Administration Proposes More Spending on Trade Enforcement, Higher Fees

Broad descriptions of the budget for trade-related operations show the administration would like to spend more on enforcement, and would like to collect more fees from travelers and traders. The submissions, released March 11, for fiscal year 2020, asked for $9 million more for the Bureau of Industry and Security -- slightly more than last year's requested increase. "The Budget increases resources to support the Department of Commerce's membership in the Committee on Foreign Investment in the United States (CFIUS), the summary said. "The Budget includes $16 million to support the President’s robust trade agenda," the summary said, including implementing the John S. McCain National Defense Authorization Act of 2019, which asked Commerce to identify emerging technologies that should be subject to export controls. The summary said the administration wants to establish "a new initiative within the International Trade Administration to counter the circumvention or evasion of U.S. trade actions aimed at those who engage in unfair and illegal trade practices."

The budget proposes taking alcohol and tobacco out of the Justice Department's Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and consolidating that regulation at Treasury’s Alcohol and Tobacco Tax and Trade Bureau.

The Office of the U.S. Trade Representative would get a $1 million increase if Congress approves the request -- it had a $6 million increase from FY17 to FY18. At CBP, as it did last year, the administration is asking for $44 million "to recapitalize non-intrusive inspection equipment at ports of entry."

The detailed budget requests for the BIS and the ITA have not been released yet, but the request for the current fiscal year said that the Commerce Department expected to do eight, nine or 10 Section 232 investigations each year for the remainder of the Trump administration. In 2019, it finished one -- the autos and auto parts -- and has two ongoing -- on uranium and on titanium sponge. "Completing the 232 studies on steel and aluminum is estimated to have required more than 25,000 man hours, in addition to travel, equipment, space and other employee related expenses," last year's budget request said.

The administration suggests it will take in $142 million more in customs fees for merchandise processing, and it wants to increase customs conveyance passenger fees, as well. As it did last year -- but did not convince Congress to go along -- the administration is asking for a user fee of $29 million "to recover the full costs of APHIS' inspections of passengers and cargo traveling to the continental United States from Hawaii and Puerto Rico to prevent the introduction of non-native agricultural pests and diseases into the mainland."

It's also proposing increasing fees for grain inspection and weighing services by $20 million. Currently, they are capped at $60 million. "The limitation on inspection and weighing services expenses that is currently in place needs to be increased to reflect the new discretionary user fees to cover the [Federal Grain Inspection Service] program, and to cover the full cost of the mandatory inspection and weighing program," the Agriculture Department's budget summary said. The FDA is proposing a fee for each export certification of $600 in FY20, and for the amount to increase with inflation each year after that. Currently, each certification costs $175.

The chairman of the House Budget Committee, Rep. John Yarmuth, D-Ky., issued a scathing response to the budget's release. "President Trump’s budget once again lays out an irresponsible and cynical vision for our country, without any regard for its human cost," he said. "Given the important budget hurdles we face this year that will require bipartisan and responsible solutions, the President’s budget proposal is a dereliction of duty.”