Appropriations Bill for Commerce, With Customs Brokers Provision, Fails
The House of Representatives voted against proceeding to consider an appropriations bill that covers Commerce, Justice and Science related agencies, by a vote of 198-223.
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Because the rule failed, the bill didn't get a vote. The bill contains language that resurrects the protections customs brokers had for one year, in 2021, in the case of bankruptcy of one of their clients.
The language in the Commerce, Justice and Science bill changes bankruptcy law so that the money that brokers send to CBP to pay tariffs is not subject to clawback in bankruptcy proceedings. In bankruptcy, clawback provisions are there so that company insiders or other parties don't get favorable payments just before a filing.
Customs brokers had pushed for 20 years for such a policy, arguing that they are just a conduit for these payments.
While getting the language in an appropriations bill was a lobbying coup for brokers (see 2309060049), the fact that the bill appears to have too many controversial Republican policies to pass the House makes it less likely that a conference process between the House and Senate could result in the language becoming law.
Moreover, the agencies covered by the bill will likely be funded under last fiscal year's levels through Feb. 2, under a continuing resolution passed by the House Nov. 14 and expected to be enacted into law.