House Members Introduce Bill to Eliminate Duties on Bulk Cargo Residue
Reps. Kenny Marchant, R-Texas, and Ron Kind, D-Wis., re-introduced legislation on April 14 to scale back CBP authority to impose duties on bulk cargo residue. The Residue Entries and Streamlining Act, HR-1773, would amend the Harmonized Tariff Schedule to exempt residue from duty. The bill describes residue as material that remains in an instrument of international trade after bulk cargo is removed, but only material “with a quantity, by weight or volume, not exceeding seven percent of the bulk cargo, and with no or de minimis value.”
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A CBP 2009 ruling determined containers and other trade instruments can't be entered into the U.S. or manifested as “empty” if certain residue remains (see 09072140). The ruling focused on chemical residue, but Marchant said in a statement the legislation would address both liquid and dry residue. “Customs and Border Protection’s residue ruling piles on layers of bureaucracy without any related security benefits,” said Marchant (here). “If fully enforced, it would add millions of dollars in compliance costs for businesses, create uncertainty for shippers, and lead to greater congestion at our borders.”
The two lawmakers tried but failed to move the bill in the last Congress. CBP abandoned a residue entry pilot program in 2013, following an industry backlash (see 13111819). The residue duty exemption would be effective on the date of bill's enactment.
Email ITTNews@warren-news.com for a copy of the bill.