White House Budget Predicts Higher Customs Revenue in FY 2021 Before Dropping in 2022

February 11, 2020 by Mara Lee|Congress

Customs duties are estimated at $72 billion in the current fiscal year, and the White House projects that number will climb to $92 billion in the fiscal year that begins Oct. 1. It projects that duties then will fall to $54 billion the following year.

The White House released its budget Feb. 10, and trade-related provisions include:

An increase of $27 million for the Bureau of Industry and Security
An increase of $3 million for the Office of the U.S. Trade Representative's Trade Enforcement Trust Fund
Proposed increases in customs fees for merchandise processing worth $21 million and $52 million in inflation adjustment of customs fees
An increase in general funding of the Office of the U.S. Trade Representative by $6 million.

In a trade fact sheet, the administration said, “The Budget supports ongoing efforts to identify and protect emerging and foundational technologies that are essential to national security and economic prosperity. The Budget also provides additional resources to ensure the timely review of exclusion requests from Section 232 tariffs. These efforts ensure that the U.S. steel and aluminum industries are protected, but that U.S. industry can access materials that are critical for U.S. national security.”

The Republican chairman of the Senate Budget Committee received the document warily. Sen. Mike Enzi, R-Wyo., issued a statement that said, “Presidents’ budgets are a reflection of Administration priorities, but in the end, they are just a list of suggestions, as the power of the purse rests with Congress. Bipartisan consensus will be necessary to bring our debt and deficits under control. I hope to work with my colleagues on both sides of the aisle to put our country on a more sustainable fiscal course.”