House Democrats Introduce New Customs Reauthorization Bill, Differs on AD/CV Evasion Provisions

House Ways and Means Committee Ranking Member Sandy Levin (D-Mich.) and Trade Subcommittee Ranking Member Jim McDermott (D-Wash.) introduced their own customs reauthorization bill Dec. 13. That bill, the Customs Enhanced Enforcement and Trade Facilitation Act (HR-6656), is almost exactly the same as the customs reauthorization bill introduced by House Ways and Means Trade Subcommittee Chairman Kevin Brady (R-Texas) Dec. 7. The main difference between the two bills is language on antidumping/countervailing duty evasion.

The Democrats' bill takes much of its AD/CV evasion language from the Enforcing Orders and Reducing Customs Evasion (ENFORCE) Act. The Ways and Means Democrats note that "nearly identical legislation passed the Senate Finance Committee unanimously earlier this year." The bill would require the CBP commissioner to initiate an investigation within 10 business days of receipt of a proper allegation or referral that reasonably suggests that merchandise covered by an AD/CVD order is entering the U.S. through evasion. Referrals may be submitted to the Commissioner by other federal agencies.

The bill would also require CBP to make a preliminary determination within up to 135 days from the initiation of an investigation and a final determination within up to 180 days from the preliminary determination.

(See ITT's Online Archives 12071825 for summary of the Senate Finance's approval of the ENFORCE Act.)

The Democrats' bill would better address AD/CV evasion, said Levin in a press release. “This bill includes many of the provisions we have worked on a bipartisan basis to develop, addressing issues of common concern about Customs operations and trade facilitation. But the bill strikes the right balance on trade enforcement, where the Republican approach falls short. Evasion of antidumping and countervailing duties is illegal and renders our trade remedy law a dead letter. Customs’ response has to be strong, swift, and unwavering. Simply codifying existing Customs’ practice, which is widely viewed as inadequate, will not do. This bill establishes critical new processes to help ensure that the cheating, which is now rampant, stops.”

There's still work to be done in resolving differences in addressing AD/CV evasion, said McDermott. "We are very close, but on the critical issue of trade enforcement, there is still daylight between us," he said.

HR-6656 also would require CBP to collect single transaction bonds when there's evidence of evasion. The legislation also "increases funding for USTR, including additional resources to strengthen the enforcement of U.S. trade agreements," said the press release. "It also calls on U.S. agencies to coordinate and augment their efforts to enforce those agreements, consistent with the President’s establishment of an Interagency Trade Enforcement Center (ITEC) earlier this year."

A press release on Democrats' bill is (here). Text of the bill is (here).

(Brady's bill, the Customs Trade Facilitation and Enforcement Act of 2012 (HR-6642), is meant to modernize CBP and other customs-related agencies. See ITT's Online Archives 12120728 for news of introduction of the legislation.)