19 U.S.C. § 2081 — Undercover investigative operations of

Page 468 TITLE 19—CUSTOMS DUTIES § 2081 1 See Change of Name note below. SAVINGS PROVISION Prosecutions for any violation of law occurring, and civil seizures or forfeitures and injunctive proceedings commenced, prior to the effective date of amendment of this section by section 1102 of Pub. L. 91–513 not to be affected or abated by reason thereof, see section 1103 of Pub. L. 91–513, set out as a note under section 171 of Title 21, Food and Drugs. § 2081. Undercover investigative operations of Customs Service (a) Certification required for exemption of un- dercover operations from certain laws With respect to any undercover investigative operation of the United States Customs Service (hereinafter in this section referred to as the ‘‘Service’’) which is necessary for the detection and prosecution of offenses against the United States which are within the jurisdiction of the Secretary of the Treasury— (1) sums authorized to be appropriated for the Service may be used— (A) to purchase property, buildings, and other facilities, and to lease space, within the United States, the District of Columbia, and the territories and possessions of the United States without regard to— (i) sections 1341 and 3324 of title 31, (ii) sections 6301(a) and (b)(1) to (3) and 6306 of title 41, (iii) chapter 45 of title 41, (iv) section 8141 of title 40, and (v) section 3901 of title 41, and (B) to establish or to acquire proprietary corporations or business entities as part of the undercover operation, and to operate such corporations or business entities on a commercial basis, without regard to sections 9102 and 9103 of title 31; (2) sums authorized to be appropriated for the Service and the proceeds from the under- cover operation, may be deposited in banks or other financial institutions without regard to the provisions of section 648 of title 18 and sec- tion 3302 of title 31; and (3) the proceeds from the undercover oper- ation may be used to offset necessary and rea- sonable expenses incurred in such operation without regard to the provisions of section 3302 of title 31; only upon the written certification of the Com- missioner of Customs 1 (or, if designated by the Commissioner the Deputy or an Assistant Com- missioner of Customs) 1 that any action author- ized by paragraph (1), (2), or (3) of this sub- section is necessary for the conduct of such un- dercover operation. (b) Liquidation of corporations and business en- tities If a corporation or business entity established or acquired as part of an undercover operation under paragraph (1)(B) of subsection (a) with a net value over $50,000 is to be liquidated, sold, or otherwise disposed of, the Service, as much in advance as the Commissioner or his designee de- termines is practicable, shall report the cir- cumstances to the Secretary of the Treasury. The proceeds of the liquidation, sale, or other disposition, after obligations are met, shall be deposited in the Treasury of the United States as miscellaneous receipts. (c) Deposit of proceeds As soon as the proceeds from an undercover in- vestigative operation with respect to which an action is authorized and carried out under para- graphs (2) and (3) of subsection (a) of this section are no longer necessary for the conduct of such operation, such proceeds or the balance of such proceeds remaining at the time shall be depos- ited into the Treasury of the United States as miscellaneous receipts. (d) Audits (1) The Service shall conduct a detailed finan- cial audit of each undercover investigative oper- ation which is closed in each fiscal year, and (A) submit the results of the audit in writing to the Secretary of the Treasury; and (B) not later than 180 days after such under- cover operation is closed, submit a report to the Congress concerning such audit. (2) The Service shall also submit a report an- nually to the Congress specifying as to its un- dercover investigative operations— (A) the number, by programs, of undercover investigative operations pending as of the end of the 1-year period for which such report is submitted; (B) the number, by programs, of undercover investigative operations commenced in the 1- year period preceding the period for which such report is submitted; and (C) the number, by programs, of undercover investigative operations closed in the 1-year period preceding the period for which such re- port is submitted and, with respect to each such closed undercover operation, the results obtained and any civil claims made with re- spect thereto. (e) Definitions For purposes of subsection (d) of this section— (1) The term ‘‘closed’’ refers to the earliest point in time at which— (A) all criminal proceedings (other than appeals) are concluded, or (B) covert activities are concluded, which- ever occurs later. (2) The term ‘‘employees’’ means employees, as defined in section 2105 of title 5, of the Serv- ice. (3) The terms ‘‘undercover investigative op- eration’’ and ‘‘undercover operation’’ mean any undercover investigative operation of the Service— (A) in which— (i) the gross receipts (excluding interest earned) exceed $50,000, or (ii) expenditures (other than expendi- tures for salaries of employees) exceed $150,000; and (B) which is exempt from section 3302 or 9102 of title 31; except that subparagraphs (A) and (B) shall not apply with respect to the report required under paragraph (2) of subsection (d) of this section. Page 469 TITLE 19—CUSTOMS DUTIES § 2082 1 See Change of Name note below. (Pub. L. 99–570, title III, § 3131, Oct. 27, 1986, 100 Stat. 3207–90; Pub. L. 104–201, div. A, title X, § 1074(d)(3), Sept. 23, 1996, 110 Stat. 2661; Pub. L. 104–316, title I, § 110(b), Oct. 19, 1996, 110 Stat. 3832; Pub. L. 114–125, title VIII, § 802(d)(2), Feb. 24, 2016, 130 Stat. 210.) Editorial Notes CODIFICATION In subsec. (a)(1)(A)(ii), ‘‘sections 6301(a) and (b)(1) to (3) and 6306 of title 41,’’ substituted for ‘‘sections 3732(a) and 3741 of the Revised Statutes of the United States (41 U.S.C. 11(a) and 22),’’ on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. In subsec. (a)(1)(A)(iii), ‘‘chapter 45 of title 41,’’ sub- stituted for ‘‘section 305 of the Act of June 30, 1949 (63 Stat. 396; 41 U.S.C. 255),’’ on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act en- acted Title 41, Public Contracts. In subsec. (a)(1)(A)(iv), ‘‘Section 8141 of title 40’’ sub- stituted for ‘‘the third undesignated paragraph under the heading ‘Miscellaneous’ of the Act of March 3, 1877 (19 Stat. 370; 40 U.S.C. 34)’’ on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, which Act en- acted Title 40, Public Buildings, Property, and Works. In subsec. (a)(1)(A)(v), ‘‘section 3901 of title 41, and’’ substituted for ‘‘section 304(a) of the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 254(a)), and’’ on authority of Pub. L. 111–350, § 6(c), Jan. 4, 2011, 124 Stat. 3854, which Act enacted Title 41, Public Contracts. AMENDMENTS 1996—Subsec. (a)(1)(A)(v). Pub. L. 104–201 struck out ‘‘and (c)’’ after ‘‘section 254(a)’’. Subsec. (b). Pub. L. 104–316 struck out ‘‘and the Comp- troller General’’ after ‘‘the Secretary of the Treasury’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to Commissioner of Customs deemed to be reference to Commissioner of U.S. Customs and Border Protection pursuant to section 802(d)(2) of Pub. L. 114–125, set out as a note under section 211 of Title 6, Domestic Security. TRANSFER OF FUNCTIONS For transfer of functions, personnel, assets, and li- abilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Sec- retary of Homeland Security, and for treatment of re- lated references, see sections 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of Novem- ber 25, 2002, as modified, set out as a note under section 542 of Title 6. For establishment of U.S. Customs and Border Protection in the Department of Homeland Se- curity, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended gen- erally by Pub. L. 114–125, and section 802(b) of Pub. L. 114–125, set out as a note under section 211 of Title 6. § 2082. Customs Service administration (a) In general The Commissioner of Customs 1 shall— (1) develop and implement accounting sys- tems that accurately determine and report the allocations made of Customs Service personnel and other resources among the various oper- ational functions of the Service, such as pas- senger processing, merchandise processing and drug enforcement; and (2) develop and implement periodic labor dis- tribution surveys of major workforce activi- ties (such as inspectors, import specialists, fines, penalties, and forfeiture officers, special agents, data transcribers, and Customs aides) to determine the costs of different types of passenger and merchandise processing trans- actions, such as informal and formal entries, and automated and manual entries. (b) Survey reports The Commissioner of Customs 1 shall no later than January 31, 1991, submit to the Committee on Ways and Means of the House of Representa- tives and the Committee on Finance of the Sen- ate a report on the results of the first survey im- plemented under subsection (a)(2). (Pub. L. 101–382, title I, § 113, Aug. 20, 1990, 104 Stat. 639; Pub. L. 101–508, title X, § 10001(d), Nov. 5, 1990, 104 Stat. 1388–386; Pub. L. 114–125, title VIII, § 802(d)(2), Feb. 24, 2016, 130 Stat. 210.) Editorial Notes AMENDMENTS 1990—Subsec. (a). Pub. L. 101–508, § 10001(d)(1)–(3), in- serted ‘‘and’’ after semicolon at end of par. (1), sub- stituted a period for semicolon at end of par. (2), and struck out pars. (3) to (5) which read as follows: ‘‘(3) as soon as practicable after the enactment of ap- propriations for the Customs Service for each fiscal year, but not later than the 15th day after the begin- ning of such year, estimate, based on the amounts ap- propriated, the amount of the fee that would, if im- posed on the processing of merchandise, offset the sala- ries and expenses subject to reimbursement from the fee that will likely be incurred by the Service in con- ducting commercial operations during that year; ‘‘(4) develop annually a detailed derivation of the commercial services cost base and the methodology used for computing the merchandise processing fee under paragraph (3); and ‘‘(5) report within 45 days of the beginning of any fis- cal year to the Committee on Ways and Means of the House of Representatives and the Committee on Fi- nance of the Senate the results of each fee estimate made under paragraph (3) and each cost base and user fee methodology derivation made under paragraph (4).’’ Subsec. (b). Pub. L. 101–508, § 10001(d)(4), substituted ‘‘Committee on Ways and Means of the House of Rep- resentatives and the Committee on Finance of the Sen- ate’’ for ‘‘Committees referred to in subsection (a)(5) of this section’’. Statutory Notes and Related Subsidiaries CHANGE OF NAME Reference to Commissioner of Customs deemed to be reference to Commissioner of U.S. Customs and Border Protection pursuant to section 802(d)(2) of Pub. L. 114–125, set out as a note under section 211 of Title 6, Domestic Security. EFFECTIVE DATE OF 1990 AMENDMENT Amendment by Pub. L. 101–508 effective on the date of enactment of the Act providing full-year appropria- tions for the Customs Service for fiscal year 1992, and applicable to fiscal years beginning on and after Oct. 1, 1991, see section 10001(g)(1) of Pub. L. 101–508, set out as a note under section 58c of this title. EFFECTIVE DATE Section effective Oct. 1, 1990, see section 115(a) of Pub. L. 101–382, set out as an Effective Date of 1990 Amendment note under section 58c of this title.