Rep. Brady Introduces Customs Reauthorization Bill

House Ways and Means Trade Subcommittee Chairman Kevin Brady (R-Texas) introduced Dec. 7 long-awaited legislation meant to modernize CBP and other customs-related agencies.

Brady's bill, the Customs Trade Facilitation and Enforcement Act of 2012 (HR-.6642) includes language meant to address AD/CV evasion, originally introduced in legislation from Rep. Charles Boustany (R-La.). The Boustany bill, which was introduced earlier this year, is (here).

"We also must have a more modernized and automated Customs structure to allow that trade to occur as efficiently as possible and in compliance with our laws," Brady said in a press release. "This bill would modernize these important tools, particularly the Automated Commercial Environment (ACE) and the International Trade Data System. It would require CBP to provide a report on its objectives, plans, and deadlines to justify any change in ACE funding levels."

The sophisticated nature of "trade demands better streamlining of Customs processes, particularly for low-risk importers, so the legislation would create new initiatives to allow companies that partner with CBP to improve trade compliance and cooperate above the norm to receive incentives for that cooperation," Brady said. Moreover, the bill would establish several mechanisms to improve the collection of revenue and enforcement of our laws without jeopardizing legitimate trade." The press release is (here).

Authorization of Appropriations

The bill provides authorization for CBP’s commercial trade functions of $1.8 billion for FY 2013, $1.817 billion for FY 2014, and $1.83 billion for FY 2015. The bill also requires CBP to establish a separate budget request for commercial operations of the agency to include those trade functions.

(Authorization legislation can establish, continue, or modify an agency or program for a fixed or indefinite period of time. It may also set forth the duties and functions of an agency or program, its organizational structure, and the responsibilities of agency or program officials. Authorizing legislation also authorizes the enactment of appropriations for an agency or program. However, separate appropriations legislation is needed to actually fund an agency and provide it with budget authority.)

Automation Provisions

The bill also:

• Authorizes the Automated Commercial Environment (ACE) computer system, which covers all U.S. imports; requires a report from CBP on its objectives, plans, and deadlines for implementing ACE priorities before funding changes are considered; requires a GAO report evaluating the cost and effectiveness of CBP’s efforts to complete ACE development, establishment, and implementation, as well as the benefits of ACE.
• Sets requirements and a March 31, 2013, deadline for the 48 agencies with border responsibilities that now participate in the International Trade Data System (ITDS) to enter into a memorandum of understanding or take other action to provide for electronic information-sharing so that all U.S. government import requirements are fulfilled at one “window,” reducing costs for business and government as well as improving risk assessment.

Change to De Minimis Levels

The bill also raises the informal entry amount from $1,000 to $2,500 and de minimis amounts from $200 to $800 to reduce paperwork burdens and facilitate the movement of cargo.

The bill text is (here). Descriptions of each section of the bill are (here). A bill summary is (here).