House Homeland Security FY18 Funding Bill Encourages CBP to Run FWS ACE Pilot

The House Appropriations Committee on July 18 approved fiscal year 2018 funding legislation for the Department of Homeland Security, which encourages CBP to run a pilot for the Fish and Wildlife Service ACE message set “as soon as is feasible,” according to the bill’s committee report (here). “Providing a centralized online access point to connect CBP, the trade community, and partner government agencies will enhance government data collection for international trade transactions while expediting cargo processing and protecting against prohibited shipments,” the report says. The Fish and Wildlife Service suspended its ACE import and export pilots earlier this year following complaints from the trade (see 1701190011)

The report also expresses concern that CBP "has adopted a policy that disallows drawback claims." The committee is urging the agency to "quickly complete" and provide a report directed in FY17 DHS funding legislation (here) to explain why drawback claims for certain import tariffs are not accepted and why claims are not treated consistently across all categories of imported goods. "CBP is required to refund any duties, taxes, and fees imposed on imported products if they are later exported or destroyed, or if commercially interchangeable products manufactured in the United States are subsequently exported," the FY18 report says.

The committee is also calling for CBP to provide regular updates on its website regarding progress in implementing the requirements of a March executive order calling for enhanced collection and enforcement of antidumping and countervailing duties (see 1703310037). The report also directs CBP to post regular website updates on its implementation of the recommendations of an August 2016 Government Accountability Office report on uncollected AD and CV duties (see 1608160032). "Our Homeland Security Appropriations Bill markup has not yet been scheduled, and it would be irresponsible to speculate on a timeframe," a Senate Appropriations Committee spokesman said. The office of House Majority Leader Kevin McCarthy, R-Calif., didn't immediately comment.

The legislation would fund CBP trade and travel operations at $4.3 billion, about $100 million more than the agency’s budget request for FY18. But the bill would shrink CBP’s request for the Office of Trade, which was $263.3 million, by $10.4 million. It would fund the CBP Office of Field Operations at $1.2 billion. The legislation proposes a $15 million cut from CBP-proposed National Targeting Center (NTC) enhancements in FY18, noting NTC funding has almost quadrupled in four years. The committee mark matches CBP’s $109.2 million request for trade and travel assets and infrastructure in the agency’s procurement, construction and infrastructure account.

The committee report also notes that appropriators expect DHS to request funding for FY19 for its third-party canine certification program for air cargo to begin in FY18. “The Committee understands” FY17 funds for the Transportation Security Administration program will adequately support TSA’s first-year implementation costs, the report says.

The committee report also directs CBP to provide within 90 days of enactment a report “for a representative group of domestic sea ports of entry” for each of the prior three fiscal years on the percentage of maritime cargo scanned with non-intrusive inspection (NII) technology; estimated value of goods entered for consumption; value and types of interdicted contraband; annual duty, tax and fee revenue; and “the annual manpower, non-manpower recurring, and non-recurring costs incurred, including the number and cost of NII equipment.”