Secure E-Waste Export and Recycling Act

II 116TH CONGRESS 1ST SESSION S. 2448 To control the export of electronic waste in order to ensure that such waste does not become the source of counterfeit goods that may reenter military and civilian electronics supply chains in the United States, and for other purposes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 9, 2019 Mr. WHITEHOUSE (for himself and Mr. ALEXANDER) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs A BILL To control the export of electronic waste in order to ensure that such waste does not become the source of counter- feit goods that may reenter military and civilian elec- tronics supply chains in the United States, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Secure E-Waste Ex- 4 port and Recycling Act’’. 5 SEC. 2. EXPORT CONTROLS ON ELECTRONIC WASTE. 6 (a) DEFINITIONS.—In this section: 7 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 2 •S 2448 IS (1) COUNTERFEIT MILITARY GOOD.—The term 1 ‘‘counterfeit military good’’ means a counterfeit good 2 that— 3 (A) is falsely identified or labeled as meet- 4 ing military specifications; or 5 (B) is intended for use in a military, intel- 6 ligence, or national security application. 7 (2) COUNTERFEIT GOOD.—The term ‘‘counter- 8 feit good’’ means any good on which, or in connec- 9 tion with which, a counterfeit mark is used. 10 (3) COUNTERFEIT MARK.—The term ‘‘counter- 11 feit mark’’ has the meaning given that term in sec- 12 tion 2320 of title 18, United States Code. 13 (4) ELECTRONIC WASTE.— 14 (A) IN GENERAL.—The term ‘‘electronic 15 waste’’ means any of the following used items 16 containing electronic components, or fragments 17 thereof, including parts or subcomponents of 18 such items: 19 (i) Computers and related equipment. 20 (ii) Data center equipment (including 21 servers, network equipment, firewalls, bat- 22 tery backup systems, and power distribu- 23 tion units). 24 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 3 •S 2448 IS (iii) Mobile computers (including note- 1 books, netbooks, tablets, and e-book read- 2 ers). 3 (iv) Televisions (including portable 4 televisions and portable DVD players). 5 (v) Video display devices (including 6 monitors, digital picture frames, and port- 7 able video devices). 8 (vi) Digital imaging devices (including 9 printers, copiers, facsimile machines, image 10 scanners, and multifunction machines). 11 (vii) Consumer electronics— 12 (I) including digital cameras, 13 projectors, digital audio players, cel- 14 lular phones and wireless internet 15 communication devices, audio equip- 16 ment, video cassette recorders, DVD 17 players, video game systems (includ- 18 ing portable systems), video game 19 controllers, signal converter boxes, 20 and cable and satellite receivers; and 21 (II) not including appliances that 22 have electronic features. 23 (viii) Portable global positioning sys- 24 tem navigation devices. 25 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 4 •S 2448 IS (ix) Other used electronic items that 1 the Secretary determines to be necessary 2 to carry out this section. 3 (B) EXEMPT ITEMS.—The term ‘‘electronic 4 waste’’ does not include— 5 (i) exempted electronic waste items; 6 (ii) electronic parts of a motor vehicle; 7 or 8 (iii) electronic components, or items 9 containing electronic components, that are 10 exported or reexported to an entity under 11 the owernship or control of the person ex- 12 porting or reexporting the components or 13 items, with the intent that the components 14 or items be used for the purpose for which 15 the components or items were used in the 16 United States. 17 (5) EXEMPTED ELECTRONIC WASTE ITEMS.— 18 The term ‘‘exempted electronic waste items’’ means 19 the following: 20 (A) Tested, working used electronics. 21 (B) Low-risk counterfeit electronics. 22 (C) Recalled electronics. 23 (6) EXPORT ADMINISTRATION REGULATIONS.— 24 The term ‘‘Export Administration Regulations’’ 25 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 5 •S 2448 IS means the regulations set forth in subchapter C of 1 chapter VII of title 15, Code of Federal Regulations, 2 or successor regulations. 3 (7) EXPORT; REEXPORT.—The terms ‘‘export’’ 4 and ‘‘reexport’’ have the meanings given those terms 5 in section 1742 of the Export Control Reform Act 6 of 2018 (50 U.S.C. 4801). 7 (8) FEEDSTOCK.—The term ‘‘feedstock’’ means 8 any raw material constituting the principal input for 9 an industrial process. 10 (9) LOW-RISK COUNTERFEIT ELECTRONICS.— 11 The term ‘‘low-risk counterfeit electronics’’ means 12 any electronic components or items that— 13 (A) have been subjected to destruction 14 processes that render the items unusable for 15 their original purpose; and 16 (B) are exported as a feedstock, with no 17 additional mechanical or hand separation re- 18 quired, in a reclamation process to render the 19 electronic components or items recycled con- 20 sistent with the laws of the foreign country per- 21 forming the reclamation process. 22 (10) PERSON.—The term ‘‘person’’ means an 23 individual or entity. 24 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 6 •S 2448 IS (11) RECALLED ELECTRONICS.—The term ‘‘re- 1 called electronics’’ means any electronic items that— 2 (A) because of a defect in the design or 3 manufacture of the items— 4 (i) are subject to a recall notice issued 5 by the Consumer Product Safety Commis- 6 sion or other pertinent Federal authority 7 and have been received by the manufac- 8 turer or its agent and repaired by the 9 manufacturer or its agent to cure the de- 10 fect; or 11 (ii) have been recalled by the manu- 12 facturer as a condition of the validity of 13 the warranty on the items and have been 14 repaired by the manufacturer or its agent 15 to cure the defect; and 16 (B) are exported by the manufacturer of 17 the items. 18 (12) SECRETARY.—The term ‘‘Secretary’’ 19 means the Secretary of Commerce. 20 (13) TESTED, WORKING USED ELECTRONICS.— 21 The term ‘‘tested, working used electronics’’ means 22 any used electronic items that— 23 (A) are determined, through testing meth- 24 odologies established by the Secretary, to be— 25 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 7 •S 2448 IS (i) fully functional for the purpose for 1 which the items were designed; or 2 (ii) in the case of multifunction de- 3 vices, fully functional for at least one of 4 the primary purposes for which the items 5 were designed; 6 (B) are exported with the intent to reuse 7 the products as functional products; and 8 (C) are appropriately packaged for ship- 9 ment to prevent the items from losing 10 functionality as a result of damage during ship- 11 ment. 12 (14) USED.—The term ‘‘used’’, with respect to 13 an item, means the item has been operated or em- 14 ployed. 15 (b) PROHIBITION.—Except as provided in subsections 16 (c) and (d), no person may export or reexport electronic 17 waste or exempted electronic waste items. 18 (c) EXPORT PROHIBITION EXEMPTIONS.—A person 19 may export or reexport exempted electronic waste items 20 if the following requirements are met: 21 (1) REGISTRATION.—The person is listed on a 22 publicly available registry maintained by the Sec- 23 retary of persons authorized to export or reexport 24 exempted electronic waste. 25 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 8 •S 2448 IS (2) PURPOSE.—The exempted electronic waste 1 items are being exported or reexported for reclama- 2 tion, recall, or reuse. 3 (3) FILING OF EXPORT INFORMATION.—For 4 each export transaction, the person files in the Auto- 5 mated Export System, in accordance with part 758 6 of the Export Administration Regulations (or any 7 corresponding similar regulation or ruling), elec- 8 tronic export information that contains, at a min- 9 imum, the following information: 10 (A) A description of the type and total 11 quantity of exempted electronic waste items ex- 12 ported. 13 (B) The name of each country that will re- 14 ceive the exempted electronic waste items for 15 reuse, recall, or recycling. 16 (C)(i) The name of the ultimate consignee 17 that will receive the exempted electronic waste 18 items for reclamation, recall, or reuse; and 19 (ii) documentation and a declaration that 20 such consignee has the necessary permits, re- 21 sources, and competence to manage the exempt- 22 ed electronic waste items as reusable products 23 or recyclable feedstock and prevent the release 24 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 9 •S 2448 IS of such items as counterfeit goods or counter- 1 feit military goods. 2 (4) COMPLIANCE WITH EXISTING LAWS.—The 3 export or reexport of the exempted electronic waste 4 items otherwise complies with applicable inter- 5 national agreements to which the United States is a 6 party and with other trade and export control laws 7 of the United States. 8 (5) EXPORT DECLARATIONS AND REQUIRE- 9 MENTS.—The exempted electronic waste items are 10 accompanied by— 11 (A) documentation of the registration of 12 the exporter required under paragraph (1); 13 (B) a declaration signed by an officer or 14 designated representative of the exporter assert- 15 ing that the exempted electronic waste items 16 meet the applicable requirements for exempted 17 electronic waste items under this section; 18 (C) a description of the contents and con- 19 dition of the exempted electronic waste items in 20 the shipment; 21 (D) for tested, working used electronics, a 22 description of the testing methodologies and 23 test results for each item; 24 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 10 •S 2448 IS (E) the name of the ultimate consignee 1 and declaration of the consignee’s applicable 2 permits, resources, and competence to process 3 or use the items as intended; and 4 (F) with respect to low-risk counterfeit 5 electronics only and when required by the coun- 6 try to which the electronics are being exported 7 or reexported, the written consent of the com- 8 petent authority of the country to allow the 9 entry of the electronics into the country. 10 (d) EXCEPTION FOR PERSONAL USE.—The Sec- 11 retary may provide for an exception to the requirements 12 of this section, subject to such recordkeeping requirements 13 as the Secretary may impose, for the export or reexport 14 of 5 or fewer items that are or contain electronic compo- 15 nents intended for personal use. 16 (e) PENALTIES FOR VIOLATIONS.—Any person who 17 violates this section or the regulations issued under sub- 18 section (f)(2) shall be subject to the same penalties as 19 those that apply to any person violating any other provi- 20 sion of the Export Administration Regulations. 21 (f) EFFECTIVE DATE.— 22 (1) IN GENERAL.—Subject to paragraph (2), 23 this section shall take effect upon the expiration of 24 VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS 11 •S 2448 IS the 1-year period beginning on the date of the enact- 1 ment of this Act. 2 (2) MODIFICATION OF EAR.—The Secretary 3 shall, not later than the effective date under para- 4 graph (1), ensure that the Export Administration 5 Regulations are modified to carry out this section. 6 Æ VerDate Sep 11 2014 01:46 Sep 10, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6301 E:\BILLS\S2448.IS S2448 pamtmann on DSKBC07HB2PROD with BILLS