To reform the system under which compensation for overtime customs inspectional services is determined; to amend chapters 83 and 84 of title 5, United States Code, to provide that customs employees be treated as law enforcement officers for purposes of those chapters; and for other purposes.

Revises the overtime pay system for United States Customs Service inspectors, with changes providing: (1) overtime pay for: (a) administrative workweek hours which exceed 40 per week or eight per day, at a rate equal to two times the inspector's hourly rate of basic pay, with no work for which overtime is authorized to be treated as being less than four hours in duration; (b) Sunday and holiday work, at the same rate and under the same conditions as described above; and (c) unscheduled work, at the same rate as described above, plus an amount equal to three times the inspector's hourly rate of basic pay as compensation for commuting time, with no work for which overtime is authorized to be treated as being less than two hours in duration; and (2) pay period and fiscal year caps on overtime pay.

Limits overtime under such system to Customs Service employees performing the functions of a customs inspector and customs canine enforcement officers.

Amends the Tariff Act of 1930 to prohibit merchandise or passengers from foreign places, or merchandise being transported from one port to another, from being unladen from carrying vehicles during overtime hours (currently, at night).

Amends the Customs Procedural Reform and Simplification Act of 1978 to require the authorization for the Customs Service to specify the maximum amount available for payment of overtime.

Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to terminate reimbursement of appropriations for certain Customs Service overtime costs.

Treats Customs Service employees as law enforcement officers for purposes of the Civil Service Retirement System and the Federal Employees' Retirement System.

Ties the Customs User Fee Account under the Consolidated Omnibus Budget Reconciliation Act of 1985 to Civil Service Retirement System provisions regarding deductions, contributions, and deposits.

Directs the Secretary of the Treasury to fix the rates of pay for journeyman level customs inspectors and canine inspection officers undertaking inspection services at no less than the minimum rate payable for GS-11.