Jodi Drengson FOIA Analyst, FOIA Division U.S. Customs and Border Protection AMERICAN PVERSIGHT From: To: Cc: Bee: Subject: Date: Attachments : transcr ipt - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx Mon May 29 2017 21:28 :18 EDT transcript - S1 FY 2018 budget request (SAC-HS ) 05-25-2017 .docx C1/C2 Please see attached for the S1 SAC HS hearing transcript from last week . FYSA Thank you Kim AME: IGAN pVERSIGHT CBP FOIA 007237 DHS-17-0435-Q-000001 Page 4222 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) Copyright 2017. Provided under license from Bloomberg Government www.bgov.com All materials herein are protected by United States copyright law and/or license from Bloomberg Government, and may not be reproduced, distributed, transmitted, displayed, published or broadcast without the prior written permission of Bloomberg Government. You may not alter or remove any trademark, copyright or other notice from copies of the content. . SENATE COMMITTEE ON APPROPRIATIONS, SUBCOMMITTEE ON HOMELAND SECURITY HEARING ON DHS’ FY 2018 BUDGET REQUEST May 25, 2017 SPEAKERS: SEN. JOHN BOOZMAN, R-ARK. CHAIRMAN SEN. JON TESTER, D-MONT. RANKING MEMBER SEN. JOHN HOEVEN, R-N.D. SEN. LISA MURKOWSKI, R-ALASKA SEN. RICHARD C. SHELBY, R-ALA. SEN. THAD COCHRAN, R-MISS. SEN. LINDSEY GRAHAM, R-S.C. SEN. JAMES LANKFORD, R-OKLA. SEN. JOHN KENNEDY, R-LA. SEN. JEANNE SHAHEEN, D-N.H. SEN. PATRICK J. LEAHY, D-VT. SEN. PATTY MURRAY, D-WASH. SEN. TAMMY BALDWIN, D-WIS. SEN. JOE MANCHIN III, D-W.VA. WITNESS:  SECRETARY JOHN F. KELLY, DEPARTMENT OF HOMELAND SECURITY BOOZMAN: I call this hearing of the Subcommittee on Homeland Security in order. This is my first hearing as Chairman of this Subcommittee, and it is the Subcommittee's first hearing to review the fiscal year 2018 budget request, which was submitted to Congress earlier this week. I want to begin by thanking the Secretary of Homeland Security, the Honorable John Kelly, for being with us today. We know that you are very, very busy and again, I appreciate you being here. Secretary Kelly, we do understand the demands on your schedule, and your testimony in what is your first appearance before our Subcommittee in your new role. VERSIGHT CBP FOIA 007238 DHS-17-0435-Q-000002 Page 4224 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) I would also like to welcome our Subcommittee's Ranking Member, the distinguished Senator and friend from Montana, Senator Tester. I am also pleased that Senator Leahy, the Vice Chairman of the full Committee has joined us. The Department of Homeland Security plays a pivotal role in keeping Americans safe by working to combat terrorism, manage our air, land, and sea borders, administer our immigration laws, secure critical cyber-assets, and prepare for and respond to disasters. The tragic events in Manchester, England earlier this week remind us why we must focus on the serious challenge of securing our homeland. Mr. Secretary, you've dedicated your career to serving our national security interests, and in just a few months, you have proven your ability to lead this Department during a very challenging time. This Subcommittee will work to support you and the men and women of the Department, who are working every day to keep us safe. The Department has been called on by this President to refocus its resources on certain national security risks and to redouble efforts to enforce our immigration laws. We look forward to learning more about how the Department proposes to address these needs while ensuring we do not neglect the other critical missions of the Department. This budget request gets many things right. We've seen over the past few months that border security and immigration enforcement are closely related. As the new Administration is demonstrating, there are consequences for those entering and staying in the country illegally, with illegal border crossings dropping to historic lows. Your budget proposes increased funding for Customs and Border Protection and Immigration and Customs Enforcement Service for both manpower and infrastructure, to continue to reduce illegal border crossings. In order to better understand these requirements and make the right choices, the Subcommittee must get a more comprehensive plan from the Department that details how we can be smart about investing in border security and interior enforcement. Another key component to securing our borders is the United States Coast Guard, which this budget generally supports. In Fiscal year 2017, this Subcommittee delivered significant investments to enhance the capabilities of the Coast Guard. We identified funding to continue the modernization of the surface and air fleets, and we partnered with our Defense Subcommittee to begin acquisition of a new polar icebreaker. We'll have to work again to provide the resources necessary to enable the Coast Guard to continue protecting our borders, interdicting illegal migrants and drugs, conducting search and rescue missions, ensuring the safe navigation of our waterways, and maintaining our defense readiness. This budget proposal appropriately acknowledges that the Federal government's cyber-network is under constant attack. I am pleased to see that the request has prioritized funding for all four AMERICAN PVERSIGHT CBP FOIA 007239 DHS-17-0435-Q-000003 Page 4225 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) phases of the Continuous Diagnostics and Mitigation Program. Other Federal agencies must move past the initial CDM kick-start provided by the Department and begin properly budgeting for their own investment and utilization of this system in order to realize its full benefit. You've rightly noted in your testimony and through this budget proposal that the Department's workforce is its most valuable resource, and that taking care of the people that work to keep us safe each day is a top priority. I hope we will work together to ensure the Department can improve workforce recruitment, development and retention. We are aware of the unique stresses caused by the intense 2016 presidential election campaign. Additional duties, increased travel, ongoing investigative work, and the inherent requirements of Presidential protection have stretched the Secret Service workforce thin. These are the brave men and women who put their lives on the line every day to protect our top leaders and to prevent interference with our most critical institutions. We are optimistic that the additional resources provided in the recently-enacted appropriations bill will make a real difference for the men and women of the Secret Service. But workforce challenges span the Department. We need to hire and retain more Customs officers, more Border Patrol agents, more acquisition experts, and more cyber-professionals. We want to help you make the Department of Homeland Security the best place to work in the entire Federal government. While this budget proposal makes some smart choices, there are also parts of it that are unworkable. Whether we're talking about a hard-working Arkansas family or one of the largest Departments in the federal government, when it comes time to develop a budget, tough choices have to be made. I have no doubt that many tough decisions were made in preparing the request, but many of the choices reflected in this budget put this Subcommittee in a difficult position. For instance, it assumes statutory changes to programs that Congress would almost certainly be unable to enact before the end of the fiscal year. From the proposed increase to airline passenger fees, to the significant reductions to assistance for state and local partners, to the failure to invest adequately in research and development, this budget fails to take into consideration many practical realities. We ask for your cooperation as we consult with you and your staff to make the necessary adjustments to allow this budget to work despite these significant challenges. We will likely face a very tough appropriations cycle. We will certainly be urged to restore many of the significant reductions proposed by this budget, and absent some significant change to the availability of resources, we are not going to be able to fund all of the priorities it outlines. Congress will have to make these decisions based on shared priorities and with an eye toward risk-based distribution of limited resources. We know we can count on your partnership and guidance throughout this process. Again, Mr. Secretary, we appreciate your testimony and your willingness to answer questions from members of this Subcommittee. AMERICAN PVERSIGHT CBP FOIA 007240 DHS-17-0435-Q-000004 Page 4226 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) I will now turn to our distinguished Ranking Member, Senator Tester, and then to our full committee Chairman, Senator Cochran, and then to our full Committee Vice Chairman, Senator Leahy, for any opening remarks that they may have before asking Secretary Kelly to proceed with his testimony. Then we will allow each Senator seven minutes for any statements or questions they may have. Senator, Tester. TESTER: Yes, thank you, Chairman Boozman. I appreciate your leadership and good morning, Mr. Secretary and welcome. We are here today of course to examine the DHS budget for Fiscal Year 2018 and I think, the importance of this budget is reflected in the fact that we have the Chairman and Ranking Member of the full Committee here today. I would be remiss if I didn't first say that our thoughts are with the folks in Manchester, U.K. and those affected by a senseless act of violence last Monday. Before we get into your budget, Mr. Secretary, I want to note that the President's budget cuts on non- defense discretionary spending by $1.5 trillion over 10 years including $54 billion in FY18 in part to help pay for the proposed wall in the Southern border. This is not a serious proposal and would be detrimental to the nation's security, small business, agriculture and education. Mr. Secretary, your department is one of the few non-defense discretionary agencies to receive an increase in the President's Fiscal Year 2018 request. In total, the request includes $44.1 billion, an increase of over $1.7 billion over the Fiscal Year 2017 Act which we passed a few weeks ago, which was by the way $1.4 billion over the previous year. The Department that you lead though has a multitude of diverse missions including Border and Immigration Security, protecting our computer networks from cyberattacks, making sure that air travel is secure, helping communities prepare for and respond to natural or manmade disasters and monitoring our coast lines and our waterways to save lives, intercept illegal drugs and prevent bad actors from invading our ports. The lion's share of the increase for DHS is dedicated to Border Security and Immigration Enforcement. Coming on the heels of that $1.5 billion in FY17 Omnibus. Look, I support efforts to strengthen our border, but it needs to be done in a smart way. I am concerned about what is missing in this budget when it comes to your other priorities. Priorities like aviation security, maritime security, cybersecurity. Preparing our local -- our communities for natural disasters and the possibility of a terrorist attack. First of all though, the threat to aviation is very high. We have had classified briefings on this in fact, but we also see budget cuts to several TSA security programs. Second, the budget realized on a faulty assumption that an unauthorized increase of aviation security fees will be enacted to offset $530 million in budget authority. Third, this budget slashes FEMA preparedness grants by 30% and state and local training by 40%, while threats are more diverse than ever. AMERICAN PVERSIGHT CBP FOIA 007241 DHS-17-0435-Q-000005 Page 4227 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) And fourth, and equally troubling, the research and development is cut by 21% at a time when we need to be developing leap ahead technologies ahead of our adversaries. I don't think there is a briefing that I go to, whether it's this or whether it's military that don't talk about the fact that our adversaries are advancing quicker than we are. To cut this budget does not make any sense to me at all. Finally, on Border Security, we have all heard from the President, the wall, the wall, the wall -and frankly, I think we need a better strategy. One that is more cost effective, one that focuses on proven technology, one that includes metric and one that respects private property rights. I haven't seen such a plan, but I guarantee you, I am going to continue to press for one. We can't spend billions of dollars on a wall at the expense of local law enforcement, firefighters and airport security. And I am not convinced that the President's budget makes the investments needed to keep America safe. It is critical that the Appropriations Committee take the appropriate time to work diligently and pass a budget that strengthens our national security and secures our borders. I know the Chairman has a commitment to that. When I voted for your confirmation, Mr. Secretary, and I would do it again today, I said, you are one of the adults in the room that I am dependent on to make good decisions for this country's security. I still believe that. Thank you for being here and I look forward to this hearing. BOOZMAN: Thank you, Senator Tester. Chairman Cochran. COCHRAN: Mr. Chairman, thank you very much for chairing the hearing. We appreciate your leadership and we welcome the Secretary and we wish you all the best. We want to know what the priorities are for funding. We don't have enough money to do everything for everybody and I have a request to make of the funding when I was in this Committee. Thank you for being here. We are anxious to hear your comments that appropriate levels of funding and the priorities that we need, considering the writing of this appropriations bill. Thank you. BOOZMAN: Thank you, Mr. Chairman. Vice Chairman, Leahy. LEAHY: Well, thank you, Mr. Chairman and Ranking Member Tester and Chairman Cochran for the opportunity and a couple of brief opening remarks. Secretary Kelly, thank you for being here today. There are many issues to discuss, not the least of which is the topic of today's hearing, the budgets -- the President's budget proposal which was just delivered to us on Tuesday including his plans for the Department of Homeland Security. Now, Secretary Kelly, I have known you a long time and in my view, I knew you when you were in the Marine Corps, so I hope -- I know that marines were expected to speak frankly. I think this budget proposal can be summed up pretty quickly as dismal. I am not surprised that the budget before has proposed billions of taxpayers' dollars to build a misguided wall on the Southern border and to fund the President's deportation force. AMERICAN PVERSIGHT CBP FOIA 007242 DHS-17-0435-Q-000006 Page 4228 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) Executive Orders mandating these things are among the first things that President Trump did when he took office. Authorities may have fulfilled a promise in the campaign, but neither is going to do much to enhance our national security or our homeland security. More efforts to comprehensively address the concerns, the valid concerns for the immigration system instead of focusing on real threats. The Administration sought to demonize immigrants, demonize those of certain religions, drive them into the shadows, isolate our country, alienate our trading partners to the north and south and throw taxpayer money had a problem. It requires a serious and meaningful and realistic and practical solution. I am sure you came here today prepared to talk about the Southern border. I hope you are prepared to talk about the needs along the northern border as well, for most of the border state. I live an hour's drive from Canada. Our largest trading partner is Canada. Our communities thrive on economic infusion we get from Canadians coming to Vermont to ski, to swim, to explore our great Lake Champagne and to do business involved in numerous manufacturing jobs in Vermont. But Vermont is taking a hit because of the President's action. Our economy is weakened by his action. Fewer people want to come visit and spend money in our state. I hear story after story of problems crossing our border, which I mentioned is only an hour from my home. The kind of delays they are having, delays they cannot understand and for all this, we are not more secure. Meanwhile, the Trump budget cuts billions of dollars from food and nutrition systems, medical research and affordable housing programs, heating assistance, victim and support programs, legal services, education programs; slashes foreign assistance, assistance that Defense Secretary Mattis has said is critical to our national security. Now, the President may claim this budget advances the security of the American people, in reality, it makes millions of Americans less secure in their daily lives. Sir, I said, I have known you a long time, I supported your nomination. But this budget, this budget is really a disservice to the American people and as Vice Chairman of this committee, I am going to work with Republicans and Democrats to put together a budget that puts Americans -- puts Americans first and Mr. Chairman, I thank you for the opportunity. BOOZMAN: Thank you, Senator Leahy. Let's go ahead and go then to our questioning phase and Mr. Secretary, while it may be too early to declare a victory, it is worth noting that the posture you have taken at the at the Department has resulted in the lowest rate of illegal border crossings we have ever seen. The changes being remarkable -- I am sorry, we need your testimony first. So let's go to the testimony. As you can see, we are anxious to get out of the blocks. We have got lots of questions, but again, we need to hear from you first. Thank you. AMERICAN PVERSIGHT CBP FOIA 007243 DHS-17-0435-Q-000007 Page 4229 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) KELLY: Yes, Senator and Chairman Boozman and Ranking Member Tester, and all the distinguished Members of the Committee and Subcommittee, it is a pleasure to be here to answer questions, but most importantly, in my mind to represent the men and women of the Department of Homeland Security. I believe as I know you do that the role of government first and first foremost is to secure its people. The security of the homeland is one of prosperity where legal trade and travel add to our national economy. Where legal trade -- a secure homeland is one of freedom where American citizens can go about their lives without fear and a secure homeland is one of laws which we enforce to keep our communities safe. And so it is a great honor and privilege to appear before you today to discuss the men and women of the Department of Homeland Security and the critical missions of they carry out every day in service to the nation. On a sad note, and one that makes the point tragically, just last night, we have lost one of our CBP officers down in Texas in El Paso stabbed repeatedly in the face by a cartel member that he identified himself to and he lost his life. The President's Fiscal Year 2018 budget request for the Department of Homeland Security is never enough, but I think is sufficient to allow me and the men and women to do our jobs. We know that the threats are out there. We know that our aviation transportation system in particular is a top prize in the eyes of terrorist organizations. We know the transnational criminal organizations are bringing drugs across the borders in massive amounts by land and sea and air. We know that our nation's cyber systems are under constant attack. We know that natural disasters devastate American hometowns. We also know that DHS is up to the job of protecting the United States against all of these threats and many, many more. Just last week, the Coast Guard cutter Hamilton offloaded more than 18 tons of cocaine that they had seized in international waters off the Pacific Ocean. That's roughly the weight of nine cars and is worth an estimated half a billion dollars. The week before that, May 8th through May 14th, TSA discovered 76 firearms in passengers seeking to board an aircraft -- loaded firearms. In six weeks, ICE arrested more than 1,300 gang members in a nationwide gang enforcement operation. We are making a difference. We are making our nation more secure, but we need a fully funded budget that matches our mission without continuing resolutions and I think this budget approaches that. The President's FY2018 budget request of $44.1 billion in net discretionary funding for the Department of Homeland Security, and it also requests $7.4 billion to finance the cost of emergencies and major disasters and FEMA's Disaster Relief Fund. AMERICAN PVERSIGHT CBP FOIA 007244 DHS-17-0435-Q-000008 Page 4230 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) When you are talking about numbers like that, it's easy to lose sight of what is behind each and every dollar, but when you get right down to it, behind each and every dollar are hard-working men and women who have dedicated their careers to protecting the American people. They are taking dangerous criminals off of our streets, they are keeping terrorists out of our country and drugs off of our streets. They are investigating crimes with international implications. They are making sure passengers get to their destinations safely. They are responding to devastated communities in the wake of natural disasters. They are patrolling and maintaining our nation's waterways -- waterways that support $4.5 trillion in economic activity every year. Every dollar invested in the men and women of DHS and every dollar invested in the tools, the infrastructure, equipment, and training they need to get the job done is an investment in prosperity, freedom and the rule of law. It is an investment in the security of the American people. There is no greater responsibility as I have mentioned in a time of no greater need. I would be remiss if I did not mention the terrorist attack in Manchester as you did. Our friends in the U.K. suffered a terrible loss. Their enemy is our enemy. U.S. government continues to work furiously with the British, the FBI, the intelligence community, DHS and others who assist their investigation in any way we can. For my part, I immediately called the Home Secretary, offered our nation's condolences and asked if there was any help we could -- that they were not getting from the United States. I want to assure you that as this enemy is evolving, becoming more reprehensible even targeting children, DHS is working every day to meet the threats. I appreciate the opportunity to appear here before you today. I thank you for your continued support. I remain committed to working with Congress in protecting the American people and so I stand by to answer any questions. BOOZMAN: Thank you, Mr. Secretary and we appreciate your testimony very, very much -this and your written testimony. While it may be early -- to early to declare a victory, it is worth noting that the posture you have taken as a Department along with the hard work of the men and women of the agency has resulted in the lowest rate of illegal border crossings that we have ever seen. The change has been remarkable. Your budget request increases funds for Customs and Border Protection to secure the Southwest land border, but your entire Department is tasked with keeping bad people and bad things out of the United States. And the question I had -- is it correct to think of what is being referred to as the wall, as an entire border security that includes people, technology and physical barriers intended to control who and what comes in to the United States? KELLY: I'm sorry, Chairman, I missed the part of the question. AMERICAN PVERSIGHT CBP FOIA 007245 DHS-17-0435-Q-000009 Page 4231 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) BOOZMAN: Well, again, the wall of which we hear, you know, constantly referred to -- is it correct that this security system is part of the entire, you know, apparatus that includes people, technology, physical barriers to control who and what comes in the United States? KELLY: Yes, sir. As I am sure the Senator knows, the Committee knows that right now, we have about 650 miles of the border covered with some type of physical barrier. Where there is physical barrier, where it makes sense, it really does work. The first thing I did and I continue to do on this topic and many others is to talk to the people that actually execute the policy down on the border. So immediately after taking office, I visited the Texas border, the Arizona border. I have been back down a couple of times to visit additional border sites. I have spoken to Mayors, big city Mayors or mayors down along the border. Obviously, the police officers, local law enforcement as well as the -- my people, CBP -Customs and Border Protection. They all believe that physical barriers in certain places would really enhance the security mission that they do every day. So we have 650 miles of some type of barrier there now. We want to improve on that. I am already asking, as I say the CBP professionals where do you want wall right away? In some cases, they say, "Sir, the part of the border that I patrol, we don't see much need for a wall in this region." And in other places, they are very precise. They say, "Sir, if you can give me like 13 more miles of wall, or 26 more miles of wall..." When I say wall, physical barrier. So they know what they want and I want to support them. In South Texas as an example, down in the southern Rio Grande Valley, a wall-wall concrete structure makes sense because actually, there are walls there now and it reinforces the levy system in that region. There are other parts of the border, where we already have what is called bollard fencing that are up. It's a -- picture a big metal fence, kind of picket fence. The member of CBP generally speaking wanting to be able to see through this structure, whatever it is for two reasons. That they see people congregating on the other side or movement on the other side, by the same token, people on the other side can see them and they are deterred from trying to get into the country. So we are looking at it. I think the Committee knows that we have -- we are working with construction proposals right now to decide what works best and as I say, in some places, it may be a concrete structure, in other places, a metal barrier -- the fencing type structure. We are looking at that. And then throughout all of that of course, we need the professional CBP working in the border whether there is a wall there, a structure there or not, and then technology plays in this as well. So the whole structure or the whole issue of border protection in my view does in fact require a physical barrier where it makes sense. Certainly, technology where we can employ it and then finally, backed up by the patrols, by the great men and women of CBP and the rest of DHS. AMERICAN PVERSIGHT CBP FOIA 007246 DHS-17-0435-Q-000010 Page 4232 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) BOOZMAN: Very good. Thank you. Mr. Secretary, the recently enacted Appropriations Bill requires that you provide a comprehensive plan to Congress that details exactly how we intend to secure the Southwest land border and you talked about a little bit then, do you anticipate this plan will call for different solutions at different places. So as you mentioned, at some point, I guess what we would like to know is when we would receive that plan, we're very interested in actually seeing that on paper. I understand the concept. I think what you said, the Committee would agree with that we have got all of these things really including the personnel, whether it is research, cyber -- all of these things after done with securing the border, but at what point will we be able to actually see the plan? KELLY: As soon as I can complete it. I am not making any joke -- it's -- you know, 2,000 miles of border, you know, literally as I say, there are places where we need either technology, more people or physical barrier. There are places that the CBP tell me, "Sir, we need it right away." There are other places that we don't need it for you know, a year or two or three. So as we put that plan together, we will come up, brief it and I think you will be impressed. BOOZMAN: No, I think that's an excellent answer. Again, the fact that one size doesn't fit all as you look at the challenge. The Federal government's computer networks are under constant attack. We have worked with the Department to ensure that continued deployment of capabilities, continue continuous diagnostics and mitigation, but remain frustrated by the Department's inability to maintain a predictable schedule and to urge other agencies to chip in and adopt the technology. Are we making progress towards meeting phase three and embarking on phase four of the CDM program? Also, what is the Department doing to encourage other departments and agencies to assume more responsibility for the funding of CDM beyond the initial phases? KELLY: It's not moving fast enough. A hundred and twenty days in the job, it's a priority. Clearly, it's a priority for the President. One of the things that -- not that I needed the help because there is a new team, a fresh team in place that recognize the issues and the threats of -when I say a new team in place, everyone from -- well, all of the department heads, my fellow Cabinet members throughout the government. So they understand the threat. They understand the need for it, of course the President put out a cyber Executive Order, but we are pressing forward on that and I know you are frustrated. It is one of those things that we are working very hard to change. In fact, I would just mention, to try to change the -- we are changing the attitude within my Department towards this institution, that is the United States Congress, the one that was constant during my period of office calls and whatnot, in my confirmation process was my department, our Department was the worst for responding to Congressional inquiries and ledgers and things like that. I hired the best Congressional type liaison that I knew, that I know, they are in place now. We are leaning forward and I promise you that our response will be much better than it has been in the past. That's not to say that our predecessor was anything other than a great professional, but AMERICAN PVERSIGHT CBP FOIA 007247 DHS-17-0435-Q-000011 Page 4233 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) we do have a new attitude towards not only the Congress, but the press and we are trying our best to respond and frankly, just anecdotally, I have talked to a few senators, a few congressmen about it and they said, "You have actually gotten much better." Much better is nice to hear, but it's not enough for me, so... BOOZMAN: Well on behalf of the entire committee, I know that's encouraging and we appreciate you doing the very best that you can to get back in a timely manner. Senator Leahy? LEAHY: Thank you, Mr. Chairman and Secretary Kelly, I won't start off in discussions about building the wall asking if the check is in the mail from Mexico. But you can keep watching the mail, I don't think it's being sent by express mail. Now, on the campaign trail, President Trump promises support as a total and complete shutdown of Muslims entering the United States. And when he has taken office, he has twice tried to block individuals from six Muslim majority countries from entering country. I mention that not as a polemical thing, but the practical effect of it, it actually has an effect on Vermont's economy. See, we bordering Canada. One Vermonter recently wrote to me about the Toronto School District's ban on student trips to the United States because of what has been said about Muslims. And as this Vermonter writes, Vermont relies heavily on Canadian student destination trips as a driver of the more than $3 billion that the tourism sector generates within the state. This is a state of only 625,000 people, so the $3 billion is a big factor. Other Vermont inn keepers and resort operators, and restaurant owners have contacted me about the cancellations they have received from Canada. The President claims his blanket travel ban is necessary for our national security because individuals from certain countries pose too great a risk of terrorism. I have never felt terrorized and I have gone to Canada even with my limited French in the province of Quebec, my wife's relatives treat me with some respect -- is citizenship alone without any additional evidence a reliable indicator of the terrorist threat? KELLY: Citizenship alone, no sir. LEAHY: I asked then Director Comey this same question and he gave me the same answer. Your Department from the Office of Intelligence and Analysis concluded that citizenship is unlikely to be a reliable indicator of potential terrorist activity any more than it was in -- one of the biggest terrorist acts in the United States, the Oklahoma City bombing. Now, I also mentioned earlier about our border crossing, hardly a week goes by, sometimes, not a day goes by without a Vermonter or Vermont business let me know about long delays at Vermont's Highgate port of entry, these (weak) time are impacting not just tourism but business very substantially. And I know that since 2009's CBP in Vermont has lost 25% of its staff in ports of entry. I know many of the people who work there, the (present) men and women, it makes it harder to do their job. And then they have long lines on top of that with travelers who are so used to going back and forth between Vermont and Canada or upstate New York and Canada. They can get pretty angry. That doesn't help with the whole thing. AMERICAN PVERSIGHT CBP FOIA 007248 DHS-17-0435-Q-000012 Page 4234 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) So I have been asking since the beginning of April, I have been asking CBP to brief my staff about how they plan to improve the situation at Highgates, I haven't been able to get a response, but finally this week, probably they knew I might ask that question to you here, they scheduled a briefing in June. I want to know, will you look at this problem at our port of entry and will you see if there is some way to address it so we don't have these delays, which actually almost seem insulting to our friendly neighbor. KELLY: Absolutely, sir. And let me say, I apologize for that and I will have someone over here this afternoon to brief your staff on this topic and I know Ben Cassidy right now is texting someone over CBP to do just that, so you will have someone over here this afternoon. LEAHY: And you know how the amount of respect I have for Coronel Cassidy, so I will look forward to that. I think we need more officers on our Northern border. We always address the Southern border and I understand the reason for that. I am not disparaging that, but the Northern border for example Canadians use a camera system to process the NEXUS lane as opposed to a staff -- booth. Have we even considered something like this in the U.S. inbound NEXUS lane using a camera system rather than -- when we are shorthanded anyway having it manned? KELLY: Yes, sir. We will are looking at all -- I mean, there's a whole series of things we are looking at, technology-wise, facial recognition technology and that kind of thing. We are already working inside Canada to preapprove vehicles. I mean, they are really hitting it very, very hard. I was just -- I had been to Canada since I have been in the job, I was on the border. The good news is, our border with Canada is the -- to use their term -- the finest in the world, meaning, it is about as open as it can be. Now, it's not totally open obviously, but at the ports of entry trying very, very, very hard to improve as I think the Senator would agree as over the years, as commerce has increased with Canada, we are probably not far and not up front on this kind of measures to speed up the passage. One of the things, certainly the President told me when I took this job, the one point -- you know, a number of discussion points about the borders and what I should do and what I should perhaps not do, but one of the things he said, "We have to not impede the normal legal, human and things traffic, vehicular traffic through the border. If anything, we should speed it up." So I have got that border -- if we -- when we get a Commissioner approved that will be his number one task for me to look at the ports of entry and do the best he can, the best we can to improve the efficiency and the movement working with both Canada, Mexico and I should say, my time is up, but what I should say is that my relationship with the Canadian -- my counterparts in Canada and in Mexico, just couldn't be better and are getting better every day. So regardless of what you might hear back and forth at the higher levels than me, we are working shoulder to shoulder with our Canadian brothers and sisters and Mexicans as well, not only on the movement of commerce, immigration, but also just other aspects of border security. It is an amazing amount of collaboration. AMERICAN PVERSIGHT CBP FOIA 007249 DHS-17-0435-Q-000013 Page 4235 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) LEAHY: You know, from your own career, in a number of countries they have to fear militarily and all, countries on their borders. We are fortunate to have countries on both our borders where we have open commerce, families and everything else. I don't want to change that and I will submit the rest of my questions for the record, but I also want to talk to you at some point about the so-called Sanctuary Cities. I don't want to cut law enforcement in these cities to make a political point because in the long run, we are all going to suffer. KELLY: Neither do I, sir. LEAHY: Thank you. Thank you, Mr. Chairman. BOOZMAN: Thank you, Senator. Chairman, Cochran. COCHRAN: Mr. Chairman, thank you. I join you in welcoming and expressing our appreciation to the witness who is helping figuring out the appropriate funding levels for the activities under the jurisdiction of the U.S. Army Engineering Research and Development Center in Vicksburg, Mississippi. We have supported research requirements for the Department over the years at that site and most notably, there have been successes in new developments of technologies, in critical infrastructure and protection for our guards, for all Federal laboratories and research centers that contribute to our knowledge of how to do a better job of assuring our safety and security. I want to ask you the response you have about this question that the facility in Vicksburg which covers the entire nation in terms of producing solutions that face us in our ever changing threats to our national security. Will these resources continue to be actively utilized? KELLY: Sir, in our quest to stay out in front of the threats whether it is, you know, a government run lab financed or the civilian industry, whether it's a defense industry, a technology industry, techno industry, we are in a never ending quest to buy the right kind of equipment or get the right kind of capability to protect the nation. So, I am not familiar with the lab, but we will certainly get some answers on that, I can get back to you with an answer in more detail. But again, we are -- every good idea in my mind is a -every idea is a good idea until we prove it to not be useful. It is a constant quest. I have an S&T -Science and Technology Section within that that is just world class and they are in contact with every conceivable lab and industry and when we say we need something as an example, we are looking for kind of the technology of the next in terms of aviation safety and they are already beating the bushes worldwide to look for the kind of technology. So we are very open to good ideas from any source. COCHRAN: We appreciate very much your leadership in the research effort and we commend you and those who work with you for helping make sure we have what we need in order to make our nation safe and secure. Thank you. KELLY: Thank you, sir. BOOZMAN: Thank you, Mr. Chairman. Senator Lankford? AMERICAN PVERSIGHT CBP FOIA 007250 DHS-17-0435-Q-000014 Page 4236 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) LANKFORD: Thank you. Secretary Kelly, good to see you again. I am glad that you are here. I would ask from our Committee and from my family that you continue to express the condolences to Agent Morales and his family. That is heartbreaking for all of us to be able to see that kind of news and it is difficult for your entire team. It has reminded me yet again though, this week, as I have gone through just the hearings this week how many times your Department has been a lead player in a lot of the conversations in these conversations that I have had this week on the Hill. Whether that be MS13 gangs and the movement of those gangs from Central America across all of the United States and what is happening, Fentanyl coming in to the United States and your Customs and Border Patrol folks trying to interdict that in the mail as it comes from China. Cyber issues as DHS is engaging with cyber protection for all of our U.S. government systems or whether that be immigration. You have people in the frontlines of just about every major issue we are facing as a nation right now. So I thank you for the work that you are doing and for the encouragement that you can put on those men and women who are doing that. Let me ask you a whole series of questions, I am going to run through as many as I can as we have time for. I mentioned the cyber issues and the cyber protection. DHS has a responsibility for U.S. government systems and computers, tell me what the conversation is right now and the planning for looking at supply chain, software, hardware and the planning for keeping all of our government systems safe? KELLY: Senator, thanks for the condolence comment. It means a lot to the work force and you are right, they are heroes. Relative to cyber -- you know, the threats is constant as you know, I don't need to go into all of that, but we need to up our game. You know, the ransom ware attack that the world suffered a little over a week ago, what was really impressive to me when you say that we play across a spectrum of threats, what was really impressive to me in all of the high level meetings I was at at the White House on this topic as we watched that threat go across the world into Asia, millions of infected systems, how almost every part of every conversation ended with, "DHS is in the lead. DHS has got this." You know, there is NSA and FBI-- I mean, there is a lot of tremendous defensive organizations within our government, but on that particular point the fact that millions I believe of systems were infected around the world and it barely got into the United States. A handful of individual computers and that was a direct result not just DHS, but to a large degree, DHS in how that was detected initially, how we, working with our partners outside of the U.S. government as well as inside, pretty impressive. As far as U.S. government goes, we have to up our game. LANKFORD: We did. KELLY: We have a lot of -- you know, there is an EO from the President holding everyone accountable. I would say this, inside of this administration, I have not heard more discussion on anything else than cyber so people have got it, Senator. AMERICAN PVERSIGHT CBP FOIA 007251 DHS-17-0435-Q-000015 Page 4237 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) LANKFORD: We want to be able to work with you on that. The concern is, it is that of the many things that you are doing and it is quite a bit, to be able to protect the nation, that it is easy for that to get destructive because it is complex and expensive, quite frankly. But for someone who has the point on all of our systems across all of government, it is exceptionally important to us to be able to stay on that on our supply chain in how we are managing software and hardware on it. Give me the status of the funding that has already been given to your agency on border wall? There is a request pending for a larger segment, but this past session, there was a request made for repairs on existing walls, and that's 650 miles of walls, new gates and some other things that need to be done. What is the status of that and the use of funds? KELLY: Well on the repair of the fence, 650 miles generally speaking it is all fencing and it does work and it is exactly where it needs to be that is why it works. It is effective. We want to repair that, it had been done along that part of the border a couple of times now and the officers again rely on that fencing and there are places where we need to fix it, some places have been washed away, other places have been cut and repaired so many times that you know, it's kind of failing. So we will spend the initial money that we received now three weeks ago in doing that. As far as the request that is in this budget, to start looking at putting in a limited number of miles. I think you will hear from my comments about we are looking where we have got a competition out there to decide what exactly we are looking for -- wall, bollard fence and everything in between. LANKFORD: That's fine. And the issue of the future construction of these things obviously is pending on good maintenance of what we are doing right now. KELLY: Exactly right. LANKFORD: We have got to be able to maintain what we already have with that 650 miles and I think, we can continue to be able to expand out from there. So I think that was Congress's initial statement of while we are working on the details for the future, let's at least repair what we have and make sure that it is in good working order. Where are we in the conversations on the hiring process? This has been one of the great challenges for our Customs and Border Patrol in particular that we are well over 400 days for the hiring process, what's the conversation right now? KELLY: We have reduced the number and it is astounding to me that it takes 400... LANKFORD: It's astounding to us. KELLY: Unbelievable. I think we have got that down by you know, two-thirds now, where we expect to have it down by two-thirds. We are looking at some of the issues. We are not going to lower the quality of the officer or the individual that we take in whether it is ICE, Border Patrol, Secret Service, it doesn't matter. And we will not skimp on their training. That consequently we will grow the force as fast as we can grow it, but not skimp on quality in training, but we have the hiring and I will have get back to you specifically, but I know it is down significantly than the observed 400 days. AMERICAN PVERSIGHT CBP FOIA 007252 DHS-17-0435-Q-000016 Page 4238 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) LANKFORD: Right and we just passed out of a different Committee on the Homeland Security issue trying to get permission for DHS to be able to hire individuals into those roles that already have background checks compliance coming straight out of the U.S. Military or out of law enforcement that are in good standing to have an expedited process which we think is a very reasonable proposal on that. You and I have spoken before about the REAL ID, which is clearly something you inherited from decades back to able to watch and monitor. There are several states including mine that are waiting on information that is due to us before January 6th. We have a temporary extension that expires at that point and everyone kind of leans forward as we are getting closer and closer to January 6th to try to see when that notification will come out. Do you have any idea when notifications will come out for those affected states? KELLY: It is only a small number of states now that are... LANKFORD: Right, I happen to be one. KELLY: Yes, sir. I know -- that are lagging behind. We are in contact in some cases, I am personally in contact with the mayors, particularly those states that are frankly likely not going to be able to pull it off in my -- in a couple of cases now, I have offered to the Governors rather, to send out members of my team to help them evaluate where they are and where they need to go. So we have done that. Where a state can get to the point where they can accomplish the REAL ID requirement, extensions would come. LANKFORD: Our state is one of those states that there was a pending piece of legislation to be done, that piece of legislation was completed in February, but we still have not received our extension yet, so as far as we can tell, what we needed to be done has been done for several months but we are still waiting on answers and that time is coming very, very close. KELLY: I am on it. LANKFORD: That would be terrific. Thank you. Thank you, Mr. Chairman. BOOZMAN: Thank you, Senator Lankford. Senator Manchin? MANCHIN: Thank you, Mr. Chairman and Secretary General, let me just say that on behalf of myself and many of my colleagues, I am here tell you that we are so proud that you have agreed to serve in this position makes us all feel a lot better, so we are very proud in every one of your co-workers that work with you, not for you, but with you and I understand that a good leader has people with him and not for him. I appreciate all that hard work. I want to go just a couple of questions on the guts of the organization. Your organization, the CBP, is the second largest revenue collection agency next to the Internal Revenue Service. A lot of people don't understand that. But it troubles me because our retrospective duty collection system, we are the only country that does it retrospectively and AMERICAN PVERSIGHT CBP FOIA 007253 DHS-17-0435-Q-000017 Page 4239 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) what that means, we do not require importers to pay a calculated dumping duty at the time that the merchandise is imported into United States. Instead, after importation, the importer can request a review to determine the exact amount of duties to collect based on a level of dumping that occurred during a previous review period. In fact, we're the only major user of anti-dumping countervailing duty trade remedies that processes duty payments in this manner. Most countries collect duties at the time of import. Unfortunately, once the International Trade Commission and the Department of Commerce assesses the final duty and inform the proper -- and inform the importer, they will now have to pay back these duties, many of those importers simply disappear without paying. So the lack of collection, because of our inadequate system, we don't know how much money we are losing. And I don't know if that has been brought to your attention at this level, but I would sure hope that you would look into this sir, because we think there is an awful lot of revenue left on the table -- a lot of revenue. KELLY: Senator, I appreciate you bringing that up. I will look into it right away. MANCHIN: We found out that there is currently $2.6 billion in uncollected anti-dumping duties, $2.6 billion. Now, you know, we all kind of look at that fund, we all use it from time to time, which I know doesn't make your agencies real happy, but we like to make sure you have enough to do your job too. That's -- I just want to bring that to your attention, sir. It is so serious. KELLY: Appreciated. MANCHIN: And we would be happy to tell you what we found for your people here and work with you very closely. KELLY: Absolutely, sir. MANCHIN: Okay. Border security, I know everybody is talking about the wall. I like to know your assessment and your evaluation because of your former position, if Mexico was able to build a Southern wall on their Southern border, their Southern border, the threat of all of the gangs that come up through, of all the dumping that we get, all the drug trade and all of the other trade, if we were able to stop it, Mexico was able to build their wall and have tighter border controls on the Southern border, would that be effective? How helpful would that be? KELLY: Senator, it would be effective and I have to really give a shout out to Mexico and I can't emphasize enough the relationship that my Department has generally -- and I have personally with the military in upper -- actually, the ministers within the government of Mexico to include some time with the President of Mexico, I can't give enough credit to the men and women that we work with and how hard they work. So in the Southern border, when I was at the Southern Command, working with their military under the radar, quietly for a lot of different reasons, we helped them take a look see at their Southern border which of course is very narrow. A couple of hundred miles across. AMERICAN PVERSIGHT CBP FOIA 007254 DHS-17-0435-Q-000018 Page 4240 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) MANCHIN: Yes, it will be very easy for them. Fulfill some promises made here. KELLY: They have established actually a -- what they call the Southern Border strategy and last year, they stopped 160,000 migrants and turned them back humanely, processed them and turned them back. They have much different immigration laws than we do. MANCHIN: They might be more receptive to building a wall. KELLY: I think now, I think now they are looking even harder at their Southern border. The other thing we have done, Senator, is working with the government's -- particularly the Northern tier countries -- Guatemala, El Salvador and Honduras with -- I have a great relationship encouraging people not to come and what Mexico is doing, the illegal crossings right now are down 70% than what they were 120 days ago. MANCHIN: Well, Mexico is keen with this thing right now. They really do their job, they want to do it well. They have a smaller border they can control them a lot better. KELLY: Drugs are a different story. I mean, the amount of drugs -- the amount of drug money that is generated because of our demand in the United States is virtually unlimited. Unlimited to a degree that there is so much money available to either pay off officials in every country, to include our own, to pay off officials or simply have them murdered, or have their daughters murdered or their kids murdered. It is amazing. So there is a corruption problem throughout people or an intimidation problem. Again, it's directly due to our drug consumption in this country. We need to get our arms around that, if for no other reason... MANCHIN: My belief is, if we shut that Southern border down in Mexico between the United States and the Mexican government, we could have a better chance of controlling drugs... KELLY: Much better... MANCHIN: The drugs that come out of Mexico by itself. KELLY: But demand, sir is... MANCHIN: I know. KELLY: ... hugely important. MANCHIN: That's a shame. I think where Senator Lankford was saying is what I want to talk to you about, we had an open session with the Intel Committee so everything I am talking about is open source and I asked the question during our Worldwide Threats Evaluation, we had the FBI, NSA, DNI and CIA -- had all of our major -- your major co-workers and colleagues, and we asked the question about Kaspersky Labs. Kaspersky Labs -- this is an open source, do you know if you have Kaspersky Labs software in your system? AMERICAN PVERSIGHT CBP FOIA 007255 DHS-17-0435-Q-000019 Page 4241 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) KELLY: I believe, we do. MANCHIN: And do you know if -- I would like to get a report on this from you all, General, we have great concerns about. Thank you. As you know, this has been noted and also, if you would even go one step further with Kaspersky, could you find out if any of your contractors that you rely on is using the Kaspersky's software? KELLY: Absolutely. MANCHIN: With that being said, I have one other one -- the JITEC which is a Joint Interagency Training Education Center in West Virginia, I think you know about Camp Dawson, you know what we do there. You have been there in your former command, it's a tremendous chance for us to be able to train. Tragic events in Manchester, National Guard training is something we rely on. As a former governor, that's our first line of defense as you know and we would hope that you will look at Homeland Security for that type of facility training, it's already there. It is cost effective. It would be very inexpensive. It is very close to the Capitol as you know, the nation's capital here. So we want you know that we are able, ready and willing to help in any way possible. KELLY: We will take a look at that, Senator. MANCHIN: Thank you, General. KELLY: Promise. MANCHIN: Thank you, Mr. Chairman. BOOZMAN: Thank you, Senator Manchin. Senator Kennedy. KENNEDY: Thank you, Mr. Chairman. Mr. Secretary, thank you for being with us. Thanks for your service both -- before or currently, and before you became a Secretary. I wanted to talk to you for a second about Sanctuary Cities. Every country that I am aware of has immigration laws and respects its border. We spend billions of dollars every year, so taxpayer money, trying to respect our borders. We are a nation of immigrants, but we are also a nation of laws. But if you get across our border illegally and make it to certain cities in America, you can relax a little bit because the mayors don't want to enforce Federal law. And I know many of them have good lawyers and they can explain why they are not doing what -- why what they are doing is not a violation of the law in their opinion, but it's an attitude as much as anything else. We have that issue in Louisiana with New Orleans as you know and our mayor has said publicly several times, he is a friend of mine, but I refuse -- I am quoting now, "I refuse to be a part of Trump's deportation force." AMERICAN PVERSIGHT CBP FOIA 007256 DHS-17-0435-Q-000020 Page 4242 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) And this is America. You can believe what you want, but you can't choose which Federal laws you want to comply with. What are we doing about the Sanctuary City issue? KELLY: Sir, pretty contentious to say the least, I would start off by saying in the hundred and twenty days that I have been the job, I have met -- every time I travel, Boston now in New York, Chicago, San Diego -- every time I travel, I will always meet with the mayor of the big city and the senior police officials and that includes when I go to smaller cities as well. I have also interacted with the organizations here in Washington, you know, National Sheriffs Association, hundreds of sheriffs come in, Big City Police Chiefs Association, they all to a man and a woman, want to cooperate with the Federal government in terms of removing criminals from their municipalities. The best way to do this is for us to have access to their jails and prisons so when an individual who is an illegal immigrant is ready to be released, we simply take them off their hands. It's inconceivable to me why any public official would not want to do this. We, for free, take them off their hands and send them away. Yet, the Sanctuary Cities are not doing that with us and the police officials, to a man and to a woman, are you know, they don't know... KENNEDY: Is New Orleans cooperating with you? KELLY: Yes. In a way that they have managed to work out a relationship with Homeland Security, so it is still going on. KENNEDY: I don't understand what that means. KELLY: Well, they will call us and give us a notification when someone is about to be released and we will send a team there. Sometime -- there is a limit to how long they can hold people, but yes, we are working with them. What is not happening in places like that is when it's not happening -- when we don't have access to jails and things like that, then we have to go into the communities to focus our attention on illegal aliens, which is dangerous for my officers and just as dangerous for the local communities. The best way to do this is in the jails and Sanctuary Cities tend not to allow us to set up shop, if you will, in the jail. We pay for it or if they don't want to let us into the jail permanently, we will train at our expense their officers so that when someone comes in, they can do the paperwork and get the -- call us and we will come pick them up. I don't understand why these so called Sanctuary Cities don't want to do it. In many cases, Senator, the mayors are claiming to their citizenry about it, but actually, they are not doing anything. In fact, more often than not, I will take to the mayors and say, "Well, look, this is what I want to continue doing with you. Are you good with that?" And if it is a successful conversation, they will say, "Sure," and that's a good relationship, but then they will still talk about the Sanctuary Cities thing. AMERICAN PVERSIGHT CBP FOIA 007257 DHS-17-0435-Q-000021 Page 4243 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) Frankly, I don't really know what it means. I don't think anyone out there knows what it means, but in my case, I do not want to cut the tremendous relationship my Department has with law enforcement. So we will do quietly. We will do publicly, anyway they want, but it is insane to me why any public official would not want to cooperate with us to take dangerous criminals off the streets and out of their municipalities. KENNEDY: I want to ask you about Mr. Secretary, the Jones Act, which I know you are familiar with. It's pretty simple. It's a statute passed by Congress. It says that if your ship or an owner of a ship and you want to move goods from point A to point B in America that ship has got to be built in the United States. It has got to be U.S. flagged. It has got to be U.S. crewed. And the way I read the statute in the case law is, there is no discretion. I mean that's the test. And the ship either passes the test or not. Now, I'd like to get your thoughts about the Jones Act? KELLY: The -- probably the first thing I was briefed on with the Jones Act when I took this job, so call that three months ago. The way it was briefed to me in short was the issue of supporting the oil and gas industry in whether it was U.S. flagged or not U.S. flagged, the way it was briefed to me, Senator by lawyers, it's not clear, you know, we're working on this. It is not clear exactly what the law says. I think it is a 1920 law and so, the way I was briefed was we could either use foreign flag or any flag or just American flag or we really, in the option three, and it wasn't to kick this thing down the road option, it raises what we really want to do is study this thing and come up with a comprehensive solution. My only question is -- it always is -- okay, what's good for America? I don't care about -frankly, I don't care about the industry and all of that, what's good for America? We don't know what is good for America. Let us study this. So this came up in my hearing on the House side yesterday. I went back. It was briefed to me that it was clearer than what apparently it is, so I went back to my folks yesterday afternoon and you know, said, get some definitive understanding of this. I will go back to drawing boards, if we are in violation of the law, obviously, we will change that. But in the meantime, we do want to study this and come out with the right answer for America, so I guess, in short, I am on it, Senator. I appreciate you raising it. KENNEDY: And I do, Mr. Secretary appreciate your careful approach. Just don't let your folks study it forever. KELLY: No, I get it. Yes, sir. KENNEDY: Thank you, Mr. Chairman. BOOZMAN: Thank you, Senator Kennedy. Senator Shaheen. SHAHEEN: Thank you, Mr. Chairman and thank you, Secretary Kelly for your service and let me begin by expressing my condolences to everyone at the Department particularly at CBP for the agent who was a killed. That is a reminder that protecting our borders like our other law enforcement positions in this country is a dangerous job. AMERICAN PVERSIGHT CBP FOIA 007258 DHS-17-0435-Q-000022 Page 4244 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) KELLY: Thank you, ma'am. SHAHEEN: You know, I know like the rest of America and the world, really, we have watched with horror at the events that happened in Manchester, England earlier this week and the -- as someone said yesterday in a hearing, it raises terrorism to a new level when they deliberately target young people. Given those events, given what we know, terrorist groups have said about the taking the fight from the caliphate in the Middle East out to the rest of the world. I am very concerned about what I see in this budget that would dramatically cut preparedness grants for local states and local communities. I was Governor on 9/11, I can tell you that the support that we got from the Federal government to help us be better prepared to fight terrorist attacks was absolutely significant and we could not have replaced that in any other way. I was also very disappointed to see the -- what appears to be a zeroing out of the countering violent extremism section of your budget, I know that that was just getting started and I had heard some reports that it was becoming more effective as it tried to address what is happening in terms of radicalization of Americans, some young Americans. So I just want to express my concerns about both of those items in the budget because I do think that is a significant challenge for us as we try and address potential terrorist attacks and other terrorist threats in the United States. I do want to ask you about the heroin and opioid epidemic that we are experiencing. In New Hampshire, we have the second highest overdose rate, death rate in the country. We are ground zero when it comes to this epidemic and while I know there are a lot of aspects of it and we are working very hard on treatment, recovery, prevention, interdiction, this is an area where CBP has been very important and I wonder if you could talk a little bit about what the CBP and the Coast Guard are doing to help us address the epidemic that we are experiencing throughout the country. KELLY: I would start by saying that and I am putting some energy behind this even though it is not my job about the issue of demand reduction. So let me start with that. If we -- we have a very, very casual approach to drugs in the United States -- legal and illegal -- yes, we are the most overly medicated society on the planet. SHAHEEN: Absolutely. KELLY: When I was a kid and had my wisdom tooth out, they suggested I take aspirin if it hurts. Now, you will go home with OxyContin. A lot of reasons for that, but we are so overly medicated and that's part of the opiate problem today, but we have never had a drug demand reduction comprehensive program where the President leads it and Congress is behind it and National Football League is behind it and sports figures and Hollywood like we have say tobacco reduction, like we have for drunken driving and that kind of thing. So it's really all about demand reduction, first issue. AMERICAN PVERSIGHT CBP FOIA 007259 DHS-17-0435-Q-000023 Page 4245 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) Second, of course, those that do get addicted, we need to help them in terms of you know, rehabilitation or whatever, which the rehabilitation industry, I will tell you, the best way to get totally clean from drugs is to never start. So that's one aspect of it. The specific question, if we are trying to keep drugs out of our country, on the Southwest border, we have already lost. I mentioned before, I don't think you were here that a Coast Guard cutter that just completed its run down in the Western Pacific took off 18 tons of cocaine. That's the place to get it. We have a -- my view of Southwest border begins in terms of strategy begins 1,500 miles south, it begins first of all with the relationships we have with all of those countries with the exception of maybe Venezuela, less so -- we have not had a bad relationship with Nicaragua, but the partnerships down there to stop illegal migration is an example, the movement of people for whatever purposes into our country. The amazing efforts that countries like Colombia put behind reducing the production of cocaine in their case and Peru is right along with them. Right up the isthmus, the relationships we have with countries that are working shoulder to shoulder and I have ICE people, HIS, Homeland Security Investigation people, as well as CVP people in almost every capital in the world. So we are working at well south of the Texas-Mexican border. All of the heroin -- or 90-plus percent of it comes -- that we consume comes from Mexico. It is grown there, primarily in Mexico. The Mexican government is after it, but they are overwhelmed by the problem. We are working with them on it. We can identify the fields, tell them where to go and they are very, very cooperative. So my point is, the real issue is to get at this problem where it is produced, the number one issue is the demand is to get it where it is produced. Again, on the high seas, the Coast Guard will pick up no less than a ton at a time. The Colombians got 450 tons last year before it ever left Colombia. Once it gets to the Southwest border where -- at one of our ports of entry, we are lucky, 10 kilos, so a ton at a time, by the time it gets to the Southwest border, we might get it, you know, kind of 10 kilos at a time. But they are doing work. They are doing tremendous things. We are looking at ways to search as an example, more vehicles coming through the border. That's a balance though because the more vehicles you search, the longer the lines. But it's a very comprehensive problem. As far as DHS is concerned, we are hitting it pretty hard with relationships, with interdiction well south of the border, beefing up security at the ports of entry which is where most of these hard drugs come through and then of course, internal enforcement -- law enforcement, state and local enforcement. It is all a big comprehensive thing and no one person, there is no one solution to it. But I will go back to the demand. SHAHEEN: Thank you, Mr. Chairman. BOOZMAN: Thank you, Senator. Senator Hoeven, our former fearless leader who is Chair of the Subcommittee, you are recognized. AMERICAN PVERSIGHT CBP FOIA 007260 DHS-17-0435-Q-000024 Page 4246 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) HOEVEN: Thank you, Mr. Chairman and Mr. Secretary, thanks for being here and for all the work you are doing. In the budget, there is $1.6 billion for 32 miles of wall construction along the Southern border. I am wondering why 32 miles? How do you get that? KELLY: It's a start. As we go through the process right now, Senator, of deciding what that physical barrier will look like -- wall, bollard fencing, whatever -- and there is a competition, so we don't really know how much a mile of the barrier will cost. I mean, the bollard fencing is as I understand it, there are much disadvantages to that. There's disadvantages in certain places down along the border to put a wall in, but for the money that we -- it's a start. Not big funny -- and as we talked to our -- the professionals down there on the border, and asked the CBP folks, you know, if I could give you a wall, how much would you need and where would you want it? And the answers we will get back is, "You know, if you could give 12 miles here, 13 miles there," and there are places that will tell you, "We don't really need a wall here, sir. There is not much movement in terms of people," and so -- but it's as much as we can forward coming out of the gates. HOEVEN: Well, I think you have described the wall concept very well where you talk about physical barrier, technology and people -- all of that is really necessary to have, you know, security, which is what we are after in terms of a wall. Talk a little bit if you would about use of unmanned aerial systems on both the Southern and the Northern border and as you know, I have asked -- and you have agreed to come up Grand Forks where we have a Center of Excellence established there and one of the test sites for UAS and in fact, CBP is covering 900 miles of the Northern border all the way from the Western -- from Lake Superior all the way through most of Montana. So just talk about your plans in terms of utilizing UAS? KELLY: I think the advantages of course of those types of aircrafts is they don't you know, they are relatively inexpensive. They fly for a long time. If you put the right sensor suite on them, you could see during the day, at night and then it won't get tired essentially and they are quiet lookers, but one of the problems we have if we use things like helicopters, helicopters are great for a lot of things, but from a surveillance point of view, they make a lot of noise and they can be seen and all. I would like to think, I am looking hard at expanding the use of UAVs, but again, that's some time off, but expanding the use of UAVs, I think they are -- particularly on parts of the border, whether Southern border or Northern border, particularly where there is just no one there. There is very little movement where you know, it's an economy of force mission, right? You put your people and your assets where most of the movement is, but you don't ignore parts of the border, in this case, and it's a great place to use UAVs and other types of sensors. HOEVEN: But you have success in border security. You create pressure in other areas and that is where the UAS can help you so much to cover areas where you don't have as much infrastructure or people or is remote or difficult and it's a day and night solution with infrared. And it also leverages your personnel resource incredibly. AMERICAN PVERSIGHT CBP FOIA 007261 DHS-17-0435-Q-000025 Page 4247 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) We have a large conference in the fall which might be a great time for you to come up because we bring in the ground force all things UAS, I mean, it's -- it cuts across military, civilian, border security -- all applications. We have people from all over the country and other countries there, but it's a full conference. It would be a great time for you to come. The -- we had a hearing yesterday in Homeland Security on MS13 and one of the things that came up from some of the law enforcement personnel that we had there testifying is they would like to have some way to know when on unaccompanied alien children are coming in, there needs to be some way to -- for law enforcement to know where those individuals are going in the country because you know, the average age in MS13 is about 18 years old and they are recruiting them at you know, 14 and maybe even younger in some cases, and so if they come in to the community and they don't have some kind of support network for those individuals, they are very vulnerable to be coerced or to join the gang or be coerced into joining the gangs, so is there something you are doing, can do to coordinate with law enforcement on this issue to try to get at this gang issue -- gang violence problem? KELLY: It's the first time I have heard of this issue and so I will specifically take it on, but on the unaccompanied minors, I think the Senator knows this that when we -- when they come into our possession, CBP as an example down at the border, if they are young, below -- if they are not adults, then we have to turn them over to Department of Health and Human Services, I think within 72 hours. Usually it is done faster than that, and by the way, this is a huge scam. I mean, they know exactly -- most of them know exactly what they are doing. They come across. They identify themselves. The people that traffic them up there, their families are actually involved in human trafficking at this point. We will send them up, we turn them over to HHS, they usually have in their pocket, the name, phone number, address of you know, their mom or their uncle or someone who is already here and then HHS will do some, you know, initial vetting of the founder, but if it is a mom or a relative or something, they will be at our expense, turned over to them whether it's Fairfax or North Dakota or whatever. And most of them don't get involved in crimes, but some do -- many of them do, most don't, some do. And they are perfect for recruiting into the MS13 type gangs and that's not the only one, but that's the obvious one. So if we don't alert law enforcement, we certainly can and we will, it's a great point. HOEVEN: Well, as you said, they are turned over to HHS and then there is some checking they do, but what -- these are detectives, police chiefs, police commissioners that we talked to and they were saying, HHS has notification. They talk to Social Services and some of those things, but law enforcement is not getting notified. That's the piece that they were asking for. KELLY: Yes, I will take that on, Senator. I don't know. It is an HHS thing, but I can put my... HOEVEN: And I understand you might have to coordinate with HHS, maybe you work with them, but they are saying given the growing numbers with these gangs and this is a recruitment -part of the recruitment process and they were looking for some help there. AMERICAN PVERSIGHT CBP FOIA 007262 DHS-17-0435-Q-000026 Page 4248 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) KELLY: The good news is, if I could, in the last 120 days, the number of illegal immigrants or migrants that have come across the border are down by 70%, but the real good number here is that the number of families coming in, unaccompanied minors is down to tiny levels.. So we have almost tamed the tide, but we do frankly have an awful -- big problem with... HOEVEN: And it relates to your immigration courts and that whole process too and tracking people versus just releasing them into the society, they may have a name. That individual actually may not even, you know, they are not going to take care of them. I know, all of these things are going on and you are trying to get your arms around all of them, this was one where local law enforcement thought they can be more effective in working with you. And the final question, quickly is, in the terrible, terrible terrorist attack in Manchester, the local law enforcement there has indicated that there has been some information leaked by U.S. authorities. Can you comment on that at all? KELLY: I can't. HOEVEN: Okay. I understand in this open setting. KELLY: Yes, sir. HOEVEN: Thank you. KELLY: Thank you, Senator. BOOZMAN: Thank you, Senator Hoeven. Senator Baldwin? BALDWIN: Thank you, Mr. Chairman. Mr. Secretary, welcome and thank you for your service. I would like to ask some questions about how the budget prioritizes funding for security related activities across the very diverse DHS mission set. Of course, your attention -- one's attention is naturally drawn to places where there is significant increases versus places where there is significant decreases. The nearly $3 billion increase for DHS overall includes $1.6 billion for a border wall. I would note something that Congress and its Omnibus considerations rejected just a few weeks ago, and certainly hundreds of millions of dollars more for ICE including 850 new officers and 66% expansion of the number of immigration detention beds. I share your commitment to securing the border, but I question whether these significant increases are the most effective way to allocate limited resources to combat the threats that we face? For example, President Trump's budget reduces TSA's funding by approximately $200 million compared to the Omnibus including cutting something that has gotten a lot of attention, the 23 Visible Intermodal Prevention and Response teams or VIPER teams. These teams in my mind are critical to the safety of our airports and our transportation systems. AMERICAN PVERSIGHT CBP FOIA 007263 DHS-17-0435-Q-000027 Page 4249 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) The President's budget also cuts critical support to our state's local law enforcement including cutting $118 million from the State Homeland Security Grant Program, I think my colleague raised that earlier and $156 million from the Urban Area Security Initiative, and so given the continued threat, I have to wonder why is the President cutting funding that keeps our communities safe from terrorist attack when there is an overall increase in the Departmental budget, so my question to you, Secretary Kelly, with the nearly $3 billion increase that you are working with, why did DHS cut these particular programs and what do you assess the impact to be on America's security. How much risk are we taking with these cuts, the ones that I singled out? KELLY: On the -- taking a look, since I have been the Secretary and I have been briefed on all of the grant programs, take a look at a long hard look at their effectiveness, there are many that clearly are effective, there are others -- it's questionable. So anyways, we are looking at all of the grant programs across Homeland Security. In terms of some of the grants that you mentioned, and in many cases, from a terrorism point of view, it was clear on 9/11 that I mean, we were shocked into an understanding that we didn't take -- we thought that terrorism was over there and we have learned on 9/11 tragically that it can come here very easily. And it was clear as I understand it, of course, I wasn't here at the time, but the people that had been in Homeland Security long enough, way back then have informed me that many of these grants were poured into state and local communities because to give them an opportunity to buy equipment that they didn't even think they needed before or to send -- form special units that they didn't ever think they needed before or to get specialized training that they never thought they needed before because of a terrorist threat. That was 14 to 15 years ago. I would very proudly say that the police departments, state and local and our country today, it's in their DNA to think about this topic unfortunately, and every time whether it is an Orlando, or every time it is San Bernardino or Chattanooga -- I mean, it is obvious to them. The idea is that they are up and running now and the sense is, in terms of the Department and certainly, in the administration that those monies now are not needed as much. I mean, they are certainly nice to have and I would certainly take money if someone offered -more money if someone had offered it to me, but where we were looking to save money, this was an area that the sense was that these 15 to 14 years on, these municipalities now, are I would argue, second to none in the world in dealing with whether it is homegrown terrorism active shooter, for whatever reason or a terrorist coming in from outside. So that's one part of the answer at least. There are things, frankly, I go back to the grant thing. I have told my people, I want you to look at every grant and then come and brief me, is it working? Then we will keep it if we can afford it. If it is not working or is not working so well, tell me how to adjust it and make it better or we are going to stop it because we don't want to waste the money. AMERICAN PVERSIGHT CBP FOIA 007264 DHS-17-0435-Q-000028 Page 4250 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) BALDWIN: Let me sort of follow on this topic. Sticking with the Urban Area Security Initiative, I believe that the program and its risk formula is due for an update, and regardless of the cut in funding which I would like to see restored, but I understand and support the need to allocate resources in proportion to risk. But I represent Wisconsin, we have the City of Milwaukee, the biggest city in the state and it has been excluded from eligibility received Urban Area Security Initiative funding since 2011 despite the well supported need for Federal terrorism prevention funding to close the gap that simply can't be closed or filled by the state Homeland Security grant program. You listed some of the things that were vulnerable too in communities across the country. I think of the tragic 2012 shooting at a Sikh temple in Oak Creek right outside of the City of Milwaukee in which six people were killed and four wounded. Last year, the FBI thwarted a terrorist plot in Milwaukee. A man had planned a mass shooting of at least 30 people at a masonic temple in the City of Milwaukee. The local fusion center helped prevent that attack and yet, it is not eligible for Urban Area Security Initiative funding and needs more assistance, and finally, like many communities across the country, Milwaukee's Jewish Community Center, it's JCC received multiple bomb threats in recent months, again, but wasn't eligible for the Urban Area Security Initiatives NonProfit Program. So Secretary Kelly, in light of repeated calls by terror organizations for their adherence to attack more vulnerable targets in large and small communities alike, I wonder if you agree that it makes sense to increase the Department's flexibility and allow funding to follow the threat and regardless of location? KELLY: As you pointed out, Senator, you are exactly right. These terrorist threats, particularly the homegrown is not limited to New York City or Las Vegas or Chicago. In fact, every community, small village, town in America is vulnerable. Every city is vulnerable. There is a formula -- as I think the Senator knows that my organization works with state and local and the formula is you know, risk based to establish the risk and I am not entirely familiar with the formula, but I can tell you it has worked every year down to really, the most specific threats and any city that doesn't receive money is simply because in that formula working, the threat is not considered to be high enough. Now, I say that -- I am not so sure at this point, with the exception of the most obvious targets, Washington DC and say New York, I am not so sure that -- there is just not enough money. Every city and every village in America deserves money if you will get it from the point of view of could terrorism happen there? It is everywhere and that's the -- you know that is the nature of this threat that we are dealing with. So there isn't enough money in the till because we need an unlimited amount of money, so you know, Homeland Security, FEMA and others work this very, very closely with state and local, they have the formula. They plug in the numbers. They do the threat assessments and they come up with about, I think it's about 33 cities and municipalities that receive money. I think we added two cities to that this year, but in order to do that, we had to take money away from other AMERICAN PVERSIGHT CBP FOIA 007265 DHS-17-0435-Q-000029 Page 4251 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) municipalities on that list to give the money. Once we have released that list, I mean, there would be kind of hell to pay, I am sure for those people that lost money. But this terrorist threat is so insidious. It is so decentralized. I worry about the homegrown threat all the time. We can -- I believe, we are doing very, very good. The Department of Defense and the Coalition is doing very good overseas reducing this threat, but the end results of reducing that threat is that the terrorists that are fighting in the caliphate, you know, Syria and Iraq, they are going home. They are not going home to live normal lives, in fact, they are being encouraged to not be killed in the caliphate fight. Go back to where you came from and just create Manchester type fights. If you were in Europe, I think they will -- their approximation, I will use their approximation, it is about 2,500 of their citizens now fighting in the caliphate. These are kids mostly, men and women that were born and raised in France and Germany. They have legal passports. They have left to go fight in the caliphate. In many cases, their countries don't know they have left and then they come back so their countries don't know they were ever gone, and now they are hardened warriors that will do things like Manchester. So as horrible as Manchester was, my expectation is we are going to see a lot more of that kind of attack. We saw in an Indonesian attack yesterday, suicide bombers. So this -- the good news was when they decided to hold Tehran that is in the caliphate in Iraq and Syria, they were holding it, so now we know where to exactly to go and kill them. Now, they are leaving North Africa. It's a growing problem, but back to your point, every municipality is at risk and we just do the best we can to determine the ones that are kind of the most at risk and we use that formula. It's fair. Everyone has a chance for input. There is not an unlimited amount of money. BOOZMAN: Thank you, Senator Baldwin. Senator Murkowski? MURKOWSKI: Thank you, Mr. Chairman and Secretary, thank you for being here and your commitment to service. I want to ask two -- about two issues today. First is H2-B visas and then I want to talk about the arctic a little bit and the resources that we have up there and then also the Northern border. I understand you have been talking a lot about the Southern border, but I would like to talk about the Northern. H2-B visas, the seafood industry in my state is one of the strongest parts of our economy. Over 78,000 jobs, $5.8 billion estimated in revenue annually whether it is our crab, our Pollock, our Bristol Bay salmon, we have the largest fisheries and the healthiest fisheries in the world, but the problem that we have is the adequacy of seasonal labor, we just can't get the men and women out to these very, very, very remote communities to meet the demand of the workforce. We cannot get them in the state. We cannot get them in the United States. AMERICAN PVERSIGHT CBP FOIA 007266 DHS-17-0435-Q-000030 Page 4252 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) And so we have traditionally relied on the opportunities for H2-B visas. On May 5th, the President signed the Appropriations Omnibus that gave authority to you in consultation with the Secretary of Labor to approve additional H2-B visa processing for the remainder of the fiscal year to help many of these businesses, these industries that have been unable to find sufficient employees for this upcoming season. Our problem in Alaska is the timing here because the harvest is later in the year, so other industries around the country basically gobble up that quota and we are left hanging. The short term fix is in my view, urgently needed for the large employers that are seeking the necessary staff as we prepare for this early summer salmon harvest. We are just a few weeks out here and so, our seafood processors are really operating in real time facing workforce decisions that will have significant economic impact. For most of these communities, for most of these regions, if there is no one to process the seafood when it comes in, there is no place for the boats to deliver. If the boats can't deliver, there is no economy to that community at all. There is no other source of economy. So this is very serious for us as we look to address this seasonal worker shortfall so that we can process our seafood within these remote communities. I think we recognize that last minute action is not ideal, but after we resolve these issues, I am committed to working with you to find a longer term solution so that we don't need to revisit this problem year after year. But I need immediate help to reopen U.S. Customs and Immigration Services their premium processing centers for petition acceptance of new H2-Bs, so that we can get these seafood processing employees in the state. So the question for you is whether or not you do plan to approve additional H2-B visa processing for this year, so that this very important economic opportunity for us in Alaska with our seafood processors can go to work. KELLY: Well, this is one of those things that I really wish I didn't have any discretion. And for every senator or congressman that has your view, I have another one that says, "Don't you dare. This about American jobs." You know, the argument of both sides. My staff -- members of my staff are coordinating with the Department of Labor on this. One of the things and I have my working class root background that keeps reminding me that some of these individuals, not necessarily Alaska, but many of these individuals are victimized when they come up here in terms of what they are paid and all of the rest of it. So we are working with Labor -- the Department of Labor to come up with an answer to this. But we really do need a long term solution so we will work with the Senate and with the Congress and with industry this year and again, I will have my staff when they return from Labor and we get some protocols in place. We will likely increase the numbers for this year, perhaps, not by the entire number I am authorized, but we really do need -- I really look forward to working with you, madam Senator and the whole Congress to get a longer term solution to this. MURKOWSKI: Well, we need one. I have had the same discussion with Secretary Acosta and recognized the imperative of this, and I am with you. We want to make sure that every American AMERICAN PVERSIGHT CBP FOIA 007267 DHS-17-0435-Q-000031 Page 4253 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) who wants that job has it and I would welcome anyone in this room to come up, I will sign you up. I will sign up your kids as long as they are 18 years old, but the ability to get U.S. workers again out to these extraordinarily remote places has been very, very, very difficult. So I would just ask that you work with us and appreciate the timeliness of this issue that we are dealing with right now because the salmon don't care when the permits are issued. They don't care whether or not we have got processors in place, so I appreciate your attention to this. KELLY: Will do. MURKOWSKI: I had an opportunity yesterday to ask Admiral Richardson the same question and I recognized the efforts the Coast Guard in partnership with Navy to accelerate the design and the construction of polar ice breakers as we are dealing with a very aging fleet. The Coast Guard's budget has $19 million for an ice breaker program. We all know that that doesn't build us an ice breaker, but it is getting us moving. Navy has not requested any funding, so I would ask you as we are developing this FY18 budget what funding is needed to keep the program on its accelerated path? I think it is important that we look to the savings that can be gained by block buying, but we need to have a program in place. We need to have a vision for how we are going to respond as an arctic nation with the infrastructure that we need. KELLY: Right. I agree, Senator. I mean, we clearly need those types of vessels if we are going to compete in any way in the arctic. I would have to and let me take it for the record or a brief, or whatever, I will get back to you on how the Coast Guard and DHS intends to lay out a comprehensive program to get to the -- I think it's right now, three -- six ice breakers -- three and three, you know that, so I want to get back to you on that. But I am with you 100% and the fact that we need to have a program that gets us from where we are now, which is pretty humble to at least full up capability with six vessels. MURKOWSKI: We appreciate that. Mr. Chairman, I had mentioned that there has been a lot of discussion about the Southern border and nobody really thinks about the exposure on the northern end, but the reality is that we are seeing arctic sea ice decreases. It is allowing for greater accessibility, which is all good and interesting, but it also presents some security challenges for the United States as well as Canada. We do not have Border Patrol. We don't have any security along that entire U.S. Coast that is called Alaska some 33,000 miles of coast line that we have got up there and it is just -- it is an open opportunity, so I won't ask you to comment on this now, but know that one of the things that we are looking at is whether partnerships with Canadian law enforcement and security agencies can come together to help facilitate sharing of information as it relates to security threats in the North American Arctic, whether or not we should consider establishing an Arctic Security Office in partnership with Canada. These are things that have come about as part of the Arctic Council discussions, but I think is going to require a review in an area that we just haven't been focused on at all. AMERICAN PVERSIGHT CBP FOIA 007268 DHS-17-0435-Q-000032 Page 4254 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) KELLY: Great point. I haven't thought of it and I will tell you -- and I think you know this, I mean our partnership and information sharing, everything is near perfect with Canada, but I have not felt that point perhaps, even opening an office, but we are on that. MURKOWSKI: We look forward to discussing with you. Thank you, Mr. Chairman and Ranking Member. BOOZMAN: Thank you, Senator Murkowski. Senator Tester? TESTER: Thank you, Mr. Chairman. At this point in time, this hearing has either been going on for too long or just started in your mind. I very much appreciate... KELLY: I love this. TESTER: Yes, that's good. And I very much appreciate it. I mean, you know, it's real mental gymnastics because of the size of this Department where you have to jump from issue to issue. I am going to go back and touch base on one that we talked about before this hearing very quickly and we are kind of in the same boat as Oklahoma. I don't know if they have passed a law yet, but we have to obtain compliant license. I anticipate the Governor will sign that law very soon. And so the question becomes is if we will get an extension. If we are moving fast enough as a state to get DHS's support and that we are actually heading towards a REAL ID compliant license and if you are willing to give an extension or at least give me some sort of idea where we are going to be heading here. KELLY: Well, Senator, a couple of points, you know, the vast majority of the states have either accomplished the task of the 2000 -- whatever five -- law or really making great progress and will be there very soon. As I mentioned before, in those states that are not nearly as close to completion yet, your state as an example, I have talked to the Governor. There are a couple other states that I have talked to as well that are in the same kind of place offered to send my folks and then we have done that to work with the state to say, "Okay, you're close, so you'll never get..." the point is, in those states, Senator that -- and I don't know where Montana is right now, but in those states, we simply can't get there from here. I would say that it would not make in my mind sense to give an extension. That said, we are absolutely committed to working with the state's shoulder to shoulder on this to make it happen, but I would offer again to every state that's not compliant as of yet to really start talking to their citizens. We have established a public affairs campaign on our own focused on people to get alternate means of identification. TESTER: Okay, so back in 2005, we passed that -- I mean, the state legislature back then, we passed a law that said, Montana is not to comply with REAL ID. With this bill that was passed this spring, what it did was, the second line says it all. This bill directs the Montana Department of Justice to issue a Montana driver's license or ID cards that comply with the REAL ID Act of 2005. It strikes that law that was passed in 2005 and directs DOJ in Montana to meet the standard. It's pretty clear. AMERICAN PVERSIGHT CBP FOIA 007269 DHS-17-0435-Q-000033 Page 4255 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) So, hopefully, if you have any issues in this, let me know because we -- this needs to be solved quite frankly. I think... KELLY: I mean, you know me, Senator. I want to work it out. TESTER: Okay, good. And in our domain, one of the issues that were brought up is the rights of the current landowners on the Southern border if a wall was to be built, can you confirm that nothing in this recently passed DHS appropriations act interferes or even facilitates the changes in land owner rights? KELLY: I can't confirm that. I will get back to you, Senator, if that's all right. I can't confirm it, but I am hyper sensitive to this issue of imminent domain and private property and as we look at places to put the physical barrier, I call the wall, in some places perhaps, it would require an imminent domain action. But I am very sensitive to that as well. TESTER: Yes, I mean if what you are looking at is the recently passed Act, look at this one too to make sure it also does not facilitate or interfere. That's a very important issue for me too. KELLY: You know and my staff tells me that from the -- what is it? The 2008 action on the border, we're still in court on imminent domain issue, so... TESTER: Yes, I mean, look that's one of the -- there has been a number of questions here today that has been asked by both sides of aisle on the validity and I know it's a term, the wall, but I am seeing a concrete wall in my head when we talk about the wall and I think that as we look at potential reductions in local, and by the way, if there is money to be saved there, the Chairman and I are in with you. Truthfully. But if this is an issue -- this whole thing that we have been talking about all day is an issue that you know this better than I, you can't make a mistake. And so if you pull away from local and it does in fact create a problem, we haven't done the right thing. The same thing with TSA, the same thing with R&D, same thing with the FEMA stuff, and so that's why I think there is a concern here on -- we're going to spend a ton of money on keeping the Southern border secure and are we really getting the biggest bang for the buck and if we are not, are we sacrificing these other programs which actually can be just as problematic, if possible, you get my drift? KELLY: I do. TESTER: Okay. Let's talk about the laptop ban. I appreciate the heads up on it by the way by your people, do you think it should extend beyond the 10 airports that it already is in? KELLY: Possibly. If I could elaborate this a bit. TESTER: Yes. AMERICAN PVERSIGHT CBP FOIA 007270 DHS-17-0435-Q-000034 Page 4256 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) KELLY: What I have learned in the last 120 days as I was not nearly as aware about prior to that in the military is this you know this relentless attempt on the part of terrorist to blow up airplanes in flight. Ideally, big airplanes so there is a lot of people, ideally a U.S. carrier, ideally on the way to the United States. We are watching, I can't get into it in this group, in this room, but we are watching a number of very, very sophisticated advanced threats right now. I obviously wouldn't -- and it was my decision to make that, I obviously wouldn't have put ten airports on the list in March. But as we look at the threat and how it has morphed, we are looking at perhaps other ways to reinforce the security procedures at every airport in the world. So it is possible that it would expand. TESTER: Okay, and what are we doing to enhance existing screening technology to develop new systems? Are we making investments in those? KELLY: We are. TESTER: ... types of technologies? KELLY: Current technology that you typically see at the airports for baggage as well as for people are just about at their limit but we are looking at advancing that. TESTER: But we are working... KELLY: We are... TESTER: So how do you square that with the 21% cut in R&D? KELLY: Well, as we look to the technology after next, we are working with our international partners. They are in with us. We are working with the airlines themselves, both national and international airlines. We want to share the cost of the R&D, it's in every one's interest to do it. But ultimately, we have to spend what we need to spend to find the technology to protect air travelers. TESTER: Okay, so you have the conversations with our allies who have similar mind and airline companies that are... KELLY: They are willing to do anything not to have me do some of the things that we are contemplating. TESTER: And money is one thing that they are willing... KELLY: That's my assumption. AMERICAN PVERSIGHT CBP FOIA 007271 DHS-17-0435-Q-000035 Page 4257 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) TESTER: And so, here's the deal as we go through this process and I appreciate you, Mr. Secretary, I do, as we go through this process, we can't cut R&D if it ain't going to be back filled somewhere. If it is going to be backfilled somewhere, and by the way, God bless you for looking at it because I think it's good, but we need to know that, okay? KELLY: Yes, sir. TESTER: And speaking of TSA, when can we anticipate a nomination to lead the TSA? KELLY: We are really close. TESTER: Really close? KELLY: We are really close. TESTER: Is that like the end of the week? I would just say look, I have got a ton of stuff and we will put them in for the record. I have a ton questions, and they are all really good and they haven't been asked here before, but I just want to tell you the overall heartburn I have with this budget is -- is it a budget where we're getting the most bang for the buck especially as it applies to the wall? And I don't really care to be honest with you if it's a wall or if it is a drone or if it is manpower. I just want to get the biggest bang for the buck to keep this country safe and I think you're on the same page there. KELLY: I am. TESTER: But it may require you telling somebody that this is a better direction to go. KELLY: I wouldn't hesitate. TESTER: Good. Thank you. And I know you wouldn't. Thank you. BOOZMAN: Thank you, Senator Tester. In regard to R&D, the -- one of the huge problems we have is the toxicity of Fentanyl. Do we have the ability or are we working on acquiring or developing something that will detect it and make it such that are our Border Patrol officers, the dogs that are out working these things... KELLY: We are, Senator, but you know, one of the ways, as you well know, Fentanyl is so powerful. And oh by the way, there is a new thing that is more powerful by a factor, the socalled elephant tranquilizer that is worse or more effective or more -- but we are working with China. They are -- our DEA and others are already over there working with China to try to stop it. But the point is, it is harder than anything else because a tiny, tiny amount goes so far so to speak. So some of these stuff is coming in by the mail. I visited one of our CVP facilities recently in Seattle, I think, where all the international mail goes through, it is amazing the amount of things that they find to include Fentanyl. AMERICAN PVERSIGHT CBP FOIA 007272 DHS-17-0435-Q-000036 Page 4258 of 6279 transcript - S1 FY 2018 budget request (SAC-HS) 05-25-2017.docx for Printed Item: 958 ( Attachment 1 of 1) BOOZMAN: This concludes our hearing. Thank you very much for being here. We appreciate your testimony. Also in an effort to really get up to speed, I visited a number of Homeland Security facilities and you should be complimented in a sense that it seems to me like morale is up greatly and the agents -- all of the different agents and agencies that you represent appreciate the fact that they are able to do their job and I think have a great deal of confidence in you. So we thank you for that. KELLY: They are really good people. BOOZMAN: Good people, exactly. The hearing will remain open for two weeks from today. The senators may submit written questions for the record. We ask that the Department respond to them within a reasonable amount of time. I want to thank you my staff and Senator Tester's staff for their hard work in making the hearing possible. With that, we are adjourned. END May 26, 2017 17:07 ET .EOF AMERICAN PVERSIGHT CBP FOIA 007273 DHS-17-0435-Q-000037 Page 4259 of 6279 Bee: Subject: Date : Attachments : RE: ALT /SLPT Removal Implementation Plan Wed Jun 07 2017 09:27:51 EDT Entrance Exam Changestactics v6-T eamEditr lf2IWIJ':?L -ex I may not be at the meeting , so I am attaching my comments. Thanks (b )(6) ;(b )(?)(C) o w P..:..Rl1 Director, PRAD Your feedback is important to us! Click here to let us know how we're doing. When : Wednesday, June 7, 2017 3:00 PM-4:00 PM (UTC-05:00 ) Eastern T ime (US & Canada ). Where: Cont Room 700 6/7/ 17 Here are updated documents for our discussions today. Thanks! << Message: FW : Removal of Language Battery from BPA Entrance Examination >> << File: Comms Plan Entrance Exam - 04-26-17af .docx >> AME: IGAN pVERSIGHT CBP FOIA 007275 DHS-17-0435-Q-000039 Page 955 of 6279 4/28/ 17 Update : I have added this as a recurr ing meeting until full rollout is comp lete. Than ks! Below is the latest estima ted time line discusses with OPM. Conference Line : (b) (7)( E) Code (b) (7)(E)MC: DDIDQJ Please fee l free to let me know if you have any quest ions in advance of this meeting. Also, if there is someone else you recommend for participation feel free to forward the invite . Thanks much! ifflllffl AME: IGAN pVERSIGHT CBP FOIA 007276 DHS-17-0435-Q-000040 Page 956 of 6279 (b)(6);(b)(7)(C) Entrance Exam Changestactics v6-TeamEdits docx for Printed Item: 883 ( Attachment 1 of 1) (b) (5), (b) (6), (b) (2) 1 Page A \11 ~ 11C/\'\J PVERSIGHT CBP FOIA 007277 DHS-17-0435-Q-000041 Page 958 of 6279 - (b)(6);(b)(7)(C) Entrance Exam Changestactics v6-TeamEdits docx for Printed Item: 883 ( Attachment 1 of 1) (b) (5), (b) (2) 2 Page A\11 ICA PVERSIGHT CBP FOIA 007278 DHS-17-0435-Q-000042 Page 959 of 6279 - (b)(6);(b)(7)(C) Entrance Exam Changestactics v6-TeamEdits docx for Printed Item: 883 ( Attachment 1 of 1) (b) (5), (b) (2) 3 Page A\11 ICA PVERSIGHT CBP FOIA 007279 DHS-17-0435-Q-000043 Page 960 of 6279 - (b)(6);(b)(7)(C) Entrance Exam Changestactics v6-TeamEdits docx for Printed Item: 883 ( Attachment 1 of 1) (b) (5), (b) (2) 4 Page A\11 ICA PVERSIGHT CBP FOIA 007280 DHS-17-0435-Q-000044 Page 961 of 6279 (b)(6);(b)(7)(C) Entrance Exam Changestactics v6-TeamEdits docx for Printed Item: 883 ( Attachment 1 of 1) (b) (5), (b) (2) 5 Page A \11 ~ 11C/\'\J PVERSIGHT CBP FOIA 007281 DHS-17-0435-Q-000045 Page 962 of 6279 - (b)(6);(b)(7)(C) Entrance Exam Changestactics v6-TeamEdits docx for Printed Item: 883 ( Attachment 1 of 1) D (b) (5), (b) (2) 6 Page A\11 ICA PVERSIGHT CBP FOIA 007282 DHS-17-0435-Q-000046 Page 963 of 6279 (b)(6);(b)(7)(C) Bcc: Subject: Date: Attachments: ALT/SLPT Removal Implementation Plan Wed Jun 07 2017 08:07:39 EDT Comms Plan Entrance Exam - 04-26-17af.docx Entrance Exam Changestactics v6-TeamEdits DOCX EntranceExamChangesDeployment-042517af.pptx EntranceExamChangesDeployment-afv3.pptx FW: Removal of Language Battery from BPA Entrance Examination (5).msg image001.png image002.png • (b)(6);(b)(7 6/7/17 Here are updated documents for our discussions today. Thanks! 4/28/17 Update: I have added this as a recurring meeting until full rollout is complete. Thanks! Below is the latest estimated timeline discusses with OPM. Hi All, (b) (5), (b) (2) -- Conference Line: (b) (7)(E) Code: (b) (7)(E) MC: (b) (7)(E) Please feel free to let me know if you have any questions in advance of this meeting. Also, if there is someone else you recommend for participation feel free to forward the invite. - Thanks much! (b)(6);(b)(7)(C) CBP FOIA 007284 DHS-17-0435-Q-000048 Page 965 of 6279 Com ms Plan Entrance Exam - 04-26-17af.docx for Printed Item: 885 { Attach ment 1 of 7) ~ ;: \ · "tv'_. llGA, J • U.S. Customs and ~ Border Protection J)VERSIGHT CBP Entrance Exam Changes Communication Plan CBP FOIA 007285 DHS-17-0435-Q-000049 Page 967 of 6279 Comms Plan Entrance Exam - 04-26-17af.docxfor Printed Item: 885 ( Attachment 1 of 7) U.S. Customs and order Protection CBP Entrance Exam Changes Communication Plan 2 AM {I AN PVERSIGHT DRAFT FOR H♦TER.i♦:AL USE 01♦LY CBP FOIA 007286 DHS-17-0435-Q-000050 Page 968 of 6279 Comms Plan Entrance Exam - 04-26-17af.docxfor Printed Item: 885 ( Attachment 1 of 7) U.S. Customs and Border Protection CBP Entrance Exam Changes Communication Plan 3 AM {ICAN PVERSIGHT DRAFT FOR H♦TER.i♦:AL USE 01♦LY CBP FOIA 007287 DHS-17-0435-Q-000051 Page 969 of 6279 Entrance Exam Changestactics v6-TeamEdits (b)(6);(b)( OCX for Printed Item: 885 ( Attachment 2 of 7) (b) (5), (b) (6), (b) (2) 1 Page A \11 ~ 11C/\'\J PVERSIGHT CBP FOIA 007288 DHS-17-0435-Q-000052 Page 971 of 6279 Entrance Exam Changestactics v6-TeamEdits (b)(6);(b)( OCX for Printed Item: 885 ( Attachment 2 of 7) (b) (5), (b) (2) 2 Page A\11 ICA PVERSIGHT CBP FOIA 007289 DHS-17-0435-Q-000053 Page 972 of 6279 Entrance Exam Changestactics v6-TeamEdits (b)(6);(b)( OCX for Printed Item: 885 ( Attachment 2 of 7) (b) (5), (b) (2) 3 Page A\11 ICA PVERSIGHT CBP FOIA 007290 DHS-17-0435-Q-000054 Page 973 of 6279 Entrance Exam Changestactics v6-TeamEdits (b)(6);(b)( OCX for Printed Item: 885 ( Attachment 2 of 7) (b) (5), (b) (2) 4 Page A\11 ICA PVERSIGHT CBP FOIA 007291 DHS-17-0435-Q-000055 Page 974 of 6279 Entrance Exam Changestactics v6-TeamEdits (b)(6);(b)( OCX for Printed Item: 885 ( Attachment 2 of 7) (b) (5), (b) (2) 5 Page A \11 ~ 11C/\'\J PVERSIGHT CBP FOIA 007292 DHS-17-0435-Q-000056 Page 975 of 6279 Entrance Exam Changestactics v6-TeamEdits (b)(6);(b)( OCX for Printed Item: 885 ( Attachment 2 of 7) (b) (5), (b) (2) 6 Page A\11 ICA PVERSIGHT CBP FOIA 007293 DHS-17-0435-Q-000057 Page 976 of 6279 EntranceExamChangesD eploymen t-0425 17af .pptx for Printed Item: 885 { Attachmen t 3 of 7) DHS-17-0435-Q-000058 (H (2) To:FW: Re (b )(6);(b )(?)(C) From: Sent: St.qect: hi - acted> for Printed Item: 885 ( Attachment 5 of 7) Tue 4/25/2017 4 :22:18 PM FW: Removal of Language Battery from SPA Entrance Examination did share - ma il on the proposed t ime line with OPM on t he implemen tat ion of pulling out lang exam? From: (b )(6) ;(b )(7)(C) Sent: Monda y, April 24, 2017 8:40 AM > Subject: FW : Remova l of Language Batte ry from BPA Entrance Examinat ion DHS-17-0435-Q-000060 - FW: Removal of Language Battery from BPA Entrance Examination (5).msg for Printed Item: 885 ( Attachment 5 of 7) (b)(6);(b)(7)(C) ____ (b)(6);(b)(7)(C) Director CBP Hiring Center, Office of Human Resources Management US Customs & Border Protection W: (b)(6);(b)(7)(C) 9 (b)(6);(b)(7)(C) Our Mission, Our People! Your feedback is important to us! Click here to let us know how we’re doing. Follow U.S. Customs and Border Protection at the CBP Newsroom.  Please consider the environment before printing this e-mail VERSIGHT CBP FOIA 007297 DHS-17-0435-Q-000061 Page 983 of 6279 From: (b)(6);(b)(7)(C) To: Cc: Bcc: Subject: Date: Attachments: FW: Getting ready for NBC Nightly News engagement May 3-4 Tue Jun 06 2017 23:13:54 EDT image001.png image009.png image010.png image011.png image012.png image013.png image014.png image015.png image016.png image017.png image018.png image019.png image020.png image021.jpg image022.jpg image023.jpg image024.jpg image025.jpg image026.jpg image027.jpg image028.jpg image029.jpg image030.jpg image031.jpg image032.png image033.png Not sure if you still needed this, but this is the latest on electronic searches. (b)(6);(b)(7)(C) Office of Public Affairs U.S. Customs and Border Protection Office: (b)(6);(b)(7)(C) Cell: (b)(6);(b)(7)(C) CBP FOIA 007298 DHS-17-0435-Q-000062 Page 988 of 6279 From : (b )(6);(b Sent: Wednesda To : )(7)(C) r NBC Nightly News engagemen t May 3-4 Here you go ! Link to news release : https://www .cbp.gov/newsroom /national-media-re lease/cbp-releases-s tatisticselectronic-dev ice-searches-O CBP searches the electronic dev ices of fewer than one-hund redth of 1 percent of all arriving internat ional travelers WASHINGTON-U .S. Customs and Border Protection announced today that in the first six months of FY17 , CBP sea rched the electron ic dev ices of 14,993 arriving internat ional travelers , affecting 0.008 percent of the approximately 189.6 million trave lers arriving to the United States . CBP continues to process more than 1 million trave lers arriving to the United States each day. Of the more than 383.2 million arriving international travelers that CBP processed in FY15, 0.002 percent of such trave lers (8,503) had their electron ic dev ices searched . In FY 16, the num ber of arriving travelers processed by CBP increased to approximately 390 .6 million, and the num ber of travelers whose electronic dev ices were searched increased to 19,033 (0.005 percent) . The increase of electronic dev ice searches is driven by CBP 's mission to protect the American peop le and enforce the nation's laws in this digital age . CBP has adapted and adj usted its actions to align with current threat information . CBP borde r sea rches of electronic dev ices have resulted in evidence helpful in combat ing ter rorist activity , child pornography , vio lations of export contro ls, intellectua l property rights violat ions , and visa fraud. CBP is responsi ble for ensu ring the safety and admiss ibility of the goods and people entering the United States and exe rcises its border search authority in accordance with its statutory and constitutiona l authority. No court has concluded that the border search of electronic dev ices requi res a war rant, and CBP's use of this authori ty has been repea tedly uphe ld. This includes a review by the Fourth and Ninth Circu it Courts of Appeals, wh ich approved the sea rch of electronic dev ices encoun tered at the border. "Electronic dev ice searches are integra l in some cases to determining an indiv idual's intentions upon AME: IGAN pVERSIGHT CBP FOIA 0072 99 DHS-17-0435-Q-000063 Page 989 of 6279 entering the United States,” said Deputy Executive Assistant Commissioner, Office of Field Operations, John Wagner. “These searches, which affect fewer than one-hundredth of one percent of international travelers, have contributed to national security investigations, arrests for child pornography and evidence of human trafficking. CBP officers are well trained to judiciously conduct electronic device searches and to protect sensitive information that may be encountered.” Searches of electronic devices have remained consistent in FY17, averaging fewer than 2,500 arriving international travelers per month. Below is a month-to-month comparison for the first six months of FY16 and FY17. INTERNATIONAL ARRIVALS PROCESSED FY2016 FY2017 OCTOBER 31,239,053 32,248,121 NOVEMBER 30,350,596 30,430,424 DECEMBER 32,717,813 33,009,690 JANUARY 31,215,009 31,593,522 FEBRUARY 28,209,735* 28,209,602 MARCH 32,643,912 CBP FOIA 007300 DHS-17-0435-Q-000064 Page 990 of 6279 34,103,063** TOTAL 186,376,118 189,594,422 INTERNATIONAL ARRIVALS PROCESSED WITH ELECTRONIC DEVICE SEARCH FY2016 FY2017 OCTOBER 857 2,560 NOVEMBER 1,208 2,379 DECEMBER 1,486 2,404 JANUARY 1,653 2,756 FEBRUARY 1,470 2,299 MARCH CBP FOIA 007301 DHS-17-0435-Q-000065 Page 991 of 6279 1,709 2,595 TOTAL 8,383 14,993 *February 2016 was a leap year. **March international arrivals are approximate. CBP discovered an anomaly with the FY16 dataset that was previously released. The issue was tracked to a system modernization upgrade conducted in February 2016. During the upgrade, some data was attributed to the upgrade date rather than the date of the search. As a result, multiple fiscal year datasets were affected. The issue has since been corrected, and the correct dataset is reflected in this release. On background: CBP officers may request the traveler’s assistance in presenting his or her effects—including electronic devices—in a condition that allows inspection of the item and its contents. For all goods accompanying travelers entering the United States, if CBP is unable to determine whether an item is admissible when presented for inspection, CBP may detain the item pending a determination of its admissibility in accordance with the law. CBP has not denied entry to the United States to a U.S. citizen or a U.S. legal permanent resident because that individual failed to provide access to their electronic device. Information contained in electronic devices is just one type of information that may be examined during a border inspection and used to determine admissibility. Electronic device searches are intended to complement other forms of information commonly used during the inspection process. CBP’s searches of electronic devices is based on policy that ensures a disciplined, deliberate, and lawful approach, which affects less than one hundredth of one percent of travelers upon arrival in the U. S. CBP statement attributable to a CBP spokesperson: All travelers arriving to the U.S. are subject to CBP inspection. This inspection may include electronic devices such as computers, disks, drives, tapes, mobile phones and other communication devices, cameras, music and other media players and any other electronic or digital devices. Various laws that CBP is charged to enforce authorize searches and detention in accordance with 8 U. S.C. § 1357 and 19 U.S.C. §§ 1499, 1581, 1582. All persons, baggage, and merchandise arriving in, or departing from, the United States are subject to inspection, search and detention. This is because CBP officers must determine the identity and citizenship of all persons seeking entry into the United States, determine the admissibility of foreign nationals, and deter the entry of possible terrorists, terrorist weapons, controlled substances, and a wide variety of other prohibited and restricted items. Keeping America safe and enforcing our nation’s laws in an increasingly digital world depends on our ability to lawfully examine all materials entering the U.S. CBP’s electronic searches affect less than one hundredth of one percent of travelers. Searches of electronic devices at the border are often integral to a determination of an individual’s intentions upon entry and provide additional information relevant to admissibility determinations under immigration laws. They are critical to the detection of evidence relating to terrorism and other national CBP FOIA 007302 DHS-17-0435-Q-000066 Page 992 of 6279 security matters, human and bulk cash smuggling, contraband, and child pornography. They can also reveal information about financial and commercial crimes, such as those relating to copyright, trademark and export control violations. CBP electronic media searches have resulted in arrests for child pornography, evidence helpful in combating terrorist activity, violations of export controls, convictions for intellectual property rights violations, and visa fraud discoveries. It is important to note that electronic media is just one piece of additional data examined during a border inspection and used to determine admissibility. The search is intended to complement other forms of information and intelligence commonly used during the inspection and vetting process. Failure to provide information to assist CBP may result in the detention and/or seizure of the electronic device. All persons, baggage, and merchandise arriving in, or departing from, the United States are subject to inspection, search and detention. We are committed to ensuring the rights and privacies of all people while making certain that CBP can take the lawful actions necessary to secure our borders. Additional information on electronic searches is available here and here. This is a link to the privacy impact assessment that was completed on the CBP Directive for Electronic Media Searches. The Directive begins on page 31. https://www.dhs. gov/xlibrary/assets/privacy/privacy_pia_cbp_laptop.pdf Also, this op-ed from Joseph B. Maher, the acting general counsel for DHS, was posted to USA Today. Pasted below for ease of reading. http://www.usatoday.com/story/opinion/2017/03/27/dhs-devicesearches-improve-safety-editorials-debates/99697022/ DHS: Device searches improve safety U.S. Customs and Border Protection exercises this authority judiciously. U.S. Customs and Border Protection processes more than a million people entering America every day as part of the Department of Homeland Security’s mission. Just as Customs is charged with inspecting luggage, vehicles and cargo containers upon arrival to the USA, there are circumstances in this digital age when we must inspect an electronic device for violations of the law. These electronic media searches have produced information used to combat terrorism, violations of export controls, and convictions for child pornography, intellectual property rights violations and visa fraud. This authority is critical to our mission, and Customs exercises it judiciously. Electronic searches affect less than one-hundredth of 1% of all arriving travelers. The Supreme Court has explained that the “government’s interest in preventing the entry of unwanted persons and effects is at its zenith at the international border.” Still, Customs has proactively developed a disciplined policy with proper oversight for searches of electronic devices. CBP FOIA 007303 DHS-17-0435-Q-000067 Page 993 of 6279 We made this policy available to the public in 2009. Courts have reviewed it. A federal court in Brooklyn, for example, concluded that Customs is “sensitive to the privacy and confidentiality issues posed by border searches of electronic devices.” No court has concluded that such searches require a warrant, and our use of this authority has been repeatedly upheld. This includes a review by the 4th and 9th Circuit Courts of Appeals, which approved the search of laptops at the border. Our policy has been subject to ongoing review by our offices of Privacy and Civil Rights and Civil Liberties, and it reaffirms our commitment to protecting individuals’ rights while ensuring that officers can lawfully take the necessary actions to secure our borders and protect the American people. Department of Homeland Security officers and agents are the nation’s front line against threats to our safety and prosperity. Our actions are consistent with our responsibilities to protect the homeland, enforce the law at our borders, and follow our oath to uphold our Constitution. Please let me know if you need anything else. (b)(6);(b)(7)(C) Office of Public Affairs U.S. Customs and Border Protection Office: (b)(6);(b)(7)(C) Cell: (b)(6);(b)(7)(C) From: (b)(6);(b)(7)(C) Sent: Wednesday, May 03, 2017 11:00 AM To: Cc: Subject: RE: Getting ready for NBC Nightly News engagement May 3-4 (b)(6);(b)(7)(C) - +(b)(6);(b)(7)(C) From: (b)(6);(b)(7)(C) Sent: Wednesday, May 03, 2017 10:45 AM CBP FOIA 007304 DHS-17-0435-Q-000068 Page 994 of 6279 (b)(6);(b)(7)(C) To Subject: FW: Getting ready for NBC Nightly News engagement May 3-4 - (b)(6);(b)(7)(C) Can you send me the latest electronic media search statement. I'm away from my computer and the iPhone search capabilities are limited. The DFO is pretty convinced NBC will ask about this. They are pretty interested in the wall, will it help, etc. as one would expect but trying to cover what we do in all aspects, get a true picture of the border. I can provide the electronic search statement on the CBP website. Thanks, (b)(6);(b)(7)(C) Public Affairs Officer U.S. Customs and Border Protection 207 W. Del Mar Blvd. Laredo, TX 78041 (b)(6);(b)(7)(C) Follow us on Social Media: twitter cid:image007.jpg@01D0A4F1.73AD5F80 cid:image008.jpg@01D0A4F1.73AD5F80 cid: image009.jpg@01D0A4F1.73AD5F80 cid:image010.jpg@01D0A4F1.73AD5F80 Urgent after-hours media inquiries: cbpmediarelations@dhs.gov Sign up for e-mail updates from CBP.gov http://www.cbp.gov/newsroom _____ (b)(6);(b)(7)(C) From Sent: Wednesday, May 03, 2017 9:28:00 AM To: Cc: Subject: RE: Getting ready for NBC Nightly News engagement May 3-4 (b)(6);(b)(7)(C) (b)(6);(b)(7)(C) - - Do you have the talkers for searches on electronic devices readily available and/or has PD (b)(6);(b)(7)(C) DPD received them. The DFO is adamant that this may be a part of NBC’s line of questioning and they need to be prepared. (b)(6);(b)(7)(C) Respectfully, CBP FOIA 007305 DHS-17-0435-Q-000069 Page 995 of 6279 (b )(6);(b )(? )(C) Ch ief CBP Officer / Public Affai rs Liaison Laredo Field Office Communica tions Managemen t Office U.S. Customs and Border Protection 109 Shiloh Drive, Suite 300 Laredo, Texas 78045 Office Fax Cell (b )(6);(b )(?)(C) From : (b )(6);(b Sent: Tuesda To : )(7)(C) Subject: FW: Gett ing ready for NBC Nightly News engagement May 3-4 (b )(6);(b )(?)(C) I hope all is going we ll and I just wanted to make sure everyone is caught up on everything and we are all good to go and synch ronized with regard to the NBC Nightly News full mea l dea l ridealong on May 3 and 4. For Thursday , I will plan on being at AMO Hanga r at 0730 and will staff that portion along w:thiffli1f'Wf' "f"!flli! nd cont inue on to Wor ld Trade Bridge and staff that portion along with Chief CBPO and LFO CMO PA' ... ...he crew has agreed to two passengers for the AS-350 ridealong but jus t need to check their sound equipment with rotors turning before full takeoff . - I will give you a call when things are winding down with the Wo rld Trade Bridge portion and as discussed will guide them to the BP Training Facility on 380 1 South Zapa ta Highway for the handover for the USBP portion of the ridealong . AME: IGAN pVERSIGHT CBP FOIA 007306 DHS-17-0435-Q-000070 Page 996 of 6279 I will be reachable at all times via cellphone at (b)(6);(b)(7)(C) If time permits I will try to give a verbal readout to (b)(6);(b)(7)(C) at the different phases to give an idea of how it’s going or red flags, issues raised at each stage. Thanks again for all the help and coordination of the different phases. Thanks, (b)(6);(b)(7)(C) Public Affairs Officer Office of Public Affairs-Media Division U.S. Customs and Border Protection 207 W. Del Mar Blvd. Laredo, TX 78041 (b)(6);(b)(7)(C) Follow us on Social Media: Urgent after-hours media inquiries: cbpmediarelations@dhs.gov Sign up for e-mail updates from CBP.gov http://www.cbp.gov/newsroom From: (b)(6);(b)(7)(C) Sent: Tuesday, May 02, 2017 9:47 AM To: (b)(6);(b)(7)(C) Sub 3-4 CBP FOIA 007307 DHS-17-0435-Q-000071 Page 997 of 6279 (b)(6);(b)(7)(C) Here is the latest and greatest regarding the NBC Nightly News engagement. I reached out to the producer and advised that two passengers is the optimum load and that we would be doing the 8 a.m. start time as originally scheduled. They can test the sound as helicopter prepares for takeoff but we wouldn’t be able to spool up earlier or beforehand. Hopefully all of this is helpful background information, thanks again for all your help and please let me know if you have any questions. I’ll plan on getting to the AMO hangar by about 0730ish tomorrow. Thanks, (b)(6);(b)(7)(C) Public Affairs Officer Office of Public Affairs-Media Division U.S. Customs and Border Protection 207 W. Del Mar Blvd. Laredo, TX 78041 (b)(6);(b)(7)(C) Follow us on Social Media: Urgent after-hours media inquiries: cbpmediarelations@dhs.gov Sign up for e-mail updates from CBP.gov http://www.cbp.gov/newsroom CBP FOIA 007308 DHS-17-0435-Q-000072 Page 998 of 6279 From: (b)(6);(b)(7)(C) Sent: Monday, May 01, 2017 4:41 PM To: (b)(6);(b)(7)(C) Subject: Getting ready for NBC Nightly News engagement May 3-4 (b)(6);(b)(7)(C) I have attached the CBP Front Office approval of the NBC Nightly News request, the talkers submitted with the request, the email trail with (b) (6) describing their story request, the border wall talkers (b)(6);(b)(7)(C) that sent and the draft itinera - The upshot of the story is they are looking at what does a day in the life of CBP look like, to show the work you do (OFO, USBP, AMO), what are the challenges of patrolling the border in areas where there is border fence currently versus areas where there is fence. As I mentioned on the phone, the NBC Nightly News crew had also asked about the possibility of obtaining drone footage showing areas where there is no border fence in addition to areas where there is border fence (i.e. around the LCC main campus). I mentioned the complexities of deconfliction among the various CBP components if they were to fly a drone and said I would check to see if we have any aerial footage available first. We do have some drone shot footage around international bridges but they were looking for aerial footage depicting fenced areas versus no fence footage. (b) (6) I spoke to Producer this afternoon and while I didn’t give her a copy of the itinerary, I went over the basic itinerary flow, from AMO ridealong to World Trade Bridge trade operations, then Border Patrol ridelong first day. Then Lincoln-Juarez Bridge (passenger operations) and USBP riverine tour the next morning. I did mention that PD (b)(6);(b)(7)(C)and CPA (b)(6);(b)(7)(C)would be available to provide interviews. - - - (b) (6) ad made a few more asks that are more Border Patrol-centric and I wanted to forward those to you to check with local mgmt. see what is or isn’t possible. She had asked if it would be possible to show correspondent (b) (6) some carpet-bottomed shoes or items used to obscure footprint sign. She had asked about the aerial footage of fenced versus unfenced areas of course. She asked if the Border Patrol ridealong on the ground could show areas where there is no fence and areas where there is fence (i.e. the fence near the main LCC campus) so they could see what that looks like. She also asked if it would be possible to see the Horse Patrol Unit, if not deployed, the area where they are stabled. She asked if it would be possible to stay with the agents longer, like until sunset, but if not if we CBP FOIA 007309 DHS-17-0435-Q-000073 Page 999 of 6279 cou ld recommend an area where they can set up and capture footage of the sunset. Ideally they are hoping to be able to capture illega l activity and there is a greater possib ility to encounter that when the lso asked about game camera footage, whether it would be poss ible to obtain sun goes down. that footage or wou ld that be through a diffe rent agency, like Texas DPS . ltiJl(gJ I know that is a lot she is asking for and not all is poss ible but if you can check with loca l USBP mgmt. and let her know that would be great. Thanks, (b )(6 );(b )(7 )(C ) Public Affa irs Officer Office of Public Affa irs-Med ia Division U.S. Customs and Border Protection 207 W . Del Mar Blvd . Laredo, TX 78041 (b)(6);(b )(?)(C) Follow us on Social Med ia : Urgent after-hours med ia inquir ies: cbpmed iarelations@dhs.gov Sign up for e-mail updates from CSP.gov http://www .cbp.gov /newsroom From : FLANAGAN, PATR ICK S Sent: Frida A ril 28 2017 12:22 PM To : AME: IGAN pVERSIGHT CBP FOIA 007310 DHS-17-0435-Q-000074 Page 1000 of 6279 Approved; please brief out the engagement du ring the nex t 830. V/ R Patrick Patrick Flanagan (b )(6);(b )(7)(C ) Notice : P:e~ eP:P: IOl;tfL elOEer JLY this transm ission con tains material cove red by the Privacy Ac t of 1974 and should be viewed on ly by personne l having an off icial "need to know ." If you are not the intended rec ipient , be aware tha t any disclosure , copy ing , distribution or use of the con tent of this info rmat ion is prohibi ted . If you have rece ived this communicat ion in error , please notify me immedia tely by ema il and de lete the origina l message . C NIGHTLY NEWS AME: IGAN pVERSIGHT CBP FOIA 007311 DHS-17-0435-Q-000075 Page 1001 of 6279 Good afternoon, OPA recommends approval to support NBC Nightly News producer (b) (6) request to cover a ‘day in the life’ in Laredo for all three CBP components during the week of May 1-5. The actual engagement will last 1 ½ days but is tentatively scheduled for next week if approved. The local components as well as all three HQ components have approved. (b) (6) is working on a project as part of NBC’s special coverage along the border that looks at areas where the wall is not presently located to explore the challenges of patrolling those areas and to show the hard work that CBP does in securing the border. - This engagement would include observing a CBP officer conducting inspection duties in passenger, commercial environments at Laredo Port of Entry, riding along with a Border Patrol agent conducting line watch duties and participating in an observational flight over the Rio Grande with an Air and Marine agent during an existing AMO mission (ASR being routed separately – was approved). In addition to b-roll, the engagement would include interviews with CBP management officials at the DFO, PD, CPA, DAO levels or their designees timing and schedules are pending approval of this request. Talking points *CBP is the unified border agency within the Department of Homeland Security charged with the management, control and protection of our nation's borders at and between official ports of entry. CBP is charged with keeping terrorists and terrorist weapons out of the country while enforcing hundreds of U.S. laws. *As such, a CBP officer’s job includes positively identifying the person being inspected and making a determination whether they can legally enter the U.S., as well as ensuring that they are not intending to cause harm and that they are not breaking any other laws. *Upon arrival at a U.S. port of entry, each international traveler attempting to enter the United States, including each U.S. citizen, is subject to complete inspection upon each arrival. The applicant will undergo an inspection and determination of admissibility to the U.S. Processing at the port of entry will include screening against law enforcement databases and biometric data collection. Officers must determine a person’s purpose and intent to enter the U.S. and that is difficult to accomplish while continuing to expedite the many legitimate travelers crossing into the United States. CBP officers cancel nonimmigrant visas every day for violating the terms of the benefit received including for reasons such as attempting to cross the border with the intention to work and live illegally in the U.S. CBP officers review all available evidence at the time of application for admission to make a determination of admissibility. In all cases, the burden of proof rests with the applicant to demonstrate his or her admissibility and that the alien has no intention of abandoning their residence. CBP FOIA 007312 DHS-17-0435-Q-000076 Page 1002 of 6279 *Processing at the port of entry will include screening against law enforcement databases and biometric data collection. Officers must determine a person’s purpose and intent to enter the U.S. and that is difficult to accomplish while continuing to expedite the many legitimate travelers crossing into the United States *Our mission is to detect and intercept smuggling attempts, with a goal of disrupting smuggling operations and impacting smuggling organizations ability to conduct operations and make it unprofitable to continue. Smugglers attempt to blend in with legitimate travel and trade, so they use a variety of methods, ages, ethnicities, travel methods, etc. We do the best we can using a combination of officer knowledge and expertise, technology, canines, and other tools available to us. Our greatest asset is the CBP officer and the unique experience, training and abilities they employ on a daily basis to keep our border safe. *CBP’s Laredo Field Office in FY 2016 processed $168 billion in imports within the eight ports of entry from Brownsville to Del Rio that comprise the Laredo Field Office. Fully more than $115 billion of that total was processed at Laredo Port of Entry. *CBP in Laredo Field Office in FY 2016 processed 3.1 million commercial trucks, 58.6 million passengers and pedestrians, 21.1 million privately–owned vehicles and 78,101 commercial buses. *CBP officers within Laredo Field Office in FY 2016 seized 157,947 in narcotics with a value of $188 million. Specifically they seized 144,483 pounds of marijuana, 5,877 pounds of cocaine, 6,728 pounds of methamphetamine, up 35 percent from FY 2015, 859 pounds of heroin, $3.8 million in unreported currency, 70 firearms and 25,278 rounds of ammunition. CBP officers determined that a total of 68,027 non-U.S. citizens were inadmissible to the U.S. due to violations of immigration law. In Fiscal Year to Date 2017 (through March 2017) CBP officers at Laredo Field Office ports have processed 706 unaccompanied alien children, 7,951 family units and 12,835 Cuban inadmissibles. *U.S. Border Patrol, Laredo Sector in FY 2016 made 36,6562 apprehensions, 11,225 OTM apprehensions, seized 73,261 pounds of marijuana, 663 pounds of cocaine, effected 982 rescues, and responded to 68 undocumented alien deaths. In FYTD 2017 through March 2017, U.S. Border Patrol agents in Laredo Sector have apprehended 1,101 unaccompanied alien children and 634 family units. *Since the terrorist attacks of September 11, 2001, the focus of the Border Patrol has changed to detection, apprehension and/or deterrence of terrorists and terrorist weapons. Although the Border Patrol has changed dramatically since its inception in 1924, its overall mission remains unchanged: to detect and prevent the illegal entry of aliens into the United States. Together with other law enforcement officers, the Border Patrol helps maintain borders that work, facilitating the flow of legal immigration and goods while preventing the illegal trafficking of people and contraband. CBP FOIA 007313 DHS-17-0435-Q-000077 Page 1003 of 6279 *The Border Patrol is specifically responsible for patrolling the 6,000 miles of Mexican and Canadian international land borders and 2,000 miles of coastal waters surrounding the Florida Peninsula and the island of Puerto Rico. Agents work around the clock on assignments, in all types of terrain and weather conditions. Agents also work in many isolated communities throughout the U.S. *One of the most important activities of a Border Patrol agent is line watch. This involves the detection, prevention and apprehension of terrorists, undocumented aliens and smugglers of aliens at or near the land border by maintaining surveillance from a covert position, following up leads, responding to electronic sensor television systems, aircraft sightings, and interpreting and following tracks, marks and other physical evidence. Some of the major activities are traffic check, traffic observation, city patrol, transportation check, administrative, intelligence, and anti-smuggling activities. *Regarding the border wall, CBP continues to review the proposals while U.S. Border Patrol conducts its assessment. A selection regarding border wall prototypes has not taken place but is anticipated in Summer 2017. Regarding specific bidders, number of bidders, names of bidders, their proposals, and any materials they submitted, Federal Acquisition Regulation (FAR) Subpart 15.505(f) prohibits us from releasing the information. *The mission of AMO is to serve and protect the American people. AMO applies advanced aeronautical and maritime capabilities and employs a unique skill set to preserve America's security interests. · During FY 2016, CBP Air and Marine Operations, Laredo Air Branch flew 4,655 hours, made 6,270 apprehensions, seized 15,272 pounds of marijuana, 61 pounds of cocaine, 197 pounds of methamphetamine, $504,599 USD, 9 weapons, and effected 12 rescues. In FY 2017 through March 2017, Air and Marine Agents in Laredo have flown 2,111 hours, seized 988 pounds of cocaine, 2,615 pounds of marijuana, 36 pounds of heroin, $10,000 USD and made 2,464 apprehensions. *AMO serves as the nation’s experts in airborne and maritime law enforcement. *AMO agents possess skill sets that are uncommon or otherwise unavailable, and our success is critical to the security of America. *AMO conducts its mission in the air and maritime environments at and beyond the border, and within the nation’s interior. *AMO interdicts unlawful people and cargo approaching U.S. borders, investigates criminal networks and provides domain awareness in the air and maritime environments, and responds to contingencies and national taskings. *AMO continuously assesses the border environment and deploys its manpower and assets based on CBP FOIA 007314 DHS-17-0435-Q-000078 Page 1004 of 6279 risk. *Currently, southern Arizona and south Texas are focal points for AMO, with these two operating areas having a significant number of dedicated assets and personnel Very respectfully, - (b)(6);(b)(7)(C) Director, Media Division Office of Public Affairs U.S. Customs and Border Protection Office: (b)(6);(b)(7)(C) iPhone From: (b) (6) (NBCUniversal) Sent: Monday, May 01, 2017 9:16:21 AM To: (b)(6);(b)(7)(C) Subject: let's chat Hi - (b)(6);(b)(7)(C Let’s talk about schedule when you have a moment. Also what’ the possibility of flying a drone over the area? Do you have drone footage that we can use? Or do we take our own? A drone truly would give us perspective of the area. Thanks - (b) (6) From: (b) (6) (NBCUniversal) [mailto: Sent: Tuesday, April 25, 2017 4:54 PM (b) (6) ] CBP FOIA 007315 DHS-17-0435-Q-000079 Page 1005 of 6279 (b)(6);(b)(7)(C) To: Subject: RE: more time RE: NBC News "day in the life" at the border Hi (b)(6);(b)(7)(C) Will work on the form and make sure they’re all U.S. citizens to speed things up. THANKS (b) (6) From: (b)(6);(b)(7)(C) Sent: Tuesday, April 25, 2017 4:47 PM To: (b) (6) (NBCUniversal) (b) (6) Subject: RE: more time RE: NBC News "day in the life" at the border - (b) (6) Thanks for the note and the push to next week. That will definitely help. I apologize for the delay. I’m still working on this, have largely garnered local mgmt. support in Laredo and still need final clearance from CBP in Washington to proceed. One thing that is urgently needed to push all of this forward and to allow filming on CBP property, riding along on CBP assets is the vetting information for your crew members. If you can send that at your earliest convenience that would be great. I have enclosed the vetting sheet for U.S. citizen crew members again just in case. If any crew member is not a U.S. citizen, this includes resident aliens/lawful permanent U.S. residents, there is a DHS vetting form that requires more information and that vetting takes 45 business days. If you can send the completed vetting form for all crew members participating in the proposed shoot at your earliest convenience that would be great. Thanks, CBP FOIA 007316 DHS-17-0435-Q-000080 Page 1006 of 6279 - (b)(6);(b)(7)(C) Public Affairs Officer Office of Public Affairs-Media Division U.S. Customs and Border Protection 207 W. Del Mar Blvd. Laredo, TX 78041 (b)(6);(b)(7)(C) Follow us on Social Media: Urgent after-hours media inquiries: cbpmediarelations@dhs.gov Sign up for e-mail updates from CBP.gov http://www.cbp.gov/newsroom (b) (6) (b) (6) From NBCUniversal) [mailto Sent: Monday, April 24, 2017 2:25 PM (b)(6);(b)(7)(C) To: Subject: more time RE: NBC News "day in the life" at the border Hi - (b)(6);(b)(7)(C) We’re hoping to now film Next week… nothing this week. Hope that helps with scheduling. - Will contact (b) (6) about the footage she and her crew got. Initially we talked about South Texas, Laredo area for our location… but it could be another area of the border. As long as it is an area that’s open… with NO fence yet. So we can show the challenges of patrolling an area where there are no structures dividing the two countries. CBP FOIA 007317 DHS-17-0435-Q-000081 Page 1007 of 6279 And of course we’re looking for an area that’s busy, because we want to show how hard CBP staff works. Thanks for getting back to me on a Saturday. Will wait to hear back from you, - (b) (6) (b) (6) (NBCUniversal) [mailto: From: (b) Sent: Thursday, March 23, 2017 5:02 PM (b)(6);(b)(7)(C) To: Subject: RE: NBC News "day in the life" at the border Good to hear from you (6) - (b)(6);(b)(7)(C) This piece would end up being about 3 minutes long. I’m calling it a Special Report because it will be part of our Special coverage on the border. We’re doing another piece on the immigration problem, for instance. This piece would air in news programs on NBC, MSNBC and it would be put on our NBCNews.com page too. If we do a whole hour on the topic of the drugs and immigration problem at the border it would not be a documentary format, but a live news program that would include interviews with experts and taped pieces, basically a news show. Hope that answers your question. I have a question for you. In the past we’ve been able to ride in a helicopter to get a better perspective of the size of the border. Would I make a request to do that again through you? Thanks for looking into all this. (b) (6) Coordinating Producer, NBC News Mobiles: From (b) (6) (NBCUniversal) [mailto: Sent: Wednesday, March 22, 2017 3:16 PM To: (b)(6);(b)(7)(C) Subject: NBC News "day in the life" at the border (b) (6) (b) (6) CBP FOIA 007318 DHS-17-0435-Q-000082 Page 1008 of 6279 Good afternoon - (b)(6);(b)(7)(C NBC News is working on an investigative project about the border with Mexico. We’re looking to do a segment on “a day in the life” of border agents protecting that border. The goal is to give our viewers a better perspective on what these men and women endure day and night to keep the U.S. safe. We would show how they work in rugged terrain, at the mercy of weather, while they try to stop illegal migrants and narcotics from coming into the country. Ideally, we would spend a couple of days and nights with agents in an area that’s normally busy and that has no structural barriers between the U.S. and Mexico. That way viewers would get a realistic feel of what it is like to be there. I took a look at some of the CBP stats and noticed your border teams are confiscating lots of drugs. Hoping we can capture some of that activity on tape. This segment would be part of a Nightly News piece and a Special Report on different aspects of the border by one of our high profile correspondents. Since you know me, you are familiar with how I’ve produced stories similar to this one and have always followed your department’s guidelines on what we can and cannot show. Thanks for considering our request. Hope to hear from you soon. (b) (6) (b) (6) Coordinating Producer, NBC News Mobiles: From: (b)(6);(b)(7)(C) Sent: Monday, May 01, 2017 1:59 PM To: (b)(6);(b)(7)(C) Subject: RE: In an interview right now with our ADFO > - Chief(b)(6);(b)(7)(C) requested talkers for NBC I haven’t talked to reporter so anything I can prep him in ? CBP FOIA 007319 DHS-17-0435-Q-000083 Page 1009 of 6279 From: (b)(6);(b)(7)(C) Sent: Monday, May 01, 2017 1:57 PM To: (b)(6);(b)(7)(C) Subject: In an interview right now with our ADFO Will be done soon. Will call when done. - (b)(6);(b)(7)( (b)(6);(b)(7)(C) Public Affairs Officer U.S. Customs and Border Protection 207 W. Del Mar Blvd. Laredo, TX 78041 (b)(6);(b)(7)(C) Follow us on Social Media: twitter cid:image007.jpg@01D0A4F1.73AD5F80 cid:image008.jpg@01D0A4F1.73AD5F80 cid: image009.jpg@01D0A4F1.73AD5F80 cid:image010.jpg@01D0A4F1.73AD5F80 Urgent after-hours media inquiries: cbpmediarelations@dhs.gov Sign up for e-mail updates from CBP.gov http://www.cbp.gov/newsroom CBP FOIA 007320 DHS-17-0435-Q-000084 Page 1010 of 6279 From : To : Cc: Bee: Subject: Date: Attachmen ts: RE: OPA Daily Report - May 10, 2017 Wed May 10 2017 21: 15:40 EDT image001 .j pg image002.jpg FYI: · l'9pl (noted by AC as a dese rved mention in today's daily report ) did not appear in today 's umma ry. Execu Ive (b) (6) Reuters , in today 's Executive Summary was item 5, wh ich read : o Tentative schedule: 5-10: 0800- 1~3~ Meet ~ ith S_CBP~~ outbound . Princ ipal for interv iew wI e Ie t Hidalgo POE Tour of primary, secondary , • • llDIQil!Jl (b )(6);(b )(?)(C) Chief of Staff - Office of Public Affa irs U.S. Customs and Border Protection Office (b )(6);(b )(?)(C) Mobile : (b )(6) ;(b )(?)(C) From : (b )(6) ;(b )(?)(C) Se To : Subject: RE: OPA Daily Report - May 10, 2017 We can't re-do the report, but I would tell you that the Executive Summary front lines the importan t info already - and you' re on that distro . AME: IGAN pVERSIGHT CBP FOIA 00732 1 DHS-17-0435-Q-000085 Page 1215 of 1881 From : (b )(6 );( b )(? )(C ) Se · To: Subject: RE: OPA Daily Report - May 10, 20 17 (b) (5), (b )(6);(b )(7)(C) (b )(6 );(b )(7)(C) Ch ief of Staff - Office of Public Affairs U.S. Customs and Border Protection Office (b )(6);(b )(7)(C) * Mobile (b )(6);(b )(7)(C) From : FRIE L, MICHA EL J Sent W d d M 10 2017 4 16 PM To: Cc: Subject: RE: OPA Daily Report - May 10, 20 17 (b)(6);(b)(7)(C) Thanks , Mike ~~n~ -~ AME: IGAN pVERSIGHT . 20174 :11 PM CBP FOIA 007322 DHS-17-0435-Q-000086 Page 1216 of 1881 Media: CBP Office of Public Affa irs responded to many med ia outlets regarding an alleged hazing incident at Newark Liberty Internationa l Airport. Three officers from CBP 's NLIA PERT team alleged the hazing on a May 9 NBC-NY Investigat ive piece. Lead : (b )(6);(b )(7)(C) "U.S. Customs and Border Protection stresses honor and integrity in every aspect of our mission and the overwhelming major ity of CBP emp loyees and officers perform the ir duties with honor and distinction, wor king tirelessly every day to keep our country safe . We do not tolerate corruption or abuse within our ranks, and we cooperate fully with all criminal or admin istrative invest igations of alleged misconduc t by any of our personne l, whethe r it occu rs on or off duty. An investiga tion of the hazing allegations is ongo ing, led by the Department of Homeland Secur ity Office of Inspector Gene ral with the assis tance of the CBP Office of Professiona l Responsib ility." Social Media: Tweets: Impress ions : number of individuals that viewed the twee t on Twitter. AME: IGAN pVERSIGHT CBP FOIA 007323 DHS-17-0435-Q-000087 Page 1217 of 1881 Engagements: number of times an individual interacted with the tweet, i.e., liked, favorited, shared, etc. Communication and Outreach: Internal Communications (Lead: · - (b)(6);(b)(7)(C) ) Published Jones Act update for trade: https://www.cbp.gov/trade/rulings/bulletin-decisions Visual Communications: · Recorded an Acting Deputy Commissioner Federal Employee Viewpoint Survey (FEVS) message and provided the content to HRM to support FEVS messaging. · Recorded DHS Acting Under Secretary for Management Chip Fulghum delivering a video message urging DHS employees to participate in the 2017 Federal Employee Viewpoint Survey. The message will be posted to DHS Connect. · Edited and posted a Blue Mass highlight video to CBPNet. The annual event, which marks the beginning of National Police Week, was held at St. Patrick Catholic Church in Washington, D.C. · Photographed Acting Commissioner McAleenan and CBP senior leadership hosting a farewell event for Randolph Alles, who has transitioned to the Secret Service. (b)(6);(b)(7)(C) Chief of Staff - Office of Public Affairs U.S. Customs and Border Protection Office: (b)(6);(b)(7)(C) * Mobile:(b)(6);(b)(7)(C) CBP FOIA 007324 DHS-17-0435-Q-000088 Page 1218 of 1881 - -- image001.jpg for Printed Item: 1208 ( Attachment 1 of 2) t.l a uth es DOrt>t,.. ..._. ......... ......... e .u llhOlta 0--- ~ - ,. .,..,,. ., 1,uo, __ .. .....,..,., ...... ,ow. _,---. .,__ _........... __ , ........ SANDIEGO SECTOR ELCEITilO / Sf.CTOII i YIJMA MIAMI SECTOIII. 151.CTOIII ... d .... o o--,c.1( ow-.-.,,...... e o.---..-..lilftQl'II wa.w:--, ... SV-11,1.\Stl;iUIJy lhl) U'88: •~:;;,,._,_ I 1MA El.PASO SECTOIII I SE I NEWOIIUAHS SECTOll im DHS-17-0435-Q-000132 Atl3PDoheAoglon r::::::] CBPPffsonnel In Country e C8PAtra<.h, b. (BPAdvhoryProgram°'R«on.slf\lc.tlo.n Progqm * Conta,iners«wlty lnliltiYe D ~ □ lmmlgrauonAcMsoryP,ogram / Joint S~llryProgram 0 PfoposedAttache ' * S.0.,re Fr\tghtlnldatlv• ~~nee t.ocaUon DHS-17-0435-Q-000133 CBP PORT OF CHICAGO CBP TACTICAL OPERATIONS ADVANCED TARGETING UNIT (ATU) ANTI-TERROR CONTRABAND ENFORCEMENT TEAM CBP ENFORCEMENT Examine shipments that pose a possible threat to the national security ofthe United States. 0NARC OTIC -FRAUDULENT DO CUMENTS -ECONO MIC THREATS - - OFAC, Illegal exports - Counterfeit medicines and goods -ALIEN MUGGLING HIGH RISK (7XE EXPRESS ONS IGNAIEN NWN EXPRESS CONSIGNMENT SEIZURE APRIL 28. 2007 DHL SHIPMENT THROUGH USA EXPRESS CONSIGNMENT SEIZURE MAY 10. 2007-, UPS SHIPMENT THROUGH USA EXPRES CONS IGNMENT EIZURES IGNER DRUGS Heroin), KETAMINE, METH, GBH, W-18 CHEMICAIS USED TO MANUFACTURE DESIGNER DRUGS. DOCUMENTS BIRTH CERTIFICATES, DRIVERS LICENSES, PASSPORTS. EXPRESS CONSIGNMENT SHIPMENTS OF GBL (Gamma-Butyrolactone) ORIGINATING IN CHINA AND DESTINED TO THE US AND CANADA POLYETHER POLYOL 12 KG $5.00 DISODIUM OF SKG $28.00 DISODIUM OF 25KG $50.00 IMPORTATIONS OF FENTANYL AND FENTANYL ANALOGUES 80 TO 100 TIME MORE OTENT THAN MORP HINE 4r Louisville, Kentucky Rattled by 151 Overdoses in 4 Days Amid Opioid Ove rdoses, Ohio Comne r?s O?ice Runs Out ofRoom for Bodies . 5 (b5 EXPRESS CONS IGNZWENT (7 (E) linted Item: I. (7 (E) EXPRESS ONS IGNMEN EXPRESS CONS EXPRESS CONS IGNAIENT EXPRESS CONS IGNAENT 1 Kg. Ethylene EXPRESS CONS IGNAENT 2.01 KGS ETHYLONE EXPRESS CONS IGNAENT $812,860 Counterfeit US. Postal Money Orders CONTACT TION From : (b )(6);(b )(7)(C) SMITH , BRENDA BROCKMAN To: (b )(6);(b )(7)(C) Cc: Bee: Subject: Date: Attachments : FW: Content needed for OT Deep Dive Next Tues 5/9 Fri May 05 2017 10:02:25 EDT ACE Update.docx ADCVD .docx C1 TFTEA Ovverview Briefing Book.pdf Canadian Softwood Lumber.docx FTA and Trade Preference Programs .docx TFTEA Overview Session Agenda.docx Trade EO issue paper- FY 18 budget and confirmation hearings (tr).docx Wildl ife Items Trafficking.doc For our discussion later today . (b )(6 );(b )(7)(C) Ch ief of Staff Office of Trade U.S. Customs and Border Protection (b )(6); (b )(7)(C) From (b )(6) ;(b )(7)(C) - I I Sent: Frida To: Cc: .- . - Importance: High --.-. • • • (b )(6) ;(b )(7)( C) (b )(6 );(b )(7)(C) or OT Deep Dive Next Tues 5/9 ~;IWEiPI Hope all is we ll. AMl:::fIGAN pVERSIGHT CBP FOIA 007392 DHS-17-0435-Q-000156 Page 1332 of 1881 (b) (5) Thank you so much for your help, (b)(6);(b)(7)(C) Congressional Affairs, CBP (b)(6);(b)(7)(C) CBP FOIA 007393 DHS-17-0435-Q-000157 Page 1333 of 1881 ACE Update.docx for Printed Item: 1225 ( Attachment 1 of 8) FOR OFFICIAL USE ONLY (b) (5) POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) CBP Contact Office: Office of Trade/ACE Business Office (b)(6);(b)(7)(C) Office Phone: Date Prepared: April 21, 2017 Approving Official: (b)(6);(b)(7)(C) xecutive Director, ACE Business Office (ABO)/Trade Transformation Office (TTO) / Date Reviewed: 4/25/2017 VERSIGHT CBP FOIA 007394 DHS-17-0435-Q-000158 Page 1335 of 1881 ACE Update.docx for Printed Item: 1225 ( Attachment 1 of 8) FOR OFFICIAL USE ONLY (b) (5) POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) CBP Contact Office: Office of Trade/ACE Business Office (b)(6);(b)(7)(C) Office Phone: Date Prepared: April 21, 2017 Approving Official: (b)(6);(b)(7)(C) xecutive Director, ACE Business Office (ABO)/Trade Transformation Office (TTO) / Date Reviewed: 4/25/2017 VERSIGHT CBP FOIA 007395 DHS-17-0435-Q-000159 Page 1336 of 1881 ACE Update.docx for Printed Item: 1225 ( Attachment 1 of 8) FOR OFFICIAL USE ONLY (b) (5) POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) CBP Contact Office: Office of Trade/ACE Business Office (b)(6);(b)(7)(C) Office Phone: Date Prepared: April 21, 2017 Approving Official: (b)(6);(b)(7)(C) xecutive Director, ACE Business Office (ABO)/Trade Transformation Office (TTO) / Date Reviewed: 4/25/2017 VERSIGHT CBP FOIA 007396 DHS-17-0435-Q-000160 Page 1337 of 1881 ADCVD.docx for Printed Item: 1225 ( Attachment 2 of 8) ANTIDUMPING/COUNTERVAILING DUTY ENFORCEMENT OFFICE OF TRADE (b) (5) 1 POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) CBP Contact AD/CVD Enforcement Branch Chief Office: AD/CVD Division, Trade Policy and Programs, Office of Trade (b)(6);(b)(7)(C) Office Phone: Date Prepared: April 25, 2017 Approving Official: (b)(6);(b)(7)(C) D/CVD Division Director / Date Reviewed: April 25, 2017 VERSIGHT CBP FOIA 007397 DHS-17-0435-Q-000161 Page 1339 of 1881 ADCVD.docx for Printed Item: 1225 ( Attachment 2 of 8) ANTIDUMPING/COUNTERVAILING DUTY ENFORCEMENT OFFICE OF TRADE (b) (5) 2 POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) D/CVD Enforcement Branch Chief CBP Contact Office: AD/CVD Division, Trade Policy and Programs, Office of Trade (b)(6);(b)(7)(C) Office Phone: Date Prepared: April 25, 2017 Approving Official (b)(6);(b)(7)(C) D/CVD Division Director / Date Reviewed: April 25, 2017 VERSIGHT CBP FOIA 007398 DHS-17-0435-Q-000162 Page 1340 of 1881 I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I DHS-17-0435-Q-000211 C1 TFTEA Ovverview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Bloomberg GOVERNMENT ollFJPJII, • This document Is being prepared lor ine exclusive use US CUSTOMS AND BORDER PROTECTION Senate CommitteeOn FinanceHearingOn The Nominat.., sked FINAL March 1-4, 2017 5:53PM ET TRANSCRIPT March 14, 2017 COMMITTEEHEARING SEN. ORRIN G. HATCH CHAIRMAN SENATE COMMITTEE ON FINANCE WASHINGTON,D.C. SENATE COMMITTEEON FINANCE HEARING ON THE NOMINATION OF ROBERT LIGHTHIZERTO BE U.S. TRADE REPRESENTATIVE Roll Call, Inc. 1255 22nd Street N.W. Washington, D.C. 20037 Transcript/Programming: Tel. 301-731-1728 Sales: Tel. 202-419-8500ext 599 sales@cqrollcall.com www.cqrollcall.com Copyright 2017 Roll Call, Inc. All materials herein are protectedby United States copyright law and may not be reproduced, distributed, transmitted, displayed, Mc {ICAN PVERSIGHT CBP FOIA 007507 DHS-17-0435-Q-000271 Page 1450 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Bloomberg GOVERNME NT :mil;lIUili ~,US This document is beirg preparod for the exclusiveuse otWE CUSTOMS AND BORDER PROTECTION SPEAKERS : SEN.ORRIN G. HATCH , A-UTAH CHAIRMAN SEN. CHAR LES E. GRASSLEY , R-IOWA SEN. MICHAEL 0 . CRAPO. R-IDAHO SEN. PAT ROBERTS , A-KAN . SEN . MIC HAEL B. ENZI, R-WYO. SEN. JOHN CORNYN , A-TEXAS SEN. JOHN THUNE , R-S.D. SEN. RICHA RD M. BURR , R-N .C. SEN. JOHNNY ISAKSON , A-GA. SEN. ROB PORTMAN , A-OH IO SEN. PATRICKJ . TOOMEY , A-PA . SEN. DEAN HELLER , A-NEV . SEN. TIM SCOTT, R-S.C . SEN. BILL CASSIDY , R-LA. SEN. AON WYOEN , D-ORE . RANKING MEMBER SEN. DEBBIE STABENOW , 0-M ICH. SEN. MARIACANTWEL L, D-WASH . SEN. BILL NELSON, 0-FLA. SEN. ROBERT MENENDEZ , 0 -N .J. Mc {ICAN PVERSIGHT CSP FOIA 007508 DHS-17-0435-Q-000272 Page 145 1 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) Bloomberg This document is beingprapared for the exclusive use GOVERNM ENT oti@Nim\jh1us CUSTOMSANOBORDERPROTECTIO N Before digging in to policy issues, there is another issue the committeehas to address.As a legal matter, Mr. Lighthizer'sprevious work for foreign governments makes him ineligible to be appointed as the United States Trade Representative, pursuant to the lobbying disclosure act. The facts are clear but as was the case with Secretary Mattis, this administration and others before it has worked with the congress, when appropriate, to make exceptions. Speaking for Democrats, we are willing to work with Republicansto make a statutoryexception for Mr. lighthizer . But we also insist that Republicans work with Democratsto provide a lifeline with America's hardworking miners, who are now facing possible loss of healthcare and retirementbenefits. Mr. Lighthizer has an understanding about the impact of unfair trade on America's manufacturesand workers that, in my view, could be a valuable asset to the country.The country needs a USTR who's gonna stand up for our rights, on behalf of our workers and our businesses at the World Trade Organization.Who's going to partner with the Customs and Border ProtectionAgency, The Departmentof Commerce,and the full range of agencies who are responsible for trade enforcement. to crack down on the rip~ff artists, the cheats who hurt our workers and our businesses here at home. After a campaign of shouting that ttie North American Free Trade Agreementcould be the worst deal ever, the president came in to office and said our trade relationship with Canada - a NAFTA memberonly needed, In his words, tweaking. The president spent the campaign talking tough about China. But his administration has largely been quiet about their plans when it comes to China's flagrantly unfair trade practices. So when I say that our trade policy needs to deliver results and not just talk, that'swhy we need to get in to specifics today. My own view is that the agenda has gotta start, particularly in this season of March madness,with a vigorous, full-court press for tough trade enforcement.In my view, there are two prongs to effective trade enforcement.The first is to fully enforce the trade laws here at home. Foreign subsidies and dumping that harms American workers has to be identified quickly and remedied. And that requires strong enforcementat the border by customsofficials. Goods made with forced labor have to be barred from entering,our country. Trade in stolen timber, and other natural resourcesthat damage the environmentand edge out hardworking,Americans in the , _______ -- _._# ""'-· ·- · - ...._ _,..____ _, .A_...,. --......i AM {ICAN PVERSIGHT - - ,1-...1 • • _____ .. ..._ .... __ ... - .. ..... _,_ "'-- -· _, _ _ • ..,_ •• ,.. _ _ , · -- . .. , ... _ CBP FOIA 007509 DHS-17-0435-Q-000273 Page 1452 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Print ed Item : 1225 ( Att achmen~ of 8) Bloomberg GOVERNMENT This document1s being prepared to,lhe ex.elusiveuse o' \JPWJN ·tUS CUSTOMS AND BORDER PROTECTION The secondprong of effectivetradeenforcementis holding othercountriesto their commitmentsunder deals that are already on the books. That meansenfordng labor obligations,protectingthe environment, or stoppingcountriesfrom applyingdiscriminatorypolicies that block out our digital goods and services. So when it comesto aggressivetrade enforcement,the UnitedStatesgovernment can'tdeploy a full court presswith only half a team. That Is why a numberof SenateDemocratshave thought that the hiring freezewas so short sited. Becauseit leaves resourceson the side line and it suggeststhatthe tough talk on tradeis not going to be much morethan talk. So I hope thatthe forthcoming!budget does not put moretradeenforcers on the side lines. Becausedoing that would endangergood paying American jobs just to fund a more than $50 billion give away to defense contractors. In order to maximize economicopportunities for our exporters, our trade policy cannotend with effectiveenforcementof existingrules. It aJsohas to reach overseasto dismantleforeigntrade barriers that preventAmericangoods and servicesfromcompetingon a level playing field. Here's the stakes- 140 million people are joining the middle classevery year, manyof them in Asia. And the fact of the matteris, the trade jobs in that part of the wortd providesus an opportunityto pay betterwages. They reflecta higherlevel of productivityand value added. What we say - and I've heard many of my colleagueshere say It - what we're doing is growingthings here,we're makingthings here, we're addingvalue to them here, and then we ship them somewhere. These opportunitiesare missed if we stay on the sidelines while other nations negotiate trade deals that advantagetheir exporters over ours. This is especially true now in the Asia Pacific region. And that'sexactlywhat happensas we sit here this afternoon.As we sit here today, Pacific Rim countries meetin Chili to discuss trade in the region. And the question is, where is U.S. leadership?With that said, whetherIt's throughrenegotiating NAFTA, looking to Asia or workingon any othertradedeal, transparency with the public and the Congressis essential. The previousCongresspasseda law that requires critical actionsto ensurethat the public and its' representativesin Congressare active partners In effortsto negotiateand Implementfuturetrade AM {ICAN PVERSIGHT CBP FOIA 007510 DHS-17-0435-Q-000274 Page 1453 of 1881 C1 TFTEA Owerv iew Briefing Book.pelffor Printed Item: 1225 ( Attachment 3 of 8) Bloomberg GOVERNMENT 01 WMJPJW/ at This document is being prepared for the exclusive use US CUSTOMSAND BORDERPROTECTION STABENOW: Thank you very much, Mr. Chairman. And Mr. Llghthizer, welcome. I enjoyed very muchour conversationIn the office.And good to see you again. I look forwardto seeing your waiver worked out on a bipartisanbasis, and I'm very appreciative of the work and commentsyou've made in the past. We've got some importantissues on trade to addressthat affectour workers. We talked about Michigan and both making things and growing things - agriculture, manufacturing, all of our businesses. I have a saying, as we talk abouttrade, that we should exportour products, not our jobs. And I think that'ssomethingthat you would agreewith. And so I appreciate that very much. I have to say, though,I think you have a very tough job. And I want to talk to you about that. Because as USTR, you're responsiblefor coordinating and monitoringand enforcing trade issues. existingtrade agreements, futuretrade agreements.We in Michiganwant a level playing field on trade, for intellectualpropertyrights,as the chairmantalked about, with China, or trade barriers with Japan, or currencymanipulation, which you have spoken in the past extensively about. But here's where I am deeply concernedright now. You're out fighting for Americanworkers and businessesif you are confirmed.But yourfuture boss PresidentTrump and his family have business interestsall over the wortd.And my constituents and I are very worried aboutwhat happenswhen the interestsof American workers and businesses,in termsof enforcing our trade laws, ate put at odds with the business interestsof our president or his family. J wonderedif you might speak about how you stand up for American workersand businessesin that kind of a situation? LIGHTHIZER:Thank you, Senator. First of all, in all my conversationswith the president, I have been honored to have several, he -- he speaks very stronglyon enforcementand getting the best possible deals for American workers and Americanfarmersand ranchers.His own businessinterests are never remotely referredto. I really don't personallyknow what they are. The presidentis completelycommittedto the - to the America first agenda, which I subscribeto, and AM {ICAN PVERSIGHT CSP FOIA 007511 DHS-17-0435-Q-000275 Page 1454 of 1881 Bloomberg GOVERNMENT of 'fllllilffll •t This document is being prepared for the exclusrveuse CUSTOMS AND BOR US PRO ECTION STABENOW:Well, and I appreciatethat very much. Here's my concern,and Ifs a very real, sincere concern.The president said on day one he would label China the currency manipulator. You've made very strong commentsin the past China engages in currency manipulation; China is by far our biggest trade problem. This is an issue 1hatl'Vebeen working on years, both with Chtna and with Japan and other countries. We've seen the president say that the grand champion of currencymanipulationis China. But then we see on February24th, SecretaryMnuchln signals the White House Is not sure what they'regoing to do on currencymanipulation. But here's the concern that I have on that last week, China, after 12 years of court back and forth with Donald Trump and his family, has given provisional approval in an uncharacteristicallyswift manner, to 38 new trademarksfor the Donald J. Trump brand to be put on businesses, constructionbusinesses, all kinds of businesses, all kinds of products, in China. And we hear now that it's not clear what our administration is going to do about China. And so maybe it has nothing to do with each other. But it is very concerning to me that we would have, In my judgment, a need to be very tough on China in what they have done that has -we've lost close to 5 million Jobs as a result of currencymanipulation and related practices In our country,and, you know, a good numberof 1hosein my state of Michigan. And now we have a situationwhere the president is benefiting by businessdeals and new trademarks to put his name on businesses and productsin China. How - how do you move forwardon that? I mean, does - how do you make those calculations as to what to do? As you have said, and I appreciatevery much and agree with the statementsyou have made in the past about China being a currencymanipulator. So, what do we do with this? LIGHTHIZER:Well, Senator, first of all, in the past, it is myjudgment that China was a substantial currency manipulator. And I think we've lost a lot of jobs in the United States because of it And by the way, ifs just China. There are other countriesthat have done It AM {ICAN PVERSIGHT CBP FOIA 007512 DHS-17-0435-Q-000276 Page 1455 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) Bloomberg This docutnen1Is being prepatod lor \he eKcluslveuse o(b )(6) ;(b )(?)(C) I US GOVERNMEN T CUSTOMSAND BORDERPROTECTION STABENOW:And I understand it I guess my question is, as you move forward in a very tough job, and l believe you are equipped to do that, how do you handle the situation at this point in time where we have business interestsin countries,the president. his family, with business interestsin countries where we need to be tough on that country in order to protect Americanjobs? LIGHTHIZER: Well, Senator,I don't know anything about the president'sbusinessesor anything about trademarksor anythinglike that STABENOW: Would it help you if you did? I mean, in all sincerity, there are proposals, SenatorWyden has one, that would require making that known. If you knew that, would it make it easier to be able to fromyour perspective, do your job and make sure there wasn't a conflict? LIGHTHIZER: Absolutely not I don't want to know anything about It. l think that l -to be honest,with the time I've spent with the president, any suggestionat all that he would do anything thars not in the national interestfirst, middle and last is just not correct. I just- I would like, if l could, to have you and the ranking member, whateverthings you have to worry about- and my job is tough. Your job is tougher, to be honest. Your job is tougher.Your responsibility is greater. This idea that this presidentwould do anything (inaudible) is far out of the realm of possibility. And I say this, and I mean it sincerely. It is an honor for me. This is a person who is completelycommittedto nothing but helping Americaand the American workers and farmersand ranchers.It'sjust ... STABENOW: And I know my time is up and I respectand understand.I would just say he promised on day one that China would be a currencymanipulator.It is after day one and that has not happened yet. But other things affectinghis business have and thars deeply concerningto me. LIGHTHIZER: Let me say- if l could just say, Mr. Chairman, I believe that if your concern is that the presidentwould somehow not defend Americaagainst China becauseof trademarks, I want to let you be assured that that Is not the case and I would also say that I'll bet you you and I will sit down in your office between now and the time l leave and you will say, "Bob, you were right. He really is going to change the paradigm on China." I believe he's going to change the paradigmon China. Anrf if AM \U\f, lnnlt ~•"'trnrnl-\1.omc {ICAN PVERSIGHT f'.hin!2 ic rinhf 111, ♦ho ,:o ~n lo♦ f"Y'\o~cc-ttf'O ♦h.4 eo"'>tt'\r - lo♦ mo oco, ,,.,, CBP FOIA 007513 DHS-17-0435-Q-000277 Page 1456 of 1881 C I IF I EA OWerv1ew BnetingBookpdffor PnnledItem: 1225( Attachment3of 8} Bloomberg GOVERNMENT i\93ffMjN :::• This document 1sbeing prepared tor the exc1us1ve use ot US CUSTOMSAND BORDERPROTECTION ROBERTS: Thank you, Bob, for coming into my office and having a nice visit. Thank you for the wori< that you have done on this committee.Thank you for your good woriimW L:. tus CUSTOMS AND BORDERPROTECTION HATCH: Thank you, Senator.Your time Is up. Senator Menendez. MENENDEZ: Thank you, Mr. Chairman. AmbassadorLlghthlzer, congratulatlonson your nomination. Let me ask you, 1-1 am one who believes that we shouldn't compromiseour values in orderto get a trade agreement.tt anything, we should be using those agreementsto furtherour values internationally. As you may know wnen this committeewas debatingtrade promotion authoritylegislation two years ago, it passed my amendmentthat barredfast-track procedures for any trade agreementwith a country on tier three of the State Department's Trafficking In Personsreport, a group of countriesthat fail to take any action to comba1sex trafficking and forced labor. And that was a bipartisanvote on the amendment. Now, following that amendment,from my view, we saw an unprecedented politicalization (sic) of the TIP report, where countrieswho were upgradedbasedion unrelatedfactors, one of those being trade, in my opinion, instead of their efforts to combat human trafficking. Can you commit to us that if confirmed, you will not take any action to attemptto influencethe Trafficking In Personsreport? LIGHTHIZER: Well, I would say, first of all, Senator, I obviously condemn humantrafficking. I know you've been involved with this. I know that Senator Cardin has also been involved with it. And - and it - it, I believe, will be the strong policy of this administration, although it's not in my area, that it willbe the strong policy of this administrationto do what they can to stop humantrafficking. In terms of what - of - of what priorities I have in - in negotiatingtrade deals, I can guarantee that I will wor1< with you and with Senator Cardin and other interestedmembersof the committeeto make sure that - that as we move forward, your•· your specific views on this issue are reflectedin those sortsof things. L (CROSSTALI<) MENENDEZ: I appreciatethat. Let me, since my time is limited and 1- 1have several topics I want to... I have a very narrow question. Will you committo the committee that you will not use your position as the U.S. trade ambassador to trYto affectthe Trafficking In Personsreport? AM {ICAN PVERSIGHT CBP FOIA 007518 DHS-17-0435-Q-000282 Page 1461 of 1881 C1 TFTEA Owerv iew Briefing Book.pelffor Printed Item: 1225 ( Attachment 3 of 8) Bloomberg GOVERNMENT . n1 M®lmi01"3 1 This document is being prepared lor ihe ex.elusiveuse US CUSTOMSAND BORDERPROTECTION MENENDEZ: Well, 1hereason I asked that question is becausethe law is clear. We're not supposedto be engaging with a country thafs on tier three. So if there's an intention to do so, it would be in violation of the law, unless, again, the report is manipulatedto allow a trade agreementto take place, even in the face of human traffickinggoing on in that countryto the level of a tier three,so I would hope that that would not be the case. I know that the chairman raised India with you, and !'want to echo his concerns. I think it's a great opportunityfor us to build greatereconomicties with lndla, but I have a real problem with their lack of protectionof intellectual propertyrights, and for the United States,that's a critical element to whether, in the technology field, or in my home state of New Jersey, which is the medicine cabinet to the world in terms of a growfng biotech and pharmaceutical industry. So ih that regard,on multiple occasions I have raised the issue of ensuring regulatoryprotectionsof biologics in our trade agreements. The Trade PromotionAuthority requite U.S. trade negotiatorsto ensure, quote, "that the provisions of any trade agreementgoverning intellectual property rights reflect a standardof protectionsimilar to that found in the United States under U.S. law." Such a level of protectionenjoys strong bipartisan support from Congress, as our highly innovative biopharmaceuticalindustry, as well as the broader higher tech Industry supports millions of high quality jobs, including hundredsof thousands in my state of New Jersey. Will you ensurethat any U.S. free trade agreementsmeetthis trade promotionauthority requirement, raising global standards to those of the United States? LIGHTHIZER: That certainly is -- is - I'm familiar with the issue, and that certainly is my position. I'll do everything I can·to have new trade agreementsreflectthat standard- that objective. MENENDEZ: And l appreciatethat answer. And given that the U.S. law provides for 12 years of data protectionfor biologics, would you committo pursuing an equivalent level of protection in future trade agreements? LIGHTHIZER:I've had conversationswith several member- I know that there's a split on this. And and I am certainlywith the Chairman on this issue, which is to say yes, that would be my objective. AM {ICAN PVERSIGHT CBP FOIA 007519 DHS-17-0435-Q-000283 Page 1462 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Att achment 3 of 8) Bloomberg GOVERNMENT Thisdocumentis beingpreparedfor theexclusiveuse o•PPt@UW h US CUSTOMSANDBORDER PROTECTION I know it's a sacrifice, and we thank you very much for being willing to do this. I will commentthat we do need a strong USTR to enforce our anti-dumpingand to deal with illegal subsidfes. And although you can't eat steal, it does provide goodjobs. And if we had moresteel jobs, our entire economywould be stronger,including the agriculturalsector. So, I thank you for your efforts on behalf of - of American steal. And I hope that you'll use that talent to deal with a fair- trading systemfor all American producers,and manufacturers,and farmers. I would also point out in that regard - and I say one other thing, if I might, Mr.-- Mr. Chairman,on a personalbasis. Bob's brother. Jim, is here. And Jim Lighthizeris a distinguished public servantin Maryland, held the office of county executivein Arundel County,one of our largest counties.So, it's a - it's a family of public service. And ifs - it's wonderful to see his family membershere. HATCH: Well, we certainly welcome the family,every-- every member. CARDIN:As Senator Portmanpointed out, the USTR and our trade laws are a delegation by Congressto your office. And we expressourselves through TPA and we announce several principle negotiatingobjectives. And we expect the USTR to comply with the delegation and the objectives given to you by Congress. And let me go over a couple of those. In the most recent trade promotionalauthoritybill, we put as a principle negotiatingobjective, compliance of anti-corruptioncommitments.Of course,we were negotiatingTPP, we were dealing with countriesthat are not democraticcountries.And we were very concernedabout good governance and anti-corruption. We now have seen a spread of corruptionamong many countries in the world. Do you committo carry out the trade promotional authoritydirection that in trade agreementsthat will carry out anti-corruption commitmentswithin the trade agreement?Thank you. We also passed in the trade promotionalauthorityan amendmentthat was offered by Senator Portman and me as it relates to our European paltners. It's called the "anti-BOSprovisions",which requiresthe trade representativeto get commitmentsfrom our trading partnersin Europethat they will not sponsor AM {ICAN PVERSIGHT CSP FOIA 007520 DHS-17-0435-Q-000284 Page 1463 of 1881 C1 TFTEA Ow erview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Bloomberg GOVERNMENT This documontIs belnoprep11redtor the exclusiveuse n [IDIUJDDimijt) atUS CUSTOMSAND BORDERPROTECTION And we'Yealways fncluded In our trade promotionalauthority, an effortby the USTR to get border adjustmentcomparableto what our trading partnershave on productsthat enter their marketon our productsenteringtheir market The difficultyof course is that we have not harmonizedwith the Internationalcommunity in the use of a consumptiontax. I've Introduceda progressiveconsumptiontax that is patternedafterwhat is acceptedinternationallyas a border-adjustedtax. It's difficult to see us winning too many cases in a WTO with somethingthat is an incometax that we call a consumptiontax. So, Ij ust urge you, in your position, to give a realistic assessmentto thoseof us in Congressas to what is likely to be border adjustedso that long last we can try to set up a level playing field for American manufacturersand producersin the international mar1dfor the exclusive use US CUSTOMSAND BORDERPRO~ECTION LIGHTHIZER: I don't think that decision has been made at this point, Senator, that the administration has not made a decision whether to update it as a trilateral agreementor to make It two bilateral agreements.We just don't have a position on that GRASSLEY: OK. And I noticed in your testimonythat you spent time representingU.S. manufacturing opposing non-economicexpansion or production capacity around the world, and I've heard a great deal from the U.S. Steel lndustJyabout China's extreme overcapacity for steel production. What do you think is the most effectiveway that the United States can deal with problems like excess production capacity in any country,but particularlyChina? LIGHTHIZER: Well, Senator,this is a very difficult and intractable problem, and it goes beyond steel, right It's a model that the Chinese use in a lot of different industries.And to me, the answer is one, you have to engage bilaterally and multilaterally wherever you are. and there are a variety of fora where you can engage with the Chinese and try to specifically encouragethem to reduce this non-economic capacity, this state-encouragedcapacity. I think there are several for a which we can talk about where that's appropriate and where progress can be made. Then the next thing is you want to make it less economic. It seemsto me that's ultimately what it has to come down - it has to be more difficult for them to maintain non-economic (ph) capacity, and that means enforcing our trade laws. To me, it means encournglngother countrieswhere they could ship product to enforce their trade laws. And then to tryto think of more Imaginativesolutions. The WTO and other places where you can actually bring IIligation. But this is a -- the overall theme to me has to be, If a countJyis creating capacity - and it's not - as I say, it could be aluminum (ph), it could be semiconductors, it could be a lot of things for their industrial policy -- we have to take it on head on and go in every direction we can to keep them - to make it more and more expensive to keep noneconomic capacity. which is having this negative effecton the global economy. GRASSLEY: Thank you, and congratulations on your appointment UNKNOWN: Thank you, Senator.Senator- let's see, let's see, who's next here? Senator Scott SCOTT: Thank you, Mr. Chairman. Good to see you again, Ambassador.Just to continue on the same vein that you heard from Senator Grassley as It relates to overcapacity, will be a part of my question AM {ICAN PVERSIGHT CBP FOIA 007523 DHS-17-0435-Q-000287 Page 1466 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Atta chment 3 of 8) Bloomberg GOVERNMEN T of@IWI\QM~~ This document Is being prepared for the exclusive use US CUSTOMS AND BORDER PROTECTION So it's incredibly importantthat we continue the conversationthat we had around new trade opportunitiesfor our folks in South Carolina, specifically, one of the challengesthat we see at home Is this conversationabout overcapcityand how we deal With it. Specifically,the aluminum and the steel marketsare - it's suggestedthat there's an overcapacitybecause of folks who just aren'tplaying by the rules. How would you continue the conversation that you started with Grassley on how we specifically deal with thatissue? LIGHTHIZER:Thank you, Senator.And I also enjoyed our conversationand look forwardto working with you if I'm confirmed,on this and the other issues that you raised, becauseyou raise a varietyof issues that were very thoughtful. To me, the key fs to go into -- in the case of steel, we have an actual - somethingcalled the global forumwhere you can actually sit down with the Chinese and talk about reducingcapacity in the steel industry.You also have other places where you interact with them. Enforcing our trade laws, getting other people to enforcetheir trade laws so that they can't ship uneconomiccapacity. I think we have to worry and - and see it there's some way we can affect what's called upstreamdumping or third-party dumping, where they're actually taking economic capacity, putting it into another product, and then shipping that product to us. A good example would be steel where they do (ph). TIM SCOTT: If you look at the tools at your disposal, if they found the WTO to be ineffective,are there other tools that you need that you would recommendif you affirmedas our trade rep? LIGHTHIZER: I have some ideas that I'm better off SCOTT: Holding onto? UGHTHIZER: •· talking to you and talking to the staff, it is a very, very serious problem for our economy SCOTT:Yes. LIGHTHIZER: I don't believe that the WTO is set up to deal with that (inaudible) a country like China and their industrial policy. I just feel it was never really intended to deal with those kinds of situations. So, we haveto use the tools we have and then I think we have to sit down with membersand find a AM {ICAN PVERSIGHT CSP FO IA 007524 DHS-17-0435-Q-000288 Page 1467 of 1881 C1 TFTEA Owerv iew Briefing Book.pelffor Printed Item: 1225 ( Attachment 3 of 8) Bloomberg -•IWP at US CUSTOMSAND BORDERPROTECTION This document is being prepared for lhe exclusive use GOVERNMENT SCOTT:Where we have a fair trade agreementin place. LIGHTHIZER: If you analyze the trade gap and the situation with free trade agreements, you have maybe three categories I would say. You have surpluses with Canada,Australia and Singapore.And then you have a bunch of countrieswhere it kind of goes up and down, numbersaren'tvery large. And then you have Mexico and Korea, and those two are large, deficit countries.So, it kind of varies. With respectto some, it's on that basis been effectiveand for others it's been less effective. To me, when I look at deficits, I try to ask myselfwhat does it tell me about the rules of trade as they pertain to that country. Becauseour objective is not just to get the trade deficit down. Our objective is to get more efficiency in the market,is to get rid of trade barriers everywhere. Everybodywins in the United States - producersreally win - to the extent we can break down trade barriers. So, when I look at FTA deficits, I try to put it into categoriesand I see what I can learn from this agreement versus that agreement.In some cases, the rules don't seem to be working as well as with others. That's where I tryto learn on that. SCOTT: My time is about up, perhaps my last question will be if you look at the TPP countries, I know that the Administrationhas been very clear on staying away from multi-lateral agreements,that perhapswe are in a better position to go forwardwith bi-lateral agreements. Would you envision our country taking a lead in looking for ways to have bi-lateral agreementswith some of the partnersthat would've been a part of TPP? LIGHTHIZER:Absolutely. Senator, that certainly is my view. I believe it's the view of the Administration.Clearly, we want to have a series of bi-lateral agreementsand hopefully ones that take TPP and improve upon what was negotiated, in some cases very well by Ambassadorfrom SCOTT: Think it would certainlybe an importantsignal to South Carolina and the many companies mat depend on opportunities to continue trade. Thank you. HATCH: Senator (Inaudible) and Senator Carper have allowed Senator Casey to go next. (INAUDIBLE) (LAUGHTER) AM {ICAN PVERSIGHT CBP FOIA 007525 DHS-17-0435-Q-000289 Page 1468 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Atta chment 3 of 8) Bloomberg GOVERNMEN T IWJl1N ·• Th is documen t is being prepared for the exclusive use 0 1 US CUSTOMS AND BORDER PROTECTION I wanted to just preliminarily make a statementabout the miners' protection - the miners healthcare and pension legislation. We know now that we've got coal miners across the country, Including many In Pennsylvania, that might be suffering from black lung or cancer or diabetes.They began receiving notices on March 1st that their healthcarewould be terminated. In Pennsylvania, that's almost 2,000 miners. These miners kept their promise, every promisethey've ever made to their country,to their family, to their companies. It's time the federal governmentkeeps Its promise. What we're saying on this side of the aisle to Republlcans Is just get this Miners ProtectionAct done and that, of course. involves in this case from our point of view making sure that we can get it done now. And that would also, of course, move forward Mr. Ughthizer's nomination, which I think there's broad support for. Coal miners and their families don't need to spend any additional time, in this case months after month, with the fear and the uncertaintyof not having healthcare or the pensions that they earned. So we just hope that the committee, as well as Majority Leader McConnell and the presidentwill join us in this effort to get both done. Mr. Lighthizer, I'm grateful that you're willi ng to put yourself for service again. We had a good discussion in my office a couple weeks ago and we're grateful for that discussion. Just one preliminary question with regard to enforcement.If you're confirmed, will you woriIM) ,, US CUSTOMSAND BORDER PROTECTION THUNE: Mr. Chainnan, I think that's all I have. I appreciateyour time. And Mr. lighthizer , again, I can't emphasizeenough the importanceof agriculture.And as you start looking at these, what we're going to do in the place ot TPP and how you're going to approach NAFTA. I hope you'll keep that a very, very high priority. LIGHTHIZER: Thank you, sir. I WIii. HATCH: Thank you, Senator. Senator Bennettis next and then Senator Cantwell. SenatorCantwell. CANTWELL: Thank you, thank you Senator (inaudible) Mr. Lighthizer, thank you tor being here. Congratulationson your nomination. Since I know that you're a former- well familiar with this committee,I can throw a lot at you at once if I could, so thank you. One, I want to know whether you support the export-importbank and the concept of credit agency for the United States.And whether the president should immediatelyappoint people to get it functioning at the level It should. Numbertwo, will you be aggressivein getting Europeans to stop massively subsidizing Airbus, you know that the WTO, has found that the airport - air space sector, $17 billion of illegal subsidies. That brings the total of illegal European subsidies to airbus to about $22 billion. So I want to know if you're going to be aggressive on that. Our colleagues here in the trade facilitation and Trade EnforcementAct, included an authorization for $15 million in trade enforcementtrust funds and that was about making sure that we had ample ample supportwithin USTR to actually fight for trade enforcement. I believe in an economyoutside the United States selling U.S. products.In fact, I was very happy the last administrationhad a goal of doubling exports. But I know that we also need to have the personnel. So do you supportthe trade enforcementtrust fund and what should its annual appropriationsbe so that we are adequately staffed? AM {ICAN PVERSIGHT CBP FOIA 007536 DHS-17-0435-Q-000300 Page 1479 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) Bloomberg This document16beingprepared for 1heoxciusiveuse GOVERNMENT 01 {t;'JUNl!J 1, US CUSTOMS AND BORDER PROTE CTION LIGHTHIZER: Well, he's kind. I would say, first of all, in terms of - Justto start from the bottom perhaps. In terms of the relationship betweenthe White House, the Commerce Department and USTR. I fully expectto have the full statutory authoritythat Congress provides. And I fully expect to work in a collaborative way with -w ith Secretary Ross, who I admire and I think Is very, very talented in this area and the White House. Now, the White House Is defined, as-as Peter Navarro and other people. I mean there's Gary Cohen and others. In all my experience in - with one administration after another,there are almost always, sort of three sources of kind of influence in the trade policy. And the job of the USTR really historically is to sort it out. That's why CANTWELL: So you're the lead in sorting that out, more or less. LIGHTHIZER: That's correcl I mean, historically that's why - John Kennedy started the agency, along with the Senate Finance - the Ways and Means Commlttee in 1962. So, I expect it to work the way it ways. I think they're very cooperative and I look forward to working with all the parties on that And in particularly, with working with this committeeand wlth the Ways and Means Committee. In terms of the Trust Fund, yes, I hope the appropriations -- 1hope the $15 million appropriated in terms of resources generally, I'm not now In the Administration,so I cansay that yes, we need more resources for sure •· CANTWEU: Thank you. LIGHTHIZER:The agenda is substantial. CANTWELL: You know, some of my colleagues wanted it mandatory.I Just want us to put the money there. I want to have more people in trade enforcementthen are in sitting in (this by us) and right now, we don't have a lot So, I'm glad you're committing to 15 million, thank you. UGHTHIZER: Thank you, Senator. In terms of Airbus subsidiaries, yes, I will be aggressive. I realize that's a problem, I've followed the issue for a long time and l'Ve never really litigated or involved with It. but it's a serious problem. It's one that's gone on and on and on and it has a real impact on American manufacturing. AM {ICAN PVERSIGHT CSP FO IA 007537 DHS-17-0435-Q-000301 Page 1480 of 1881 C1 TFTEA Owerv iew Briefing Book .pdf for Printed Item : 1225 ( Atta chment 3 of 8) Bloomberg GOVERNMEN T orlmtWJPHl lat This document is being prepared for tho exclusive use US CUSTOMS AND BORDER PROTECTION LIGHTHIZER: I think we have to do everythingwe can to encourageexports. Havingsaid that, the exporting-import bank is a sensl1lveissue and I - it's not an Issuethat Ive worked in personally. CANTWELL: Could you just define sensitive since I'm running out of time? LIGHTHIZER: Well, I think I define sensitive Is people who are strong for it and people who are strong against It. Normallyin those cases when I'm not Informedand realize that the Administrationwill make a policy, I'm probably better off waiting for the Administrationbefore CANTWELL: I would just say that there is a very small group who is politically motivatedand may be loud, but when you allow the United States Senate to vote on it, both majorities and the House and Senate have supported it and majorities of republicanshave supported it. So, the notion that somehow it doesn't have major support, it's more just being held hostage by some political agenda. I hope you'll be loud about this as a credtt agency strategy,because to me, we'll lose U.S. manufacturing. If Boeing can put Rolls-Royce engines on a plane and get credit financing in Europe, how's that helping GE? And so, while other agencies and an international basis are going to be aggressive about this, we need to get the right strategyhere. It can be a discussion about how we make sure we're not doing anythingto distort the market. But I think the Administration has got realistic. You can't go stand in front of a Boeing plane in South Carolina and then not have a functioning import-export bank. So, I hope we can get there. HATCH:Thank you, Senator.Senator Bennet. MICHAELBENNET: Thank you, Mr. Chairman.I thank you and the Ranking Memberfor having this hearing. Thank you, Mr. Lighthizer, it's nice to see you again. I just wanted to underscorewhat the Senatorfrom Washington ended with. I think you'll find her diagnosis or description of the politics that are In this are probably dead on. I also want to say Mr. Chairmanthat I look forward to working wtth you and the Ranking Memberto figure out a bipartisan way through this wavier process, it's needed. I want to also mention - I know you've covered this ground and I know I'm the last one and I can - I'm sure you're ready to be done. So, I won't ask you a question about steel but I do want to just observe as my colleagues have, that AM {ICAN PVERSIGHT CSP FO IA 007538 DHS-17-0435-Q-000302 Page 1481 of 1881 C1 TFTEA Ovverview Briefing Book.pdf for Printed Item 1225 ( Attachment 3 of 8) Bloomberg GOVERNMEN T @MP\I This document fs being prepared tor the exclusiveuse or at US CUSTOMSAND BORDERPROTECTION I want to get one questionon NAFTA before you go. As you know and you've talked about today, the Administrationthroughoutthe campaignsignaled that it intendedto renegotiateNAFTA. This is very Important to my state because ifs the second largestexport marketfor the state of Colorado and it's particular1yinterestingand importantto my farmers and ranchers. Colorado as an agriculture communitydepends heavily on exports, to NAFTA countries. For example, last year, Colorado exported more than $486 million In beef, pork and lamb to Canada and Mexico. Canada and Mexico alone accountedfor a third of Colorado's beef exports.Agricultural producersin Colorado are worried. They're interestedand curious about this reopening,but they're worried that opening up NAFTA will lead Mexico and Canada to Imposehigher tariffs and that the flow of goods will be physically stalled by the negotiations. They're also worried that negotiating NAFTA will limit importantmarketaccess that the United States currently enjoys not withstandingthe political conversationthat we have had in this country. And I wonder if you could finish today by responding to that a little bit and also talking as you did or distinguishingas you did when we met In my office between your views and the president'sviews on the manufacturingside of things with respectto trade and your views and his views with respectto the Importanceof trade for agriculturein this country. LIGHTHIZER: (OFF-MIKE) BENNET: OK. Well, then just speak for yourself. LIGHTHIZER: I think that-that we have to do somethingfor manufacturing.We have a huge manufacturingtrade deficit and I think we have to do something. And there are a variety of things In the NAFTA frameworkthat need updating and I think those things will tend to help manufacturing. And then your position, which I think is equally valid, is that agriculturehas done prettywell under NAFTA and that's true in a varietyof differentagricultural productsand we have to be careful not to lose what we gained, and that is a balance. I think something has to be done. I think we can actually accomplishthat. I think we can - we are very Importantlo Mexico also. And I realize they have other options, but a huge percentageof their- of their exports come to the United States. AM {ICAN PVERSIGHT CSP FOIA 007539 DHS-17-0435-Q-000303 Page 1482 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) Bloomberg This document is being prepared for the exclusive use GOVERNMENT ot!Q!®J®W•US CUSTOMSAND BORDERPROTECTION The United States and Mexico both need each other economically a lot and having an agreement that's 20-some years out of date - it doesn't even have a digital chapter In it because there was no need for that in those days -- I think that's something that we can do in a way that helps both of us and doesn't risk damage to our agriculture sector which is also very, very important BENNET: t appreciate that answer. I'd say that even In the act of negotiation, we're gonna have to take care 10 make sure that the current markets continue to be open in the way that they have been. And I know you appreciate that. Mr. Chairman. I'll yield back the balance of my time. Thank you for the hearing. HATCH: Thank you, Senator. My partner on the committee has one more question to ask. Senator Wyden? WYDEN: Let me - let me, it I might, go into this resources for enforcementissue Justa little bit deeper. Mr. Lighthizer, isn't cutting enforcementresourcesan invitation to foreignersto cheat our workers and businesses? Seems like a simple question. LIGHTHIZER:Seems like kind of a trap question. (LAUGHTER) WYDEN: It relates.... (UNKNOWN): You think? WYDEN: It relates to the second question. LIGHTHIZER: I'm just asking myself, if it's a trap, I should probably think about it. (LAUGHTER) WYDEN: Well, it is a substantive question because it relates to the real world. We keep battling for these resources. I've already told you, I very much enjoyed our conversationand I think you have a lot of talent. But I'd like an answer to the question because it relates to what's ahead. LIGHTHIZER:Senator, I think USTR needs more resources. AM {ICAN PVERSIGHT CSP FOIA 007540 DHS-17-0435-Q-000304 Page 1483 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) Bloomberg GOVERNMENT Thisdocumentis belnQpreparedfor the exclusiveuse of(W®IWJMat US CUSTOMSAND BORDERPROTECTION WYDEN: I think that again, the point is, these are questions that bump up against the realities that senatorsare talking about For example, one of the things I was struck by, I think we talked about it in the office,that on this question of finally getting a fair shake for our limber wor1'dass peol)le care a lot about, and It in\lOl11es the., OK, that there may be repera11,5~ to thal He has not sugoealed In any way an acro1a-the-board35 pen:ent border ta~ And if anything, qulte the contr:a,y. As you aaid, he ha• concernsaboUt lh11111$ that impa.c:tthe priceof gasoline and - and others. WVDEN: So what producu would be off the table for purpose, dwhat I call a border tax, and you want ID uy Is imd ot someth ing else? Wtat-wha t p,cduc:1$thatworlad35 percent botder tax. That couldn't be funller ~om anything that he'd postibly consider. WV0EN : Let me tum to another 1opfc of taK policy, becausewe',in your Jurisdiction, It cortlnned as l7e8SWY secnttary. lrY'"II IDgather et 1"4sl a btt of lnfonmationabout how you would deal with .om• of thH• le.indof common lools that would be Now, inequalitY h;u grown subs_tan Uotly over the last 30 years- There has been bipartisansuppon rn the past for the eamed Income tax credit. There are a number ci proposals pending no,v In the Congniss. Do you have any thOughtson that? MNUCHIN. Again, firatof Ill, 11 I sugge1lledto you when we met. 1-1 hope we can sit down and talk about taKeswithDemocrats and Repubfl can1, and -where solutions. we can ag.ree on blpa~ 3 of 20 AM RICAN PVERSIGHT n 4127/ 17, II :37 AM CBP FOIA 007545 DHS-17-0435-Q-000309 Page 1488 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed ltem:1225 ( Attachment 3 of 8) News Scarth - Bloombetg Government I think a, - u it relates to any specific component~ this, I think we need to look at the overal the opporumltyto - to followup with you and won on that. h11ps :/lwww bgov cOltJ/core/news/# 1/anicl~OK I VCNJPWT IC and Wherethir1g1fit In tt. But I would welcome w refonn that we're going to put through,and - VWOEN· Mr Mnuchln. again, and 1-1 want to be respectfulon lhia point Bee.use you have not been Involvedin these pollcy fields In the past •••And I respect that. becausethere's lots of leader.hip that • penon s1lllcan provide. When I askedabout Medic:are , you'd be the managingtNStee. You really didn't have aflYthoughtson that some I Justasked about the earned Income wecr9dlt Tremendousinterest amaro Democratsand Republicans. I - I gether vou're not awarethat the speaker has long been adl/OC:8ting improvementsthat Democratsare inter111ted In, And I wlll !Jtl you, we're ga,r1gto have. I guess,the chancelo go Into •ome other questions. I'm very troubled about the fact that on these baaic:tools that you would have. a confirmed,you seemalmost unscathedby the aubjec:tSo thank you, Mr. Chairman. MNUCHIN; Vllell. I'm - I'm - I'm sure that you're troubled by that 1-1 hope I earn your support and respectthat you aren't troubledgoing forward if I'm conf'nned. tr, not that. again, on the earned incometax credit I don't want to commenton specific legislation on tax. I think that tex reform needs to be looked at as an overall policy, and I've laid out certainfn\meWOl1c for what I be!ielll!the president~ect believesIn for lax reform without oommanttnoon specifics. WVOEN: I - I'm - I'm over my time tor - tor- for th$ NlUnd. I hope, becauseI'm irrterested In thOH dlscu11ionswith you about tax reform, you're not talking about puttingthe earned Income tax credit on the tablo as something you might throw in the traoh can Becauseif you do , you're goingto have oppositionlrom me, and you'te going to have opposltlonlrom the speaker of the house. Thank yOII. MNUCHIN: I'm - I'm not suggestingthat I was just saying I wasn't going Intothe specificscl every sln~ tax item. Thank you HATCH· OK, SenatorCrapo. CRAPO Thank you, Senato, Ha.letl. Mr. Mnuchln, I want to try lo cover three quick. maybenot so quick questions. The fil'lt one ia ta l'lffllm back to the discussion you were ha'ling with Senator V\lameraboUtFinnie Maoand FreddieMK , and GSE reform, housingpolicy reform. that SenatorWIimer and I, and a numberof other MOnatonon the bankingcommitteehave worilad for some time on leglslaUonto try to deal with this circumstance.\/Ve I'm 6Yre you're-= curranty havea situatiOnin whlch Fannie Mae and Freddie MK are In recaivenl!ip. The Fedenit govanment. basically, ia running them. And the concem that I believe Senator\Nemerwas referencingw11a c:onc:emllhat the adm'nistration, not - not becaute waereafraid cl anything. Just becausewe're asking, We're trying to nndout - that the administrationmay either beliew that ti's OK to keep them in receivership, and Just cootinueto run u II , Withthe s1atusquo, or perhaps, to simply recapitaltte uiem. and put them back out into the market without any housing reforms. And I jlJst wantedto as!\ you It you would - would ... I realize you can't comment on a specific plan yet but if you would commenton the fact as to - to whether you believe that we need to hew refonn In our housingfinance -or, our housingfinance pollc:iosthat would go further than simply recapitalizingFannie and Freddie,or keepingthem 111lhe receiveM ip. MNUCHIN: OK. well, agein, tnank you for that And I would oomment, unlike the Medicarefund, whefe I acknowtedgeI'm not an expert, I think on Fannie Mae and Freddie Mac, I am an expert. I've been aroundthese for 30 yeari. I under5tandtheM ver; wel. and that's why It - It would be one d my priO!illes10work with you. And aa I've said, Whal I am tocu&edon is we need housing reform and a solution. So I start with 11,e standpointof, the statuaquo is not acceptable, of Justleavingthem tt,ere. (CROSSTALK) CRAPO:I apPreciatethat. MNUCHIN: I think, as you know, and we'Yedl$CUSSed , there - there are two extremes on this, and it's somelhlngthat I look forward ta sittlng down and - and 1alking to you with. But I believe - need housing reform, and we need to make sure that whatever the outcome Is on the 1wOextremes, that: one, we don't put the taxpayers et risk; and two, we don't eliminate peoplewho need mortgageloans have ac:c:uato that capital. capitalfor the housing market So I'm very concernedthat middle incomepeopl e. and - and moderate1:ncome CRAPO:Wei , I appreciate, in tact, I agree Witt!you on bothof tho .. objedives, and I think that's exactlywhat we needto wort1e,non-cureaucratic, you check the bo>c{OO :OS:001 you get the bu1lness tax. you leave the money fn the oompany, you grow your company, you get the lower buslneu taJc . It you dl•tribute it out. you pey dividends. And I think that that's something that's ctitical. And as I've said, we11maka aure that we worit WithCongress to make sure we dose the loophola3, so noh people don~ UH tJ,ls as a way to get lower business tax. And on the other end, we wil make sure that smali businesses are p4Jvmng(ph) 750 fonldosore documents a -k considered making every effort to prevent fofedosures? without awn ruding or reviewing them? How can that be Can you hooes11ysayyel'lr bank made every effort to keep famaies and seniors In their hOmeswhen they were Robc>slgntng(ph) one forec:josuredoc;ument ev«y thlee m ,nutes? MNUCHIN: So Sena.tor. ye.s, I can absolutely say that we made ever; effort. And again, our loan modification programswete audited by the Treasury, the FDIC. the OCC, yoo can imagine as being a private equity peraonwho bought a bank, we lived in a glass house and we were constantly viewed by the regulators. Now the comment that yol/re malling, tlere was an industry issue which hed nothing to do witti loen modfficationa;which had to do 1round the processingd fored01u111a , that waa the procedure that wu started at Indy-Mac (ph), It willcontinue under Ille FDIC ownenhlp . And In the beginning of our ownership.we unfortunatelydiclnt change certain procedures: as I've said, the Industry - it was SOMICI , OK... MENENDEZ: I'm not womed about the lnduny , I'm wonied about whaJ your direction ot your bank that you keep refening to entities; the office of supervision hit you WIU'ia consent order because you were actually putting homeownerson a fast-treck to fo~ , andthet was part of that 750 foredosuru a month. You also had an independent governmentaudit ot one west foreclosures in 2009 and 2010 that alone identified rnore than 10,000 homeowr,e,swho were owed SB.5 million In damages. And among those homeowners were S<4Incidents over the course of just two yee,. whefe the bank violated the rights of IIC1iveduty military l«Viceme n and women. thoae defending our country across the globe under the Service Members CM Refief Act. So if you did all of that, how Is It that you feel that you can honestly say herein swom testimony that your company d'idevery\Nng? MNUCHIN: OK. so first of all, Senatodwith the govemmont subsldi.ting the litk. you englneerlld a hlgi,ly lucrative equation that made billona on the bad\• al homeownan, senlora, mlnorities, mlltary men and women. Andso I hiV6a pl'Obl6m undei'i!Andlnahowd{l(ltthat ereattco11fidenee lnthe SeeMtaryor the T11asuryNoMir,Hwh6ny0u haw to b6 lookin0 out for 111ery Amencan . Md ft dldn,seem11\At wtlen you ll•d the chance to do that - and oven the incentive I would argue by the bad! stop that the FOIC gave you and over $400 milion that your oompanytook from Hamp (ph) whlcll I knowyou were disparaging before. that was your drive. So I need to be convinced, thafs going to be your drive now that you ant the Nominee for the Treasury Secretary that's supposed to represent al Americans. MNUCHIN: Will , Senator I hope I have the opportunity to cawinceyou goino forwatd . Ard I epologize beeaute I didn't recognize the name. But now that you have mentioned to me it's been postponed end I don't know any of the spedfic6. But as a curtsy, CIT did Inform me that your ofr!Othad 1'11Q Uestod an e)rtenslonand they did honour thet and given eKtensionto rel/Id that. And I'm not ln\/Olvedln CIT anymore but I would enoouraga YoUto make sure tt,at you have - again, It th- is complaints, there is a depar1mentwithin llle bank that rHponds to thla. A• I ukt eariier. any complaints that camettirough any govemmen1« R!gulatofy egencies-e respondedlo vefYcarerully, end reviewedby the OCC. And again, I would just apologite to the extent there -re any errors whatsoever, that is 10methlna that I'm very &01"1)'for but having said that we took over a morigage servicing business that was not peri of what we were tryng to buld , it wH a mess when we got lhe1e, rwefixed It and cleaned it up, and to the extent that - made erro~ 0< issues, we compensated people for th.at H part of the agreement that we entered inlo the regulators wtlich we think is the right thing to do . HATCH: Senator Carper? CARPER: Thank■, Mr. Chairman. Mr. Mnuchin. I tcnow you'w intnxtueed yaur dad eartler, he la ttff alttlng here behind you. How old Is your lather? How old Is he? MNUCHIN: 83. He la 83, CARPER. You're lll~sed to have him with you. MNUCHIN; Thank you. I feet thet way. CARPER: He IOOkJpretty good tor 83 as I can say and I'm in a position to say that. I'm glad you said that, that Is we. My parents are bothdeceased. A couple of th1ngsthey used to say to my sister and me when we w- growing up over and aver again. I don't know if your perents ever did that hoping they would somehow sink in. One of the thing• that I Me I• they've got the rightthing to do, not the easy thing, it wu the right thing 110 do , j ust do It..And they sald treat other people the way we wa.ntedto be treated, golde" 1\118 , My dJd was elwaya big on dong things (lnaudlble) doing everything weU(inaudible) if It lsn~ petfect make It better , And my dad always used to say just U$e some common sense. He said it lo my sister and ma a lot We mutt not have had any. But can you Just th1nk of a word of advice that your dad or maybe your mom have given you over th• ye.rs , that - that you coUld have used or should have used with respect to the fotedosuni - the foreclosures that you were racing and what you did? Just very briefly, what's a word or advice rrom them. MNUCHIN: Vl.l!U, again, first of all, thank you. I agree with tnose many things that you were tojd , And as I rnenUoned, not only has my father had a big lnllueooe on me, but my mother, who nas passedaway,and my grandparent,, and undera~nd,ng th• importan<:eof hard wort<. 4/27/17, II :37 AM 7of10 AM {ICAN PVERSIGHT CBP FOIA 007549 DHS-17-0435-Q-000313 Page 1492 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) News Search- BloombergGovernment https./fwww bgovc oo1;core/ncws/#!tarucles/OK I YCN3PWT IC Allain. I centell Y°""' CARPER· Give me one - just one good thing that your mom or dad did that applies to what guided you In this mortgage fO!edosure. MNUCHIN· AbsolU1ely . I think kind Of, as you'.,. su1111eated , that treat people as you'd want to be treeted; be sympathe6c;l:,eempathetic to th0$e people; and understand Whatthey're going through . CARPER: Good . The olher thing I would add to that, everytl\ng I do I know I can do betler And I think you've ackna-Ntedgedthat as weL MNUCHIN: Absolutely. CARPER: It aounds Ilka you guys tried, but (iriaudlb!e) atways do - we can always do betler. I want to go back to the isaue of how to create a nurturing environmentfor job creation, Jobpreaarvatlon, with r8$ped to grvwlng eicports . You kl!OW, meklng sure that we get 01JrP")ducts to markets 1eto1s the world. The p,eslden~lec:t has I think several times, at least I've heard him, talk about support for a duty on items that are lmp0rted frcm Chma..I thtrlk it's lilq>orts? 5-id w- , MislCk:o , as you l)l'Obably know, is our secon~aroest e)(J)Ort mamt for goods, and Iha top three exports in 2015 were machinery, electl'ical machinery and autos - vehicles. If Ma>Cico to Impose a 35 per,::e,rtduty on American e,cporta , any IQea what would be the Impact on menufectunng? Andthird, Whatrole would OUf government heve In Hsis8ng those maybe smaU businesses lhat were harmed. and even notsso-smallbusinesses harmed. by the dOstng or lnternatiOnalmarttetsto our domesllCmanufad1Jrel'$? torworkers that might be dlsptlOed MNUCHIN: VI/ell, first ol aft, those areal good Issues. And let me assure you m,m my a:in\/9fUlloM wi1l1the p,esident-elect on trade, and I have ditcuued a lot ol the trade isaueawith him. 1'119 also had the opportunity to work doscly with Wljbllr Ross over the c:ampa\wl , who i, alao VefYlnvolveclIn trade , as wllll as Peter Navarro who will be in the White House. And trade, I think as you know, at least certain enforcement Issues of trade cut acroS$botn the Trtulrf , the Commer,::eand the USTR. So , I wil be working with the other people on a unified position on trade. W!ere the president-elect has talked about. I'venever heard him talk about 30 or 36 pefQenttariffs ac;,ossthe ~rd. the• jobs , we're going lo specifically put a tarilf en them. OK? I have heard him ,pecificaJly say, wel , ir certain ClOfflp&nielwarn to move Now, I think that thafs something that needs to be looked at And I don't think that Ifs a plan thats going into ac1ion, I share your luues that this is as much about growing exports as it is about growlng imports. Md specl\cal)y with Mexico, I think moat people acknowledge NAFTA waa negotiated a long time ago; that we should reopen this 119reement CARPER: AdJJ911y , we did. And-dld ~ in the contellt OfTPP, as you know. MNUCHIN: I under5tandthat. CARPER: And my hope is that when - Whenyou al get set!led in, that-youl go beclkend when you're thinking about renegotta1lngNAFTA. make sure we un<1emand what haa already been done. MNUCHIN: I would hope that the starting point Is the work that you've done. And I'm opttmfaticthat we can renegoliale that deal thers both advantageousto us and advantageouato Me)(k;o, that il'a a win-win for both countries. CARPER: Good. Last thing, when you're mentoring and giving advioe 1Dthe president-11ry critic.I luue f« Michigan . 'Ne make llllngs , we pride ouraelveaon making things and manufacturing la one of the most tignificant parts ct the economy. l'Ve been working for a number of years on a bill that we call Bring Jobs Home Act, ll'lat would end the ability at a c:ompanyto write all the c:ostct mo1mgoverseas. l mean, I donl know why, W • facllty Is closed, the workers and the taxpayer1 and the community should pay for !heir move. And that certainly seems 1n line with that our incoming President has aaid. W>uld you suppon slopping that wrtte-otl? MNUCHIN· 1- I look forward to working wrth you on that, I can tell yoo it sounds lik.esomething the President-Elect would like. So I look fOl'Wardto wooong wi1hyou on that. STABENOW. wen , I think it's impof1Jlntthat we take step one. (lnaudlbla) all of the loopllolea !hit 11111 w,11be embraced. are, rnt one Is we shouldn1 pay for the move. So I appreciate and hope that th1t'1 .amethlng Different subject. I know colleagues haw talked aboutpenslona, which are c:;micallylmpo"8nt People - you know throughout their ll\les otten given - glv!ng up a pay raise to pllt money 1n10a pontlon . This ts very serious w11ar1happening to pensions around the country. And certainly, wtiether it be a multi-employer pension Of' slngle.-employerpension, deeply concemed about whafl t,appenlng to people. We knowthat we heard that from the GAO In 2013 that. if there was a muhi-employer pension fund lo become insolveot. a very la,ve tn>ubllldplan, then we could see •n estJmatedbeflefrtpaid by the PVGC to be reduced less than 10 percentof the guaranteed level. So, you'd be bilkingabout somebody who worked hard II their Ii!!! that woud be getting $2,000 a month, and than could and up with $125. Seems to ma thar, a pretty basic promise that we need to keop And rather than ask you to commont at thlt point. I'm going to go on to the other- the olher piece of keeping our promi!MII, but- and Ilk you to rupond 10 bo4h. One b the pension end the other Is Social SaaJnty.And u Treasury Sectetary you wlll be a tnJatee, a very Important poaltion. And I - I think it's mporlant 10 knowt you're canmittlld to upholtWIQthe new PnlSldenl'a promise in May of 2015 lhat he would not aupport cull to Social Security. MNUCHIN: I absolutely wpport the President's promise, that's why I'm here. STABENOW.And. seconcly, what's II cut? I mean we - we have heard lncreue1 in the retirement ago. Is that something that you would support? MNUCHIN: Again, I've heanl the Presidanrs promise, and I woukl sit down and discu1t It withhfm. And I'm happy to work withyou on the speclflcs. But I -1 naven't discussedthe speclfics with hlm. but I kJIOwfrom a high level how he feels. And just going back to the penak>nfund iuue , 1tis a - 1acknowledge It's aver, ~niflcant Issue and somethingI look forward ;o worlling wfth you and your offl0e on. STABENOW. This is very real for people, and just as the financial cri~s created a 18110US , i!uatlon f« people and l!omes, end forflnandet Institutions,we all know pen•lon funds Wefe Involved In th•t as weU, and somehow didn1 meke It to the top In temis ot being able to be mede whole . And so I lhlnkthat's an unhifitled proml38and obligation that our country stjll needs tD keep. On SOclalSecurity,though, there are a lot at way. I mun , whars a cut? A lot of differentways to look at lhis. And whether II'&nilsing retirement age, change CPI, prog,...lve price .ndel(ing, pnvatiuldon, cuts in the amount of benefit, , I mean all of these things would reduae a retiree's or WOl1-to let him mow 11 be intnlduc:lngleglllll1ion to fllC!endbuy American to all federal infrastructure construction and public work• projects. It ta)lp8yel'$ pay for it. whelhe1it's a water and_, system Ma bridge, M Whe1he r In 11eel or iron, orwhether It's doth toran American !lag in Akron, Ohio, ollf!r the post office, it ~yers pay tor ii. our companiM and our W0!1cersshould buid lt So, I just wanted to let you knowthat · NOWI want to lalk to you about China. 1'119 never met a GOidman- Goldman s.ctis banker who wanted to get tough on China. Sued on your w.11 Stleet bacllground and financ::ialdealings, I'm concerned about just what I've seen In the past with bankers and - and what I wol.ddsay is sort on China. w- Let me lay out a couple thing•. Relatively - Relativity Medfa is a Beverly Hills company invested In mOl/lu , as yo1.1know. amol'19 other things. 'Mien you CXM:halrthere during 2014 and ·15, the company rac;eived Investment from Chinese Investors In the company's films and pat1neredwilh the government of the People's Rllf)"bfic of China to piomole and distnbute Chinese lllma. China readily admits it wants to become more powerful by increasing its cultural influence in this country and expanding b tlnanciel stake In 1lle U.S. film industry. You weie a board member ti a company tllat partn819ddiredl y with the Chines government that lnaeal8d their influence ln HOilywood.'Alere you - we,- you helplng China ellp«n(I Its global power? MNUCHIN: So, let me just fifll comment. BROWN: And try to make 1he answer really short. MNUCHIN: 1-1- 1 know, but I apologiz.e. First ot al , I left Galdman Sachs 15 years ago. (This is)justgolng back to 1nlde, I ltllnkol myself as a regional banker. not Goldman Sachs, A$ ff relates from my- my ei make that 00mmltmen1, wt I'm happy to work with your office on this Issue. BROWN: Yoll don, want to make a commit wWIlt be the first month, or yoo don't want to make a commitment that you put a substantive comprehenalve plan 1o addreu global owr capaCII)'? MNUCHIN: I wiUmake a commitment to sit dOWllwithyour office, and worlftfolloof the Central States Teamsters'pension fund, and I think :;ou're awa,- that wMe Goldman was a manager of the funds of Central 4127117, 11:37AM II of20 AM RICAN PVERSIGHT CSP FOIA 007553 DHS-17-0435-Q-000317 Page 1496 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) httpsJlwww bgov comicotc/news/#1 amclta/O K I YCN3PWT IC News Search- Bloombeig Government Stalh , the. plan lost 40 peroent d its value, more than double the average lone, tora defined pension benefit plan during that period. Oue in part 10those toases, In pa,t due 10Goldman Sacha I would cau mismanagementof that plan, tl1eCemral States Teamsters'pension fund. as Senators Stabenow. Nelson, and Mc:Caslt■ aaid, it in distress 111\dat riJk d bec:Omlnginsolwnt. a certaln irony lhet, Wyo,,'re confirmed, you1Jbe a m«lff\ber of the board of the PGVC, aa I think you know, and responsibleIn many ways for prolec:tingthe pension of more than 400,00DW'0!11Jng falmies , n,- ·• You, I assume don't know who Butd'I and Rita Lewis are. they aie consli1uentsof mine and Senator Portman's He woc',c«las a trudter tor 40 yurs , he was a teamster, ha led the Onaudible) Retirement Pension Committee• fight against cuta to their earned benefits. Ho passed away on Now Year'•Eve due to a stroke, whicil doctors have attributed at lea1t In part, due lo the streas he fec:edover proposed pension outa. His wife livea fn Souttiwest Ohio. sne·s tal amacare, trilion dollll/$ , rwwtaxes on middle class A,nericl . Can you clarify to me the President-elect's position on the taxes that went along with It? Does he want to keep them? Does he want to repeal them? Give me your best thoughts. MNUCHIN: So f!nitof all. agaln. I Justwant to again apologize that we didn't get baOkto you on that lnf01TOat1on . I auure you I've read my stall the riot act that this wll be ourtl)p pnolitywhen we (inaudible). HELLER: Thank you. MNUCHIN: In regardsto Obamacare, I haven't been aa lnvcNed WIthe specifics of the repeal end replace or replace, As it relates to the IA.xea , my understanding Is to get rid ol the surcharge on that HELLER: Obviously there's a number of controversial tares in there, the medicaldevice tax of course, CadmacTax being another. I want ID klnd of hone in a litile bit on lhla Caddilac Tax because you're well aware or it's a 45 percent excl1e tax on what they considor or deem to be Caddilac taxes. Most people that have WhatWOUidquallfy as a CadilacTu . doean't come anywhereclose 10high end healthcare program•. This would affect1.3 mlllloi, Navads, 120 mJlion Americana, we'ie talking seniors. unions, public employee1. Go down the list that are getting h~ b-f this by this 40 percent exc:1etax.. Give me 11, /27/17, 11:37 AM 12 of20 AM RICAN PVERSIGHT CBP FOIA 007554 DHS-17-0435-Q-000318 Page 1497 of 1881 C1 TFTEA Owerv iew Briefing Book.pelffor Printed Item: 1225 ( Attachment 3 of 8) News Search - Bloomberg Government https://"'ww .bgov.corn/core/oews/# 1/articlcs/OK.JYCN3PWT l C your fei,lings on this and your de$lre to repeal a tax of this nature? MNUCHIN: I agree with you and I said I'm not as cl0$8 to the whore Obamacare discussions right now. but I will definitely follow upwilh you on that I agree Withyour view. HELLER: It was postponed two years to 2020 trom the won( of Senator Heinricti from New Mexico and myself . 'We're worl(tng hard, what I Justwant is a commitment from you as we go foiwartt on this and hopefuUywe eari repeal what I consider to be a very erroneous tax. MNUCHIN: Sounds like wha_tyou're saying makes absolute sense and you have my commitment to work with you on that. HELLER: Thank you. I want to talk a little bit more about housing. 17 percent orthe houses in Nevada are currently 5till underwate r, 17 percent. I want to talk about the morlgege debt tax real quick. The IRS deems it a gift, today, that if you bought your house fO( $250 ,000 today 1t's worth $200,000 . You sell itfor $200 ,000 , they deem that $50 ,000 as a gift and want to tax you on that. Now Senmr -Stabenow, Isaacs and Menende2,we have wor1cedcfoaely on this and it expired as of Jan11aryfirst \/Yehave reintroducedthat legislation to try to eliminate this burden on the taxpayer.I'd like to get your understanding of this, your feelings on it. where your support would be on this particular pieceof legislation . MNUCHIN: You have my commitment to woril with you. If it's not bad enough that the person lost their home, but then we got to send them a tax biN.I agreewithyou on lhirt. HELLER: I appreciateyour support Mr. Chairman that's all I have. HATCH: SenatorWamer. WARNER: Thank you. Mr. Chairman. I just want the r~rd to reflect. I would differ with my colleague, the Senator from Nevada in terms of characterizalion of most of the funding that went in for Obamacere. (inaudible) in terms of Capital Gains 5Urchargefor folks like you and me and the higher Income surchart1e for folks like you and me. I know this has not been your focus yet, but any woM in any form of hocus pocus dynamic scoring scheme, the abiity to say as the President-elect just said, maintain the prohibition against pn,exlstlng conditions. Keep kids on their parent's policies unti they're 26 years old. make sure there is insurancefor everybodyand pay for It all WOUid be a curious act. Let me eome to my questions though. I appreciate very much your earlier comments to me and Senator Kraybill about GSE rerorm: but I want lo dear up one thing. As you're aware there have peen a number of hedge funds that at the absolute demise of those Fannie and Freddie in the public markets. They went In bottom cheap, that's What hedge funds do. They have been launched, a remar1c abte campaign bo1hpublic and private, of lobbying that Is In certain ways in terms of even character assassinations of Senators. In certain ways it's almost unprecedented. The President-elect and you invested in one of those funds. President-elect has divested himself, I imagine you will divest youf$elf as well, but again in fight of your firm commitment earlier not to go with some kind of recap and release scheme that would greatly enhance U,ose hedge tunds Pfofits, I believe !hen leave the taXpayer holding the bag if another housing crf&istook place. I just thcught you'd want to comment on that and reaffirm that commitment that you11be looking out for the interest of the taxpayers and not some of the folks you might have Invested in in the past MNUCHIN: I mean first of all let me ju st comment, I have divested my interest in that fund es wen already. As I said my job is to look out whars for the best interest for the taxpayers. Balancingon this issue, the need for housing reform and making sure that we maintain housing liquidity, making sure the taxpayers are not on the hOokfor that Whatever the legal issues are associated with, again as It relates to the entities.I have tremendousexpertise on the entitles as it related to the legal ease of various holders of different securtties. I havan1 studied that at all ... {CROSSTALK) WARNER: Those of us who have been part of the reform realize that legal prooeeding will 0011ti nue. One of the !hings you were complimentary on my business background, obvloU$ly'you'Vehad gre~ deal ol success In business as well. One ol the things that llusiness people often times bring to the political process is wili ng to look at things fresh. You as e busineuperson realizes, there is two &ides of a balance sheet There's revenue and there's spending. MNUCHIN: Yes. 4/27/J7, II :37 AM 13 of 20 AM {ICAN PVERSIGHT CBP FOIA 007555 DHS-17-0435-Q-000319 Page 1498 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Atta chment 3 of 8) New , Search- hltps 1/www bgov comcoretneww1t►1arucles!OK t YCN3PWTI C Bl oomberg Government ~RNER : Many people come to the polltleal proceas and get hired Into this pr®'las by llklng absolutist pledg& on thIng1 like revenuea. As we di!ICUssedin my cll'ice If you look end 1ha19 wlth you the data of the 34 lndustriel Nation• In the woi1d, much to the surprise of many, Americ;aactuaOyranks 31st out of~ Nation• In lerms ol loial revenues as a perceniage ol GOP. It effects our tax rate compared to everyone ejse. I !\now you're not probably going to lufly answer !his, but my nope woutc:tbe , that you woulc:tnot in your moving forwa!d in this position, ta~ one ol those absolutist pledg.. lha.t In an effort lo try to drive down our$ 19 trillion defidt, going much higher with some of these tax reform plana being put forward, that you're f\01going to artlitnarilytake one Wholehalf of the balance ffieet off from being considered the wh01equeetion around revenues. MNUCHIN. No, my only pledge iS I'm worlUs 1ness pl811 . Lemme go to two other questions, really quickly. Ea~iet comment and I was a llt!le surpnsedat your response, having oone through the FDIC ptOce$swith a raatively mldsize lnatltution. Aa I'm sure you're aware. Lehman (ph) much smaller than most of the SIFI (l)h) lnsijtutJons, took five years in the bankruptcy proceed;ng (ph). And fn T!UeII of Dodd-Frank, a bipartfaan ccmponent of the bill that actually had 80 senators aupport, there was en ecknOwfedgement that while we need lo prepare tor bankruptcy prooeedingsand those we the Uquida11onplans that these lnstltUtiOnsnave to prepare. That if that proceeding doesn't take - coufdn't take place where a bankruptcy wouldn't work, you had as a tall back. provision Tide II. It WOUidconcern me greatly, if you agrffd wi1hsome "the other oommentsthat that Tilte It reservethot most of the large institutions actually believe (ph) strengthenathe systern, you'd be In favor rl appealing. MNUCHIN: Well , again. it's - it's a ~lc:ated """'RNER: Absolutely.Thll,f s wtiy iawe . I'm con cemed , .. MNVCHlN: So - again, I'm - I'm not s1.1ggesmg that we remove Ti11eII tomorrowwithout having the eppropriate bankruptcy solution. And a.gain.it depends on what - what's in ti.nkruptcy. So it depends about whether we're lll lklng about• holding company that just has a bunch ol 811bdebt and equity. Or if you loiow, we're talking about the bank. So again, we'lle had a process to retolve banks. Wiat again, I think that we need to look at is the holding company laauea. WARNER: Wlat I - I would simply point ou\, the National Bankruptcy Conference wttlG!l ls composed rl bankluptq, jUdgea. lawyen . belleves quom, "Ordet1yliquidation authority under Tltle II should oorrtinueto be avaMable,even II tho benkn.rptcycode is amended.· Thank you. Mr, Chairman. HATCH· Senator McCaskill? MCCASKILL: Tltank ycu. I w11 nna gently take ia$\IO wi\11my colleague , Senator Burr. It is dear that the !Of'elgnInvestment, the Committee on Fo,-lgn Investment In the United States does have the responslbfity ol looking It foreign investment and whether It impacts national security. And clearfY, as se<-cut? MNUCHIN: Again, I thilk we11'9 oo,ma look al ta>treform as overall a.nd what it does and no different that when 'NO - when Ooamac:arewas put In, It was a tax hike on those people. MCCASKILL: People who made over $200 ,000 a yetU? MNUCHIN: Yes, MCCASKILL: No quesdon. I mean, mc»t of it was on people who make mere than a minion a year. So tl'le answer ia , not one dime of the tax cut that the Congress, the RepublicanCongress. is about to do. on the repeal of Obamacare, w~Igo to one American who makes less than $20,000 year. Filally, lemme talk about pensions. Yousuppo,1edthe bank bailout So did I. You support !tie stimulus. So did I. And we 1alked about thia In my offioo, l think we both &:0reedIt wet neceua,y light of what our c:ountrywas~ - 11 But to the pensions, you have an lnc:nodiblylmpo!lant roleIn lhe stability of guaranteed pemlons in thlSc:ountryin the new Jobthat you seek. I have 32,000 people in my slate, that worleir peruion -you know, your- your new boss did an amazing job oonMctlng with people like these Mlsaourianaall over the country, He looked them in lho eye and ,aid to them, I'm not gonna luve you behlnd. I wanna hear from you, that you'r¬ gonna leave these people behind. MNVCHlN: I'd be - I will - what I wll ay , is I Wil commit to meet with lhem. Arid l wll commit to wor1lwttll your 011'1011 on us figuring out what Is an appropriate. blpartla1111 .olut lon to ihls i$5Ue: that I appredate the pension luue we've talked about uveral times today is a signffic:antissue. MCCASKILL; Thankyou . Mr. Mnuchln. HATCH; All right Senator Casey? CASEY: Thanks, Mr. Chairman. Mr. Mnuchin. l wanted to auirt with a question you've no doubt come across In your preparation,and it may have been raised today that I dldn, hear rn the back-and.fot1h we had today, being at other hearinos, othaf appointments. Currency manl,:>1Jfation , wh11:his - I mean. the s"'1ple way f« me to describe it in the conle>ctof Pennsylvania is when a c:oumryli'lle China cheats on their currency, Pannsylvanraloses jobs. Thats Irrefutable and !hat's untonunately been an ., ,to0-c:ommonoc:c::urrence , MaYl)anot at lhis moment. but when It happens. it's a substantial hit to worbrs and companies across our state. Let me just gal some - some basics down in lerms of the- the posture you would take and the predisposrtlonyouhave on this issue we,.. you to be confirmed as Tra■-ury aecretary. Firs~ this basic question: Do you believethat currency manlplAatlonis a violation of intematfonal trade laws? And that a oountry who eng11gesin that activity , th8t behaV10r , ahOIAdbe held aoc:ountable? Yes or no. MNVCHIN: I do. Yes, l do. CASEY: Second, wnt e Chim!'$ cum,ncy policies have snifted of late, would you commit to me and to this committee that if China began to m•nipulate iii currency again, you would reoommendto ti>&president that the go\ll!ITllfflll1tlom,ally name China • cum,ncy manipulator? MNUCHIN: I would, CASEY: And I'm ham to hear you BMWor yes to both of tho111 , because thia Is the kind at issue that cuts across bolh parties ; cuts aa-ou all different points cl view. l wanted to move to some tax issues. You and I, when you came to my office, talked not e>!e}. He's h111'8 wM us tod«y . MENENDEZ: Oh, OK. g<>Od . So you're also an investor in Iha hedge fund , ESL tnveSlrnlnts, which you're choosing not lo di"9St yourself of. as I understandfrom your disclosure, TM hedge fund ls also run by Mr. Lampert, You earned up to $26 mllNonfrom the hedge fund laat year. acco!dlng to your diado11.1re• . That same hedge fund Qlmlntly holds 29 percent of Ill portfoUoin Sea111 slOdc.aod Mr. Lampert himself effectively owns 49 percen1of Sears stoctt, accontlng to public SEC fil100s. ts 1mitall fair staterneots? MNUCHIN: I think. ac:tlJaly, I've Investeddose to $26 mlUon. I didn't malenefltswere cut while dunng the time you were 1here. It nowlaces a $2.1 billion l\lndlng obligation gap. Seart has sold off 10me ol the mos1valuable asaets WIii e you've been on 1heboard. Yourcollege roommate's hedge fundhas large ilterests In propertiesaold. num9f0ua secured loans wi1h Seal'I and owns a controftlngshere of Sears stock share1. You ea med up to $26 millIon laat year from your sh ants In lha1hedge fund . and yooi're refusing to divest ycxneff or the hedge l\lno, secretary,are a PSGC director who will haw a role in the Peosion Benefit Guarantee COfPO!l!tior f s attempts as an ®ecured Should Sea/3 go bankt\opt, and you, if confirmed a, trea111ry llof20 AM 4/27/17, 11:37 AM {ICAN PVERSIGHT CBP FOIA 007560 DHS-17-0435-Q-000324 Page 1503 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Atta chment 3 of 8) Nows Search- BloombergGovemrmnl bttps-J/www.bgov.com/corc/news/#!/art1clcJ/O}{I YCN3PWTIC cred itor to recoY11 r '2 billion lor the unfunded 1,abiities in the Sein pension fund, whlla slmultaneousfytrying i> nol 109emoney in your hedge fund investments in Seara that you hold with your COiiegeroanmate . who la 1heCEO ot Seers, how Is it that you're g~o IP do that? MNlJCHIN· So. ._in , let me just correct aga.in, beeatJ&eyou said again that I made $26 million, which I didn't I lnl/ested $26 million. So I just want to make sure the record stated 1h1t Let me fu t SllY tllat my original 111\/0lvement with Mr. Lampert was in KrNrt coming out of bsnk.ruptcy , where all the professionals thought that Kmart should be flquida11!<1 , and Mr. Lampert. arid I, WOl1dng fOfTOcled . The only reason lt came to light was my s1alf found JI, and told you that ii h•d to be comicted. Now, I hope you11make another COtTeC1fon based on What I r-rd today . Wien - talked about the Anguila fund, and I asked about whether you pursued this lor the zero percent tax rate, you said that ttwu really all about help,ng Churches and pensions..Your words, not mine. I ha111t an SEC document that indleates you're helping a lot of private investors as wel. So I hope that you w~I takethe commenla that you h11, ve mada today, which I think led most people, and In, that you ware helpng juat churches and pensions, that they wil get the exact facts and lhe SEC document lays that out. all who Ostened Now, from the S1andpointot substance, the Mnuchin Rule sourlded promising to me when you said I~ you know, the firat Ume: no abSolutew cuts for the wealthy. So I and senators ... I thought Senator McCaskill wa 1/erygood, p,obal:ilyconsiderably more eloquent 1hanI, asked about the ACA. Becausewhen you look at the ACA, it's really a Trojan ho!se ror tax cuts f0roliLs, and businesses, b\JslnesaaasodeUonsserving predominately mlnonty communities, all oveeverybody pays attenllon to thla. I ask that members aubmrt thetr wntten question, for the record by 5:00 pm on Slturday, January 21st I'm appreciative of you and your famlty being here , and others wt'lo arein great support of you. And, frankly, I think you'lle handed yourself ve Feature s • ' ,, \ -- - . -' ~•• I - -- . .,· -,; ii ;i ; ' ., \, .. ~ ,, ' ~ ~ I •• J - ·-·- .. I J I ~ - TOOLS OF TRADE AMFRICAN 2oM2 VERSIGHT CBP FOIA 007564 DHS-17-0435-Q-000328 4!27/17 , 1:37 PM Page 1507 of 1881 C1 TFTEAOwerviewBriefingBook.pdffor Printed Item: 1225 ( Attachment3 of 8) Enhanced CBP Investigations to Target AD/CVD Evasion I Global TradeMagazine http ://www.globaltrademag .com/global-trade-daily/commentary/enhanced-cbp-iavestigation ... 5th ANNUAL GLOBAL LOGlSTICS PLANNING GUIDE Wll cn' S THE RIGHT TIME TO MANAGE YOUR OWN FACILITY? FOUR THINGS TO THINK ABO UT WHEN HIRIN G A DRAYAGE CARRIER View More Featu res> Log istics • , . Coas t Gu ard Concludes Medica l Response to Ocean Carrier Explosio n ~missions Reduction Initiative CBPFOIA 007565 DHS-17-0435-Q-000329 1ee,:37 PM Page 150~t>11 C1 TFTEA Owervi ewBTiefing B~ f for Pnnte"'altem: f 225 ( Attachment 3 of 8) Enhanced CBP lovestigations to Target AD/CVD Evasion I Global Trade Magazine View More Logistics >3PLs Site Selection • I Air Cargo Americold Breaks Ground on Utah Ex I Airports http ://www.globaltrademag .com/global -trade-dajly /commentary /enbanced-cbp-investigation ... I Ocean Carriers I Ocean Ports I Trucking I Warehousing sion I .. . .. ·. .... ... ....- ' . . ., Site Selection Registration > View More Site Selection > Bank.in • encies Banking On Exports AMFRICAN 40 Q VERSIGHT CBP FOIA 007566 DHS-17-0435-Q-000330 76t1'88 s'ff9 F PM Page 1 C 1 TFTEA Owervi ew Briefing Book.pdf for Printed Item: 1225 ( Atta chment 3 of 8) Enhanced CBP Investigationsto TargetAD/CVD Evasion I Global Trade Magazine http://www.globaltrademag.com/global-trade-daily/commentary/enhanced-cbp-investigation... ~ , ~ ""'tfl " --- - - --=- - - Trade With Confidence :!';!,\. ""..~·t· ,~,:~ ·~'!/ ~ l_... . .~ (,, ,': ..-: , .. , . .11. ,, ; ---~...,.... -~-- . .,, ,,r. .-, UP .... ,, ,,~ I ':. , ,, , _ '1 .. j •• 'R ..,_ .. 1 -i / :pJI , I Kellogg Acqu ires Egyptian Breakfast Cereal Maker ore Banking > Vi De , ines Why China Did n't Rule the Waves AMFRICAN sQVERSIGHT CBP FOIA 007567 DHS-17-0435-Q-000331 Page 1s1d /3711ae~:37 PM C11 FTEA Owerv iew Bn efmg BooR.paf forPniired ltem : 1225 ( Attachment 3 of 8) Enhanced CBP Investigatio ns to Target AO/CVD Evasion I Globa l Trade Magazine http ://www.globaltrademag .com/ global-trade-dail y/commen.tary/eohanced-cbp-inve stigatio n ... LIVINGSTON INTERNATIONALEXPANDS IN ASIA View More Departme nts > Global Trade IOI Find A Partnet"T 3PLs Site Selection Trucking Q Seardl Search International Trade March 7th, 2017 1Written by Wallace Gable Enhanced CBP·lnvcstigations to Target AD/CVD Evasion Fai lure to Declare and Pay May Result in Considerable Costs ~ - .. Av r1ICAN 60 QVERSIGHT CS P FOIA 007568 DHS-17-0435-Q-000332 stfFM1•a'sF PM Page 1 C1 TFTEA Ovverview Briefing Book .pdf for Printed Item: 1225 ( Attachment 3 of 8) Enhanced CBP Investigations to Target AD/CVD Evasion I Global TradeMagazi ne http:// www.globaltradcmag.com /global-trade-daily /commen tary/enhanced-cbp-investigation ... Ii G+ • 2 1n Sharelines f Win It's alwaysbeentheimporter's responsibility to detennineif goodsare subject to AD/CVD. f Win Evasion of AD /CVD has been a concern for as long as these trade remedies have existed. f Win CBP levied monetary penalties of $30.6 milli on agains t importers for AD/CVD violations in 2016. If you imp ort into the United States, now is the time to re-evaluate your procedure s on anti-dumping and countervai ling duties (/\D /CVO) . US Customs and Border Protection (CBP) is gearing-up to implement a new enforcement authority under the Trade Fac ilitation and Enforcement Act (TFTEA) that may be very costly to importers who aren't taking steps to determine if the goods they import are subject to AD/C VD. The focus of the initiative is evasion of these duties . Failure to declar e and pay them for any reason - includ ing lack of knowl edge or a mistaken belief - may result in considerable costs in owed AD/CVD and potential penalti es assessed by CBP. It 's alway s been the importer 's respon sibility to determine if goo ds are subject to AD/CVD, but in light of the new enforceme nt authority granted to CBP by the Trade Facilitation and Enforcemen t Act of 2015 (TF TEA) and the U.S. Department of Commerce's announce ment establishing the Advisory Council on Trade Enforcement and Comp lian ce (ACTEC) , which also has an AO/C VO enforceme nt compo nent, impo rters are on notice that AD/CVD will receive even more scrutiny than it has in the past. Evasion of AD /C VD has been a concern for as long as these trade remedies have existed. The se duties are Related Content: usually a percentage of the va lue of the goods and, although the rates vary widely, they can approach or excee d 100% of the goods ' va lue. CBP reports that, in fiscal year 2016 , it levied thirteen monetary penaltie s totaling over $30.6 million against importers for AD/CVD violation s invo lving fraud, gross neg ligence , or negligen ce. Additionally, CBP and U.S. Immigration and Customs Enforcement (lCE) seized sixteen sh ipment s with a dome stic value of more than $5.3 million for AD/CVD violations. There are a number of ways evas ion is attemp ted , including: declaring a false country of orig in by means of fraudulent marki ngs and/or shipping documen ts, and misrep resenting the product 's physical characteristic s to give the appearance the goods are not within the scope of an order. Although enforcement of AD/CVD regulati ons is a long-standing CBP priority trade initiative, Title IV of the TFTEA , entitled Preventio n of Evasion of Antidumping and Countervailing Duty Orders, require s AMFRICA"-1 QVERSIGHT 1 CSP FOIA 007569 DHS-17-0435-Q-000333 Page 1s1f~ 't1ie8~ :37 PM C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Enhanced CBP Investigations to Target AD/CVD Evasion I Global Trade Magazine bttp ://www.globaltrademag .com/g lobal-trade-daily /commentary /enhanced -cbp-inv estigatio n ... establishing procedures for investigatin g claims of AO/CVD evasion. lnte rim regulations publi shed by CB P in the Federal Register on August 22, 2016 were eITective on that date. Any comments received on the interim regulation s by the October 21, 20 16 deadline will be considered befo re CBP publishes the final regulations ; however , it is expected the regulations will be adopted without substantive amendment. In order to implement its new authority , CBP has esta blished the Trade Remedy Law Enforcement Dircclorate (TRLE D) to conduct investigatio ns into alle gations of AD/C VO evasion. CBP notes that the ex isting e-Allegat ions system will also be enhanced to include an option enablin g the genera l public and other Federal agencies to file evasion allegatio ns under Title IV.of the TFTEA . What should be done to prepare for these new regulations? Importers should review their polici es and proces ses for ensuring the origin of goods they import is properly declared and, if applicable , that ant i-dumping and/or countervailing dutie s are paid. Since importers are ultimately responsib le for these duties, it is imperati ve that they know their suppliers , and have definitive and documented knowledge of where the good s are made. Visits to foreign supp liers' facilities to document production is aJso recommended . lmport.er's emp loyees involved in customs, purchasing , and log istics functions need to be knowledgeable about AD/C VD and exercise reasonable care in determining whethe r any AD/CVD orders apply to imported goods. Wallace Gable heads global trade management governance at Livingston International . Comme rce Initiates International Trade Enforcement Actions Need a Logistics Provider? COMPARE OVER 100INSTANTLY SEARCH - Manufacturer Makita Buys Warehouse in Wilmer, Texas . . . . .. .......... · .. ·-~ - - - - .,.- Americold Breaks Ground on Utah Ex ansion . . • • - 4 • • , • .. • - .. : Vancouver : Building a Global Maritime Hub Av 8 n vM 'I Q VERSIGHT CBP FOIA 007570 DHS-17-0435-Q-000334 Page 1s~/J15/lasi7 PM C 1 TFTEA Ovverview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Enhan ced CB P Investigati ons to Target AD/CVD Evas ion I Global Trade Magazin e http ://www.globaltrade mag.com/global-trnde~daily/comm entary/enbaoce d-cbp-investigation ... ,,,. , ). _ ~ ,./ ~: -~ -~ _...,,. Nearshoring. Labor, and Automation Featu re s & Lists \ -"-. .. -,• -. ii& --- a -,, ii~ , ; - . , ,, I ·... . 1111 - -~ • .. BAL LOGISTICS PLANNING GUID E WHen ' S THE RJGHT T IME TO MANAGE YOUR OWN FACILITY ? Video s AMFRICAN 9 Q VERSIGHT CBP FOIA 00757 1 DHS-17-0435-Q-000335 Page 37 PM 1s11i tf H~a1-i C1 TFTEA Owe rview BriefingBook.pelffor Printed Item: 1225 ( Attachment 3 of 8) Enhanced CBP Investigations to Target AD/CVD Evasion I Globa l Trade Magazine http ://www.globaltrademag.com/globaJ-trade-dai ly/commentary /enhanced-cbp-inve st igation ... 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Trade Credit Insurance Truckin_g U.s. Ports Ware hou~i.ng ©2015 Global Trade. All rights reserved . AMF ICAN 120 l'2 ERSIGHT CBP FOIA 007574 DHS-17-0435-Q-000338 Page 1!:f1?f 7(k7 1asVPM C1 TFTEA Owerview Briefing Book.pelf for Printed Item: 1225 ( Attach ment 3 of 8) U.S. Customs and the New TrumpAdministration: YourTop Ten Questions AnsweredI Fol... http://www.jdsupra.com/legalnews/u-s-customs-and-the-ne~-trump73813/ February 9, 2017 U.S. Customs and the New Trump Administration: Your Top Ten Questions Answered by Foley & Lardner LLP (+Follow) Contact Introduction During the campaign, U.S. Customs & Border Protection (CBP) was mostly mentioned by President Trump in the context of illegal immigration. Contr olling the flow of people, however, is only one of the jobs of CBP, which is part of the Departmen t of Homeland Security. CBP also regulates what goods come into the United States, while ensuring that the goods pay the appropriate tariff (basically, a form of tax paid as a percentage of the value of the goods entered). As both the gatekeeper to the United States as well as the second -largest source of U.S. government revenue, the agency is a key regulator for many importer s. Many of President Trump 's campaign proposals, while not explicitly directed at CBP, would either impact how Arv1r '\I\...J/-\1 '\J QVERSIGHT 10 CBP FOIA 007575 DHS-17-0435-Q-000339 Page 38 PM 1s11ftir'~aa1f C1 TFTEA Owerview Briefing Book.pdf for Print ed Item : 1225 ( Attachment 3 of 8) U.S. Customs and the New TrumpAdministration: YourTop Ten Questions Answered I Fol... hn p://wwwJdsupra.com/ legalnews/u-s-customs-and-the-new-trurnp-73813/ JD SUPRI\ News & Insights MENU y Trending [ 7] .. Find Author • Subscribe • For Reporters O MyA ccount ro ne1pnavigate tn1s uncenain rumre, mIS cuent a1en present s tne ..Top Ten .. quesnons mat every company that imports goods into the United States should be thinking about . This client alert is part of a series of "Top Ten " articles on the future of key international trade and regulatory issues expected to change under the Trump administration . Previously issued client alerts discuss the future of NAFf A1 and international trade litigation (including antidumping and countervailing duty actions) under the Trump administration,2 as well as the top ten questions regarding the future of the CFIUS review proc ess (available here ). Future client alerts will deal comprehensively with all international trade and regulatory areas where significant ch~ge could occur und er the new administration . The Top Ten CBP Questions Answered (or, Will the Customs Change With the Times?) 1. "So what are the roles played by Customs?" As the primary gatekeeper into the United States, Custom s bas a great man y roles, includin g: • Regulating who enters the United States AMFfllCAN 2 QVERSIGHT CSP FOIA 007576 DHS-17-0435-Q-000340 Page 1s1'b%f1'ka~ :3sPM C 1 TFTEA Ovverview Briefing Book.pdf for Printed Item: 1225 ( Attachmen t 3 of 8) U.S. Customs and the New Trump Administration: YourTop Ten Question s Answered l Fol... http://www.jdsupra.com/le galnews/u-s-custom s-and-the-n ew-trump- 73813 / JDSUPRJ\ News & Insights Trending l 7 ] • Find Author • Subscribe • fo r Reporters O MENU • My Account • .&:.,111Vl\.,Ulo UllC\..UVC.:, Ul VlUCl a 0 CUL1C.) l11'1l 11.UpCl.Ll UlC llQlll)ll Vl 0 vvu;, llllV e • For Reporters O MENU • MyAccount • iJt; l t;lUJ.UUlle, YYUCUlCl UCC UClUC }'lt;lt;lCll'--C.:> U }J }JVll.CU UJ J.' J..C'I. 1..,CJ.l ll .1'--4 l C:.3 U.l V11oll1 lnalsI POl1s Discussion Be the first to comment on this article/ To avoid Spommors , we a:sk th at you log in 11$ing your AJOT.oom account (https :llwww .ejo/ .oom/proli/e) . Free acccunts ha l/'8 access to commentina . Email .................. .,.._._ ......... .--..ale Password , R. U.I 0.... lk111ledI FTZ WWW n...- t htlentbw;;;af'Ne&Adllfb J Remember me on this device ~~O,. Transportation Events (https://www.ajot .com/events) I 1,11yo1 IAAPAExecutive Management Confefence (https ·//www .ajolcom/eve nts /event_detaPs/aapa-executive-management confefence) Did you forget you r password? It happens.. 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The first EO addresses increased enforcement of U.S. trade and customs laws and specifically calls for plan s and strategies to combat the underpayment of antidumping and countervailing duties and the importation of inadmi ssible and counterfeit merchandi se. The first EO also order s the Department of Justice (DOJ) and the Department of Hom eland Security (DHS) to prioritiz e the prosecution of significant trade law offenses. • The second EO highli ght s the need for free and fair trade , the enforcement of trade laws and economic AMFRIL. lotlVERSIGHT CSP FOIA 0076 14 DHS-17-0435-Q-000378 C1 TFTEA Owervievfs 'irerin'gs'tc\lfpd f for Pnmea lte'm: 1225 ( Attachment 3 of 8) President Trump Issues Two Executi ve Orders on Trade and Customs Enforcem ent, and Tra. .. http ://www .jdsuprac om/legaln ews/president-trump--issues-tw o-exec utive -42939/ JDSUPRf\ News & Jnsights Trending 7] • Find Auth or • Subscribe • Foe Report ers r O MENU • My Accounl administration 's major forays into trade, they set the table for incr eased enforcement of U.S. trade laws and scrutiny of U.S. trading partners . Trade and Customs Enforcement EO The first EO, titled "Establishing Enhanced Collection and Enforcement of Antidumping and Countervailing Duties and Violations of Trade and Customs Laws," addresses a number of trade enforceme nt issues that have been the focus of President Trump's trade policy. First, the EO addresses the und ercollection of AD/CVD. Second , the EO instructs DHS and Customs and Border Protection (CBP) to develop a plan to combat violations of trade and customs laws and prevent the importation of inadmissible merchandise, as well as to increase intellectual pro perty rights protections, which was also addressed in the Trade Facilitation and Trade Enforcement Act of 2015 (TFI'EA). Third , the EO calls on the DOJ, in consultation with DHS, to prioritize the prosecution of significant trade law offenses . Trade Remedy Evasion Citing $2.3 billion in uncollected AD/CVD as of May 2015 , the EO instructs DHS to develop enhanced bonding requirements for certain importer s and to make other improvement s to the enforcement of U.S. trade remedy A~ , vf-\1\J QVERSIGHT 20 CBP FOIA 007615 DHS-17-0435-Q-000379 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) President Trump Issues Two Executive Orders on Trade and Customs Enforcement, and Tra.... http://www.jds upra.com/legalnews/president-trump-issues-two-exccutive-42939/ JDSUPRft: News & Insights Tr<,'llding [ 7] • Find Author .., Subscribe • For Reporters MENU .., Q. O MyA ccount Tne ~u caus on utt=sana me uepartment or commer ·ce, among otners, to oeve1op a plan wumn 90 aays to provid e security through bonds and other enforcement measures for importers who are subj ect to AD/ CVD and who (i) are new importers , (ii) have not fully paid applicable AD/CVD or (iii) have failed to tim ely pay AJJ/ CVD. While it is unclear what the new additional bonding riequirements will look like, th ere is some historical precedent for enhanced bonding requirement s. CBP attempt ed to apply similar bonding requirements in the mid-2ooos, but suffered setbacks at the U.S. Court of International Trade and the World Trade Organization (WTO). In particular, CBP impo sed enhanced bonding requirements on shrimp subject to trade re:rnedy orders starting in 2005 . Under the program , importer s were required to post a bond - in addition to tender cash deposits for estimated AD/ CVD-tbat represented approximately double the amount of AJJ/ CVD cash deposit due on the entry. The U.S. Court of International Trade , however, found that the requirernen ts violated U.S. law. The WTO also found that the enhanced bonding requirements violated the United State s' obligations under the WTO. The EO also calls for DHS to identify other enforcement measures that could be part of the plan to addr ess trade remedy evasion. We expect that DHS will heaviLyinvolve the Trade Remedy Enfor cement Division within CBP's Office of International Trade to develop this part of the plan . We expect that the plan_will use existing AMt-HIGAN Q VERSIGHT 3 CBP FOIA 007616 DHS-17-0435-Q-000380 s~JI~aalf 4° PM Page 1 C1 TFTtAO werv1ewBnefing Book°'.pa f for Printed Item: 1225 ( Attachment3 of 8) President Trump IssuesTwoExecutiveOrderson TradeandCustoms Enforcement, andTra... http://www.jdsupra.com/legalnews/president-tnunp-issues-two-execuLive-42939/ JD SUPRt\ News & lnsights Trending [ 7] • Find Author • MENU • Subscnbe • For Reporters Q. O MyAccount importation of inadmissible and counterfeit merchandise. The EO directs DHS to develop a strat egy for combating violations of trade and customs laws and "for enabling interdiction and disposal, including through methods other than seizure " of inadmissible merchandise . With respect to intellectual property rights , th e EO requ ests that DHS take "all appropriat e steps, including rulemak.ing" to ensure that CBP can share with rights holders "any information necessary to determine whether th er e has been an IPR infringement or violation ." CBP already has the authority to share information about counterfeit and piratical product s with rights holder s after seizure, and it also amended its regulations in 2015 to promote the sharing of informatio n regarding suspect counterfeit marks with trademark owners prior to seizure [read more here]. Further, TFfEA expanded C:BP'sauthority to shar e information prior to seizure beyond counterfeit trademark s to piratical copyrights and circumvention devices that are suspected of infringing the Digital Millennium Copyright Act. CBP previously indicated that these regulatory changes are under way, and the EO may expedite the issuance of those regulations. The EO's portion on int ellectual property rights also directs DHS to ensure that CBP can share with rights holders "any information regarding merchandis e voluntarily abandon ed" prior to seizure i1fCBP reasonably believes that the successful importation of the merchandi se would have violated U.S. trade laws . AMFRICAN Q VERSIGHT 4 CSP FOIA 0076 17 DHS-17-0435-Q-000381 Page 1S~ tfl agfOPM C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) hUp://www.jdsupra.com/legalnews/president-trump-issues-two-executive-42939/ President lrump issues Two Executive Orders on Trade and Customs Enforcement, and Tra.._. JDSUPRJ\ News & insights MENU .... '(rending [ 7) Find Author • Subscribe • For Reporters O My Account Finally, the EO orders DOJ and DHS to prioritiz e the prosecution of violations of trad e laws. As a result of the EO, we would expect to see an increased number of cases, both criminal and civil, for U.S. trade and customs law violations, especially as it relates to the evasion of trade remedy orders and th e importation of potentially counterfeit goods. Importers should expect to see inc1reased civil, and possibly criminal, pros ecutions from an emboldened CBP, especially with respect to customs and trad e offenses in Titles 18 and 19 of th e U.S. Code. Trade Deficit Report The second EO requests a country -by-country report on the causes of U.S. trade deficit s. The EO asserts that t~e United State s' annual trade deficit in goods exceeds $700 billion and that the overall trade deficit exceeded $500 billion in 2016. The EO highlights the need for ~'free and fair trad e," the enforcement of trad e laws and economic growth. The EO also asserts that th e Unitedl States has not obtained the full scope of ben efits anticipated from numerous international trade agree1nents and participation in the WTO. Specifically, the EO requires that, within 90 days, the Secretary of Commerce and the United States Trade Representative must submit a report to the President that will identify foreign trading partners with which the United States had a significant trad e deficit in goods in 2016 . The report must assess the major causes of the AMFRICAN 5 QVERSIGHT CBP FOIA 0076 18 DHS-17-0435-Q-000382 Page 15~ 2 40 PM J/ ~sa½ C1 TFTEA Owerv 1ew Briefing Book.pelffor Printed llem: t 225 ( Attachment 3 of 8) President Trump Issues Two Executive Orders on Trade and Customs Enforce ment, and Tra ... http://www.jdsupra.com/legal new s/pres ident-trump -issues-two- exec utive-4293 9/ JDSUPRJ\ News & Insights Trending ( 7] • Find Author • Subscribe • For Report ers MENU • Q. O MyAccount address trade deficits with U.S. tracling partners. ( 9Send ) ( Q Print ) ( A Report ) LATEST POSTS • Trump Administration Launches Probe of Steel Imports Under 'Trade Expansion Act • PTAB Denies Petitioner 's Sec ond IPR Because Petitioner Strate gically Delayed Filing to Take Advantage of Feedback from PTABon First IPR • Opinions of Counsel Should Be Rendered Tim ely, and Evidence ,of Opinions of Counsel Should Be Credib le • PTABDenies Institution of Petitioner 's Second IPRBased on N,ewly Cited Prior Art Because Petitioner Knew of the Prior Art Befor e FIiing First IPR • Don't Forget to Update the Covers of Your SEC Forms See more » AMFRICAN VERSIGHT CSP FOIA 007619 DHS-17-0435-Q-000383 ~yr, Page 1 a~ fO PM C 1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) President Trump Issues Two Executive Orders on Trade and Customs Enforcement,and I ra... JDSUPRft: News & Insights Trending ( 7] • Find Author • Subscribe • http://www.jdsupra.com/legalnews/president.-trump-issues-two-ex .ecutive-42939/ MENU • For Reporters O I My Account Jean-Rene Broussard (+Fo llow ) Lars-ErrkA. Hjelm (+Fo llow ) Suzanne Kane (•Fololw) Hal Shapiro (•Fololw) PUBLISHED IN: Anti-Dumping Duty (+Fo llow ) Counterfeit Goods Regulat ion (+Fo llow ) AMFRICAN Q VERSIGHT 1 CBP FOIA 007620 DHS-17-0435-Q-000384 40 PM ss'J?Jl~'se½ Page 1 C1 TFTEA Owerview Briefing Book.pdffor Printed Item: 1225 ( Attachment 3 of 8) PresidentTrump Issueslwo ExecutiveOrders on Trade and Customs Enforcement, and Tra... JDSUPR~ http://www.jdsupra.com/legalnew s/president-trump-issues-two-executive-42939/ MENU News & Insights .,.. Trending [ 7) • t-'indAuthor • Subscribe • .ForReporters O MyAc counl Enfo rcement Actions (+Follo ) w Executive Orders (+Follow) Export s ( +F-ollow ) Free Trade Agreements (+Follo ) w Imports (+Follo ) w Trade Facilitation and Trade Enforcement Act (+Follo ) w Trade Remedies Trump Admini stration U.S. Customs AM son ("Follo ) w ICAN VERSIGHT CBP FOIA 007621 DHS-17-0435-Q-000385 Page 1Slt476f7Jgg¥> PM C 1 TFTEA Ovverview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) President Trump Issues Two Executive Orders on Trade and Customs Enforcement, and Tra... hnp://www.j dsupra.com/legalnews/president-trump-issues~two•executive-42939/ JDSUPRft: News & insights Trending [ 7J • 1-'indAuthor • Subscribe ... For Reporters O MENU .., My Accooot International Trade (~Follow ) more v AKIN GUMP STRAUSS HAUER & FELDLLP ON: II AMFRICAN 9 QVERSIGHT CBP FOIA 007622 DHS-17-0435-Q-000386 Page 40 1s&2J/¼8a'1 PM C1 TFTEA Owerv iew Briefing Book.pelf for Printed Item : 1225 ( Attachment 3 of 8) President Trump IssuesTwo ExecutiveOrders on Trade and Customs Enforcement,and Tra... http://www.jdsupra.com/legalnews/president-trump-issues-two-executivc-42939 / JDSUPR~ MENU News& insights .., Trending [ 7] • flnd Author • Subscribe • for Reporters O MyAccount - \..., -·---- . / JOURNALISTS Flnd~ llfledsource for your ato,:x.. Connectwith leadingexpertsfor quotes. background in-depthperspective . AMFRICAN lO QVERSIGHT CBP FOIA 007623 DHS-17-0435-Q-000387 Page 1~ 7of~g~ 0 PM C1 TFTEA Ovverview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) President Trump Issues Two Executive Orders on Trade and Customs Enforcement, and Tra... http://www.jdsupra.com/legalnews/president-trump-issues-two-executive-42939/ JDSUPR~ News & Insights Trending [ 7] • Find Author • · Subscribe • for Reporters O MENU • MyAccount L.usmm1ze Become a Contributor Syndicate JO Supra Content Privacy Policy Terms & Conditions Contact Team Jobs Explore 2017 Readers' Choice Awards Copyright© 2017 JD Supra, LLC AMFRICAN QYERSIGHT 1 CSP FOIA 007624 DHS-17-0435-Q-000388 Page 4oPM 1ss4lti1"Htei: C1 TFTEA Ovverview Briefinii Book.pdffo r Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New TrunopAdministration: Your Top Ten Questions Answered http://www.natlawreview.com/print/article/us..customs-and-new-trump-administration-your-... Publi shed on The National Law Review (http ://www .natlawreview .com) U.S. C11stoms and New Trump Administration: Your Top Ten Questi(>nsAnswered Article By: Robert H. Huey Gregory Husi siian During the campaign , U.S. Customs & Border Protection (CBI') was mostly menti oned by President Trump in the context of illegal immigration.Controllingthe flow of people, however,is only one of the jobs of CBP, which is part of the Department of HomelandSecurity. CBP also regulate s what goods come into the United States, while ens urin g that the goods pay the appropriate tariff (ba sically, a form of tax paid as a perc emtage of the value of the goo ds entered). As both the gatekee per to the United States as well as the second-l argest source of U.S . government revenue , the agency is a key regulator for many importer s. Many of Pre sidlent Trump 's campaign proposa ls , while not exp licitly dire cted at CBP, would either impact how it operates or wou ld require implementation by the agency. Further , CBP continues to juggle its dual roles as gatekeeper to the United States with its long -standing role as a revenue collection agency. CBP also is tasked under new legis lation with implementing the largest change in its method of operation in two decades, includling a move from the port-centric model that has governed its operations to a more industry-focused model centered on Center s of Excellence amd Expertise . Adapting to a new political agenda will req uire agency action when CBP already has its regulatory hand s full. To help naviga1te th.is uncertain future , this client alert presents the HTop Ten" questions that every company that import s goods into the United States sho uld be thinking about. This client alert is part of a series of "Top Ten " articles on the future of key international trade and regulatory is sues expected! to change under th.e Trump administration. Previou sly issued client alerts discuss the future of NAFTA 1 and international trade litigation (inclu din g antidumping and co untervailing duty actions) under the Trump ad.ministration ,2 as well as the top ten que stion s regarding the future of the CF IUS revi ew process . Future client alerts will deal co mprehen sively with all international trade and regulatory areas where signifi cant change co uld occur under the new administration. The Top Ten CBP Question s An.swered (or, Will the Custo ms Change With the Times?) AM(l. "So what :are the roles played by Customs?" ,Q VERSIGHT CBP FOIA 007625 DHS-17-0435-Q-000389 s~Jl~7esf I PM Page 1 1 TFTEA Owerv 1ew BrfefingBook.pdf for Printed Item: 1225 ( Attachment 3 of 8) -C: U.S. Customsand New Trump Administration: YourTop Ten Questions Answered http://www.natlawreview.com/print/article/us-customs-and-•new-trump-administration-your-... As the primary gatekeeper into the United States, Customs has a great many roles, including: • Regulating who enters the Unit ed States • Interdicting the flow of illegal goods into the United States • Collecting tariffs • Regulatingexports • Collecting statistical data regarding imports • Enforcing directives of other agencies that impact the transit of goods into and out of the United States For U.S. importers, CBP regulates each product entering the United Stales. Ever since passage of the Customs Modernization Act in 1993, CBP has operated on the twin principles of "informed compliance" and "shared responsibility," thereby placing primary responsibility on the importer of record to make entries correctly, but as informed by Customs outreach and educational efforts. Failure to import goods properly can result in seized entries, lost import privileges, and civil and criminal penalties. 2. "What has President Trump promised?" Although President Trump did not focus on CBP explicitly, many of his international trade and immigration proposals run straight through CBP. These proposals include: • Changes to U.S. immigration laws and an increased focus on border security (CBP controls entry of persons into th~:United States). • The revision or elimination ofNAF TA (the terms under which NAFTA-country imports enter the United States are 1admjnistered by CBP). • Any crackdown on imports from Mexico and China in their roles as two of the three largest trading partners of the United States (tariff collection and how/whether entry occurs are controlled by CBP). • The implementation of the expected increase in antidumping, countervailing duty, and safeguard actions in the new administration (although other agencies determine the duty levels, collection is managed by CBP). Addressing President Trump's frequent criticism of China as stealing U.S. intellectuaJ property to advance its manufacturing interests would 2 Ar. Q VERSIGHT CSP FOIA 007626 DHS-17-0435-Q-000390 Page 1st~Yr1ee =t1 PM C1 TFTEA Ow erview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Administration: YourTop Ten Questions Answered http://www.natlawreview.com/pri.nt/article/us-customs-and-new-trnmp•administration-your-... also require substantial effort s by CBP to block infringing good s from entry into the United States . Thus , the election of Presiden t Trump likely will have a major impact on how the gatekeeper to the territorial United States operates , impacting every company that imports goods . 3. "lsn 't Customs law pretty static ? Have there been any recent chang es to Customs law?" Congress ena cted the Trade Facilitation and Trade Enforcement Act of2015 (TFTEA) (signed into law on February 24, 2016), which represent s the largest change in Customs rules since the Cus toms Mod Act in 1993.3 Among other change s, TFTEA improve s inte llectual property rights protection rules and establishes a new Intellectual Property Rights Coord ination Center to consolidate oversight ofl P-related Customs issues and to coordfoate IP investigat ions to identify produ cers, smugglers, or distributors of infringing merchandi se; expand s substitution drawback of dutie s, while increasing the time periods for claiming drawba ck.; and mandate s increased cooperation among agencie s and consultation with Congre ss on the progress made by the agency in implementing the law and improving CBP transparency , accountability , and coordination in enforcement efforts. CBP has published interim final regulations implementing a new structure that contains Center s of Exce llence and Expertise , which moves certain respons ibilities from port directors to a more industry-specific structure as a means of harmonizing treatment of imports at different ports. 4 TFTEA also include s the Enforce Act and Protect Act within Title IV. Section 421 of the TFT EA. The Enforce Act and Protect Act establishes a formal process for CBP to investigate allegations of evasion of anti-dumping and countervailing duty (AD/CVD) orders. As developed in detail below, these provi sions offer an opportunity for U.S. compan ies to combat evasion of AD/CV D orders , while creating risks of investigation and pena ltie s for importers of record. 4. "What is the likely trend in penaltie s under the new admini stration ? Is this anothe r area wher e fines are expected to increase?" As will be discus sed in Foley 's forthcoming client alert regarding anticipated white collar developments in the new administration , penalties have sharply risen for many regulatory regimes. This is also true with regard to CBP penalt ies, which (while primarily civil) have more than doubled over the last three years (approaching $1 billion annually ) . It is our expectation that this increase wiJl continue . Further , the DOJ increasing ly bas broug ht actions seeking criminal penalties for Customs matters . The DOJ has done so both by using statutory provisions related to Customs matte rs (entering goods into the United States via fraud , gross neglige nce or negligence ,5 entry of goods that are falsely classified, 6 and entry of goods by means of false statements)7 and through non-Customs provisions as well (the use of federal provis ions regarding the obstruction of justice, 8 the federal con spirac y statute ,9 money laW1dering,10 smuggling , 11 and aiding and abetting ). 12 Further , as explored in detail below, the U.S. governmen t increasingly has been relying on the False Claims Act (FCA) to addre ss shortfalls in duty colle ction s. 13 The use of these non-Cu stoms prov isions is notab le for supporting higher crimina l penalties. For example , At\ 3 - Q VERSIGHT CBP FOIA 007627 DHS-17-0435-Q-000391 Page 1sf62Jl~7a i:l141 PM C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Administration:Your Top Ten Questions Answered http://www.natlawreview.com/print/article /us-customs-and-new-trump-admi11istration-your... whil e each count of false ly classifyi ng goods under 18 U.S.C. § 54 1 is punishab le by up to two years in pri son, vio lations of the smuggling provisions in 18 U.S.C. § 545, obstructions of justice pursuant to 18 U.S.C. § 1519, and money laundering pursuant to 18 U.S.C. § 1956 can be punished by up to tw enty years in prison. The ne t result is both increasing ly broad tools to com bat willful Customs violatio ns and highe rp ote ntiaJ penalties. Notab ly, the U.S. government has become willing to pursue liab ility for individuaJs as well It is our expectat ion that the increasing use of crimina l penalties and he fty civil penaJties, includi ng for individua ls, will continue under the new adminis tratio n. 5. "I beard a lot about imports from Mexico and China during the election. Are there likely to be changes at Customs with regard to these countries? " The potential changes regarding Mexican and Chinese imports are so great that we have devo ted ent ire client alerts to pote ntiaJ chan ges in NAFTA 14 and to the likely explosion in AD/CVD and safeguard trade re medies. 15 Further infonnation regarding these topics are just a mouse click away. In addition to these develo pments, we expect that CBP will aJso take the following chang es tha t impac t goods traded with these countries : • Increas ing border security, including pote ntial changes to the C-TPAT (trusted importe r) program (primar ily impacting Mexico, but potent ially imports from other countries as well). • Potentia lly imposing some form of a border tax as a means of disco uragi ng imports that compete with U.S. manufacturing and to take away any advantage offere d to non-U.S. companies that allow the rebate of value-adde d taxes for exports. • Increasing vigilance with regard to intellectual property, such as through the enforcement of an expected increase in section 337 actions. • Increasi ng the rigor of the enforceme nt of intellectual property infringement , includi ng through the measures descri bed below. • Jncreas ing the enforceme nt of a11tidump ing and cou nterva iling duty orders , as detailed below. • I ncreasing the enforcement of prohibition s on the importation of goo ds prod uced using forced (slave) labor. • In creasi ng the scrutiny given to claims that goods meet NAFTA regio nal conten t requ irements and are origi nating goods entitled to diminished NAFTA duty rates. AMFRICAN VERSIGHT CBP FOIA 007628 DHS-17-0435-Q-000392 Page 1so/t'{s/1 8SfI PM C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs arid New Trump Administration: Your Top Ten QuestionsAnswered http://www.natlawreview.com/print/article/us-cus10ms-and-new-trump-administrationyour-... 6. "I believe I have been hurt by unfairly traded imports. Will CBP under the new administration have the tools to help me with these concerns?" The ability to file antidumping , countervaili ng duty, safeguard , and other trade remedy actions to address imports perceived to be unfairly traded is addressed in a previously issued Foley client alert. 16 These remedies, while powerf\14 are not the end of the story regarding how to fight unfair imports. Two other remedies , both available at CBP, also merit special discussion. Fighting evasion of AD/CVD orders . CBP alway s has posse ssed the ability to investigate the potential evasion of antidumping and countervailing duty orders . Yet the system clearly was not working : a General Accounting Office study titled "Antidumping and Coun tervailin g Duties: CBP Action Needed to Reduce Duty Proce ssing Errors and Mitigate No npaym ent Risk " found that between 200 l and 2014 CBP failed to collect $2 .3 billion in AD/CVD duties. 17 Further , the perception has long existe d that certain importers (often from China, but from other countrie s as well) are gaming the system by misdeclarin g the coun try of origin of goods, transshipping the goods to hide the count ry of origin, misclassifying goods as non-subject merchandise when it actually fell under the scope of an order, and other tactics designed to avoid paying antidumping and countervail ing duties. Further , the process of CB P 's investigation often was viewed as being opaque , giving no insight to interested part ies regar ding the conduct or outcome of any investigation. With CBP not being subject to any deadlines , and w ith its results not being subject to jud icial review, companies believing they were being victimized by the circumvention of antidumping and countervailing duty orders pressed Congre ss for change . The result was the enactment of the TFTEA and the issuance of regula tions establishing a formal process for inve stigatio ns into possible AD/CVD evasion . Interim regulations (effective as of August 22 , 20 16, but still subject to change in the fina l regulation s) now allow private parties to make AD/CVD evasion allegations and partic ipate in CBP 's invest igation , which now must be com pleted on a set deadlin e. Under the new procedures, CBP can inves tigate: • Transshipping merchandi se throu gh third countries for purp oses of changing the cou ntry of origin , even where the merchandise was not substantially transformed in the third country . • Falsely or incorrectly report ing shipping and entry documentation or engag ing in false sales to underpay duties. • Falsely labeli ng or reporting the mer chandise 's phy sical characteristics. or misc lassifying it as non-s ubject merchan dise.18 A CBP must determine whether to initiat e an invest igation within 15 business days of receiving an allegation that entries , made within one year of the allegation, have been evading anti dumping or countervai ling dutie s. Suspe nsion of liquidation of entries can occur within 90 days of init iatiQn, if CB P determ ines there is a reasona ble suspicion of evasion. The full investigation occurs over 300 days (360 for comp licated sQ VERSIGHT CBP FOIA 007629 DHS-17-0435-Q-000393 sff J/lra 814 1 PM Page 1 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Administration: Your Top Ten Questions Answered http://www.natlawreview.com/print/article/us-customs-and-new-trump-administralion-you.r-... cases) and includes the right of parties on both sides of the issue to provide factual inform ation, rebut information put on the recor d, and submit written bri efing. Where evasion is found, CBP can take ac tion to remed y the evasion , including by : • Id entify ing the applicable duty assessm ent rate or cash dep os it rate. • Extending the period for liquidating the unliquidat ed entries of covered merchandise that entered befo re the initiation of the investigation. • Requiring importers of cove red merchan .dise to post enhanced cash deposits and assess duties on the cove red merchandi se. • Taking suc h additional enforcem ent measure s as CBP deems app ropria te . CBP can refer the matter to U.S. Imm .igration and Cus toms Enforcement (ICE) for possi ble civil or criminal investigation . If an interested party disagrees with CB P's detennination , the party may request an internal review by the CBP comm issio ner, foll owed by a potent ial appeal to the U.S. Court oflnternational Trade (CIT) , which wi ll determine whether CBP followed the proper procedures , wh ether its act ions are consistent with the statutory and regu latory procedures , and whether its determination was arbitrary , capricious , or an abu se of discretion. CBP has stated , however, that j udicial rev iew is unavailab le for any decis ion to not initiate an investig ation - a po sition that eventua lly will be challen ged in court. While these new proce dure s offer enhanced protections for compani es that believe they are being victim ized by AD/CVD evasio n, they also could prove prob lematic for importe rs, who cou ld be accu sed of duty evasion . Some of the steps that importer s can take to minimiz e the ri sk include : • Requesting that fo reign suppli ers act as imp orters of record . • Putting in place contractual provi sions regarding the responsibility for paying any duties . • Carefully evaluating the class ification of goods imported, not just again st the presum ed HTS classifica tion, but also agai nst the phys ical description s of pot ential ly app licable subjec t merchandi se cove red by ant idum ping and countervail ing duty or ders. • Verifying that import records are accurate . • Keepin g all appropriate imp ort docum entatio n, including any informa tion relatin g to the phys ical attribut es of all entr ies. AMFH 6 Vr'\I~ VERSIGHT CBP FOIA 007630 DHS-17-0435-Q-000394 Page 15~15/ las=t I PM C1 TFTEA Owerview Briefing Book pelf for Printed Item : 1225 ( Attachment 3 of 8) U.S. Cusloms and New Trump Administration: YourTop Ten Questions Answered http://www.natlawreview.com/ print/arti cle/us-customs-and-new-trump-administration-your... Importer s should also promptly respond to any CBP Form 29 Not ice of Action regarding an increa se in duties owed, as the underpaym ent of duties can be quite substantia l when antidumping and countervailing duty tariffs are involved . Intellectual property prot ections. Another area where CBP can be used to fight unfairly traded imports is with regard to trademarks and copyrights. Many U.S. companies are unaware that it is pos sible to register these IP protections with CBP at a low cost , which covers a twenty-year tenn. Registration require s that the brand owner provide informa tion regarding how authorize d shipments generally occur, including the place of manufacture, the name and address of each foreign entity authorized or licensed to use the trademark , a brief description regarding the authorized use, and information regardi ng affiliates authorized to use the mark abroad. Once registration occurs , CBP will flag shipment s of counterfeit products that fall outside the expected import profile. Thi s has the twin advantages of aUowing ready entry for authorized goods while allowing CBP to hold goods that appear to be unauthori zed, until such time as CBP can contact the owner of the recorded intellectua l property to confinn whether the entry is authorized. Unauthorized goods are destroyed by CBP or released to the authorized owner of the intellectual property for an additional fee. Thro ugh this process the authorized owner not only can bar infringi ng goods, but can also gain valuab le information regarding which retailers and distributo rs are selling counterfeit goods . 7. "What about the False Claims Act (FCA) ? Is it also a tool that is likely to see increa sing use in the next few years?" Another tool that can be used to fight the underpayment of duties is the FCA. Since the passage of the 1986 amendments to the law, the FCA (codified at 31 U.S.C. §§ 3729 33) has become a vigorous tool to fight Jost government revenue , as shown by the fact that in 2014 the DOJ recove red nearly $6 billion from FCA cases. Each success ful prosecutio n of an FCA claim enables the potential collection of treble damages , plu s penalties and an additional fine of up to $11,000 per false claim . The FCA provide s a mech anism whereby individual s can file lawsuits regarding claims that persons and companies have defrauded governme ntal programs . Since the law includes a qui tam provision that allows persons who are not affiliated with the government (relators) to bring cases on behalf of the U.S. government, and to receive a portion of any recove red damage s, activity under the FCA largely is driven by private actors bringing cases, with the DOJ becoming involved thereafter . The FCA increasingly is being used in the Customs area. The Third Circuit Court of Appeal s, among other courts, has confirmed the FCA appropriately can be used for the knowing evasion of Customs duties. For exam ple, in UnitedStates v. Toyoink Manufacturing , the president of a dome stic producer of a violet pigment brought an FCA actio n against a Japanese competitor , alleging the evasion of antidumping and countervailing duties through false claim s that Japan and Mexico were the countries of origin , when China and India (two countries under orders) were appropriate . Toyo settled the matter, agreeing to pay $45 mi llion, plus intere st. without admitting fault, resulting in a payment to the orig inal relator of almost $8 million (as well as a likely commercial benefit to the U.S. business). In addition to securing favorable Ar\t-1 1 Vr\ '1J Q VERSIGHT CBP FOIA 00763 1 DHS-17-0435-Q-000395 2 Page 1 sfJ JI~788141 PM C1 TFTEA Ow erview Briefing Book.pdf forPrinted Item : 1225 ( Attach ment 3 of 8) U.S. Customs and New Trump Administration: YourTop Ten Questions Answered http://www.natlawreview.com/prinVarticle /us-customs-and-new-trump-administration-you r-... outcomes like this, the use of the FCA proce ss also potentially bring s Customs issue s to the atte ntion of CBP, which can assess its own pe nalti es for the same conduct. For these reasons, the use of FCA cla im s for Customs violations is expected to co ntinu e to rise with the new administration, making FCA claims a regular part of Custo ms enforceme nt 8. "What are the expected hot-button issues where Custom s will be focusing its attention under the new administration?" CBP is resource-challenged. Pra ctitioner s before CBP have horror stories of lost filings , req uests for advisory opinions and protests that take years to reso lve, and diffic ulties in achiev ing uniform ruling s from port to port . Further , the port -by-port administration of CBP can make for great differences in the enforcement prioritie s, classification approac~ and other issues encountered by individual importer s. It is expected that the new Centers of Excellence program will take care of some of these issue s, yet it will still be true that the issue s of concern will vary by port Nonetheless, despit e these uncertainties , we anticipate the following area s will see significant at1ention from CBP over the coming admi ni stration : lo form ed complian ce letters. A recent development is the issuance of "inf ormed comp Jjance" letters by CBP. These lett ers often are issued to major U.S. imp orters to en co urage them to review their recent entr ies and determine if they have treated entries co rrect ly where they acted as the importer of record. These lette rs often are sent to major importer s who have not been audi ted in the pa st deca de or that are viewed as being at a higher risk for violations. The rece ipt of an informed com pliance notifi cat ion letter means CBP has reviewed the data of an importer of recor d and like ly iden tified spe cifi c probl ems with its import transa ctions, puttin g the company at an increased risk of a compre hensive audit. Accordin g to CBP official s, the expecta ti on is that companies that receive these lett ers will soon be the subje ct of a "fo cused assessment' ' or other type of CBP audit in the near future . The letters, thu s, are a way of encour agin g major importer s to enhance their comp liance and file vol untary self-di sclos ures in antic ipation of the audit To pro vide further encourageme nt, CBP has indicated that com panie s that do not follow up with a voluntary sci [-disclosure can expect that any subsequently discovered violations will be subject to higher- than-n ormal penalties . The letters warn not only of poten tial monetary penalt ies, but a lso the prospect of seizure or forfeiture of imported merchandise . Whi le the letters do not change the operative level of care expect ed of all import ers (who are req uired to exercise ~'rea sonable care" in the exec ut ion of their Custo ms ob ligations), the letters serve as a warning shot that the company needs to get its Custom s house in order and should start : A 1 1 vA \J QVERSIGHT 80 CBP FOIA 007632 DHS-17-0435-Q-000396 Page 7 1so/s 6tlaat1 PM C1 TFTEA Ovverview Briefing Book .pdf for Printed Item : 1225 ( Attachment 3 of 8) U.S. Customs and New TrumpAdministration: YoUTTop Ten Questions Answered http://www.natlawreview.com/print/artic1e/us-customs-and-new-trump-adn,inistration-your... • Pr eparin g for a CBP audit • Review ing its Customs compliance poli cies • Reviewing the care taken by its Customs broker s • Condu cti ng a risk asses sment , includ ing with regard to the issues identified in the letter • Detennin.ing if its class ifications are corre ct and supported by the produ ct attributes • Dete rmining whether any post -entry adju stmen ts are need ed • Dete rmining whether free trade preferences are suppo rted by FTA certificates of origin and appropria te regional content • Evaluat ing whether off-invoice items such as royalties and ass ists are appropriately recognize d • Considering whether there are any other issues in the company's import data to indfoate complian ce failures and pena lty risks While the assessment should start with the iss ue s identified in the letter , the review should be comprehensive . CBP auditors have the authority to examine any areas wh ere compli ance may be lacking. If issues are found , the company should consid er whether the issues are sys temic. If the entrie s are too numerous to mak e a quick eva luation , statistical sampling can be used to help evaluate the scope of potenti al issues and the poten tial risk exposure . Further , the rev iew also should cove r the company 's Customs compliance program and the rigor of its com plian ce meas ures and trainin g, as these are eva luated by CBP in an audit Any errors should be documented and a plan put in place to strengthen the com pany's comp liance procedure s and intern al contr ols to prev ent their recurrence. The company als o should strongly consider filing a pri or disclosure. Thi s can be accompli shed using an initial marker , which merely inform s CBP that an inv estigation of potential compliance lap ses is ongoing . Thi s locks in vo luntary disclosure credit while buyin g time to compl ete a thor ough inv estig ation and to provid e a subsequent full report. Fo rced labor in China. In 2016 , Cus toms issued nationwid e orders instructing U.S. port s to detain certain product s produ ced by force d labor in Cltina . The authority for these ord ers is found in 19 U.S.C. § 1307 (known as section 307), whi ch auth orizes CBP to issue orders pr ohibiting importation of mer chandis e mined , produ ce d, or manufactured , wh olly or in part , by forced labor . Although section 307 has been in place for years , the TFTEA enhanced the efficacy of the provi sion by remov ing ce rtain restrictions on when the pro vision could be app lied, thereb y removing a loo pho le whi ch provid ed that the provi sion only cou ld be applied if the "consumpti ve dem and" for those good s in the United Stales exceeded domestic production. Under the rev ised law, any intere sted party (inc luding competitor s and public interest groups ) ma y request that CBP investigate whether an imp ort was produ ce d using forced labor in anothe r country . If the investigation pr oves the A 9 Q VERSIGHT CBP FOIA 007633 DHS-17-0435-Q-000397 1 PM d/~ ~a1-i4 Page 1s11f C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Administration: YourTop Ten Questions Answered hUp://www.natlawreview.com/print/article/us-customs-and-new-trump-administration-your-... charges, then any prod ucts found to be made in whole or in part using forced labor are subject to exclusion or seizure. CBP has been making the blockage of goods produced by forced labor a priority, as shown by CBP outreach on the program 19 and frequent press releases announcing deten tion orders for violations. 20 Given the promine nt role that criticisms of China played in the campaign, we expect this focus will increase, making it imperative that companies that import from China put in place enhanced due diligence an d supp ly chain compliance meas ures, as descr ibed below. Trade security issues. Since September 11, the enhancement of border security has bee n a priority of CBP, not only for immigration and visits to the United States, but a lso with regard to the movem ent of goods. We expect these effo rt s wil l acce lerate un der the new ad ministration, as part of the antici pated Trum p admi nistr atio n national sec urity initiative. This like ly will mean changes in the frequency of searches of incoming cargo, pote ntially impac ting the time of clearance , especially at busy ports. It may also mean changes in the operation of, or eligib ility to use, the C-TPAT program , a volun tary pro gra m that al lows certified impo rters, carriers , co nsolidators, licensed Customs brokers , and manufacturers to enjoy exped ited processi ng and transi t times at the border, reduced number ofC BP ex ami natio n s, and other benefits of bei ng a trusted CBP partner. 21 We also anticipate that the mo ney being spent on the Merida Initiative , whic h was des igned to help Mexico increase its border sec urity in the broad sense of disru pting Mexican crimin al activity and enhanc ing Mexican police capabi lities, will be refocused on the issue of crea ting enhance d ins pectio ns of goods flowi ng between the two countries. Revenue colJection issues. Although post 9/ 11 border securi ty concern s have so mewhat ec lipsed wha t was long co nsidered the main role of Custom s - the co llec tion of tariffs on entries - tariff collection still remains a co re func tion of CBP. In part icular, we are seei ng a renewed emphas is by CBP on the issues of: • The classifica tion of goods • The appropriate valuati on of goods, espec ially with regard to off-invoice items (royal ties and ass ists, and so forth) • The co rrect co untry of enforce ment • The importer maintain ing the appropriate su pport for reg ional content and mai ntai ning free trade ag reem en t cert ificates of origin at the time of importat ion • The dec laratio n of the correct country of origin based upon the appropriate rules of substantia l transformation or tariff shi fts (e .g., for NAFTA) AMF • The declaration 100 of any paymen t of antid ump ing and countervailing duty tariffs . ~VERSIGHT CSP FOIA 007634 DHS-17-0435-Q-000398 Page 1so/f1'/1 skf I PM C1 TFTEA Ovverview Briefinn Book.pdf for Printed Item: 1225 ( Attachm ent 3 of 8) U.S. Customs aod New Tru.nnpAdministration: Your Top Ten Questions Answered http://www.natlawreview.com/printlarticle/us-customs-and-new-trump--admini stration-your-... Importers shou Id review the way in which these issues are handled to ensure they are occurring in a compliant fashion . 9. "Sound s s:cary. What can I do to cope?" All importers should eva luate whether they need to enhance their compliance measures in the following ways: • Enhanc e/I mplemeot a Customs complian ce program . ~t is surprising that even large importers often do not have comp liance programs in place , or have compliances m easures that are dated or are not well adapted to current import patterns. Since the existence and effect iveness of a comp liance prog ram is one of the first items tested by CBP in an audit , a pro-active review of the compliance program is the starti ng point for enhanced Customs compl iance . • C oodu clt a cla ssification a od valuation r eview. Importer s should regu larly review the items they commo nly import and confirm the accuracy of HTS classifications . These classifications should be maintained in a tariff class ificat ion database that is ava ilable to Custom s brokers or any other party responsible for ensuring correct entry. Importers also shou ld review the methodolog ies that are used to calcu late the ad va lorem value of entries , paying particu lar attentionto transactionswith affiliates and to whether the valuation includes all off-invoice items , such as royaltie s and assists. • Antidumpin g and countervaiJiog duties product review. The collection of full AD/CVD tariffs and the preventio n of circwnvention of the hundreds of AD/ CVD orders currently in effect is a priority of CBP. The TFTEA gives CBP the tools to fight antidumping and countervailing duty evasion , as discusse d above . Companies that know they are importing goods subject to these orders should carefu lly review their entries to ensure they are occuni ng in good order with the payment of full duties , consistent declaration of the correct country of origin and coverage by the ord ers, and so forth . Importers shou ld confirm their judgment that goods being declared as not being s ubject to AD/CVD orders are correctly classified . Where importers of record are importing goods that are covered by an.tidumping duty orders , they should confirm that they are in a positio n to certify that they have not entered into an agreement to receive , ~md have not in fact received , any reim bursement of antid wn ping duties . The importer should confirm that it is consistently following this requireme nt, as any failure to prov ide the req uired cert ification will lead both CBP and the Department of Commerce to presume reimbursement , thereby doubling the duties to be imposed .22 • FfA claiims. Importers sho uld review any FTA or duty prefe rence program instructions to determine their accuracy. Common issues to confirm are whether the reg iona l content re qui reme nts are met, whether requ ired certifica tes of origin are at hand at the time of entry, and that all requi red documentation to suppo rt cla_imed free-trade preferences is maintained for the appropriate period of time. AMl-~ • Coordin.ate with freight forwarder s and Custom s brokers. Importers should engage with their freight forwarders and Customs broke rs t•o determine whether Custom s requi rements are being consistently followed and shoul d coordinate required recordkeep ing. Al~hough it is acceptable to delegate responsibi Jity for import respon sibil ities to third partie s, the ultimate responsibility for the UQVERSIGHT CBP FOIA 007635 DHS-17-0435-Q-000399 s*Jllres141 PM Page 1 C1 TFTEA Ow erview Briefing Book. pdf for Printed Item : 1225 ( Attach ment 3 of 8) U.S. Customs and New TrumpAdministration: YourTop Ten QuestionsAnswered http://www.natlawreview.com /print/article/us-customs-and-•new-trump-administration-your-... handling of entries is on the importer of record. • Conduct a Customs audit. Larger importer s, or importers that have not been chosen for an audit in recent years , should consider performing a Customs audit. A good starting point is found in the "best practices of compliant companie s•· on the Customs website ;23 Customs specialists can help design a tailored audit that reflects the importer 's indiv idual risk profile, goods imported , country sourcing of goods, and other patt erns of importation . As noted above , CBP is emphasizing the combatti ng of goods that benefited from forced labor (adult and chil dren alike). 'Nith enhanced section 307 giving CBP the tools to block more import s, companies should be pro-active in monitoring and auditing supplier s for ]apses that could lead to costly detentions by CBP. Meas ures to consider implementing include the following : • Monitor U.S. government inteUigcoce. The U.S . Departme nt of Labor, in consultation with the U.S. Departm ents ,of State and Homeland Security, publi shes an annual list of product s believed to be produced by forced labor. Importers should m onito r this list to see if the U.S. government is flagg ing product s they commonly import. • Review products where the comp any acts as the impo rter of record . Importers shou ld be aware of all products where they commonl y act as the importer of record, as doin g so automati ca11y makes them the responsible partie s for dealings with CBP~including with regard to the issue of CBP forced labor inquiries . • Conduct a supply chain audit and perform supplier due diligence. Because the forced labor provision s are desig:ned, by definition , to bring in outside parties , it seldom is a good idea to wait for any CBP inquiry, as it often will not be possible to plllt togethe r a response within a tight timeframe where third partie s are involved. Waiting until receiving a notice from CBP of a potcntiaJ violation risks seizur es, loss of the goods , pena lties, lost busine ss, and public rela tions issues . Pro-active due diligence on the supply chain will allow the importer to assess the r isk of a violation, determine the types of products most likely to be implicated , identify suppliers and countries of concern, allow for the creation of an audit schedule of supplier s, and generally gather information to disprove any allegation of the use of force d labor. Visits to supplier sites and gathering know ledge abo ut the sub-suppliers that also form a part of the supply chain can also forestall prob lems down the road . • Follow up on red flags. Importe rs that source from countrie s of concern , such as China, should monitor suppliers for potential red flags that might indicate sourcing issues. Imp orters that discover or reasonably suspect the use of forced labor should shiH to alternative sources. • Impl ement a compliance program. All import ers should have a comprehensive Customs/import compliance policy; any companies that do not should implement one. The program should be reviewed to ensure it addresses supply chain management , includin g provision s for limiting the poten tial for human traffick ing and forced labor in the supply chain. AMl-~ QVERSIGHT 12 CSP FOIA 007636 DHS-17-0435-Q-000400 Page 11 1s11J-1ft 88:fl PM C1 TFTEA Owerview Briefing Book pdf for Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New TrumpAdministration: YourTop Ten Questions Answered http://www.natlawreview.com/print/articl e/us-customs-and-new~trump -administratioo-your-... • Gath er certifications . Importe rs should review all supplier agreements to confirm that they contain an affirmative certificatio n that the suppli er is: (1) aware of the company 's Customs/i mport comp liance policy ; (2) abides by its terms; (3) specifica lly is not using any form of forced labor ; (4) will cooperate with any investigation of same by the importer ; and (5) will be punished if these provi sions are violated, including through the requir ement to cover the costs of an inv estigation and the termination of the supply arrangement. • Conduct training . Import ers should incorporate traini ng regarding forced labor requi1ements into Cust oms/import tra ining not only for persons who directly handle impo rt tran sactions, but also for employees who work directly with the company 's su ppl y chain. • Consider joining the Customs-Trade Partnership against Terrorism (C-TPAT) program . C-TPAT is a volun tary supply chain security program , whe re companies work with CBP to improve the security of priv ate companies ' supply chains. Although the prov ision is aimed at terrorism , becoming part ofC-TPAT help s shore up the relia bility and accountabi lity of the company 's supply chain. • Review government contract s. Finally , gove rnment contractors should be aware that they have a potential second source of liability, which is Executive Order 13,627. That Exec utiv e Order, implemented into the Federal Acqui sition Regulation , pr ohibits U.S. government agencies from acquiring produc ts produced by forced or indentured chi ld labor , while also impleme nting the requirement for government contractors to certify they neither use nor source from companies that use forced labor. The penal ties for violating this prohibition include termina tion of the governmen t contract, debarment, and civil and crimina l punishment. Miscellaneous items. Finally , import ers should look into the fo llowing hou sekeepin g issues, which can lead to comp liance lapses and, potentially, costly penalti es: • Data collection o Request ITRAC data. It is a goo d idea periodically to reque st an Importer Trade Activity (!TRAC) Report from CBP for the last five years as a way of gathering a copy of all data held by Custom s regarding entries for the company as an importer of record. Such information can be used for compliance purpo ses and, in the event of a Customs-focused assessment or voluntary self-disc losure , as a comp lete record of all import s where the company acted as importe r of reco rd . Since CBP is transitioning to the Au tomate d Commercia l Env ironm ent (ACE) in 2017, ITRAC data will eventually be discontinued , making it important to gathe r a copy of the ITRA C data whi le it is still avai lable. o Request Census Bureau data . The Export Administration Regulation s (EAR) require that exporters mainta in certai n information regarding export s for a perio d of five years after the time of exportation. To help comply with this requirem ent. it is a good idea to requ es t Censu s Bureau data for the prior twelv e months once a year . AMFf11Co ~ign up for ACE. l mporte rs that have not signed up for ACE should do so. Advanta ges includ e the elimination of paper entry IJ Q VERSIGHT CBP FOIA 007637 DHS-17-0435-Q-000401 7 41 sa1fJ/~ ad1 PM Page 1 C1 TFTEA Owerv iew Briefing Book.pd f for Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Ad.ministration : YourTop Ten Questions Answered http://www.nat1awreview.com/ pri.nt/article/us-customs-and-new-trump -administration-your-... summar ies, decreased administrative costs, enhanced ACE report capab ilities, and remo te locat ion filings for entry summaries. • Bond issues o Bond sufficiency . CBP monitors the suffi ciency of continuo us entry bonds to detenmine if the bond covers likely import activity. CBP detenninati ons of inadequacy can result in increases in the bond amount over a short period ofti.me (15 days ). Failure to compl y can result in CBP declaring the bond insufficient, thereby forcing the use of more expensiv e single en try bonds. o Listing multiple principals on the same bond . Co mpanies sho uld co nsider whethi~r it makes sense to include multiple entitie s on the same bond. While doing so allows for bond sav ings, each entity is jointly and severa lly liable and responsible for paying any claim regardless of whi ch entity is at faull Any one of the entities can terminate~ the bond at any time , which can cause problems if the management of the bond is not coordinated. • Customs broker dealings o Custom broker powers of attorney . Although it is common to grant a Customs po,wers of attorney to Customs brokers, these grants should be monitored to ensure they are accurate and there are no unne cessary legacy authorizations in place . Reviewing ACE or !TRAC data allows for the ready identification of a ll Customs brokers who have made entries on behalf of an importer of record by reviewing the filer codes on the entrie s. Any unneeded powers of attorney should be revoked . • Entry clearance items o Update names and addresses on file with CDP. Under new procedures, C BP now maintains an import er- of-record program that seeks to more close ly monit or companies that imp ort , as a means of pr even ting fly-by-nig ht importe rs who seek to evade duties (particularly antidumping and countervaili ng duties). CBP uses name and contact irnformation from Form 5106 to communicate with importers . Importers should review the information on file with CBP to ensure the accuracy of all information and that it meets new importer tracking requirements . o Manifest confidential treatment. Much of the infonnation fi.Jedas part of the entry process is avai lable for review by companies such as PIERS, which gather it tog ether and sell it, including to compe titor s. By fil ing a gove rnment confidentiality request and keeping it up to date, importers can take steps to keep import data confidential . o Confirm your reconciliation item s. Companies that pa rticipate in CBP 's Reconcil :iation Prototype Program should ensure they (or their Customs brokers) are appro priat ely flag ging entries , as CBP will no longe r allow a blanket flag as of January 14, 20 17. A monitoring program can help ensur e the reconciliation process occurs appropriately, with reco nciliati on being used to reflect ij<> St-importation value additions and adju stment s for such items as retroactive transfer price adjustmen ts, assists , royalties, and AMFf11C 140 ~VERSIGHT CSP FO IA 007638 DHS-17-0435-Q-000402 4f27/17 1:41 PM Page 1581 of 1881 C1 TFTEA Owerview Briefing Book pdf for Printed Item : 1225 ( Attachment 3 of 8) U.S. Customs and New Trwnp Administration:Your Top Ten Questions Answered http://www.natlawreview.com/prinVarticle /us-customs-an<.l-new-tnunp-admini stration-your-... other value e lement s that are unknown at the time of entry. o Partner Government A genci es (PGAs). There are at least sixteen partn er government age ncies , rangin g from the Department of Agricu ltur e to the Department of Co mmerce to the Environmental Protection Agency that work with C BP to effectuat e specialt y requirements , such as for the importation of food and medicine , and a wide range of other product s. 24 Imp orters who are impacted by these specialty requirements should ensure that they are adhering to all regulat ions issued by the partner agenc ies and effectuated as they impact cross-bo rd er tran sactions through CBP regulations and control. o Updated certificates of origin . FTAs 1 including NAFTA , often impose a requirement to have Certificates of Origin (COO) for anticipated duty preference claims. If these COOs are not in hand at the time of entry, then the entry is not eligible for duty prefere nce. even if the rules of the FTA otherwi se are met Import ers should work with their Custo ms brokers to ensure they have all required COOs on hand. o Steel entry requirem ents. In 20 16, CBP instituted speci al procedures for the more than 100 steel products covered by antidumping and count ervai ling duty orde rs. These "live entry" procedures are designed to require the filing of electroni c paperwork and upfront duties before the releas e of steel product s subject to these orders. Imp orter s of steel product s should ensure they are correc tly ciassifying steel entries , declaring the goods to be covered by these orders where appropriate , and that they are adhe ring to the ulive entry " procedures. • Export items o Destination control statement (DCS). Ex ports require a Destination Control Stateme nt, which appears on export documentation. The language being used shou ld be reviewed to ensure it meets current regulatory requirements , even for EAR99 product s. o Denied partie s screening/end use/e nd user controls . The Office of Fore ign Assets Co ntrol and the Bureau of Industry and Secur ity restrict exports to certain persons who have been determined to have taken actions contrary to U.S. foreign policy. Exporters shou ld confim1 they maintain scree ning protoco ls that are consistenlly fo llowed to prevent such dealings. Companies should also ensure that they consisten tly follow up on red flags indicating that goods are poten tially being used/diverted for use by inappropri ate end user s/inappr opr iate end uses, such as for the support of terrorism or the proliferation of weapons of mass destruction. o Controlled goods . Exporte rs sho uld be certain that they have not fal len into "EAR99 " mode , automatically classifying all exports as EAR99 where they are, in fact, contro lled under the JTAR or the EAR Even commercia l goods can become subject to the ITAR, for examp le, if they are modified to meet military specifications or for military use. Compan ies that have not AMFf11CA,. YERSIGHT CBP FOIA 007639 DHS-17-0435-Q-000403 1 41 sa~2J/, ~8 1 PM Page 1 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Administration: YourTop Ten QuestionsAnswered http://www.natlawreview.com/print/article/us-customs-and-new-trump-administration -your-... undertaken a classification review in recent years shou ld consider performing one, particularly if they are known to export goods that are controlled by the ITAR/on the U.S. Munitions List or controlled by the EAR/have an Export Control Classification Number (ECCN). • Trademark and trade name protection s. As noted above, CBP has the ability to help bar entries that violate tradem arks and trade names that are registered with the CBP. Compani es that believe they are seeing infringing imports shou ld consider taking steps to protec t their intellectual property through the registration process or shou ld consider whether seekin g sec tion 337 import protections is appropri ate. • Training . Import ers should train all complian ce stakeholders annually on Customs requirements. This allows upd ating all rel eva nt personnel regarding changes to CBP regulations, which often change , espec ially in the current environment when CBP is refl ecting new statutory changes. 10. "Are there any money-saving opportunities?" The TFTEA contains certain pro visions that can aid importers. Among these are the increa se of the de min imjs entry threshold from $200 to $800 , which increases eligibility for duty-free entries without the requirements of a formal entry ; the expansion of the American Goods Returned program (HTS 9801.00.10) to certa in goods that are not of U.S . origin, but were at one time in the United States; duty-free treatment for certain goodsfrom Nepal; and enhance d duty drawbackrules (availab le beginnin g in February of2018). Co mpani es also should consider whet her they can benefit from ways to process or import goods outsi de the Customs territory of the United States or otherwise without needing to pay duties , such as through the use of Free Trade Zones , the use of Customs bonded warehouses , or throu gh use of Temporary Imp ortati on under Bond procedures. Al.though the exact circum stances where such mea sures wou ld apply requi res individual consideration , a Customs expert may be able to identify significant money-saving oppo rtuniti es. Fina lly, importers of record shoul d realize that audits of imports can result in the discovery of areas of missed opportuniti es under free trade agreements. Chapters 89.and 99, the potentia l use of FTZs, TlB s, customs bonded warehouses, and other areas where there may be moneysav ing oppo rtuniti es. An importer can perf orm reviews of entry data to capture opportunities of duty overp ayme nt. If these exist, importers may be able to file requests for refunds using sec tion 520d claims or post-summary correct ions. Conclusion As shown, the landscape under the new administration is uncertain. Missteps by importers can lead to cost ly seizures and penaltie s. Fortunately, there are a great many steps that importers can take to sharpl y reduce their risk of a Custom s audit or inquiry , or to secure a goo d outcome if an audit , in fact, does occur. The compliance advice outlined above is a good startin g point for any importer , but a Customs l ERSIGHT CBP FOIA 007640 DHS-17-0435-Q-000404 4/27/ 17,.,1:41 PM Page 1583 of 1o81 C1 TFTEA Owerview Briefing Bookpdffor Printed Item: 1225 ( Attachment 3 of 8) U.S. Customs and New Trump Admini stration : Your Top Ten Question s Answered http://www.natlawreview.com/print/arti cle/us-customs-and-new-trump-adm inistration-your-... specialist will be able to design a program that is tailored to the com:pany 's individual product s, import patterns , and business profil e. 1 See Gregory Husisian and Robert Huey, "N AFTA and the New Trump Administration: Your Top Ten Questions Answered," httpsJ/ www.foley.com/nafta-and-the- new-trump-administration-12-0 1-20 16/. 2 See Gregory Husisian and Robert Huey, " International Trade Litigation and the Nt:w Trump Administration: Your Top Ten Questions Answered," https://www.foley.com /international-trade:Jitiaation-and-the-cnew-:trump-administration-your-top-ten-Questj1o ns-answered-Q1-06-20171. 3 See H.R. 644, 114th Cong. (2016) , https://www.gno.goyffdsys/pkg/BILLS-l l 4hr64!4enr/pdt7BILLS- I 14hr644enr.pdf. 4 See U.S. Customs and Border Protection, Regulatory Implementation of the Cente rs of Excellence and Expertise. 81 Fed. Reg. 92,978 (Dec. 20, 2016). 5 19 u.s.c.§ 1592 (2011). 6 18 U.S.C. § 541 (1994). 7 18 U .s.c.§ 542 (1996) . 8 18 U.S.C. § 1519 (2002) ("Whoever knowingly alters, destroys, mutilates, conceals, covers up, falsifies, ... any record, document, or tangible object with the intent to impede, obstruct, or influence the investigation or proper administration of any mattJerwithin the jurisdiction of any department or agency of the United St.ates••• or contemplation of any such matter or case, shall be fined under this title, imprisoned 1001 more than 20 years, or both."). 9 18 u.s.c.§ 371 (1994). IO 18 U.S.C. § 1956 (20 16), 18 U.S.C. § 1957 (20 12). II 18 U.S.C. § 545 (2006). 12 18 u.s.c.§ 2 (1951). 13 31 u.s.c.§§ 3729-33 (2009-20 10). 14 See Gregory Husisian and Robert Huey, "NAFTA and the New Trump Administration : Your Top Ten Questions Answered," https://www.foley.com/nafta-and-thenew-tmmp-administration- 12-01-2016/. YERSIGHT CBP FOIA 00764 1 DHS-17-0435-Q-000405 Page 1 41 PM 1stf-Jf la~1 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) U.S . Customs and New Trump Administration : Your Top Ten Questions Answered hl1p://www.natlawreview .com/p rint/article/u s-custom s-and-oew-trum p-admin j stratioo-yo ur- ... 15 See Gregory Husisian and Robert Huey, "Internat ional Trade Litigat ion and the New Trump Administration: Your Top Ten Questions Answered. " https ://www.foJey.com /internationaH n de-litigal ion-and-the-new-trump-admin istration-your-toP:ten-qucstions-a nswered•0 1-06-20 I 7/. 16/ d. 17 See U.S. Oov't Accountabi lity Off., GA0-0 875 1, Antidumping and Counterva iling Duties: CBP Action Needed to Redu ce Processing Errors and Mitigate Nonpayme nt Risk (20 16), http ://www.gao.gov/asscts/680/6784 J9.pdf. 18 See U.S . Customs and Boarder Protect ion, " Investigation of Claims of Evasi on of Ant idumpin g and Countervailing Duti es," 81 Fed . Reg . 56,477 (Aug. 22, 2016). 19 See CBP, "Forced Labor" (2017) , https ://www.cbp .goy/tra de/trad e-community/program s-o utreach/co nvict-jmpo rtation s. 20 See CBP, "C BP Commissioner Issues Detentio n Order on Stevia Produced in China with Forced Labor, " (2016), http s://www.cbp .gov/ newsroom/natio nal-media -release /chP:commi ssioner-i ssues-detention-order-stevia-produced- chlna-force d; CBP, CBP Commissioner Issues Detention Orde r on Potassium Produc ts Produced in China with Forced Labor (2016), https://www.cbi;u1ov/new sroom/nati onal-medja-releas e/cbD;:COID missioner-issues-deten tjon-order -potas sium-products--produced (2016) ; CBP, CBP Com.missioner Issues Detention Order on Chemical , Fiber Products Produced by Forced Labo r in China (20 J6), http s:// www.cbp .gov/ newsroom/nationa l-med ia-rel ense /cbp-commi ssioner-issues-detent ion-order-chemical- fiber- produc ts. 2 1 See CBP, "C- TPAT: Customs-Trade Partnership Agai nst Terrorism " (2016) . https ://www.cbp.so v/bo rder-sccurity/ ports -entr.y/car~o- security /c-tpat-Customs-trad er partner s hip-agai nst-terror ism. 22 See CBP, "Guida nce for Reimbursemen t Certifica tes," https://www .cbp.gov/ document/guidanc e/guid ance-reimbursement-ce rtifica tes . 23 See CBP, Best Practices of Compliant Com panies (20 I 3), http s:/Jwww.cbp .gov/docume nt/fo nns /best-practjces-compliant-companie s. 24 See CBP, "Partner Government Agencies (PGAs) Involved with BIEC, " https://www .cbp.gov/tra de/trade-communi ty/border -interag ency-executive-co uncil-biec/partn ergovemm ent-agen cies-pgas-involved -biec. © 2017 Foley & Lardner LLP Source URL: http ://www.natlawre view.com/article /us-cus tom s-and-new-trump -adminis tration-your-top -ten-guestions-answered AMFfllCAN 18 0 sVERSIGHT CSP FO IA 007642 DHS-17-0435-Q-000406 stfs~/lagf1 PM Page 1 C1 TFT EA Owerview Briefing Bookpdffo r Printed Item: 1225 ( Attachmen t 3 of 8) U.S. Senate Comminee on Finance (via Public)/ Wyden Welcomes New 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(Australian) o Football (Soccer) o Golf o Hockey o Racing o Rugby o Sailing o Skiing and Winter Spons o Tennis o Volleyball related announ ceme nts Politics and Policy • Rob Portman Portman, Brown Announce Ohio Locations for National Prescription Orugt...J • G11ryPeters Peters, Portman Introduce the National Historic Vehicle Register Act • Illinois Senate Democrats Aquino : $15 an hour good for the economy More Gover nment • State of Maine Children's Book Award Winners Announced at Maine Reading Conference • City of Gaithersburg, MD The Upcoming Montgomery County GreenFest to have a Special Focus on(. .•] • City of Gaithersburg, MD Traffic Notice for Great Seneca Highway More SearchCompanies,Top search U.S. SENATE COMMITTEE ON FINANC E 04/24/2 017 I News release I Distri buted by Public on 04/ 24/201719 :17 Wyden Welcomes New Tariffs on Unfairly Traded Canadian Softwood Lumber , Calls for Continued Tough AM 1vA1\J QVERSIGHT 3 CBP FOIA 007645 DHS-17-0435-Q-000409 42 PM sa1fJ/1l ad1 Page 1 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) U.S. Senate Committee on Finance (via Public)/ Wyden Welcomes New Tariffson Unfairly... http://www.publicnow.com/view/4AECIEF747A8B4F87CD9330D7C9D25CE6E2659CO Enforcement of U.S. Trade Laws April 24,2017 WASHINGTON -Senate Finance Committee Ranking Member Ron Wyden , D-Or e., today Issued the rollo w ing statement In respon se to the prelimlnary results ofthe Commerce Department investigatio n, laun ched in 2016, of Canadian dumping and subsi dizatio n of softwood lumber. 'Unfa lr1y traded softwood l umber from Can ada has fo r decades hurt mill towns and Ame rican mlllworkers In Oregon and across the coun try : Wyden said. 'Tod ay's announcement sends the message thc1thelp Is on the way. But the fight to save mlll Jobs cannot end hllfe - America needs continued tough trade enfor cement and a durable solution to the Canad ian policies that distort trade and hold American lumbe r busine sses back from fully realizing their potential .' Backgro und In 2016, the Commerce Department initiated inve stigations Into Canad ian dump ing anc:Isubsidization of softwood lumbe r exported to the United States. In today's decision, Co mmerce found that Canad a has provi ded subsidies at a co untrywide rate of approximately 20 perc ent to its softwood lumber producers . With today's d ecisio n. U.S. Customs and Borde r Protection will beg in requiring import ers to pay cash depo sits or post bonds equal to the estimated amounts of unfair su bsidies. Co mmerc e is scheduled to Issue a decision on th e existence and amount o f Canadian dumping of the se products on June 23. The Trade Facilltation and Trade Enforcem ent Act of 2015 created new tools to help ensu re that U.S. trade remedy laws provide effective relief to workers and co mpan ies harmed from unfair trade , Inc luding U.S. softwood lumber p rod ucers. By strengthening U.S. trade remedy laws and cracking down on foreign co mpan ies that avoid pay ing duties lawtu lly owed . the TFTEA - if fully and effectively applied by the Admi nist ration - will help ensure that U.S. mills and mlllwor kers get needed relie f from unfair trade . #I# G +l o Q Smartllnks I U.S. Senate Committee on Finan ce I United States Senate I Laws I PoHtlcs and Polley I Polley and Regulation I Government I National Government I Parliament I Top Business and Economy News I Economy I Global Economy I International Trade I Commodities I Soft Commodities I Forestry and Woo d Products I Laws I Paper and Forest Products f Forestry and Wood Products I Parliaments ( Back 1:3'View original format AMFRICAN 4 0~ VERSIGHT CBP FOIA 007646 DHS-17-0435-Q-000410 silg7J/ l8~:f 2 PM Page 1 C1 TFTEA 0vverview Briefinu Book.pdffor PrintedItem: 1225 ( Attachment3 of 8) NRFEndorses Customs Billi I AJOT.CO M Aliff> AM'mr_ J-w/.,.,.,,,,..rt1111i• (http1s :/lwww .a,ot com/) https://www.ajol.com/new s/nrf-endorses~customs-bi11 BigDataon GlobalTrade Dlltai,,-laflw,___,io.._--, ,__ .... ~ '' I• .... ,,. ne + 0 ES C,A RTE NIRF Endorses Customs Bill By: A.JOT I Feb 11 2016 at 12:00 PM I International Trade (https:/Jwww.aJot.com/news/channelAntema tional-trade) ..... j u,gln j S Join AJOT ~/lwww -► ajotcom/profiteln Search Articles search (httpS:/IWww.ajotcom/search) AdVanced MPlll'TAIITWUllffl · ••·', • WIii 'Key Vote' BIii Due to Positive Impact on Retailers' Supp ly Chains WASHINGTON - The National Retail Federation sent a letter to Senate leadership voicing strong support for a customs reauthorization bill scheduled for action today, saying it may include votes on the measure in its annual voting scorecard. Taking theBayonne Bridge to NewHeights 'As rnajor importers, retailers rely on efficient supply chain operations. This Includes ensuring legitiimate cargo is able to be quickly processed through our nation's borders; NRF Senior Vice Pres;ident for Government Relations David French wrote. ' Modernizing CBP operations Is essential in the ever-increasing global economy. The elements within TFTEA will provide CBP with the tools neecled to ensure companies can continue to compete in the global economy." NRF' is the world's largest retail trade association, representing discount and department stores, home goods and specialty stores, Main Street merchants, grocers, wholesalers, chain restaurants and Internet retailers from the United States and more than 45 countries. Retan is the nation's largEistprivate sector employer, supporting one in four U.S. jobs - 42 million wori4117 . 2017 /biogs/full/blogThe Age of Sail Reborn (https://www.aJot.com/blogs CBP F0IA 007647 DHS-17-0435-Q-000411 7 43 s91fJ/¾ ad1 PM Page 1 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) NRF EndorsesCustomsBill I AJOT.COM https://www.aJot.com /news/nrf-endorses-customs-bill /full/blog-the-age-of-sa il - rebom) Password lhe-age.of-sail- rebom) Matt GuascoI Liner ShipJ>lno O Remember me on this device Apfil1 4, 2017 Ex-FMC Clwllr Cordero Poised to Head Pt>rt of Long Beach (htt .ps://w, t•fm c-chal r• /blogs/fulllblogcordero-polsed- tc1-head-pol b) ex-fmc.ctiaircordero-polsed«Hle3().polb) Did you forget your password? Stas Mo,oaronls I PO!to& TerminalsI PO!U It happens... Ema il Resetit! 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By Eric Kulisch lfriday, February 26, 20 16 Busin ess groups rejoiced after President Barack Obama on Wednesday signed the Trade Facilitation and Trade Enforcement Act into law, markin g the first authorfa ation of Customs and Bord er Protection since the creat ion of the Department of Homeland Security in 2003 . The legislation moderni zes CBP pro grams and institutiona lizes others the agency has launched on its own in recent years. High lights of intere st to the trade community include strengthe ned revenue collect ion and trade enforcement activities, such as those related to Inte llectual Property Rights violations and anti-dumping countervailing duty enforcemen~ formal establishment of the Centers of Excellence and Expertise, which are control towers for more efficiently processing entry summaries by industry category; raising the de minim.is level; reform of the comp lex duty drawback refund process by 20 18; and authorization of continu ed funding for the Automated Commercial Environment (ACE) , the new IT platform for import and export transactions. Shipments with values under the de minim is level receive simpJified and expedited clearance at the border , are free of duties and trucesand require no paperwork beyond the airway bill. The law raises the filing threshold for shipment s to $800 from $200, providing the same border clearance privileges for low value cargo shipments that are enjoyed by product s U.S. traveler s bring back from foreign trips. The Express Association of America, representing large global cou riers, said the higher de minim.is level will redu ce logistics costs for sma ll and medium-size companies that import low value components for their assembly operations , as well as for individual consumers who import sing le items that will not require a more formal entry process. Import ers, logistics providers and consumers will also be spared countless hours filin g paperw ork to clear their goods . The EAA said the rule change will also help increase export s because small firms often are reluctant to export due to the potential costs of the border clearance process if the goods are returned. It aJso praised language in the bill calling on the U.S. Trade Repre sentative to encourage trading partner s to similarly exempt low value shipments from duties, taxes and certain customs documentation . The Centers of Excellence and Expertise are an exam ple of good governance and innovation , Ben Bidwell , director of global forwarding at C.H. Robin son said in a company blog. "By centralizin g industry clusters and allowing experti se to concentrate, the consis tency of the customer experience - in this case classification and entry issue resolution - will only improve ," he wrote. "Kudos to Congress for recogni zing that this program works and making it permanent. " Atv, - ... IQ VERSIGHT CBP FOIA 00765 1 DHS-17-0435-Q-000415 s9'¼2J/VaJ 144 PM Page 1 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Print Page http://www.americanshipper.com/Main/News/Obama_signs_Customs_authorizatjon_bill_6 ... The anti-dumpin g changes also provide some relief for importers in the form of a 375-day cap for comp laints to be filed, a response to complaints about rt:trospective anti-dumping duties being assesse d two years or more after a product has been imported . Anoth er provi sion of the TFTEA will enable CBP to more rigorous ly enforce a long standin g ban on importing goods produced by child or slave labor. The law closes a loophole that allowed such product s to be admitt ed into the United State s if there was not enough supply to meet domestic demand . Human rights group s plan to soo n file complaints showing that certa in imports are made with forced labor, which will trigger CBP inves tigatio ns, acco rding to the Associated Press. AMFnlCAN 20 0VERSIGHT CBP FOIA 007652 DHS-17-0435-Q-000416 4/27/ 17, 1:44 PM Page 1595 of 1881 C1 TFTEA Owerview Briefing Bookpdffor Printed Item: 1225 ( Attachment 3 of 8) Trade Facilitation and TradeEnforcementAct of2015 and lntellectual Property Rights I Ca ... http://www.canada-usblog .com/2016/03/2 0/trade -faci Iitation-and-trade-enforcement-act- o f-... Cyndee Todgham Cherniak l>AOIJ"&SIIONAL co•~o•ATION Trade Facilitation and Trade Enforcement Act of 2015 and Intellectual Property Rights By Susan Kohn Ross on March 20 th, 2016 Posted in Aerospace & Defence, Border Security , Corporate Co unsel, Cr iminal Law, Cross -bord er deals , Cross -border trad e, Custom s Law, Government Procurement, Intellectual Property, Legal Developments, Trade R emedies This article was co -author ed with Kevin M . Rosenbaum ofMS&K. On February 24, 2016, President Obama signed into law the Trade Facilitation and Trade Enfo rcem ent Act of 2015, PL 114- 125 (TFTEA), which includes an assortment of trade facilitation and trade enforcement provisions , including a number of provisions focused on intel lectual property right s (IPR ). Section HI of the new law provides a number of enhancements to U.S. enforcement of intellectual property right s (IPR ) at the border . In addition, included among a variety of new trade enforcement provisions in Section VI, the new law provides additional re sources to assist the Office of the United States Trade Representative (US TR ) improv e IPR prote ctio n and enforcement in foreign markets . These IPR provisions were primarily champ ioned by Senator Orrin Hat ch of Utah, Chairman of the Senate Finance Co mmitte e, who spoke on the Senate floor and in other pub lic settings leading up to Senate cons ideration of the law on their importance for his support. The first substan tive provi sion in Section Ill, Sec tion 302, require s CBP to share with right s holder s unredacted image s of merchandi se suspec ted of infring ing trademark or copyright laws , if CBP det ermines that sharin g such images will assist it in making an infringem ent A " ,Q VERSIGHT CBP FOIA 007653 DHS-17-0435-Q-000417 Pag e 7 45 159462J/~ gJ1 PM C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) TradeFacilitation and Trade Enforcement Act of2015 and lntellectual PropertyRjghts I Ca... http://www.canada-usblog.<:om/2016/03/20/trade-faci] itation-and-trade-enforcemenI-act-of-... determination . The provision also provides CBP with the authority (but does not require it) to share with rights holders unredacted samples of suspected infringing merchandi se. This provision explicitly supersede s section 81S(g) of the 2012 National Defense Authorization Act (NDAA ), which allowed for sharing of unredacted images in cases of merchandise suspected of bearing a counterfeit trademark. While the NOAA provi sion was strictly permis sive. the new information sharing provision includes stronger language that requires CBP to share unredacted images with rights holders wheneve r such sharing will help CBP to make an infringeiment determination. The new provi sion also expand s the scope of violations for which CBP is authorized to share unredacted image s and sana.plcs to include violations of copyright laws, including the DMCA prohibitions against importation of unlawful circumvention devices. It should be noted that Section 302 is Congre ss's response to industry concerns regarding CBP 's implementation of the 2012 NOAA prov ision. In implementing the NDAA, CBP stated it was attempting to balance the protection of importer 's confidential business information with enhancement of enforcement against counterfeits, but many in indu stry be lieved the process it developed to share unredacted infonnation with trademark holders was unwieldy and ultimately ineffective. The legi slative history of the TFTEA is critical of this proce ss, which involves notification to the importer and a 7 busine ss day respon se period before sharing 1cantake place , stating that the process "does not provide effective enforcement for trademark hoJders. "[l] Whlle not prescriptively providing an alternative , Congre ss makes clear that it intends for CBP to take a different approach to implementing Section 302 and that it must be do1ne "in a manner that ensures effective border enforcement of IPR ."[2] Section 303 of the TFTEA improves CB P 's enforcemen t against the importation of unlawful DMCA circwnvention devices , explici tly authorizingthe seizureof thesedevices and requiringCBP to provideinformationregardingthe seizureto injuredpersons.To manage this process , CBP must establi sh and mainta in a list of injured persons to be provided the seizure information . CBP has one year from the enactment of the TFTEA to publish notice in the Federal Register of the establishment of this lis;t and must publish a notice whenever the list is altered. llris provision is intended to ensure CB P 's enforcement against importati on of unlawful circumven tion devices is as robu st as its enforcement again st importation of coun terfeit and pirated merchandise . The provision provides that CBP must share information with per sons injured by seized unlawful circumvention device s that is equivalent to the information CBP shares with copyright owners upon seizure of piratical article s. The legislative history provides that persons injured by the importation of unlawful circumvention devices may include , "the producer of a hardware device that include s the technological means of protection that the seized merchandise is de signed to circumvent , the publisher of copyrighted material that is designed for use on the same device, or both .,,[3] Sect ion 304 provides that CBP has 180 day s to esta blish a proce ss for border enforcement of coJpyright s that are pending registra tion at the Copyright Office . Curre ntly, only owners of registered copyrigh ts may record their copyrights tc, receive border enforcement from CBP. Section 304 ensures that a delay in registration at the Copyright Office will not result in a delay in enforcement at the border . In Section 305 , Congre ss for the first time authori zes the National Intellectual Prop erty Rights Coo rdin ation Center . Although the Ce nter was first established back in 2000 within the old U.S . Customs Service as a multi -agen cy task force 1to fight intellectual property crime , Congr ess had never actually authorized it. The TFTEA establishe s the Center in law, within U. S. Immigration and Customs Enforcetnent (ICE) , as the VERSIGHT CSP FO IA 007654 DHS-17-0435-Q-000418 4/27/l7 nl :45 PM Page 1597 of 1o81 C1 TFTEA Owerview Briefing Book .pdf for Printed Item: 1225 ( Attachment 3 of 8) Trade Facilitation and Trade Enforcement Act of2015 and Intellectual Property Rights I Ca... http://www.canada-usblog.com/2016/03/20/trade-facilitation-and-rrade-enforcement-act-of-... focal point for federa l criminal enforcement ofIPR. Among other things , the Center is to coordi nate criminal intellectual property rights investigations , provide training to dome stic and international law enforcement agencies on be st practic es for investigations , and collect information regarding intellectual property infrin gement from Federal and other sources. In carrying out these duties, the Center is required to coor dinat e with a host of federal agen c ies, including the Department of Ju stice, the U.S. Pat ent and Trademark Office, and the Office of the U.S. Trade Representative . The Center is also required to conduct outreach with the private sector to determin e trend s in enforcement oflPR and to share information and best practice s regarding enforcemen t oflPR. The TFTEA includes some new reporting requir ements for CBP and ICE on IPR enforcement. Section 306 requires CBP and ICE to submit a Joint Strategic Plan on IPR enforcement to Congress every two years beginning one year after the law's enactment. The Joint Strategic Plan on IPR includ es a review of en forcement efforts over the prior two year period , and recommendations on resources need ed to ensure adequate enforcement. Section 3 JO require s CBP and ICE to jointly submit an annual report on intellectual property rights that includes speci fic IPR criminal and bord er enforcement metrics, and a summary of outreach efforts, including collaboration with the private sector , coordination with foreign governments and international organizations , and trainin g activitie s. The report must also include a descripti on of efforts by CB P and ICE to address the challenge of stopping infringing merchandi se sold online, particularly when transited in small package s. The TFTEA also includes a number of provi sions intended to improve the overall effectiveness of enfo rcement of IPR at the border . Section 308 requires CBP to ensure its offic ers are trained to effectively co mba t infringin g mer chan dise , As part of this requirement , CBP must consult with the private sector and must identify techno logi es to assist it in detecting and identifying infring ing merchandi se. In addition, within 180 days after enactment, CBP must deve lop reg ulations to enab le it to receive technologie s and acce pt training from the private sec tor. Section 309 requir es CBP and ICE to improve coordination and co llaborati on with foreign custom s authorities , including information sharing , to enhance IPR enforcement. Lastly , section 311 requires CBP to develop and carry out an educational campaign at the border to educate traveler s about the danger s of acquiring IPR infringing merchandise. In addition. this provi sion requires CBP to update its declaration form for traveler s to include a written warning to inform travelers arriving in the United States that bringing in infringing merchandise may subject travelers to civil or crimina l penaltie s and may pose serious health and saf ety risks. In ad dition to these new border enforceme nt requirements on IPR in Section III, Sec tion VI of the TFTEA also includes a couple of new trade enforceme nt provi sions that are intend ed to stre ngthen USTR 's ability to improve the IPR protection and enforcement of U.S. trading partners . U.S. internationa l trade policy is a delicate balance between the Congre ss and the Admjnistra tion. The se new provi sions retlect Congress 's desire to raise the profile of IPR protection and enforcement issues in U.S . international trade policy, and to increase the Administration's accountability to Congress on these issues. Ar\ The first provision ~ sectio n 609, establishes the Chieflnnovatio n and Inte llectu al Property Nego tiator (Chief IP Negotiato r) at USTR to conduct trade negotjations, enforce trade agreements, and take approp riat e actions to address acts, policies and practice s of foreign governments that adversely impact "the value of Unite d States innovation ." Pre se ntly, the 1Pand Innovation Office at USTR, whic h handle s many of these functions , is led by a career staff person at the "Assistant" UST R level, who reports to a Deputy USTR The Deputy USTR is a VERSIGHT CBP FOIA 007655 DHS-17-0435-Q-000419 Page 7 45 1s9'\f2J /¼ aeH PM C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Trade Facilitation and Trade Enforcement Act of2015 and Intellectual Property Rights I Ca ... http ://www.canada-usblog .com/2 016/03/20/trade-facilitation -and-tra de-enforcement-act~of-... politic al appointee with the rank of Amba ssador who also handle s a broader portfolio that includes respons ibility for the entire range of trade issues for one or more geographical regio ns.[4) The new Chief IP Negotia tor position , which .has the rank of Amb assado r, will be appointed by the President with the advice and con sent of the U.S. Senate and will solely focus on IPR issues. The Chief IP Negotiator will report directly to the U.S. Trade Represe ntativ e, not a Depu ty USTR. Signaling Congress's desire for more accounta b il ity on IPR issue s, along with the other duties, the Chief IP Negotiato r must submit an annual report to Congre ss detailing enforc ement and other action s USTR has taken to improve IPR prote cti on. The second provision , section 610, bolsters UST R's annual "Special 301" review of IPR polici es and practices ofU .S. trading partners . This provi sion is clearly intended to strengthen and improve the effectiveness of the Special 301 pro cess and to incre ase congressional oversight. Specia l 301 was first enacted in l 988 to provide a strategy to improve IPR prote ction and enforcem ent abroad and to e liminate market access barriers again st U.S. exporters that rely on IPR protect ion . Under Special 30 I, a cotmtry that most egregiou sly denies adequate and effective prote ction of IPR or fair and equitable market access for U.S. exporters that rely on IPR protection must be designat ed as a "Priority Foreign Country '' (PFC). A PFC designation triggers an investigation that in rare cases results in trade sanctions . While the PFC designation has been rarely used, to facilitate Special 301 USTR also identifies countries with IPR problem s that do not rise to the level of a PFC designation . Countries with more signjficant probl em s, such as China and lnd ia, are placed on the "Priori ty Watch List ," while countries with less severe probl ems are placed on the " Watch List." For countries that have been on the ''Priority Watch List " for more than one year, section 610 requjre s USTR to develop an action plan with benchmarks to assist that country to improv e IPR pro tec tion and remove market access barriers. USTR must also submit an annual report to Congress detailin g the progre ss such countrie s have made in me eting the action plan benchmar ks. Countries that fail to me et action plan benchmark s will be subject to "appropriat e action " by the President. The new law is notice ably silent on what "appropriate act ion" might mean , although obvjous ly any actions taken pursuant to this provi sion must be consistent with U.S. trade obligations. [l ]See H . Rcpt. 114-1 l 4 at 71 and S. Rcpt. 114-45 at 30. To impl ement the 2012 NOAA provi sion, CBP issued a Rule (finalized on October 19, 20 15) providing that, \.vithin 5 busines s days of detent ion,, CBP must first notify the importer of mer chandise suspected of bearin g a counterfeit mark that it would share unredacted images or samples with the right holder unle ss the importer provides information within seven bu siness days of the notificati on establishing that the detained me rchandjge does not bear a counterf eit mark. See 19 CFR § 133.2 1. [2] See H . Rept. 114-114 at 7 1 and S. Rept. 114-45 at 30 . [3]SeeH. Rept. 114-114 at 72 and S. RepL 114-45 at 3 1. The House Ways and Means Committee Report and the Senate Finance Committee Report contain identical language. [4] Presently, Ambassador Rob ert Holleyman is the Deputy USTR wh ose portfolio includes IP. Tags: Bord er enforc ement, copyright, H.R. 644, Intelle ctua l property rights, lP right s, Trade Enforcement Act of 2015, trad emark A 40 0VERSIGHT CSP FOIA 007656 DHS-17-0435-Q-000420 sti76r h1f5 PM Page 1 C1 TFTEA Owerview Briefing Book pdf for Printed Item: 1225 ( Attachment 3 of 8) Trade Facilitation and Trade Enforcement Act of20 I 5 and Intellectual Property Rights l Ca.... http://www.canada-usblog.C-Om/2016 /0 3/20/trade-faciIitation-and-trade-enforcement-act-of-... 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Olympic Boulevard Los Angeles, California 90064 Phone: 310-312-3206 Fax: 310-231-8406 Copyright © 20 17, Canada-U.S. Blog. All Rights Reserved. Strategy, design, marketing& support by LexBlog AMFRICAN QVERSIGHT 5 CBP FOIA 007657 DHS-17-0435-Q-000421 45PM Page1eoti1,f~i~\ C1 TFTEA Owerview Briefing Bookpdffor Printed Item: 1225 ( Attachment 3 of 8) New Law Increases Scrutiny for Importing Goods Made with Forced Labor I Perkins Coie -... http://www.j dsupra.com/post/documentViewer.aspx?fid=bb68de8b-425c-40a8-8bdb-43a7l ... March 4 , 2016 New Law Increases Scrutiny for Importing Goods Made with Forced Labor by Perkins Coie (+Follow) Contact • PeRKINS COle COUNSEL TO GREAT COMPANIES The federal governme nt took another step in the fight against hum an trafficking and forced labor. President Obama signed into law on February 24 , 2016 , the Trade Facilitation and Trade Enforcement Act of 2015 (TFfEA), which we have previously discussed . This enactment critically closes a loophole by amending the Tariff Act of 1930 (Tariff Act) to remove the long-standing "immunity " for broad classes of goods made with forced, indentured , child or prison labor. And as the risk of detection increases, so does the very real risk of criminal prosecution under 18 U.S.C. § 545 (prohibiting certai n categorie s of smuggling) and 19 lT.S.C. § 1307 (prohibiting importation of products made by or through forced labor). (For more on the criminal angle, click here ). AMFrllCAN IQ VERSIGHT CBP FOIA 007658 DHS-17-0435-Q-000422 Page 1e*Jl~i3!t 148 PM C1 TFTEA Owerview Briefing Book.pelf for Printed Item : 1225 ( Attachment 3 of 8) New Law increases Scrutiny for Importing Goods Made with Forced Labor I Perkins Coie -... http://www.jdsupra.com/post/documeotViewer.aspx? fid=bb68de8b-425c-40a8-8bdb-4 3a71 ... JDSUPRJ\ News & Insights Trending [ 7 ) • Find Author • Subscribe • For Reporters O MENU • MyA ccount Prior to March 10, 2 01 6 , and for the past 85 years, thi s was how classes of imp orted goods made with forced, child , indentu red and prison labor were evaluated for import clearance. 6aall'tn--naltfnwlllll or•Wilhbf.td.dlll. illlflnUld,Cl'prilan ~ Category of goodimported to meet·theconsumptM? demands of theUnitedStates·because domestkprodocers unable to meetU.S.demand? As of March 10 , 20 16, th ese are the new clearance pr ovisions. Goods inshipment madein whole or~ With forted, did, 1ndentlnil, orprisonlabor? AMFfllCAN QVERSIGHT 20 CBP FOIA 007659 DHS-17-0435-Q-000423 Page 16 ~t1frf as:fSPM C1 TTTEA Ow erview Briefing Bookpd f for Printed Item: 1225 ( Attachment 3 of 8) New Law rncreases Scrutiny for lmporting Goods Made with Forced Labor I Perkins Coie -... http://www.jdsupra.com/post/documentViewcr.aspx?fid=bb68de8b-425er40a8-8bdb-43a71... JD SUPRt\ MENU News & insights ... Treading [ 7] .... Find Author • Subscribe • For Reporters O My Accow1t Reporting Requirement. Congress also implemented a reporting requirement. The Commissioner of U.S. Customs and Border Protection (CBP) must now submit annually a report to Congress stating: (1) how many times merchandise was denied entry under the Tariff Act during the prior year; (2) a description of the merchandise; and (3) any other ;relevant information. The first su ch report is due to Congress on August 22, 2016. Removing the Exception that for 85 Years Has Swallowed the Rule Since the Tariff Act's passage in 1930 , the United States has made it illegal to import any goods made with forced, ind entured , child or prison labor . However, a controversial key carve-out provided that certain goods from abroad that met "the consU1mptivedemands of the United States" were exempt from the ban . So, for example, because the demand for cocoa or teak far outstripped any domestic supply (after all, there is none), cocoa and teak imports were never stopped regardle ss of how the cocoa or teak was harvested or produced . The impact of the carve-out is fa:r more than academic. For the past 85 years, CBP has reported less than 40 instances of stopping shipments of goods suspected to have been made with forced, indentured, child or prison labor. Given that in many part s of the world forced, indentured, child and prison labor is commonpla ce, this AM 3 Vf""\ 'I Q VERSIGHT CBP FOIA 007660 DHS-17-0435-Q-000424 Page 48 PM 16c@of'fae1i C1 TFTEA Owerv 1ew Briefing Book.pelffor Printed Item: 1225 (Atf achment 3 of 8) New Law Increases Scrutiny for ImportingGoods Made with Forced Labor I Perkin s Coie -... http://www.jdsupra.com/po,st/documentViewer.aspx?fid=bb68de8b-425c-40a8-8bdb-4 3a7 1... JD SUPR~ MENU News & Jnsights .... Trending [ 7 J • Find Author • Subscribe • fo r Report ers O MyAccount The TFl'EA lacks specific guidance as to its implementati on or enforcement . Despite some early reporting to the contrary , there is no reason to believe that all goods included on the U.S. Department of Labor list will be categorically banned, e.g., all "electronics and toys from China ," ''cotton frorn India, " or "garments from Vietnam. " Instead, we expect U.S. Immigration and Customs Enforcement and CBP to develop a middle-ground, case -by-case approach . Such a common-sense approach will likely be inforrn ed by the U.S. Department of Labor list, as well as whist1eblower and advocacy organization tips and publicly available information indicating that a particular shipment should be inspect ed or stopped. Practical Tips: What Should Companies Do? Prepare for Broader Enforcement Efforts, Particularly on Imports of "Suspect Goods" from "Suspect Countries." As of March 10, 2016, the "cons umpti ve demands of the Unit ed States" carve-out will be a thing of the past . We believe the CBP enforcer s will immediately begin to use as its first line resource the U.S. Departm ent of Labor 's list of 136 suspect goods, which hail from 74 suspect countries, believed to be AM nlCA \J QVERSIGHT 40 CSP FOIA 007661 DHS-17-0435-Q-000425 Page 8 PM 16e'll/r?aaf C 1 TFTEA Owerview Briefing Book.pelf for Printed Item: 1225 ( Attachment 3 of 8) New Law Increases Scrutiny for lmportin g Goods Made with Forced Labor I Perkins Coie •... http ://www.jdsupra.com/ post/document Viewer.aspx?fidc:= bb68de8b-425c-40a8-8bdb-43a7 l ... JD SUPR~ News & Insights Trending [ 7] • find Author • Subscribe • MENU • For Reporters O MyAcco unt ot tne supply cnain, no matter now 1nany steps removea, can potennauy resun 1nse1ZU re or gooas. 1ntne absence of meaningful due diligence, the danger of such import-prohibiting taint is very real. The most effective step to reduce the chances of seizure of import s is to set up robust compliance programs designed to identify and remove tainted products or components of products from the supply chain . Prepare Supply Chain Management for its Role in Addressing Compliance Risks . 1. Create a meaningful due diligence process by ensuring that all supplier and subcontrac tor contracts : • contain a robust indemnification clause ; • provide audit rights; • require full cooperation in the case of any internal investigation or review; • obligate the supplier or subcontractor to immediately notify the company of any actual or potential nonperformance or other problems; and • require the supplier or subcontractor to consent to follow a company-dev eloped action plan in case of any AMFf11GA\J sQ VERSIGHT CBP FOIA 007662 DHS-17-0435-Q-000426 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) New LawIncreases Scrutiny for Importin g Goods Madewith ForcedLabor I Perkins Coie -... http://www.jdsupra.com/post/docurnentViewer.aspx?fid=bb68de8b-425c-40a8-8bdb-43a71 ... JDSUPRJ\ News & Insights Trending [ 71• find Author • Subscribe MENU ., • For Reporters O MyA ccount • ensures that the work environment is in compliance with applicable labor and employment laws, as well as the company's code of conduct; and • has not and will not, directly or indirectly , engage in certain activities connected to forced, child, indentured or prison labor. These activities should be expressly detailed in the certification . 3. Design due diligence forms and audit programs to evaluate and address risks of forced, child, indentured and prison labor in the company's supply chains. 4. Develop and publicize internal accountability standards for employees and contractors in the company's supply chain management and procurement systems regarding forced, child, indentured and prison labor . 5. Determine whether suppliers have appropriate systems to identify risks of forced, child, ind entu red and pri son labor within their own supply chains . 6. Train employees, independent contractors and bu siness partners , particularly those with direct responsibility for supply chain management , concerning the company's expectations regarding forced, child, indentured and prison labor , particularly with resp ect to mitigating risks within the supply chains of products. AM i vA \J QVERSIGHT 60 CBP FOIA 007663 DHS-17-0435-Q-000427 C1 TFTEA Ovverview Briefing Bookpdffor Printed Item: 1225 ( Attachmen t 3 of 8) New Law Increases Scmtiny for Importing Goods Made with Forced Labor I Perkins Coie -... http://www.jd supra.com/post/documentViewer.aspx?fid=bb68de8b-425c-40a8-8bdb-43a7 l ... JDSUPRft: New s & insights Trending r 7] ,.. Find Author ,.. Subscribe ,.. For Reporters O MENU • MyAccount Whit e House press release on th,e TFfEA . . [View sourc e.] ( BS end ) ( Q Print ) ( A Report ) RELATED POSTS • Don't Let Forced labor and Bribery in Your Supply Chain Spoil the Holidays LATEST POSTS • The Fate of the ACA 's Cost -Sharing fiteductlon Subsidies • CA Court of Appeal's Sprtt Decision Upholds CARDCap-and -Trade Program • Blockchain Week in Review - April 2017 #2 • Blockchain and the Law - Overview of token sales and bitcoln property rights See more » AMFnlCAN Q VERSIGHT 1 CBP FOIA 007664 DHS-17-0435-Q-000428 Page 1604f2 J/~ae1 148 PM C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) New Law Increases Scrutiny for Importing Goods Made with Forced Labor I Perkins Coie -... JDSUPRt\ http://www.jdsupra.com/post/documentViewer.aspx? fid-=bb68de8b-425c-40a8-8bdb-43a7 l ... MENU , News & lnsights • ·trending [ 7] ,.. Find Author ,.. Subscribe • For Reporters O MyAccount Contact • •• n (+Follow) Elizabeth Breakstone (•F~ lolw) T. Markus Funk (• Follow) Kevin J. Hamilton ( +Follow) Paul Hirose ( +Follow) Michael House ( •Follow) Stewart Landefeld (+Follow ) morev AMFnlCAN QVERSIGHT 80 CBP FOIA 007665 DHS-17-0435-Q-000429 Page 1dff'/}1 a~=8fPM C1 TFTEA Ovverview Briefing Book.pdffo r Printed Item: 1225 ( Attachment 3 of 8) New Law Increases ~crutiny for fmporting Goods Made witb Forced Labor I Perkins Coie -... http://www.jdsupra.com/post/documentViewer.aspx?fid=bb68de8b-425c-40a8-8bdb-43a7l ... JDSUPRt\ News & insights Trending [ 7] • Find Author • Subscribe • For Reporters O MENU • MyAccount Human Traffi cking Import s Manuf actur ers (+Follow) New le gislat ion (+Follow ) Reporting Requirement s (+Follow ) Slavery (+Follow ) Suppl y Chain (+Follow ) Tariff Act of 1930 Trade Facilit atio n Agreem ent AMr ~ (+Follow ) CAN QVERSIGHT 90 CSP FOIA 007666 DHS-17-0435-Q-000430 Page 7 1ed\9J/~ a~f8 PM C1 TFTEA Owerview BriefingBook.pdf for Printed Item: 1225 ( Attachment3 of 8) New Law Increases Scrutiny for ImportingGoods Made with Forced Labor J PerlcinsCoie -... http://www.jdsupra.com/post/documentViewer.aspx?fid=bb68de8b-425c-40a8-8bdb-43a7 t ... JDSUPR.t\ News & Jnsights Trending [ 7] • MENU • Find Author • Subscribe • For Reporters O MyA CC OUJll International Trade more v PERKINS COIE ON: CBP FOIA 007667 DHS-17-0435-Q-000431 Page 1tffij7a1-tae1f8 PM C 1 TTTEA Owerview Briefing Bookpdffor Printed Item: 1225 ( Attachment 3 of 8) New Law Increases Scrutiny for Importing Goods Made witlh Forced Labor I Perkins Coie -... http://www.jdsupra.e-0m/po st/documentViewer.aspx?fid- bb68de8b-425c-40a8-8bdb-43a7l ... JD SUPRt\ New s & Insights MENU • Trending f 7) • Find Author • Subscribe ... For Reporters O MyAccount ' JOURNALISTS Fl'!fi a qualHl.!dsourcefor 19ur • ~ Connect with leading expensfor qUOles. background in-depth perspectwe AMFnlCAN IIQ VERSIGHT CBP FOIA 007668 DHS-17-0435-Q-000432 Page 1614 48 PM {2J/~s a1-i C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item : 1225 ( Att achment 3 of 8) New Law Increases Scrutiny for ImportingGoods Made with Forced Labor I Perkins Coie -... http://www.jdsupra.com/po1st/documentViewer.Mpx?fid =bb68de8b-425c-40a8-8bdb-43a71... JDSUPR~ News & lnsights Trending[ 7] ... Find Author • Subscribe MENU ,. • For Reporters O MyAccount \.,UStom1ze Become a Contributor Syndicate JD Supra Content Privacy Policy Terms & Conditions Contact Team Jobs Explore 2017 Readers' Choice Awards Copyright © 2017 JD Supra, LLC AMFnlCAN I2Q VERSIGHT CSP FO IA 00766 9 DHS-17-0435-Q-000433 Page 48 PM 161qYr?a a=-t C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225 ( Attachment 3 of 8) Importers Beware - CBP Issues New Interim Regu lations Allowing Competi tors to Petition f ... http :// www.lcxology.com/ library/deta il.aspx?g=25 l 41 c80-d963-4bca-9731-c242lb3 80 13 l We use coo kies to customise conte nt for your subscription and for analyti cs. If you co ntinue to browse Lexology, we will assume that you are happy to receive all our cookies. For further informat ion please read our Cookie Policy. LEXOLOGY ® Register now for your fre e, t ailored, daily legal newsfeed service. Questi ons? Please contact customerservices @lexo logy.com Regist er Importer s Beware - CBP Issues New Interim Regulations Allowing Competitors to Petition for and Participate in Investigations of Importers for Alleged AD/C VD "Evasion" Hogan Lovells USA August 22 2016 U.S. Customs and Borde r Protection (CBP) has issued new interim regul ations for CBP's Trade Remedy Law Enforceme nt Directorate (TRLED) to inve stigate claims of "evasion" of antidumping and co unterv ail ing duty orders under the Trade Facilitation and Trade Enforcement Act of2015 (TFTEA). The interim regulatio ns enter into force on August 22, 20 16. Click hereto access the proposed regulation s. Th e adoption of these regulation s opens the door for IJ.S.-base d manufactur ers and wholesa lers to begin filing petitions again st competing importers and may quickly lead to a signific ant expans ion of trade measure s, penalties , and othe r enforcement action s again st importers - importers must be aware that the threshold necessary for a filing before the CBP is relatively low. The TFTEA is expected to result in increased admini strativ e burdens AMFf11CAN IQVERSIGHT CBP FOIA 007670 DHS-17-0435-Q-000434 Page 49 161~d/~aal1 PM C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Importers Beware - CBP Issues New Interim RegulationsAllowing CompetiLorsto Petition f... http://www.lexology.com/library /detail.aspx?g--"25141 c80-d963-4bca-973J-c242Ib380 13 I to importers of products that are, or may be, subject to AD/CVD measures. Description of the New Regulation s The TFTEA identifies a broad scope of practices that may be considered "evasion!' Evidence of intent to evade is not required. As defined in the statute and regulations, "evasion" refers to entering merchandise into the customs territory of the United States for consumption by an act or omission that is material and false, and which results in antidumping or countervailingduties being reduced or not applied to or collected on such merchandise. Examples of evasion identified in the regulations include: - misrepresentation of merchandise's true country of origin (e.g., through fraudulent country of origin markings on the product itself or false sales); - false or incorrect shippingand entry documentation; and - misreporting of the merchandise's physical characteristics. investigations are intendedto follow a strict time table. When the CBP receives properly filed allegations from interest.ed parties. notably from the domestic industry protected by the aotidumping and countervailing orders, or receives requests from Federal agencies for an investjgation, the statute requires CBP to take certain actions within specified timeframes. Ir,vestigations must be completed within 300 to 360 days after initiation. The temporal scope of the imports subject to investigation is those made within one year prior to the receipt of an allegation or request for an investigation. However, at its discretion, CBP may also investigate any other entries of such imports. CBP is authorized to investigate through questionnaires issued to importers, foreign producers and exporters, and foreign governments. The questionnaires are subject to on-site "verification" by CBP. Failure to respond to the best oflhe respondents' ability can result in the application of "adverse inferences." Affinnative determinations of evasion will result in: - suspension of "unJiquidated" entries of the covered merchandise subject to the detcnnination; - extension of the period for liquidating the "uniiquidated" entries of covered merchandise that entered before the initiation of the investigation; - when necessary, notification to the U.S. Department of Commerce (DOC) of the determination and AMFf11CAN QVERSIGHT 20 CBP FOIA 007671 DHS-17-0435-Q-000435 Page 1611¼/'.? 8~:f 9 PM C1 TFTEA Owerview Briefing Book.pelf for Printed Item: 1225 ( Attachment 3 of 8) Importers Beware - CBP Issues New Interim Reg ulations Allowing Com petitors to Petition L http ://www.lexology .com/l ibrary/dctail.a spx?g=25 14 lc80-d96 3-4bca-9731- c242 1b380131 reque st that DOC detennine the appropriate duty rates for such covered merchandi se; - requir ement that imports of the cove red merchandise post cash depoi sts and assess duties on the covered merchandise ; and/or - additional enfo rcement measure s, includin g (but not limited to) mod ifying CBP procc edures for iden tifying evasio n, reliquidating entrie s, and referring the matte r to lmm igrntion and Customs Enforcement (ICE) for possible civil or criminal investigation. The statute and regulation s also p rovide for the impos ition of simi lar "interim measure s" within 90 days of initiation of the investigation, where there ex ists a '•reasonab le suspicion" of "e vasion. " The statute and regu 1ations also provide for both admini strative and j ud icia I review of final detenn ination s. Public Comment s The CBP is currently accepting comments on the proposed through Octobe r 2 1, 2016. We will continue to monitor devel opmen ts of these regul ations and other customs and international trade issues. Hogan Lovells- Craig A. Lewis, Deen Kaplan, Chandri Navarro, Jonathan T. Stoel, Jared R. Wessel and Anne W. Fisher P~edby LEXOLOGY . AMFf11CAN QVERSIGHT 3 CBP FOIA 007672 DHS-17-0435-Q-000436 Page 1e1 fi11~88~:49 PM I C1 TFTEA Owervi ew Briefing Book.pelf for Printed Item : 1225 ( Attachment 3 of 8) Presidential Proclamation -- To Implement the Nepal Preference Program and for Other Pur... https://obamawhitehouse.arch ives.gov/the-press-office/2016/12/15/presidential-proclamatio ... This ls historical mater ial "frozen in time". The website is no longer upda ted and links to external websit es and some internal pages may not work . BRIEFINGROOM Briefing Room ISSUES THE ADMINISTRATION 1600 PENN The White House Office of th e Press Secretary Your Wee.kly Address For Immediate Release Speeches & Remarks December 15, 2016 Press Briefings Presidential Proclamation -- To Implement the Nepal Preference Program and for Other Purposes Statements & Releases White House Schedule Pres idential Actions Exec utive Orders Pres ide ntial Memoranda Proclamations TO IMPLEMENT THE NEPAL PREFERENCEPROGRAM I AND FOR OTHER PURPOSES Leg islation Nominations & A ppoi ntments BYTHE PRESIDENT OF THE UNITED STATES OF AMERI CA Disclos ures A PROCLAMATION 1. Section 915(b) of the Trade Facilitation and Trade Enforcement Act of 20 15 (the "TFTEA") (19 U.S.C. 4454) confers authority upon the President to AMFfllCAN lQVERSIGHT CBP FOIA 007673 DHS-17-0435-Q-000437 2 Page 161is° J/\aa1151 PM C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Presidential Proclamation -- To Implementthe Nepal Preference Program and for Other Pur... https://obamawhitehouse.archives.gov/the-press-office/2016/ 12/ 15/presidential-proclamatio... provide preferential treatment for eligible articles impo rted directly from Nepal into the customs territory of the United States if the President determines that Nepal meets the eligibility requirements specified in section 91S~ W iiHf~ 1gfthe TFTEA, taking into account the factors specified in :1)(8) of the TFTEA. sec~i 91 W TWITTE. 2. P ar ...._ ,ection 915(b) of the TFTEA, I have determi ned that Nepal me6ftt,enAf;J3Bi9Qequirements the Mo r-') 3. S~n r: of section 915(b)(1)(A), taking into account ::ified in sect ion 915(b)(l)(B). EMAI 915(c) of the TFTEA describes the requirements for articles from Nepal to be considered eligible for duty-free treatment. Pursuant to section 915(c)(2)(A)(iv) of the TFTEA, the President may designate certain articles as eligible for duty-free treatme nt when imported from Nepal if, afte r receiving the advice of the United States International Trade Commission (Commission) in accordance with section 503(e) of the Trade Act of 1974 (the "Trade Act") (19 U.S.C.2463(e)), the President determines that such articles are not import -sensitive in the context of imports from Nepal. 4. Pursuant to sections 915(c)(2)(A)(iv) of the TFTEA, and after receiving advice from the Commission in accordance with section 503(e) of the Trade Act, I have determined to designate the articles included in Annex I of this proclamation as eligible for duty-free treatment when imported from Nepal. 5. Section 604 of the Trade Act (19U.S.C. 2483) , as amended, authorizes the President to embody in the Harmonized Tariff Schedules of the United St ates (the "HTS") (19 U.S.C. 1202) the substance of the relevant provisions of the Trade Act and of other Acts affecting import t reatment , and actions thereunder, including removal, modification , continuance, or imposition of A 20 finY-rate of duty or other import restriction . 0 VERSIGHT CBP FOIA 007674 DHS-17-0435-Q-000438 1 Page 161 t~fl~~TI PM C1 TFTEA Owerview Briefing Book.pelf for Printed Item : 1225 ( Attach ment 3 of 8) Presidential Proclamation•· To Implement the Nepal Preference Programand for Other Pur... https://obamawhitehouse.archives.gov/ lhe-press-office/2016/12/15/presidentlal-proclamatio... 6. In order to implement the duty-free treatment provided in accordance with the provisions of the TFTEA, it is necessary to modify the HTS, thus incorporating the substance of relevant prov isions of the TFTEA, and of act~,a. ~~k,irns~ereunder, into the HTS, pursuant to section 604 of the Trade Act~ TWITTE . 7. In ocl;---• ion 7748 of December 30, 2003, President Bush determ ine d t ha~FACHD6f December 21, 2010; Proclamat ion 8770 of December r ' 1mation 8921 of December 20, 2012; Proclamation De~r~013; 9072 of Proclamation 9223 of December 23, 2014; and Proclamatio n 9383 of December 21, 2015, modified the HTS to provide duty- fr ee access into the United States for specified quant ities of certain agricult ural products of Israel, each t ime for an additional 1-year period . 16. On December 5, 2016, t he United States entered into an agreement with Israel to extend the period t hat the 2004 US-Israel Agreement is in force through December 31, 2017, and to allow fo r further negotiations on an agreement to replace the 2004 US-Israel Agreement. 17. Pursuant to sect ion 4(6) of the USIFTA Act, I have determined that it is necessary, in order to maintain the general level of reciprocal and mutually advantageous concessions with respect to Israel provided fo r by the USIFTA, to provi de duty-free access into t he Unit ed States through the close of December 31, 2017, for specified quantities of certain agricultu ral products of Israel. 18. Section 1206(a) of the Omnibus Trade and Competitive ness Act of 1988 (the "1988 Act") (19 U.S.C.3006(a)) aut horizes the President to proclaim modifica t ions to t he HT S based on t he recommenda tions of th e Commiss ion Arv under secqon 1205 of the 1988 Act (19 u.s.c.3005) So VERSIGHT 5 if he determines that the CBP FOIA 007677 DHS-17-0435-Q-000441 2 1 Page 1e21' J/¾ai151 PM C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Presidential Proclamation -- To Implementtbe Nepal PreferenceProgram and for Other Pur... https://obamawhitehouse.archives.gov/the-press-office/2016/ 12/ 15/presidcntial-proclamatio... modifications are in conformity with United States obligations under the Interna tional Convention on the Harmonized Commodity Description and Coding System (Convention) and do not run counter to the national eCO§ R.frneffifs~St of the United States. In 2006 and 2011. the Commission rec~,: n~._er mod ifications to the HTS pursuant to section 1205 of the 1988 Ac~~ HTS to amendments made to the Convention. In 097 of December 29, 2006, and Proclamation 8771 of Pro~ ~~at De~ef2'f~ijflR,resident Bush and I, respect ively, modified t he HTS pur~t 1 :tion 1206 of the 1988 Act to confo rm the HTS to the am e'l'ttS"tbthe Convention . EMAI . 19. Proclamation 8332 of December 29, 2008, implemented the United States- Oman Free Trade Agreement (the "USOFTA") with respect to the United States and, pursuant to section 201 of the United States-Oman Free Trade Agreement Implementatio n Act (the " USOFTA Act") (19 U.S.C.3805 note) , the staged reductions in rates of duty that President Bush determined to be necessary or appropriate to carry out or apply articles 2.3, 2.5, 2.6, 3.2.8, and 3.2.9, and the schedu le of duty reductions with respect to Oman set fort h in Annex 2-B of the USOFTA. 20 . In order to ensure the continuation of the staged reductions in rates of duty for originating goods from Oman in categories that were mod ified t o conform to the Convention, President Bush and I proclaimed in Proclamation 8097 and Proclamation 8771, respectively , modifications to the HTS that we determi ned were necessary or appropriate to carry out the duty reductions pro claimed in Proclamation 8332 . 21. The United States and Oman are parties to the Convention . Because the substance of changes to the Convention are reflected in slightly differing form A VI 60 ri '\ VM. \I VERSIGHT CBP FOIA 007678 DHS-17-0435-Q-000442 Page154Jf7c{J ~'8gf l PM C 1 TFTEA Owerview Briefing Book.pelf for Printed Item: 1225 ( Attachment 3 of 8) Presidential Proclamation -- To Implement the Nepal Preference Program and for Other Pur... https://obamawh itehouse.archives.gov/the-press-office/ 2016/ 12/ I 5/presidential-proclamatio ... in the nat ional tariff schedules of the United States and Oman, the rules of origin set out in Annex 3-A and Annex 4-A of the USOFTA must be changed to ensure that the tariff and certain other treatment accorded under the usgftl,~~9-Rf~inating cat~e! goods will conti nue to be provided under the tariff we~e modified in Proclamation 8097 and Proclamation 8771. Th~el~nd Oman have agreed to make these changes. 22.~oli'AC ~BOOe USOFTA Act (19 U.S.C.3805 note) provides certain rule~ nining whether a good is an originating good for the purposes of i~ d · preferential tariff treatment under the USOFTA. Section 202¥ot the USOFTA Act authorizes the President to proclaim the rules of origin set out in the USOFTAand any subordinate tariff categories necessary to carry out the USOFTA,subject to the exceptions stated in section 202(j) (2)(A) of the USOFTAAct. 23. I have determined that the modifications to the HTS proclaimed pursuant to section 202 of the USOFTA Act and section 1206(a) of the 1988 Act are necessary or appropriate to ensure the continuat ion of tariff and certain other treatment accorded originat ing goods under tariff categories modified in Proclamation 8097 and Proclamation 8771 and to carry out the duty reductions proclaimed in Proclamation 8332. 24. Section 604 of the Trade Act authorizes the President to embody in the HTS the substance of the relevant provisions of that Act, and of other Acts affecting import treat ment, and actions thereunder, includ ing removal, modi fication, continuance, or imposition of any rate of duty or other import restrictio n. Section 1206(c) of the 1988 Act (19 U.S.C.3006(c)), as amended, provid es that modifications pro claimed by the President may not take effect before the thi rtiet h day after the date on which the text of the proclamation is Al\, V QVERSIGHT 1 CBP FOIA 007679 DHS-17-0435-Q-000443 Page 51 1s*Jl~13s'1 PM C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Presidential Proclamation -· To Implementthe Nepal Preference Program and for Other Pur... https://obamawhitehouse.archives,gov/the-press-office/2016/ 12/15/presidential-proclamatio... published in the FederalRegister. 25. Proclamation 8894 of October 29, 2012, implemented the United StatesPanama Trade Promotion Agreement (the " USPTPA") with respect to the Uni~rif'~rc,T~JSdnd , pursuant to section 201 of the United States-Panama Tra~rr.Wi U.S~C'c greement Implementation Act (the "USPTPA Act ") (19 -- te) , the staged reductions in duty that the President det~EFACB 3.5,"i-i m BOO essary or appropriate to carry out or apply articles 3.3, 3.- ' - .27, 3.28, and 3.29, and the schedule of duty reductions with res@o~a set forth in Annex 3.3 of the USPTPA. 26. The United States and Panama are part ies to the Convention. Because changes to the Convention are reflected in slight differenc es of form betwe en the national tariff schedules of the United States and Panama, the rules of origi n set out in Annex 4.1of the USPTPA must be changed to ensure that the tariff and certain other t reatment accorded under the USPTPA Act to originating goods will continue to be prov ided under the tariff categories that were pro claimed in Proclamation 8894 . The United States and Panama have agreed to make these changes. 27. Section 202 of the USPTPA Act (19 U.S.C. 3805 note ) provide s certain rules for determining wheth er a good is an originating good for the purpo ses of implementing tariff treatment under the USPTPA. Section 202(0) of the USPTPA Act authorizes the President to proclai m the rules of origin set out in the USPTPA and any subordinate tariff categories necessary to carry out the USPTPA, subject to the exceptions stated in section 202(0) of the USPTPA Act. 28 . l have determined that the modificat ions to the HTS pro claimed pur suant A to-section 202 of the USPTPAAct and secti on 1206(a) of the 1988 Act are QVERSIGHT 80 CBP FOIA 007680 DHS-17-0435-Q-000444 Page 16~fl'lfl188 :?1 PM C1 TFTEA Owerview Briefing Book.pelf for Printed Item: 1225 ( Attachment 3 of 8) Presidential Proclamation-· To Implement the Nepal Preference Program and for Other Pur... https://obamawhitehouse.archives.gov/the-press-office/2016/ 12/15/presidential-proclamatio ... necessary or appropriate to ensure the continuation of tariff and certain other tr eatm ent accorded origi nating goods under tariff categor ies modified in Proclamation 8097 and Proclamation 8771 and to carry out the duty red~ffA_~~laimed in Proclamat ion 8894. 29.f..t'\o::rwrtmth e Trade Act authorizes the President to embody in the HT$'tt(e sr -L- ~- nce of relevant provisi ons of that Act, or other Act s affecting im~e BAGBBO@dof actions taken thereunder, includ ing removal, m~d1filati :>ntinuance,or impo sition of any rate of duty or other import resE}) nBAWion 1206(c) of the 1988 Act provides that modifi cations proclaimed by the President may not take effect before the thirtieth day after the date on which the text of the proclamation is published in theFederal Register. 30. Proclamation 7987 of February 28, 2006 , implemented the Domin ican Republi c-Central America-United States Free Trade Agreement (the "CAFTA-DR") w ith respect to the United States and, pursuant to sect ion 201 of the Dom inican Republic-Central America-United States Free Trade Agreement Implementation Act ( the "CAFTA-DR Act") (19 U.S.C.4031), t he staged reduction s in duty that the President determin ed to be necessary or appropriate to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.28 , and Annexes 3.3 (including the schedule of United States duty reduct ions w ith respect to originating goods) , 3.27, and 3.28 of the CAFTA-DR. 30. Proclamation 7987 of February 28, 2006, implem ent ed the Dominican Republic-Central America-United States Free Trade Agreement (t he "CAFTA-DR ") with respect to the United States and, pursuant to section 201 of the Dominican Republic-Central America-United States Free Trade Al\, 9 Vr\ QVERSIGHT CBP FOIA 007681 DHS-17-0435-Q-000445 Page 51 PM 1ef,fJ{~1J~1 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachmen t 3 of 8) Presidential Proclamation•• To lmplement the Nepal Preference Program and for Other Pur... hnps://obamawhitehouse.arcbives.gov/the-press-office/2016/ 12/l S/presidential-proclamalio... Agreement Implementation Act (the "CAFTA-DR Act " ) (19 U.S.C. 4031), the staged reductions in duty that the President determined to be necessary or appropriate to carry out or apply articles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.2§~~ '-tA~xes 3.3 (including the schedule of United States duty red~ni CA~tf.WITTE 31.(!)ra Guatemal pa@ I respect to originat ing goods) , 3.27, and 3.28 of the . ACJ5B(l)B , Costa Rica, the Dominican Republic, El Salvador, · · nduras, and Nicaragua (the "CAFTA-DR countries") are fiMA:nnvention . Because changes to the Convention are reflected in slig ht differences of form between the national tariff schedules of the United States and the other CAFTA-DR cou ntries , Annexes 4 .1, 3.25, and 3.29 of t he CAFTA-DR must be changed to ensure that the tar iff and certain oth er t reatment accorded under the CAFTA-DR to originating goods will continue to be provided under the tariff categories that were proclaimed in Proclamation 7987. The United States and the other CAFTA-DR countries have agreed to make these changes. 32. Section 201 of the CAFTA-DR Act authorizes the President to proclaim such modifications or continuat ion of any duty , such continuat ion of duty -free or excise treatment, or such additional dut ies, as the President determi nes to be necessary or appropriate to carry out or apply art icles 3.3, 3.5, 3.6, 3.21, 3.26, 3.27, and 3.28, and Annexes 3.3 (including the schedule of United States duty reductions with respect to originating goods) , 3.27, and 3.28 of the CA FTA-DR. 33. I have determined that the modifi cations to the HTS proclaimed pursuant to sect ion 201 of the CAFTA- DR Act and section 1206(a) of the 1988 Act are necessary or approp riate to ensure the continuat ion of tariff and certain other AV VF""\ IO QVERSIGHT CBP FOIA 007682 DHS-17-0435-Q-000446 lskrJ PM Page 1641?;7/, / C1 TFTEA Owerview Briefing Book.pelf for Printed Item 1225 ( Attachment 3 of 8) Presidential Proclamation -- To Implement the Nepal Preference Program and for Other Pur... https://obamawh.itehouse.archives.gov/ the-press-office/20 16/ 12/ 15/presidential-proclamatio - . treat ment accorded originating goods under tariff categories mod ified in Proclamation 8097 and Proclamation 8771 and to carry out the duty reductions proclaimed in Proclamation 7987. 34.~~fl§.J 'i!~¼ of the Trade Act author izes the President to embody in the HT~ sq:.wi.:inm: of relevant provisions of that Act, or othe r Acts affecting imp~re- ...--nt, mo~tiEA.CB res~ pro@e~ r ~ and of actions taken thereunder, including removal, BOO ance, or impos ition of any rate of duty or other import tion 1206(c) of the 1988 Act provides that modifications e President may not take effect before the thirtieth day after the date on whi ch the text of the proclamation is published in the Federal Register. NOW, THEREFORE, I, BARACK OBAMA, President of the United States of America, by virtue of the authority vested in me by the Constitution and the laws of the United States of America , including but not limi ted to section 915 of the TFTEA (19 U.S.C.4454) , secti on 506A(a)(1) of the Trade Act (19 U.S.C.2466a(a)); section 4(b) of the USIFTA Act (19 U.S.C.2112note); section 301 of title 3, United States Code; section 1206(a) of the 1988 Act (19 U.S.C.3006(a)) ; section 202 of the USOFTA Act (19 U.S.C.3805 note) ; section 202 of th e USPTPA Act (19 U.S.C.3805 note); section 20 1 of the CAFTA-DR Act (19 U.S.C.4031); and sectio n 604 of the Trade Act (19 U.S.C. 2483), do procla im that: (1) In order to provide for the preferential treatment provided for in section 915 of the TFTEA, the HTS is modified as provided in Annex I to this proclamation . The modifications to the HTS set forth in Annex I shall continue in effect through December 31, 2025. Ar (2) The Central African Republic is designate d as a beneficiary sub-Saharan llQYERSIGHT CBP FOIA 007683 DHS-17-0435-Q-000447 51 PM Page16it,'2J/~sa1f C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Presidential Proclamation •· To Implement the Nepal Preference Program and for Other Pur... https://obamawhitehouse .archives.gov/the-press-office/20 16/ 12/l 5/presidential-proc lamatio ... African country. (3) In order to reflect this designation in the HTS, general note 16(a) and U.S. note 1 to subchapter XIX of chapter 98 to the HTS are each modified by inslr~i~J~ l~habetical sequence in the list of beneficiary sub-Saharan Afr~c:i: WI~ :gCentral African Republic." Further, note 2(d) to subchapter XIX'-;-(hz-'--of '® 98 is modified by inserting in alphabetical sequence in the list ciFACBJB@Il!JJli>IQ3! F.-Mail. Prepared: April 21, 2017 rarm • • • 2 CBP FOIA 007689 DHS-17-0435-Q-000453 Page 1632 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) li'6ft 6fi'fi1 1CIALtiSE 6NLY • INCREASE IN THE DE MINIMIS VALU J~ (SECTION 321) OFFICE OF TRADE T ON CBP Contact: (b)(6),(b)(7)(C) Office: Oficcof Trade. Trade Policy &- ro Office PhoP• dGJI01Qim(!J] F.~Mail Prq,arcd: April 21. 2017 Approving Oflic1al· Mc {IC N PVERSIGHT • • • CSP FOIA 007690 DHS-17-0435-Q-000454 Page 1633 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed item : 1225 ( Attachment 3 of 8) li'Olt OPftct,JtL l1~1! ONI/ f' • INCREASE IN THE DE MINIMIS VALUl ~ (SECTION 321) OFFICE OF TRADE roe FOR FURT.. car ai n1ac1:i®Cf4 STIONS M@ fi Policy_&] "'-Mall OfficerOfice Offlcc Phone: rwns • • • Prepared : April 2 1. l0l7 Apptoving Official Mc {ICAN PVERSIGHT CBP FOIA 007691 DHS-17-0435-Q-000455 Page 1634 of 1881 C1 TFTEA Owerview Briefing Book.pelf for Printed Item: 1225 ( Attachment 3 of 8) Antidu_mpingand Countervailing Duty Office of Trade 1 CBP FOIA 007692 DHS-17-0435-Q-000456 Page 1635 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printedltem : 1225 ( Attachment 3 of 8) Antidumping and Countervailing Duty Office of Trade 2 POC FOi\ FURTHER CBPC.ontact: • • • Office· AD/CVDrn~ Office Phonp•l@I@~..l.J UESTIONS PvE Rmm~ AD/CVDEnforcementBrw,chOiief Prol!T mnslOffice of Tlllde E-Mail:_ }M~)IIl!JJIII radePoli- VDDU•""' Di,,O;oo I ""' """"""" Aoril21, 2011 CBP FOIA 007693 DHS-17-0435-Q-000457 Page 1636 of 1881 C1 TFT EA Ovverv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Bonding Increase s Due to Anti-Dumping and Countervailing Duties Offic e of Finance 2 POC FOR fGRTKER OUEST I01':S CBP Contll.Ol: 11.j>®J®QI(!J) Office: Office of Finance (OFJ - Revenue Division (b )(6);( b )(7 )(C ) E-Mail: Office Phone:IUJt0Wtoml Dale:frt pnrcd: April 25, 2017 Date Reviewed: April 26, 2017 AM pvE R~i'O ti ci111 :\@IWJPtWt CSP FOIA 007694 DHS-17-0435-Q-000458 Page 1637 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Bonding Increases Due to Anti -Dumping and Countervailing Duties Office of Finance POC FOR FUR'IH.ER_QUESTIONS CSPCon~ @MtQr@ Office: Office of Finance(OF)- Rev~Miu;iil ·~~---wDJ,.., Office Phon":ii:>WWUW, E-Mail: ■ U,iijJIQ>Iml!J AM pvE R'SIGiiT MDt9t@ oatc Da~rcpared : April..2L2.ll.11 Reviewed:Aprill26, 2017 CBP FOIA 007695 DHS-17-0435-Q-000459 Page 1638 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Att achment 3 of 8) Antidumping and Countervailing Duty (AD/CVD) Outstanding Bills Office of Finance 2 POC f'OR FURTKERQUESTIONS CBP ContAct:~x•m~ Office: Office Revenue Division Office Phone: -Mru1:I (b )(6 );(b )(7 )(C ) Oa\~ li'rcpared:April 24,2 017 i\::i - AM pvE R~i~Ar'"'@MII Date Rcvi, wcd: April 26, 20 17 CSP FOIA 007696 DHS-17-0435-Q-000460 Page 1639 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) A.ntidumping and Countervai ling Duty (AD/CVD) Outstanding Bills Office of Finance POC FOR FURTilER OUts flO ~S CBPContact: W>®JliJIQK!J] Office: Office of Finance(Of) - RevenueDi.\:won AM OfficePhon,.·11!>1080,IOil!I I\ .Mall: Oat.erepared : April 24 20 17 m[r,~~n.-::,i, nil!Ji'WlllSi'i:!i• il""'l:J.-.• pvE R~fGRTMIIUtWt Date Reviewed: April 26, 2017 CBP FOIA 007697 DHS-17-0435-Q-000461 Page 1640 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) FOR OFFICIALUSE ONLY EAPA INVESTIGATIONS OFFICE OF TRADE Office: AM o,m~ PVER~fi (b )(6 );(b )(7)(C) CSP FOIA 007698 DHS-17-0435-Q-000462 Page 1641 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printedltem : 1225 ( Attachment 3 of 8) FOR OFFICIAL USE ONLY EAPA INvESTIGATIONS OFFICE OF TRADE 2 POC FOR ~ CBP Conlllct: • • AM Office Oftic--qtlji;c;Phone JONS • jJ 0,I(DtMUIQiJ PVER-mei~m 21,2017 CBP FOIA 007699 DHS-17-0435-Q-000463 Page 1642 of 1881 C1 TFTEA Owerview Briefing Book .pdf for Printed Item 1225 ( Attachment 3 of 8) FOR OFFICJAL USE ONLY EAPA lNvESTIGATIONS f;ftil ONS CBP Con1ar.1UMIQtD Ji 3 POCFORFURTHJ.-:R Office: OfficeofTrade PvER ~1ffi ff!U,JJilWUIII CSP FOIA 007700 DHS-17-0435-Q-000464 Page 1643 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item : 1225(Attachment 3 of 8) FOR OFF ICIAL USE ONLY EAPA INvESTIGATIONS OFFICE OF TRADE 4 ORF URTR CBPContact: • • • Office: Oflice o 'ra c PvER ii~ f "·,;;,ma CBP FOIA 00770 1 DHS-17-0435-Q-000465 Page 1644 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) Continued Dumping and Subsidy Offset Act (CDSOA) Office of Finance eoc FOR FURTHER QUESTIONS CBPContar•®®J®UIDJ) Office: Office of Finance(OF)- Rcve~,,. Office Phone:@"!~ E~Mail; ■ · ·foil.i~~i...,,.l'l'l:'.ll,n::,i, \i:J1ijJiUJU(!J p~~R ~fGA T-w•n.,a,.;ow®Jl,!JIUIUJJ Office:Officeof Finaoee(OF)- RevenueDiv1Slon AM (b )(6 );(b )(7 )(C ) Office Phone:IL\l@Xm!Dil!tE -Mail; Date.Prepared.April 24, 2017 Date Reviewed:April 26, 2017 pvEFfST~ fff BPIWIPtW CSP FOIA 007703 DHS-17-0435-Q-000467 Page 1646 of 1881 C1 TFTEA Ovverv iew Briefing Book.pdf for Printed Item: 1225 { Attachment 3 of 8) INTELLECTUAL PROP ERTY RIGHTS (IPR) OFFI CE OF TRADE (b)(6),(b)(7)(C) , irector, ln1e llectual Property Rights Division (b )(6);(b )(7)(C) CBP FOlA 007704 DHS-17-0435-Q-000468 Page 1647 of 1881 C1 TFTEA Ovverview BnefingBook_pdf for Printed Item: 1225 { Attachment 3 of 8) INTELLECTUALPROPERTYRIGHTS (IPR) OFFICE OF TRADE Prepared by: (b )(6 ),(b )(7)(C) , irector, Intellectual Property Rights Division,(b)(6);(b )(7)(C) ,OVER ~l~'j'.i,2011 CBP FOlA 007705 DHS-17-0435-Q-000469 Page 1648 of 1881 C1 TFTEA Ovveiv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) fNTELLECTUAL PROPERTY RIGHTS (fPR) OFFICE OF TRADE P.rer,ared by: (b )(6 ),(b )(7)( C) D ireclo r , l!'llellectua.l Property Rights Oivis/m (b )(6);(b )(7)(C) f)VER ~lf!H t 2 201 1 CBP FO IA 007706 DHS-17-0435-Q-000470 Page 1649 of 1881 C1 TFTEA Owerview Brfefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) lNTELLECTUALPROPERTYRIGHTS(IPR) OFFICEOF TRADE (b )(6);(b )(7)(C) irector. Intellectual Property Ri&htsDivisic1n(b )(6);(b )(7)(C) CBP FOIA 007707 DHS-17-0435-Q-000471 Page 1650 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item 1225 ( Attachment 3 of 8) INTEL.LECTUAL PROPERTY RIGHTS (JPR) OFFICEOF TRADE AM i Prepared ~y:'9E>IUil!JJ bate : Apnl 2 , PVERSIGHT Director , lntellectual Property Rights Division (b )(6);(b )(7)(C) CBP FOIA 007708 DHS-17-0435-Q-000472 Page 1651 of 1881 C1 TFTEA OvvefView Briefing Book.pdf for Printed Item : 1225 { Attachment 3 of 8) IPR DISCLO SURE AND CIR CUMVENT IO N DEVICES OFF ICE OF TRADE (b )(6);(b )(?)(C) CBP FOlA 007709 DHS-17-0435-Q-000473 Page 1652 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf torPrinted Item : 1225 ( Attachment 3 of 8) IPR DISCLOSURE AND CIRCUMVENTIONDEVICES OFFICE OF TRADE 2 POC FOR FlJRTil ER& UESTI ONS CBPContact •M®WldlWJil Office::Office:of Trade OfficePhone@IWQIWJ E-Mai Oar~ P,repa.red : April 20, 2017 (b )(6); (b )(7)(C) AM PVER~fol ~lr ••wM CSP FO IA 0077 10 DHS-17-0435-Q-000474 Page 1653 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) INTELLECTUAL PROPERTY RIGHTS VOLUNTARY ABANDONMENT PILOT OFFICE OF TRADE p CBP Contact: • • AM R • Office: Office o Trade Off~~ Phone: PVER~l~Hi~ I, CSP FOIA 007711 DHS-17-0435-Q-000475 Page 1654 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Print ed Item: 1225 ( Attachment 3 of 8) INTELLECTUAL PROPERTYRIGHTS VOLUNTARY ABANDONMENTPILOT OFFICE OF TRADE CSP FOIA 007712 DHS-17-0435-Q-000476 Page 1655 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) INTELLECTUAL PROPERTY RIGHT S VOLUNTARY ABANDONMENT PILOT OFFICE OF TRADE POC FOR FURTHER CBP Contact: • Office:Officeo ra e E TlONS PvER~titf "'·11 CBP FOIA 0077 13 DHS-17-0435-Q-000477 Page 1656 of 1881 C1 TFTEA Ovverv iew Briefing Book.pdf for Printed Item: 1225 { Attachment 3 of 8) roe on Cl3P Conla Office. : IPR ~ _ ~:ce Poon, ,OVERS(~l!j f" "• ivi,ion,Offke ofTrede l:JlwJUiIU CBP FOIA 0077 14 DHS-17-0435-Q-000478 Page 1657 of 1881 C1 TFTEA Owerview Briefing Book .pdf for Printed Item 1225 ( Attachment 3 of 8) z AM Office. IP (){fice, Ph PVER ~i' CSP FOIA 007715 DHS-17-0435-Q-000479 Page 1658 of 1881 C1 TFTEA Ovveiv iew Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of B) POM.6PF I Cb\L t,SE 8Nl:::Y IPR ENFORCEMENT AND CANADA OFFICE OF TRADE (b)(6); (b)(7)(C) Atv, _" J)VERSIGHT CBP FOIA 007716 DHS-17-0435-Q-000480 Page 1659 of 1881 C1 TFrEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) FOft OPPtetAt t:19£ONtli IPR ENFORCEMENTAND CANADA Prep11re d by: w.w Date: Thursd11 y, Apr, AM { AN PVERSIGHT irector. IPR andF.:•CommerceBranch, OT, , (b )(6);(b )(7)(C) CSP FOIA 007717 DHS-17-0435-Q-000481 Page 1660 of 1881 C1 TFTEA Owerv iew Briefing Book.pdf for Printed Item 1225 ( Attachment 3 of 8) FOR OF-ACLY:,\JSISONl::Y IPR ENFORCEMENT AND CANADA Preparedby: [§>I9Jlt5>IW irector ,IPRand £-CommerceBranch,OT Date: Thursday, Apm , 1, , AM {ICAN PVERSIGHT (b )(6);(b )(7)(C) CBP FOIA 0077 18 DHS-17-0435-Q-000482 Page 1661 of 1881 C1 TFTEA Owerv iew Briefing Boo k.pdf for Printed Item 1225 ( Attachment 3 of 8) P8ll 8fMCLlds tJEttl8Mls¥ Commissioner Confirmati on Issue Paper Automated Commer cial Environm ent Apr il, 201 7 POC FOR FURTHE R OU£S1]0NS CBP Contact: Offici,:Office ofTrade/ACE Busin..,.. es0s r.. Offi nnice..,.OD'J':~ Office Phon.e: I Date Prepared: Apnl 21, '!Q17 Approving Official; 4/25/2017 AM { A \I PVERSIGHT QlIBIQJIUil!J xecutiveDirec1or1 ACE BusinessOffice (AHO)/TradeTransformationOffice (TIO) I DatoRcvitwcd: CBP FOIA 007719 DHS-17-0435-Q-000483 Page 1662 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item 1225 ( Attachment 3 of 8) ii'Qll QIBl11€1.t.L 1Jii1 5)tli:u1J I1QCFOR FURTH EROUESTION S CBP Contact: iQWX®QU!JI Offior: Office ofT r11dc/l\CEBusinessOffice Otlioc Phone:[~ Date Prepored: Apfi , I E-Mail: 17 (b)(6),(b)(7)(C) ApprovingOfficiaJ:IG>mlMt'iRiJ , Ex.ceu.hveDirector,ACE BusinessOffice(ABO}'Trade Tr&nsformationOfficci('l'TO)/ Date Reviewed: 4125/20l7 AM { AN PVERSIGHT CSP FOIA 007720 DHS-17-0435-Q-000484 Page 1663 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item 1225 ( Attachment 3 of 8) iQA QiiEICI t f • ISF Otll Y POCFORFllRTIIEROllF$ lONS CBPConl3Ct: pni Office:Officeo tilde/ACE DusinessOffic;c OfficePhone: pm@W) I !!.-Mail: (b )(6),(b )(7)(C) Date Prepared: April 21, 20 l7 Approv1ngOfficial· . E'OC FO R FURTU E R O U.ES1'1ON S CBP Contact :-ijMlill Office; Office:of Trade AM _ c OfficePhone· (b)(6),(b)(7)(C) pvEFfS°IGoA1021wpp1e11tH 0$ P~ed · Ap ,il 20. 2017 Oare Reviewed: Apri l 20 . 20 17 CSP FOIA 007725 DHS-17-0435-Q-000489 Page 1668 of 1881 C1 TFTEA Owerview Briefing Book.pdf for Printed Item: 1225 ( Attachment 3 of 8) FORCED LABOR/CONSUMPTIVE DEMAND OFFICE OF TRADE 3 POCFORFURTHER QUESTIONS CBP Conlllct:_fli __ Office:Officeoi"rriiiie )I Office Phone: (b )(6), (b )(7)(C) AM R§iG\~f pvE T i ~• · Diu, Prepared : April 20, 2017 1 fWW\?iP Hr?!Date Reviewed: April 20, 2017 CBP FOIA 007726 DHS-17-0435-Q-000490 Page 1669 of 1881 Canadian Softwood Lumber.docx for Printed Item: 1225 ( Attachment 4 of 8) Canadian Softwood Lumber (b) (5) POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) CBP Contacts: Office: Office of Trade, Trade Policy and Programs Office Phone: Date prepared: April 28, 2017 Approving Official: A \11 ~ llC/\ '\J PVERSIGHT (b)(6);(b)(7)(C) CBP FOIA 007727 DHS-17-0435-Q-000491 Page 1671 of 1881 Canadian Softwood Lumber.docx for Printed Item: 1225 ( Attachment 4 of 8) Canadian Softwood Lumber (b) (5) POC FOR FURTHER QUESTIONS (b)(6);(b)(7)(C) CBP Contacts: Office: Office of Trade, Trade Policy and Programs Office Phone Date prepared: April 28, 2017 Approving Official: VERSIGHT (b)(6);(b)(7)(C) CBP FOIA 007728 DHS-17-0435-Q-000492 Page 1672 of 1881 FTA and Trade Preference Programs.docx for Printed Item: 1225 ( Attachment 5 of 8) Current Free Trade Agreements and Trade Preference Programs Office of Trade (b) (5) POC FOR FURTHER QUESTIONS CBP Contact: (b)(6);(b)(7)(C) Office: Office of Trade, Trade Policy and Programs, Textiles and Trade Agreements (b)(6);(b)(7)(C) Office Phone: ( Date prepared: April 28, 2017 Approving Official: VERSIGHT CBP FOIA 007729 DHS-17-0435-Q-000493 Page 1674 of 1881 FTA and Trade Preference Programs.docx for Printed Item: 1225 ( Attachment 5 of 8) Current Free Trade Agreements and Trade Preference Programs Office of Trade (b) (5) POC FOR FURTHER QUESTIONS CBP Contact: (b)(6);(b)(7)(C) Office: Office of Trade, Trade Policy and Programs, Textiles and Trade Agreements (b)(6);(b)(7)(C) Office Phone: ( Date prepared: April 28, 2017 Approving Official: VERSIGHT CBP FOIA 007730 DHS-17-0435-Q-000494 Page 1675 of 1881 FTA and Trade Preference Programs.docx for Printed Item: 1225 ( Attachment 5 of 8) Current Free Trade Agreements and Trade Preference Programs Office of Trade (b) (5) POC FOR FURTHER QUESTIONS CBP Contact: (b)(6);(b)(7)(C) Office: Office of Trade, Trade Policy and Programs, Textiles and Trade Agreements (b)(6);(b)(7)(C) Office Phone: ( Date prepared: April 28, 2017 Approving Official: VERSIGHT CBP FOIA 007731 DHS-17-0435-Q-000495 Page 1676 of 1881 TFTEA Overview Session Agenda.docx for Printed Item: 1225 ( Attachment 6 of 8) U.S. Customs and Border Protection AGENDA CBP Implementation of Trade Facilitation and Trade Enforcement Act of 2015 (P.L. 114-125) Monday, May 1, 2017, 4:00 PM I. Brief Introduction (OCA A/AC Lowry; 2 mins.) II. Significant Aspects of TFTEA, SFC Member Interest and Implementation Update (OCA will describe Senator-specific interest, followed by SME assessment of TFTEA impact.) a. Intellectual Property Rights (5 mins.) i. Information Sharing/Seven Day Rule ii.Seizure of Circumvention Devices iii. IPR Center Staffing b. Antidumping/Countervailing Duty (5 mins.) i. Enforce and Protect Act ii.Distribution of CDSOA Interest c. Drawback Simplification (5 mins.) i. Changes to Calculation ii.Automation in ACE d. Forced Labor/consumptive Demand (5 mins.) e. Changes to Existing Programs (10 mins.) i. Importer of Record Program ii.Importer Risk Assessment iii. Import Safety: Working Group and Rapid Response Team iv. Preclearance Operations III. Implementation Challenges (EAC Smith, EAC Owen; 5 mins) a. Staffing b. Non-Pay c. Authorities IV. Status of Congressional Reports, Regulations and Consultations (Remainder of Time) VERSIGHT CBP FOIA 007732 DHS-17-0435-Q-000496 Page 1678 of 1881 Trade EO issue paper - FY 18 budget and confirmation hearings(tr).docx for Printed Item: 1225 ( Attachment 7 of 8) TRADE EXECUTIVE ORDER (EO 13785) OFFICE OF TRADE (b) (5) 1 POC FOR FURTHER QUESTIONS CBP Contact: Executive Director (b)(6);(b)(7)(C) Office: Office of Trade/Trade Remedy Law Enforcement Directorate (b)(6);(b)(7)(C) Office Phone Date Prepared April 27, 2017 Approving Official: Executive Director (b)(6);(b)(7)(C)Date Reviewed: April 27, 2017 A\11 ~ 11(,J\'\J PVERSIGHT CBP FOIA 007733 DHS-17-0435-Q-000497 Page 1680 of 1881 Trade EO issue paper - FY 18 budget and confirmation hearings(tr).docx for Printed Item: 1225 ( Attachment 7 of 8) TRADE EXECUTIVE ORDER (EO 13785) OFFICE OF TRADE (b) (5) 2 A POC FOR FURTHER QUESTIONS CBP Contact: Executive Director (b)(6);(b)(7)(C) Office: Office of Trade/Trade Remedy Law Enforcement Directorate (b)(6);(b)(7)(C) Office Phone Date Prepared April 27, 2017 Approving Official: Executive Director (b)(6);(b)(7)(C)Date Reviewed: April 27, 2017 I A PVERSIGHT CBP FOIA 007734 DHS-17-0435-Q-000498 Page 1681 of 1881 Wildlife Items Trafficking.doc for Printed Item: 1225 ( Attachment 8 of 8) FOR OFFICIAL USE ONLY EFFORTS TO COMBAT WILDLIFE TRAFFICKING OFFICE OF TRADE (b) (5) FOR OFFICIAL USE ONLY (b)(6);(b)(7)(C) Prepared by: April 30, 2017 A\11 ICDate: A PVERSIGHT BP/OT/TPP/ICD/CTAC (b)(6);(b)(7)(C) CBP FOIA 007735 DHS-17-0435-Q-000499 Page 1683 of 1881 Wildlife Items Trafficking.doc for Printed Item: 1225 ( Attachment 8 of 8) FOR OFFICIAL USE ONLY (b) (5), (b) (7)(E) FOR OFFICIAL USE ONLY Prepared by: (b)(6);(b)(7)(C) Date: A \11 ~ 11C/\ '\J April 30, 2017 PVERSIGHT BP/OT/TPP/ICD/CTAC (b)(6);(b)(7)(C) CBP FOIA 007736 DHS-17-0435-Q-000500 Page 1684 of 1881