NCBFAA Warns Congress of Problems with Registered Agents Bill
On June 22 2010, the National Customs Brokers and Forwarders Association of America sent a letter to House Ways and Means Committee Chairman Levin (D) and Ranking Member Camp (R) urging them to exercise Ways and Means Committee jurisdiction over H.R. 4678, the Foreign Manufacturers Legal Accountability Act.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
According to the letter, H.R. 4678 would require foreign manufacturers whose products are sold in the U.S. to designate a registered agent for service of process in U.S. courts. Without a registered agent, the foreign manufacturers’ products would be prohibited entry into the U.S.
Highlights of NCBFAA Concerns with H.R. 4678
In the letter, NCBFAA listed the following concerns over H.R. 4678:
Ways and Means review needed. NCBFAA states that H.R. 4678 has been referred to the House Energy and Commerce Committee, but that it is essential that the House Ways and Means Committee have an opportunity to review the bill.
Foreign manufacturers would not be accountable.H.R. 4678 would not realize the stated goal of holding foreign manufacturers accountable. NCBFAA states that serving court papers on ”registered agents” is a false promise as most foreign courts would not enforce a U.S. court judgment against the foreign manufacturer.
CBP, CPSC, FDA already have seizure, detention powers. H.R. 4678 overlooks the fact that U.S. Customs and Border Protection (CBP), the Consumer Product Safety Commission (CPSC), the Food and Drug Administration (FDA), among other agencies, already have broad powers to seize, detain, or refuse entry to defective or tainted products.
U.S. exporters could be target of similar provisions. H.R. 4678 fails to consider the inadvertent, but highly detrimental, impact on U.S. companies when U.S. foreign trade partners reciprocate with their own “registered agent” provisions (as they are likely to do). It will be difficult and expensive for small and medium-sized companies to maintain registered agents in all the foreign markets to which they export. In addition, an even greater disincentive will be the exposure to litigation in countries whose legal systems may not have the same safeguards and transparency as the U.S.
House Bill Has 62 Co-Sponsors, Similar Senate Bill Has 15
H.R. 4678 currently has 62 co-sponsors. The Senate version of this legislation (S. 1606) currently has 15 co-sponsors and has been referred to the Senate Finance Committee. S. 1606 contains the same provisions as H.R. 4678, plus two provisions that are not found in H.R. 4678 -- a Congressional findings provision and a sense of Congress provision. (See ITT’s Online Archives or 09/02/09 news, 09090215, for BP summary of S. 1606.)
Supporters May Attempt to Attach S. 1606 to Another Bill
According to one trade source, there were efforts underway to attach S. 1606 to H.R. 4213, the American Jobs and Closing Tax Loopholes Act (the Tax Extenders or Jobs bill), which was being considered by the Senate. Press reports indicate that the Senate Majority Leader has pulled H.R. 4213 from further Senate consideration. It is not known if supporters will attempt to attach S. 1606 to another bill.
See ITT’s Online Archives or 06/17/10 news, 100617100, for BP summary on June 16, 2010 hearing on H.R. 4678.
See ITT’s Online Archives or 03/25/10 news, 10032515, for BP summary on the introduction of H.R. 4678.