Customs Reauthorization Bill Would Reorganize CBP, Codify Role of CEEs, Etc.

House Ways and Means Trade Subcommittee Chairman Kevin Brady (R-Texas) introduced legislation Dec. 7 meant to modernize CBP and other customs-related agencies. Brady's bill, the Customs Trade Facilitation and Enforcement Act of 2012 (HR-6642), makes several changes to the organization of CBP, many of which mirror the changes of the customs bill introduced in 2009 by Senate Finance Committee Chairman Max Baucus (D-Mont.) and then-Finance Committee Ranking Member Chuck Grassley (R-Iowa).

The Baucus/Grassley bill, which stalled in that Congress, is available (here). Among the organizational changes within HR-6642 are:

Added Specificity for Position of Commissioner

The new bill would further specify the responsibilities of the CBP Commissioner, who would be appointed by the President with the advice and consent of the Senate, and report directly to the Secretary of Homeland Security (Secretary).

Commercial operations responsibilities. HR-6642 would define the Commissioner's duties with respect to commercial operations. Most would revolve around the facilitation of legitimate international trade and enforcing customs and trade laws, including (partial list):

• administering any customs revenue function delegated by Treasury to Homeland Security by the Homeland Security Act of 2002,
• collecting, assessing, and disseminating information as appropriate regarding cargo destined for the U.S., and
• soliciting and considering on a regular basis input from the private sector, including the Commercial Customs Operations Advisory Committee (CCOAC), the Trade Support Network (TSN), and affected private sector entities regarding customs and trade laws, policies, and regulations.
  • The bill also codifies and expands the role of the CCOAC, which would be made up of 20 members representing the trade community and advises and provides recommendations to the Secretaries of the Treasury and Homeland Security on CBP’s commercial operations, including modernization and streamlining of cargo processing.
• safeguarding the economic and homeland security interests of the U.S. at land borders and ports of entry

Deputy Commissioner Would Also be Political Appointee

The bill would require Presidential appointment and Senate confirmation for the Deputy Commissioner position. The focus for the Deputy Commissioner would revolve around commercial operations, the Automated Commercial Environment (ACE) and oversight of the Office of International Trade. The duties of the Deputy Commissioner would include (partial list):

• oversight of the commercial operations of CBP
• overseeing the operations of the Office of International Trade, which HR-6642 would expand to include Import Specialists, now part of the Office of Field Operations
• consulting with Senate Finance and House Ways and Means Committees on a regular and timely basis regarding the administration of the commercial operations of CBP.
• overseeing the development and implementation of information technology, research, and communication functions (including ACE)
• overseeing the administration of customs revenue functions performed by CBP.

The Deputy Commissioner would also serve as Commissioner during the absence or disability of the Commissioner.

Office of International Trade Would be Expanded

Brady's bill would move a number of personnel from CBP's Office of Field Operations to the Office of International Trade. Positions to be moved to the Office of International Trade are:

• Personnel having the statutory authority to classify and appraise goods entering the U.S.
• Personnel having the responsibility to act as principal point of contact and technical experts with respect to goods entering the U.S., including responsibilities relating to collection and deposit of duties, taxes, and fees.
• Other personnel as the Commissioner determines to be necessary.

The assets, functions, personnel, and liabilities of the current Office of International Trade would be under the supervision of the Assistant Commissioner in the Office of International Trade.

Establishment of Centers of Excellence and Expertise

The bill would authorize the Secretary of Homeland Security to establish and maintain Centers of Excellence and Expertise (CEEs) within the Office of International Trade. Each CEE is to be composed of headquarters and field personnel of the CBP led by an Executive Director, who shall report to the Assistant Commissioner of the Office of International Trade.

The CEEs are to:

• facilitate legitimate trade by increasing industry specific knowledge
• improve enforcement using targeting information from the new Commercial Targeting Division
• develop and implement measurable benefits to the trade community
• foster partnerships though the expansion of trade programs such as Importer Self Assessment program and other trusted partner programs
• develop performance measurements
• increase the accuracy and completeness of international trade data and facilitate a more efficient flow of information between Federal departments and agencies

Trade Advocate Would Serve as Primary Liaison Between CBP and Trade

The legislation would also require the CBP Commissioner to appoint a Trade Advocate, who would report directly to the Assistant Commissioner. The Trade Advocate would (partial list):

• serve as the primary liaison between CBP and the public with respect to CBP's administration of customs facilitation and trade enforcement functions
• assist the Commissioner in resolving issues relating to the commercial operations of the Agency by effectively communicating the perspectives held by interested parties in the private sector and other private commercial interests
• consult with interested persons in the private sector, the CCOAC, and the TSN, for their input with respect to CBP's (i)development and implementation of rules, regulations, decisions, notices, etc. related to the U.S. customs and trade laws administered by CBP; (ii) development of a Joint Strategic Plan; (iii) assessment of the effectiveness of customs facilitation and trade enforcement efforts; and (iv) trade modernization activities, including the development of the ACE and the International Trade Data System.

Interagency Customs Review Board Would Review Proposed CBP Changes

HR-6642 would establish an interagency Customs Review Board which would be comprised of the Commissioner, DHS Assistant Secretary for Policy, Treasury Assistant Secretary for Tax Policy, the Commerce Department's Under Secretary for International Trade; and the Deputy U.S. Trade Representative.

Before CBP could publicly propose or adopt a proposed change to a customs regulation, interpretation, or practice, the interagency Customs Review Board would be required to review the proposed change to determine if the proposed change conforms to U.S. international trade obligations. The CBP Commissioner would be required to notify and provide full documentation to the interagency Customs Review Board not less than 30 days prior to publicly proposing any change to a regulation, interpretation or practice of the Agency relating to commercial operations of the Agency that could reasonably be expected to affect compliance by the United States Government with its international trade obligations.

The bill text is (here).

(See ITT's Online Archives 12120728 for news of introduction of the legislation. See future issues of ITT for additional details of the legislation.)