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 inspectors and canine enforcement officers 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 overtime pay for: (1) overtime services provided on other than Sundays, holidays, or on callback at twice the hourly rate of basic pay of the customs inspector or canine enforcement officer (inspector), with no work for which overtime is authorized to be treated as being less than two hours in duration (unless the work occurs immediately before or after a shift, in which case the hourly rate shall be applied to the actual time worked); (2) Sunday and holiday work at such rate, with no work for which overtime is authorized to be treated as being less than four hours in duration; and (3) unscheduled work at such rate (or, where the inspector is required to return to such employee's place of work at such rate plus an amount equal to the product of the employee's hourly rate of basic pay multiplied by three hours, as compensation for commuting time), with no work for which overtime is authorized to be treated as being less than two hours in duration.

Specifies that customs officers and employees who may be required to remain on duty between the hours of 5:00 p.m. and 8:00 a.m. to perform services in connection with the lading or unlading of cargo, the lading of cargo or merchandise for transportation in bond or for exportation in bond or with benefit of drawback, the receiving or delivery of cargo on or from the wharf, or the unlading, receiving, or examination of passengers' baggage, shall receive overtime compensation at the rates provided under this Act.

Treats inspectors 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 provisions regarding deductions, contributions, and deposits.

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