Presidential DocumentExecutive Order 139042020-02439
Ensuring Safe and Lawful E-Commerce for United States Consumers, Businesses, Government Supply Chains, and Intellectual Property Rights Holders
Primary source
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Published
February 5, 2020
Signed
January 31, 2020
Issuing agencies
Executive Office of the President
Full Text
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<title>Federal Register, Volume 85 Issue 24 (Wednesday, February 5, 2020)</title>
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[Federal Register Volume 85, Number 24 (Wednesday, February 5, 2020)]
[Presidential Documents]
[Pages 6725-6729]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2020-02439]
Presidential Documents
Federal Register / Vol. 85 , No. 24 / Wednesday, February 5, 2020 /
Presidential Documents
[[Page 6725]]
Executive Order 13904 of January 31, 2020
Ensuring Safe and Lawful E-Commerce for United
States Consumers, Businesses, Government Supply Chains,
and Intellectual Property Rights Holders
By the authority vested in me as President by the
Constitution and the laws of the United States of
America, it is hereby ordered as follows:
Section 1. Policy. E-commerce, including transactions
involving smaller express-carrier or international mail
packages, is being exploited by traffickers to
introduce contraband into the United States, and by
foreign exporters and United States importers to avoid
applicable customs duties, taxes, and fees.
It is the policy of the United States Government to
protect consumers, intellectual property rights
holders, businesses, and workers from counterfeit
goods, narcotics (including synthetic opioids such as
fentanyl), and other contraband now being introduced
into the United States as a result of the recent growth
in e-commerce. The United States Government must also
protect the revenue of the United States from
individuals and entities who evade customs duties,
taxes, and fees.
It is the policy of the United States Government that
any person who knowingly, or with gross negligence,
imports, or facilitates the importation of, merchandise
into the United States in material violation of Federal
law evidences conduct of so serious and compelling a
nature that it should be referred to U.S. Customs and
Border Protection (CBP) of the Department of Homeland
Security for a determination whether such conduct
affects that person's present responsibility to
participate in transactions with the Federal
Government.
It is the policy of the United States Government, as
reflected in Executive Order 12549 of February 18, 1986
(Debarment and Suspension), and elsewhere, to protect
the public interest and ensure the integrity of Federal
programs by transacting only with presently responsible
persons. In furtherance of this policy, the
nonprocurement debarment and suspension system enables
executive departments and agencies to exclude from
Federal programs persons who are not presently
responsible. CBP implements this system by suspending
and debarring persons who flout the customs laws, among
other persons who lack present responsibility. To
achieve the policy goals stated herein, the United
States Government shall consider all appropriate
actions that it can take to ensure that persons that
CBP suspends or debars are excluded from participating
in the importation of merchandise into the United
States.
It is the policy of the United States Government that
express consignment operators, carriers, hub
facilities, international posts, customs brokers, and
other entities, including e-commerce platform
operators, should not facilitate importation involving
persons who are suspended or debarred by CBP.
It is the policy of the United States Government to
ensure that parcels containing contraband be kept
outside of the United States to the greatest extent
possible and that all parties who participate in the
introduction or attempted introduction of such parcels
into the United States be held accountable under the
laws of the United States.
Sec. 2. Criteria for the Importer of Record Program,
Including Exclusion of Trade Violators. (a) The
Secretary of Homeland Security shall issue a
[[Page 6726]]
notice of proposed rulemaking to establish criteria
importers must meet in order to obtain an importer of
record number.
(b) Such criteria shall include a criterion
providing that any person debarred or suspended by CBP
for lack of present responsibility for reasons related
to importation or trade shall be ineligible to obtain
an importer of record number for the duration of such
person's suspension or debarment by CBP.
Sec. 3. Responsibilities of Express Consignment
Operators, Carriers, Hub Facilities, and Licensed
Customs Brokers. (a) Consistent with applicable law,
the Secretary of Homeland Security, through the
Commissioner of CBP, shall take steps to ensure that,
within 60 days of the publication in the System for
Award Management by CBP of the name of any debarred or
suspended person, express consignment operators,
carriers, hub facilities, and licensed customs brokers
notify CBP of any attempt, of which they know or have
reason to believe, by any persons who may not obtain an
importer of record number based on any criteria
established by the Secretary under section 2 of this
order, to re-establish business activity requiring an
importer of record number through a different name or
address associated with the debarred or suspended
person.
(b) The Secretary of Homeland Security, through the
Commissioner of CBP, shall consider appropriate
measures, consistent with applicable law, to ensure
that express consignment operators, carriers, hub
facilities, and licensed customs brokers cease to
facilitate business activity that requires an importer
of record number by any person who may not obtain an
importer of record number, as provided by any criteria
established by the Secretary under section 2 of this
order. Depending on the criteria established, such
consideration shall include whether CBP may take any of
the following measures: limiting an express consignment
operator's, carrier's, or hub facility's participation
in any CBP trusted trader programs; taking appropriate
action with regard to an express consignment
operator's, carrier's, or hub facility's operating
privileges; or suspending or revoking a customs
broker's license.
Sec. 4. Items Sent to the United States through the
International Postal Network. (a) The United States
Postal Service (USPS) should collaborate with the
Secretary of State to notify the international postal
network, via circular or the functional equivalent, of
the policy of the United States Government set forth in
section 1 of this order and the key provisions of this
order. USPS should make all reasonable efforts to
include provisions regarding any criteria for
participating in the importer of record program
established under section 2 of this order in any new
contractual instruments it executes with international
posts.
(b) Within 90 days from the date of this order, the
Secretary of Homeland Security, through the
Commissioner of CBP, and in consultation with USPS,
shall submit to the President a report on any
appropriate measures the Federal Government could take,
including negotiating with international posts, to
prevent the importation or attempted importation into
the United States through the international postal
network of shipments containing goods, when such
importation or attempted importation is known to have
been facilitated by any person who may not obtain an
importer of record number under any criteria
established by the Secretary under section 2 of this
order.
Sec. 5. Non-Compliant International Posts. (a) The
Secretary of Homeland Security, through the
Commissioner of CBP, and in consultation with the
United States Trade Representative, shall develop an
International Mail Non-Compliance metric, based on
relevant factors, to formulate an overall compliance
score for each international post. This score shall
take into account rates of trafficking of counterfeit
goods, narcotics (including synthetic opioids such as
fentanyl), and other contraband through a particular
international post, effectiveness of the international
post in reducing such trafficking, including
cooperation with CBP, as well as such other factors the
Secretary, through the Commissioner, determines
advisable. The Secretary shall update
[[Page 6727]]
overall compliance scores on a quarterly basis. The
Secretary shall determine a minimum threshold
compliance score for each quarter and shall deem non-
compliant any international post that scores below such
threshold in that quarter.
(b) The Secretary of Homeland Security shall
prioritize targeted inspection of imports into the
United States from any international post that for two
or more consecutive quarters is deemed a non-compliant
international post.
(c) Consistent with applicable law, the Secretary
of Homeland Security, through the Commissioner of CBP,
in consultation with USPS, may require additional
information for any shipment from any international
post that for six or more consecutive quarters is
deemed a non-compliant international post. The
Secretary of Homeland Security, through the
Commissioner of CBP, shall, to the extent consistent
with applicable law and international agreements,
implement all appropriate measures to prevent
importation into the United States of any shipments
dispatched from any international post that is deemed a
non-compliant international post for six or more
consecutive quarters and for which the additional
information required consistent with this subsection is
not promptly provided. USPS should collaborate with CBP
in implementing these measures.
(d) The Secretary of Homeland Security, through the
Commissioner of CBP, and in consultation with USPS,
shall, to the maximum extent permitted by applicable
law, take measures to protect the United States from
shipments from any international post that for eight or
more consecutive quarters is deemed a non-compliant
international post. To the extent consistent with
applicable law and as appropriate, such measures might
include preventing the importation into the United
States of shipments dispatched from such posts,
regardless of whether additional information required
by CBP is provided. Within 90 days of the date of this
order, the Secretary of Homeland Security, through the
Commissioner of CBP, and in consultation with USPS,
shall submit a report to the President analyzing what
measures CBP may take consistent with its existing
authorities.
(e) Within 90 days of the date of this order, the
Secretary of Homeland Security, through the
Commissioner of CBP, shall publish and regularly update
appropriate guidance related to CBP's implementation of
this section, including the process by which an
international post is deemed a non-compliant
international post and the process by which an
international post is removed from the list of non-
compliant international posts.
Sec. 6. Publication of Violation Information; Enhanced
Enforcement Efforts. (a) On a periodic basis, and
consistent with Federal law and executive branch policy
reflecting non-disclosure of sensitive information, the
Secretary of Homeland Security, through the
Commissioner of CBP and the Director of United States
Immigration and Customs Enforcement, shall publish
information about seizures arising in the international
mail and express consignment environments that involve
intellectual property rights violations, illegal drugs
and other contraband, incorrect country of origin,
under-valuation, or other violations of law of
particular concern. In determining which information to
publish, the Secretary shall give greatest
consideration to repeat offenses affecting priority
trade issues as defined in 19 U.S.C. 4322.
(b) Within 60 days of the date of this order, the
Attorney General shall assign appropriate resources to
ensure that Federal prosecutors accord a high priority
to prosecuting offenses related to import violations as
described in this order, including, as appropriate and
within existing appropriations, increasing the number
of Department of Justice officials who will enforce
criminal or civil laws, as appropriate, related to the
importation of merchandise.
Sec. 7. Report on Sufficiency of Fees. Within 210 days
of the date of this order, the Secretary of Homeland
Security, in coordination with the heads of other
executive departments and agencies, as appropriate,
shall submit a report to the President, through the
Director of the Office of Management and Budget:
[[Page 6728]]
(a) analyzing whether the fees collected by CBP are
currently set at a sufficient level to reimburse the
Federal Government's costs associated with processing,
inspecting, and collecting duties, taxes, and fees for
parcels; and
(b) providing recommendations, consistent with
applicable law, regarding any fee adjustments that are
necessary to reimburse the Federal Government's costs
associated with processing, inspecting, and collecting
duties, taxes, and fees for parcels.
Sec. 8. Definitions. For the purposes of this order:
(a) ``Customs broker'' has the meaning given to
that term in 19 U.S.C. 1641(a)(1).
(b) ``Express consignment operator, carrier, or hub
facility'' has the meaning given to those terms in 19
CFR 128.1.
(c) ``International post'' means any foreign public
or private entity providing various types of postal
services, including mailing and delivery services.
(d) ``Contraband'' has the meaning given to that
term in 49 U.S.C. 80302(a), and also means any goods or
merchandise otherwise prohibited from importation or
entry under the Tariff Act of 1930, as amended.
(e) ``E-commerce platform'' means any web-based
platform that includes features primarily designed for
arranging the sale, purchase, payment, or shipping of
goods, or that enables sellers not directly affiliated
with an operator of a web-based platform to sell
physical goods through the web to consumers located in
the United States.
(f) ``Person'' means any individual, corporation,
partnership, association, or legal entity, however
organized.
Sec. 9. General Provisions. (a) Nothing in this order
shall be construed to impair or otherwise affect:
(i) the authority granted by law to an executive department or agency, or
the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget
relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with
applicable law and subject to the availability of
appropriations.
[[Page 6729]]
(c) This order is not intended to, and does not,
create any right or benefit, substantive or procedural,
enforceable at law or in equity by any party against
the United States, its departments, agencies, or
entities, its officers, employees, or agents, or any
other person.
<GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT>
(Presidential Sig.)
THE WHITE HOUSE,
January 31, 2020.
[FR Doc. 2020-02439
Filed 2-4-20; 11:15 am]
Billing code 3295-F0-P
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</html>Indexed from Federal Register on February 5, 2020.
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