CUSTOMHOUSE BROKERS.

SEC. 648. CUSTOMHOUSE BROKERS. Section 641 (19 U.S.C. 1641) is amended— (1) by adding at the end of subsection (a)(2) the following new sentence: “It also includes the preparation of documents or forms in any format and the electronic transmission of documents, invoices, bills, or parts thereof, intended to be filed with the Customs Service in furtherance of such activities, whether or not signed or filed by the preparer, or activities relating to such preparation, but does not include the mere electronic transmission of data received for transmission to Customs.”; (2) by amending subsection (c)(1) to read as follows: “(1) In general.— Each person granted a customs broker’s license under subsection (b) shall be issued, in accordance with such regulations as the Secretary shall prescribe, either or both of the following: “(A) A national permit for the conduct of such customs business as the Secretary prescribes by regulation. “(B) A permit for each customs district in which that person conducts customs business and, except as provided in paragraph (2), regularly employs at least 1 individual who is licensed under subsection (b)(2) to exercise respon-107 STAT. 2208sible supervision and control over the customs business conducted by that person in that district.”; (3) by inserting at the end of subsection (c) the following new paragraph: “(4) Appointment of subagents.— Notwithstanding subsection (c)(1), upon the implementation by the Secretary under section 413(b)(2) of the component of the National Customs Automation Program referred to in section 411(a)(2)(B), a licensed broker may appoint another licensed broker holding a permit in a customs district to act on its behalf as its subagent in that district if such activity relates to the filing of information that is permitted by law or regulation to be filed electronically. A licensed broker appointing a subagent pursuant to this paragraph shall remain liable for any and all obligations arising under bond and any and all duties, taxes, and fees, as well as any other liabilities imposed by law, and shall be precluded from delegating to a subagent such liability.”; (4) by amending subsection (d)(2)(B)— (A) by striking out “appropriate customs officer” and inserting “Customs Service” in the first and third sentences, (B) by striking out “he” and inserting “it” in the third sentence, (C) by striking out “15 days” and inserting “30 days” in the third sentence, (D) by striking out “the appropriate customs officer and the customs broker; they” and inserting “the Customs Service and the customs broker, which” in the sixth sentence, (E) by striking out “his” and inserting “the” in the seventh sentence, and (F) by striking out “for his decision” and inserting “for the decision” in the eighth sentence; and (5) by amending subsection (f) by striking out “United States Customs Service.” and inserting “Customs Service. The Secretary may not prohibit customs brokers from limiting their liability to other persons in the conduct of customs business. For purposes of this subsection or any other provision of this Act pertaining to recordkeeping, all data required to be retained by a customs broker may be kept on microfilm, optical disc, magnetic tapes, disks or drums, video files or any other electrically generated medium. Pursuant to such regulations as the Secretary shall prescribe, the conversion of data to such storage medium may be accomplished at any time subsequent to the relevant customs transaction and the data may be retained in a centralized basis according to such broker’s business system.”.