19 U.S.C. § 2081 : US Code - Section 2081: Undercover investigative operations of Customs Service

Search 19 U.S.C. § 2081 : US Code - Section 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.