Senate's Customs Reauthorization Bill Would Reorganize CBP to Emphasize Commercial Operations, Etc.

According to Senator Baucus, S. 1631 would direct Customs and Border Protection and Immigration and Customs Enforcement to make customs facilitation and trade enforcement a priority again, and it would provide the agencies with the tools and resources that they need to fully discharge those duties.

Highlights of S. 1631's reorganization of CBP include:

Commissioner Would No Longer Be Only Political Appointee

CBP would be headed up by a Commissioner who would be appointed by the President with the advice and consent of the Senate, and report directly to the Secretary of Homeland Security (Secretary).

Commercial operations responsibilities. S. 1631 would also define the Commissioner's duties with respect to commercial operations. Most would revolve around the (i) facilitation of legitimate international trade and (ii) enforcing customs and trade laws, including (partial list):

administering any customs revenue function delegated by Treasury to Homeland Security by the Homeland Security Act of 2002,

collecting, assessing, and disseminating information as appropriate regarding cargo destined for the U.S., and

soliciting and considering on a regular basis input from the private sector, including the Commercial Customs Operations Advisory Committee¹ (CCOAC), the Trade Support Network (TSN), and affected private sector entities regarding customs and trade laws, policies, and regulations.

New "Principal Deputy Commissioner" Would Also be Political Appointee

S. 1631 would establish a new position of Principal Deputy Commissioner who would be appointed by the President, with the advice and consent of the Senate.

Focus would be commercial operations, ACE. The Principal Deputy Commissioner's duties would include (partial list):

primary oversight of the commercial operations of CBP;

overseeing the operations of the new Office of Trade;

coordinating the establishment of standards and policies for designing, developing, delivering, and evaluating training programs for CBP personnel with responsibilities for customs facilitation and trade enforcement;

overseeing the development and implementation of information technology, research, and communication functions (including the Automated Commercial Environment (ACE)); and

overseeing the administration of customs revenue functions performed by CBP.

Deputy Commissioner Would Have Primary Oversight of Security

S. 1631 would also provide for a Deputy Commissioner who would be responsible for (i) primary oversight of the security operations of CBP, including field operations at land borders and ports of entry; (ii) overseeing the noncommercial analysis and dissemination of information collected by CBP; and (iii) overseeing the enforcement of laws, other than the customs and trade laws of the U.S., by CBP at land borders and ports of entry, including the detection, interdiction, or apprehension of cargo destined for the U.S. or persons seeking entry into the U.S. in contravention of such laws.

New Office of Trade Would be Established

S. 1631 would establish within CBP a new Office of Trade that would be headed by an Assistant Commissioner.

The Secretary would be required to transfer the assets, functions, personnel, and liabilities of the current Office of International Trade², the Office of International Affairs, and the Office of Trade Relations to the new Office of Trade.

(S. 1631 would also abolish CBP's current Office of International Trade, Office of International Affairs, and Office of Trade Relations.)

Trade Advocate Would Serve as Primary Liaison Between CBP and Trade

S. 1631 would also require the CBP Commissioner to appoint, within the new Office of Trade, a new Trade Advocate, who would report directly to the Assistant Commissioner. The Trade Advocate would (partial list):

serve as the primary liaison between CBP and the public with respect to CBP's administration of customs facilitation and trade enforcement functions;

serve as a liaison between the Office of Trade and the Office of Field Operations (OFO) with respect to the administration of customs facilitation and trade enforcement functions;

consult with interested persons in the private sector, the CCOAC, and the TSN, for their input with respect to CBP's (i)development and implementation of rules, regulations, decisions, notices, etc. related to the U.S. customs and trade laws administered by CBP; (ii) development of a Joint Strategic Plan; (iii) assessment of the effectiveness of customs facilitation and trade enforcement efforts; and (iv) trade modernization activities, including the development of the ACE and the International Trade Data System.

Interagency Customs Review Board Would Review Proposed CBP Changes

S. 1631 would establish an interagency Customs Review Board which would be comprised of the Commissioner, DHS Assistant Secretary for Policy, Treasury Assistant Secretary for Tax Policy, the Commerce Department's Under Secretary for International Trade; and the designed Deputy U.S. Trade Representative.

Before CBP could publicly propose or adopt a proposed change to a customs regulation, interpretation, or practice, the interagency Customs Review Board would be required to review the proposed change to determine if the proposed change conforms to U.S. international trade obligations.

No Revision to Definition of "Customs Revenue Function"

S. 1631 would define "customs revenue function" in the same way as in the Homeland Security Act of 2002 (6 USC 215). (See ITT's Online Archives or 02/11/03 and 05/23/03 news, 03021105 and 003052305, for BP summaries on the definition of "customs revenue function" as contained in the Homeland Security Act of 2002.)

¹S. 1631 would require the Secretaries of Homeland Security and Treasury to jointly establish a Commercial Customs Operations Advisory Committee (CCOAC) by June 30, 2010. CCOAC would advise the Secretaries of Treasury and Homeland Security on all matters involving the commercial operations of CBP and ICE; (2) provide recommendations to the Secretaries on improvements that CBP and ICE should make to their commercial operations; and (3) perform other functions relating to the commercial operations of CBP and ICE as prescribed by law or as directed by the Secretaries. See future issues of ITT for additional details on CCOAC.

²established pursuant to section 402 of the Security and Accountability for Every (SAFE) Port Act of 2006 (Public Law 109-347).

(See ITT's Online Archives or 08/07/09 news, 09080715, for BP summary on the introduction of S. 1631.)

Senate Finance Committee press release (dated 08/06/09) available at http://finance.senate.gov/press/Bpress/2009press/prb080609.pdf.

Senate Finance Committees section-by-section summary available at http://finance.senate.gov/sitepages/leg/LEG%202009/080609%20Customs%20Section%20by%20Section.pdf.

S. 1631 available at http://finance.senate.gov/sitepages/leg/LEG%202009/080609%20Customs%20Reauthorization%20Bill.pdf.

Senator Baucus' floor statement on S. 1631 (dated 08/07/09) available at http://finance.senate.gov/press/Bpress/2009press/prb080709.pdf.