Customs Modernization Act of 2023

The Customs Modernization Act of 2023 amends the Tariff Act of 1930 to strengthen U.S. Customs and Border Protection's (CBP) authority to enforce customs and trade laws. It covers improved information collection, stronger enforcement of import/export prohibitions, expanded liability for violations, administrative duty exemptions, and other procedural updates.

TITLE I, Improved Collection and Use of Information: Requires electronic filing of entry documentation via authorized data interchange systems, expands recordkeeping to include those who direct or facilitate imports, broadens CBP's authority to obtain trade-related information, and allows mandatory advance electronic cargo information to be used for any lawful purpose, with sharing limited by law.

TITLE II, Strengthened Enforcement of Import and Export Prohibitions: Allows CBP to provide nonpublic information to rights holders when it has reasonable suspicion of IP infringement, mandates seizure and forfeiture of merchandise bearing counterfeit marks or infringing copyrights without owner consent, and permits summary forfeiture of certain low-value merchandise (under $800) that is controlled substances or otherwise prohibited.

TITLE III, Liability for Violations of Customs and Trade Laws: Expands liability for providing incorrect information to vessel masters or aircraft pilots, modifies fraud and negligence standards to include directing or facilitating violations, increases penalties for aiding unlawful importation/exportation up to the domestic value of goods, establishes procedures for investigating antidumping duty evasion (including public disclosure of importer identity), creates a civil penalty for obstructing CBP investigations (up to three times the duty owed), updates bonding requirements, and requires measures to protect the importer of record program from suspended or debarred persons.

TITLE IV, Administrative Exemptions from Duties: Authorizes CBP to collect documentation or information to determine eligibility for administrative duty exemptions, and establishes special rules for detained merchandise subject to such exemptions, including notice to interested parties and voluntary abandonment procedures.

TITLE V, Other Matters: Limits administrative protests for certain CBP decisions (e.g., ITC exclusion orders), allows electronic transmission of protest requests and official documents, authorizes electronic communications for any notice required by the Tariff Act, and expands disclosure of vessel, aircraft, or vehicle manifest information to include cargo descriptions and Harmonized Tariff Schedule subheadings.