Cassidy: Customs Modernization Unlikely to Get Vote in 2022

A customs modernization bill discussion draft released by Sen. Bill Cassidy, R-La., last month (see 2111030035) is unlikely to progress in 2022, the senator said in a phone interview with International Trade Today. Although the request for feedback gave a deadline of Nov. 20, the office is still hearing from the trade. "Oh, we're getting feedback," Cassidy said with a chuckle.

Stakeholders are concerned that the draft is more regulatory focused, Cassidy said, but he recognizes the bill will need to balance advancing CBP powers and making it easier for importers, .He said he didn't want to name any changes that might come as a result of the feedback received so far. He suggested that some of what stakeholders are objecting to may fade once they understand how the terms will be defined.

He said that the draft is somewhat based on CBP's opening bid. "We understand [traders] want some things changed, and we will work to get a final product that works for all parties." He said the language CBP submitted is "clearly thought through," and he added, "I think it is a compliment to how well developed the initial proposal is that we're getting such feedback." He said his office has been working on customs modernization for more than four years.

Although it was not talked about explicitly in the draft, Cassidy said one vision he has for modernization is to set up a mandatory blockchain-like record for certain imports. The information would be stored in the cloud, he said, and each country where the good transited would track it and share that information with the next country.

"We do this to kind of lock down the loopholes people use to evade detection," Cassidy said. He said they've talked about applying this initially only to petroleum and to steel. "We would like to, obviously, begin to include others," he said. Cassidy said he's asked why other products can't be traced behind the border in this way, and he said, "You've got to crawl before you walk." Cassidy said it makes sense to start with steel, because there are so many antidumping and countervailing duty cases on that product, and therefore, there is a high incentive to circumvent duties.

Cassidy said he expects there will be feedback for at least three months, and then that will be given to legislative counsel. After a new draft, there will be another round of feedback, he said.

While a customs modernization bill may not be officially introduced in 2022, Cassidy said he plans to introduce a bill that would make tweaks to the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR) in the near term. He didn't want to talk too much about the details, as he is planning a policy speech on it later in the month, but said they will attempt to "build upon the strengths of CAFTA and address some of its weaknesses."

He said that the goal would be to promote trade between the CAFTA-DR countries and other countries in the Western Hemisphere, as well as promote exports to the U.S., to "help stabilize some of these economies, and by helping to stabilize these economies, frankly help prevent a leftward drift." He added, "We know when there is freer trade, then there tends to be more prosperity." He said it could also help to counter Chinese economic investment in South America, which he said can be akin to colonization.