PRIA, Government Policy, Made Personal

Summary

Customs may use its funds to buy or lease property in the United States, set up and run secret businesses, put undercover-operation money in banks, and use money earned from an undercover operation to pay that operation’s costs without following some normal federal buying, leasing, and deposit rules. All of those actions must have a written certification from the Commissioner of Customs (or a designated Deputy or Assistant) saying the action is necessary for the undercover work. If a cover company worth more than $50,000 is sold or closed, Customs must tell the Secretary of the Treasury ahead of time when practical, and any money left after paying obligations must go into the U.S. Treasury as miscellaneous receipts. When undercover money is no longer needed, the remaining funds must be deposited in the Treasury. Customs must do a detailed financial audit of each undercover operation closed in a fiscal year, send the audit to the Secretary, and give Congress the audit report within 180 days of closure. Each year Customs must also report to Congress how many undercover operations it had by program (pending, started, and closed) and the results and any civil claims for each closed operation. “Closed” means criminal cases (not appeals) are finished or covert work is finished, whichever is later. “Undercover operation” here means ones with over $50,000 in gross receipts or over $150,000 in non-salary spending and that were exempt from the usual deposit rules.

Title 19, §2081

Customs Duties, Source: USLM XML via OLRC

(a)Certification required for exemption of undercover 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)section 1341 and 3324 of title 31,

(ii)section 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 section 9102 and 9103 of title 31;

(2)sums authorized to be appropriated for the Service and the proceeds from the undercover operation, may be deposited in banks or other financial institutions without regard to the provisions of section 648 of title 18 and section 3302 of title 31; and

(3)the proceeds from the undercover operation may be used to offset necessary and reasonable expenses incurred in such operation without regard to the provisions of section 3302 of title 31;

only upon the written certification of the Commissioner of Customs (or, if designated by the Commissioner the Deputy or an Assistant Commissioner of Customs) that any action authorized by paragraph (1), (2), or (3) of this subsection is necessary for the conduct of such undercover operation.

(b)Liquidation of corporations and business entities

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 determines is practicable, shall report the circumstances 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 investigative operation with respect to which an action is authorized and carried out under paragraphs (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 deposited into the Treasury of the United States as miscellaneous receipts.

(d)Audits

(1)The Service shall conduct a detailed financial audit of each undercover investigative operation 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 undercover operation is closed, submit a report to the Congress concerning such audit.

(2)The Service shall also submit a report annually to the Congress specifying as to its undercover 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 report is submitted and, with respect to each such closed undercover operation, the results obtained and any civil claims made with respect thereto.

(e)Definitions

For purposes of subsection (d) of this section— (1)

(2)The term “employees” means employees, as defined in section 2105 of title 5, of the Service.

(3)The terms “undercover investigative operation” 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 expenditures 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.

Notes & Related Subsidiaries

Editorial Notes

Codification In subsec. (a)(1)(A)(ii), “section 6301(a) and (b)(1) to (3) and 6306 of title 41,” substituted for “section 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,” substituted 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 enacted Title 41, Public Contracts. In subsec. (a)(1)(A)(iv), “Section 8141 of title 40” substituted 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 enacted 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 Comptroller 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 liabilities of the United States Customs Service of the Department of the Treasury, including functions of the Secretary of the Treasury relating thereto, to the Secretary of Homeland Security, and for treatment of related references, see section 203(1), 551(d), 552(d), and 557 of Title 6, Domestic Security, and the Department of Homeland Security Reorganization Plan of November 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 Security, treated as if included in Pub. L. 107–296 as of Nov. 25, 2002, see section 211 of Title 6, as amended generally 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.

§2081 Undercover Investigative Operations of Customs Service

Summary

Title 19, §2081

Notes & Related Subsidiaries

Editorial Notes

Amendments

Statutory Notes and Related Subsidiaries

Change of Name

Transfer of Functions

Transfer of Functions

Citations & Metadata