Ways and Means Approves Trade Bills, Customs Measure Due for Conference

The Ways and Means Committee didn’t release a roundup of their approved amendments by press time. Business and trade leaders nonetheless applauded the approval of the bills. The committee approved by voice vote the Customs Reauthorization bill it released in the preceding days. Ways and Means Trade Subcommittee Chairman Pat Tiberi, R-Ohio, introduced the nearly 200-page Trade Facilitation and Trade Enforcement Act of 2015, HR-1907 (here), on April 21.

The House Customs Reauthorization takes a range of different approaches to trade facilitation, in comparison to its Senate counterpart (see 1504210018). A Finance Committee spokeswoman said lawmakers may ultimately have to reconcile differences in conference, the legislative process of bringing appointed lawmakers from each chamber together to hammer out a resolution. A Ways and Means spokesman, as well as a Tiberi spokeswoman, also said the two bills are “expected” to go to conference. The following is a non-exhaustive outline of Tiberi’s Customs Reauthorization, according to a summary of the legislation released by his office:

Customs Broker Penalties for Failure to Identify Importers

The House bill would amend 19 USC 1641 to require that CBP issue regulations requiring customs brokers to identify importers. Brokers would be tasked with "collecting the identity" of their importers and maintaining records. Each violation would be subject to a $10,000 penalty.

Antidumping and Countervailing Duty Evasion

The House bill incorporates AD/CVD language from the Preventing Recurring Trade Evasion and Circumvention (PROTECT) Act, in contrast to the Senate’s adoption of the ENFORCE Act. The PROTECT Act doesn’t include the strict timelines for CBP investigation into evasion complaints that the ENFORCE Act contains, and lawmakers have long-debated the merits of each (see 14050720).

The PROTECT Act language would establish a Trade Remedy Law Enforcement Division within CBP’s Office of International Trade. The division would be “the primary contact point for evasion allegations and would be required to provide parties updates on the status and outcome of investigations or other activities resulting from allegations,” said the Tiberi summary.

The legislation authorizes increased data sharing and other collaboration over evasion complaints between CBP, the Commerce Department and the International Trade Commission. The legislation would also terminate “the ability of new shippers to post bonds during Department of Commerce new shipper antidumping and countervailing duty reviews and establishes criteria for identifying bona fide sales by a new shipper,” said the summary.

Mandates for Compliance Studies/Notifications/Additional Obligations

The Tiberi legislation would require CBP to report to Congress on implementation of the Automated Commercial Environment, drawback modernization, in-bond merchandise movement, collection of antidumping and countervailing duties, expedited clearance of cargo, and Centers for Excellence and Expertise. The bill would also require CBP to notify Congress 30 days in advance of entering into a supply chain or customs revenue mutual recognition agreement, the summary said.

The House bill would expand the role of Commercial Customs Advisory Committee and establish a Commercial Targeting Division in CBP. The legislation would also require CBP to “develop criteria for assigning importer-of-record numbers” and would give CBP authority to “strengthen internal controls over ‘new importers’ to ensure collection of revenue through risk-based bonding for duties, fees, and penalties,” the summary said. The legislation would also force CBP to “collect additional information and levy financial requirements on ‘nonresident importers’ to increase revenue protection.”

The legislation would also force the Department of Homeland Security to develop “a joint import safety rapid response plan” that outlines CBP protocol in responding to “cargo that poses a threat to the health and safety of U.S. consumers,” said the summary. The bill would also require that the DHS Secretary “ensure CBP port personnel are trained to effectively enforce U.S. import health and safety laws.”

Intellectual Property

The legislation would amend U.S. trade law to authorize and direct CBP to “share information with rights holders to help quickly ascertain whether a suspect good crossing the U.S. border at a port of entry violates a copyright or trademark, except in such cases as would compromise an ongoing law enforcement investigation or national security.” The bill would require the CBP commissioner ensure there is “sufficient [CBP] personnel” to enforce IP laws on U.S. imports, and calls for increased training to combat IP infringement.

Miscellaneous Provisions

The legislation raises the de minimis level from $200 to $800, the same threshold targeted in the Senate Customs Reauthorization. Like the Senate bill, the legislation also would remove bulk cargo residues from customs filing obligations. The bill would modernize the drawback program by allowing use of the eight-digit Harmonized Tariff System classifications in drawback claims, the summary said.

Email ITTNews@warren-news.com for the Tiberi summary.