Window for Customs Legislation Introduction Shrinking Quickly
Movement on legislation reauthorizing CBP before the Presidential election remains largely uncertain, as the window for introduction gets smaller and smaller, said the lobbyist representing the National Customs Brokers and Forwarders Association of America (NCBFAA). With most legislation likely drafted, there's still a possibility of a bill's introduction this week, said Jon Kent, of Kent and O'Connor, who represents the NCBFAA on the Hill. The House is in session through Sept. 21, after which it's on recess through Nov. 13.
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The House Ways and Means Committee is continuing to work on the legislation, though timing is unclear. "We hope to introduce a bipartisan Customs bill and are working hard to that end," said a spokeswoman for the committee. The introduction of House customs reauthorization this week would allow the Senate, which is in session through the election, to consider the legislation and potentially introduce its own bill at some point, said Kent. The best case scenario would be for introduction this week, allowing the Senate and industry to look at the bill and provide some feedback by early November, he said.
(See ITT's Online Archives 12051732 for summary of a House subcommittee hearing on customs reauthorization in May.)
Major Issues Being Considered
The legislation takes up several issues NCBFAA has been pushing for, said Kent, who has not seen a draft. Major issues include:
- Drawback modernization -- NCBFAA would like the legislation to simplify drawback, which has become "hopelessly complex," according to an NCBFAA fact sheet on the legislation. Kent said the House bill will address some of the drawback concerns, but other parts of the modernization may need to come through Senate legislation.
- ACE -- CBP is in the process of implementing the Automated Commercial Environment (ACE). Funding for the program now only includes costs to maintain ACE and not further deployment. The House bill is expected to provide support for additional funding for ACE deployment, said Kent. Such support is about as much as the House Ways and Means Committee can do for ACE because it can't authorize additional funding, he said.
- Anti-dumping/Countervailing Duties -- NCBFAA and others have sought a comprehensive overhaul of ADD/CVD procedures, creating a prospective system, rather than the current retrospective system. As a result of the current system, the final amount of AD/CV duties an importer owes can be far more than the amount paid when the goods entered the U.S. It's unlikely the bill will allow for a change to a prospective system, though some CBP and private sector efforts may help in shaping the final bill to include additional fixes to the system, he said.
- Role of the Broker -- Some statutory changes are likely necessary as part of the CBP's rewrite of 19 CFR Part 111 broker regulations. According to the NCBFAA fact sheet, "an update requires the customs broker to assume more responsibility in the processing of entries; in educating themselves, the importer and the public; in maintaining the highest standards of competency and integrity," among other things. CBP has said it hopes to seek comment on regulation changes in the near future and if the agency decides legislative change is necessary beyond what's included in a customs bill, there may still be time to add such language, Kent said.
Kent expressed hope during the NCBFAA Government Affairs conference that customs legislation could be introduced before the election and urged NCBFAA members to discuss the bill during meetings on Capitol Hill. Kent said the members did a good job of providing education on the legislation and what the effects on brokers would be.