§ 2081. — Undercover investigative operations of Customs Service.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 19USC2081]
TITLE 19--CUSTOMS DUTIES
CHAPTER 10--CUSTOMS SERVICE
Sec. 2081. Undercover investigative operations of Customs
Service
(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) sections 1341 and 3324 of title 31,
(ii) sections 11(a) and 22 of title 41,
(iii) section 255 of title 41,
(iv) section 8141 of title 40, and
(v) section 254(a) 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 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) of
this section 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) 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, whichever occurs later.
(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.
(Pub. L. 99-570, title III, Sec. 3131, Oct. 27, 1986, 100 Stat. 3207-90;
Pub. L. 104-201, div. A, title X, Sec. 1074(d)(3), Sept. 23, 1996, 110
Stat. 2661; Pub. L. 104-316, title I, Sec. 110(b), Oct. 19, 1996, 110
Stat. 3832.)
Codification
``Section 8141 of title 40'' substituted in subsec. (a)(1)(A)(iv)
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, Sec. 5(c), Aug. 21, 2002, 116 Stat. 1303, the first
section of which enacted Title 40, Public Buildings, Property, and
Works.
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''.
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 sections 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.
