New Treasury Secretary Responds to Senate Finance Committee Questions on ITDS, CBP Revenue Functions, China Currency, Etc.

Highlights of the Treasury Secretary's responses to the Committee's questions include:

Oversight of Customs Revenue Functions Will be a Priority for Treasury

The Treasury Secretary responded to committee concerns about how Treasury will prioritize oversight of Customs revenue functions given the inadequate staffing and prioritization in recent years. Secretary Geithner stated that he would aggressively advocate on behalf of the resource needs of the Treasury oversight functions, including the customs revenue functions performed by the U.S. Customs and Border Protection.

According to Geithner, in the interest of minimizing distractions from the newly formed Department of Homeland Security's overarching security mission, it was agreed that the bulk of customs revenue resources would go with Customs to DHS. Geithner noted that after nearly six years of experience, there have been suggestions that some reallocation of resources of between Treasury and DHS may more effectively ensure that critical economic and revenue considerations are fully considered in the implementation of customs policy. Geithner stated that he and his staff will work closely with the Senate Finance Committee to examine these options.

In addition to the issue of resources, Geither stated that close cooperation with DHS is necessary to implement Treasury and DHS' joint customs responsibilities, and while informal cooperation has been good, there may be a benefit from formalizing the dialogue and information flow between the two departments.

ITDS on Same Timeline as ACE, Standard Set of ITDS Data Elements is Priority

In response to questions regarding the implementation plans for the International Trade Data System (ITDS), Geithner stated that Treasury and many of the other participating agencies provide advice to DHS on prioritizing resources for ITDS. He further stated that under current plans, ITDS is intended to be completed no later than when ACE is fully completed and that the development of a standard set of ITDS data elements is a top priority.

President Believes China is Manipulating its Currency

Secretary Geithner responded to questions about how the U.S. can ensure that countries, such as China, are not engaged in manipulating currency markets around the world by stating that President Obama believes that China is manipulating its currency. According to Geithner, President Obama has pledged to aggressively use all the diplomatic avenues open to him to seek change in China's currency practices.

Geithner noted that when President Obama was a Senator, he cosponsored legislation to overhaul the U.S. process for determining currency manipulation and authorize new enforcement measures, so countries like China cannot continue to get a free pass for undermining fair trade principles.

Geithner stated that President Obama's new economic team will forge an integrated strategy on how best to achieve currency realignment in the current economic environment.

(See ITT's Online Archives or 01/30/09 news, 09013099 1, for previous BP summary on Treasury Secretary Geithner's answers to the Senate Finance Committee questions.

See ITT's Online Archives or 01/03/08 news, 08010315, for BP summary of the Treasury Department's finding of no currency manipulation by China or any other major trading partner.)

Treasury Secretary Geithner's response to Senate Finance Committee questions available at http://finance.senate.gov/sitepages/leg/LEG%202009/012209%20TFG%20Questions.pdf.