Customs Modernization Gaining Traction in House, Part 111 Final Rule Coming Soon, Highsmith Says

FORT LAUDERDALE -- Legislative proposals on customs modernization are getting a “lot of traction” in a “seriously divided” Congress, with bipartisan support and “some urgency to bring this matter to a close,” said AnnMarie Highsmith, CBP executive assistant commissioner for trade, in remarks at a conference June 14.

Highsmith said CBP has been providing technical support to Congress in support of a draft customs modernization act “discussion draft.” Final recommendations from the Commercial Customs Operations Advisory Committee (COAC) on the discussion draft are due at its next meeting June 29, along with recommendations on facilitation measures that are part of the 21st Century Customs Framework, Highsmith said.

“If you are still sitting on the sidelines holding your great idea in reserve just in case someone else mentions it, now is the time,” Highsmith said. Speaking at the American Association of Exporters and Importers annual conference, she said: “There are a lot of people in this room. Pull them aside and share your idea so we can get everything into this package.”

CBP is also working on its proposed rule to create a framework for low value entries derived from its Section 321 and Type 86 pilots, Highsmith said. In fiscal year 2021, 470 million shipments were cleared through the pilots, she said -- 126 million in the Section 321 pilot and 344 million in the Type 86 pilot -- which resulted in a 90% reduction in holds, Highsmith said.

Meanwhile, CBP’s Part 111 customs broker regulations final rule is close, currently awaiting a signature from the Homeland Security and Treasury departments, Highsmith said. “It’s moving now,” and will likely come out in the next couple of months, she said. CBP will fulfill its promise of putting out a new handbook to help brokers fulfill their obligations, and will give brokers a 60-day delayed implementation period.