Senate's Customs Reauthorization Bill Would Allow $325 Million in MPF Collections for ACE/ITDS, Etc.

According to Senator Baucus, S. 1631 would direct U.S. Customs and Border Protection and Immigration and Customs Enforcement to make customs facilitation and trade enforcement a priority again. Among other things, the bill would emphasize CBP's commercial responsibilities, provide for additional Customs-Trade Partnership Against Terrorism benefits, establish a new entry facilitation trade partnership, create an interagency import safety working group, strengthen IPR enforcement, strengthen and expand the forced/child labor law, revise the drawback statute, require a Joint Strategic Plan, provide for more advance trade/congressional consultation, designate enforcement officers at 40 ports, raise the informal entry limit, and amend HTS Chapter 98.

Bill Would Allow $325 Million in MPF Collections for ACE/ITDS, Etc.

S. 1631 would amend 19 USC 58c(f)(5) to require $325 million to be deposited into the Customs Commercial and Homeland Security Automation Account (Account), from the merchandise processing fee (MPF) on formal entries, in each of fiscal years (FYs) 2010-2012.

S. 1631 would then authorize appropriations¹ from the Account in FYs 2010-2012 such amounts as are available in the Account to complete the development, establishment, and implementation of ACE and for other purposes related to DHS functions.

S. 1631 would also authorize appropriations¹ from the Account in the amount of $25 million for each of FYs 2010-2012 for the International Trade Data System (ITDS).

CBP and GAO Reports to Congress on CBP's Plans for Completing ACE

Not later than December 31, 2009, the CBP Commissioner would be required to submit to specified congressional committees a report specifying:

CBP's plans and deadlines for incorporating all cargo release data elements into ACE not later than September 30, 2012, to conform with the admissibility criteria of agencies participating in the ITDS;

CBP's remaining priorities for incorporating entry summary data elements, cargo manifest data elements, and cargo financial data elements into ACE and its objectives, plans, and deadlines for implementing those priorities not later than September 30, 2012.

The CBP Commissioner would also be required to submit an updated report to selected congressional committees not later than December 31, 2010, and September 30, 2011.

Not later than December 31, 2012, the Government Accountability Office would be required to submit to specified congressional committees a report (i) evaluating the cost and effectiveness of CBP's efforts to complete the development, establishment, and implementation of ACE; and (ii) assessing the extent to which any additional functionality may be added into ACE at a reasonable cost.

Instructions to Treasury to Work with PGAs on ITDS

S. 1631 would add a new provision in 19 USC 1411(d) to require the Treasury Secretary to work with the head of each agency participating in the ITDS and the Interagency Steering Committee to ensure that each such agency:

a) develops and maintains the necessary information technology infrastructure to support the operation of the ITDS;

b) enters into a memorandum of understanding, or takes such other action as is necessary, to provide for the information sharing between the agency and CBP necessary for the operation and maintenance of the ITDS; and

c) not later than November 30, 2009, identifies and transmits to the CBP Commissioner the admissibility criteria and data elements required by the agency to authorize the release of cargo by CBP for incorporation into the operational functionality of ACE.

S. 1631 would also require the President to submit a report before the end of FYs 2010, 2011, and 2012 to selected congressional committees on ITDS implementation, participation, etc.

Separate Budgets for CBP Commercial and Noncommercial Operations

S. 1631 would require the President to transmit two separate budget requests for CBP - one for commercial operations and another for noncommercial operations.

Authorization of Appropriations for CBP

S. 1631 would amend 19 USC 2075, regarding the authorization of CBP appropriations¹ to, among other things:

authorize appropriations to DHS for CBP

authorize FY 2010-2012 appropriations for CBP salaries and expenses that are incurred in commercial operations (to be appropriated from the Customs User Fee Account)

require future authorizations to specify the amounts authorized for commercial and non-commercial operations)

provide that no funds may be used to provide importers less than ten days to pay estimated duties owed

require the CBP Commissioner to use any savings in salaries and expenses that result from consolidation of administrative functions to strengthen commercial operations by increasing the number of personnel dedicated to customs revenue functions.

require the CBP Commissioner to notify the Senate Finance and House Ways and Means Committees at least 180 days before taking any action that would (1) significantly reduce the number of CBP employees, or the number of hours of operation or services provided at any CBP office or U.S. port; (2) eliminate or relocate any CBP office; (3) eliminate any U.S. port of entry; or (4) significantly reduce the number of employees assigned to any CBP office or function.

S. 1631 would also rename the Resource Allocation Model² in section 301 of the Customs Procedural Reform and Simplification Act of 1978 as the Resource Optimization Model.

¹Authorization 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.)

²CBP has previously stated that its RAM is a statistically valid and objective management tool designed for and used by Customs to project Customs' entire staffing requirements for core operational occupations and positions required to support core occupations.

(See ITT's Online Archives or 08/07/09, 08/13/09, 08/14/09, 08/19/09, 08/20/09, 08/26/09, 08/27/09, 08/28/09, 09/15/09, 09/16/09, and 09/18/09 news, 09080715, 09081305, 09081405, 09081920, 09082015, 09082610, 09082715, 09082815, 09091505, 09091610, and 09091830, for previous BP summaries on 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.