House Passes Customs Border Security and Trade Agencies Authorization Act

This is Part IV, the final partof a multi-part series of summaries on H.R. 4418 and focuses on fiscal year (FY) 2005 and 2006 appropriations authorizations for various trade agencies, reports on user fees and the One Face at the Border Initiative, etc.

FY 2005-2006 Appropriations Authorizations for CBP, ICE, USTR, and ITC

H.R. 4418 authorizes appropriations for fiscal years (FYs) 2005 and 2006 for U.S. Customs and Border Protection (CBP), Immigration and Customs Enforcement (ICE), the Office of the U.S. Trade Representative (USTR), and the U.S. International Trade Commission (ITC).

(Authorization legislation can establish, continue, or modify an agency or program for a fixed or indefinite period of time. It may also set forth the duties and functions of an agency or program, its organizational structure, and the responsibilities of agency or program officials. Authorizing legislation also authorizes the enactment of appropriations for an agency or program. However, separate appropriations legislation is needed to actually fund an agency and provide it with budget authority.)

CBP. For CBP, H.R. 4418 would authorize $6,203,000,000 for FY 2005 and $6,469,729,000 for FY 2006 for salaries and expenses. H.R. 4418 would also require funds authorized for CBP with respect to customs revenue functions would be appropriated from the Customs User Fee Account.

ICE. For ICE, H.R. 4418 would authorize $4,011,000,000 for FY 2005 and $4,335,891,000 for FY 2006.

USTR. H.R. 4418 would also authorize $39,552,000 for each of FYs 2005 and 2006. In addition, $2,000,000 would be authorized for both FY 2005 and FY 2006 for the appointment of additional staff in the Office of the General Counsel and the Office of Monitoring and Enforcement.

ITC. For ITC, H.R. 4418 would authorize $61,700,000 for FY 2005 and $65,278,000 for FY 2006.

Implementation of Cost Accounting Systems by CBP and ICE

H.R. 4418 would amend a requirement enacted as part of the Trade Act of 2002 that the former U.S. Customs Service establish and implement a cost accounting system for expenses incurred in both commercial and noncommercial operations by September 30, 2003 in order to: (1) reiterate the requirement originally imposed by the Trade Act of 2002; (2) clarify that this requirement applies to both CBP and ICE; and (3) require reports by the Department of Homeland Security's (DHS') Inspector General to monitor compliance by these agencies with the requirements of this section.

Although CBP has already been instructed to establish and implement an adequate cost accounting system by the Trade Act of 2002, the House Ways and Means Committee notes in its report on H.R. 4418 that it is disappointed to have received conflicting and inadequate information on whether CBP and ICE have in place a functioning cost accounting system that can provide the information required by law. The Committee further notes in its report that it intends to monitor progress in this area closely.

GAO Study and Report on Customs User Fees

H.R. would require, beginning 180 days after the date on which the cost accounting systems described above are fully implemented, the General Accounting Office's (GAO's) Comptroller General to conduct a study on the extent to which the amount of each customs user fee imposed under 19 USC 58c(a) (i.e., the Merchandise Processing Fee (MPF, both formal and informal) and Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) user fees) approximates the cost of services provided by CBP relating to such fee. The study would be required to include an analysis of the use of each such customs user fee by CBP.

H.R. 4418 would also require, not later than one year after the date on which the cost accounting systems described above are fully implemented, the GAO's Comptroller General to submit to the House Ways and Means and Senate Finance Committees a report in classified form containing (1) the results of its study; and (2) recommendations for the appropriate amount of the customs user fees if such results indicate that the fees are not commensurate with the level of services provided by CBP.

Reports on "One Face at the Border" Initiative

H.R. 4418 would require the CBP Commissioner, not later than both September 30, 2005 and September 30, 2006, to prepare and submit to Congress a report:

analyzing the effectiveness of the One Face at the Border Initiative at enhancing security and facilitating trade;

providing a breakdown of the number of CBP personnel that were (1) the personnel of the Customs Service or Immigration and Naturalization Service (INS) prior to the establishment of DHS and (2) hired after the establishment of DHS;

describing the training time provided to each employee on an annual basis for the various training components of the One Face at the Border Initiative; and

outlining the steps taken by CBP to ensure that expertise is retained with respect to customs, immigration, and agriculture inspection functions under the One Face at the Border Initiative.

(See ITT's Online Archives or 07/22/04, 07/23/04, and 07/26/04 news, 04072215, 04072310, and 04072610, for Parts I, II, and III of this multi-part series of summaries.)

H.R. 4418, as passed by the House, available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4418eh.txt.pdf.

House Ways and Means Committee report on H.R. 4418 (H. Rept. 108-598, Part I) available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_reports&docid=f:hr598p1.108.pdf.