House Majority Leader Says Customs Conference Likely on Hold, Industry Lashes Into ENFORCE Act Provisions
The House likely won’t hold votes on Customs Reauthorization conference before departing the Capitol in the coming days for a five-week recess, House Majority Leader Kevin McCarthy, R-Calif., told reporters on July 27. The House is yet to launch a conference, despite the Senate doing so in late June (see 1506250019). That means in order to finalize House action on Customs Reauthorization, the chamber would have to hold the procedural vote to go to conference and then a vote on the underlying compromise bill, known as a conference report (see 1507070066)
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“It’s a very thin line to be able to get all that done this week, depending on how long we’re here,” said McCarthy. But “I see progress being made.” The chamber is expected to depart on July 30, he said. House lawmakers are prepared to tackle the customs votes once the House reconvenes in September, said McCarthy without identifying a specific timetable. Nearly two dozen House Democrats recently urged full inclusion of the ENFORCE Act in a final customs bill, along with a number of other priorities (see 1507210020).
U.S. retailers and trade associations, however, voiced some major concerns with the legislation, which outlines CBP deadlines for investigations in evasion complaints, in a July 24 letter to both chambers. The ENFORCE Act “will hinder trade enforcement, jeopardize millions of U.S. jobs, and create confusion, unpredictability, and inefficiency at our borders,” said the letter (here), signed by the National Customs Brokers & Forwarders Association of America, International Wood Products Association and other groups. “In particular, the ENFORCE Act’s definition of ‘evasion’ encompasses situations where no fraud is involved and creates within CBP an administrative process that treats all importers as ‘evaders’ of the law. Supporters of the ENFORCE Act may suggest that their definition is more limited. While that may be the proponent’s intention, a plain reading of the legislation reveals a very broad and problematic definition ultimately harmful to supporters of trade enforcement."
The PROTECT Act, the House-passed counterpart to ENFORCE, would help ensure that innocent importers aren’t subject to due process and judicial review flaws, among others, in ENFORCE, said the groups in the letter. "Even when an importer has a strong compliance system in place, evasion can occur without the U.S. importer having any knowledge or reason to know that it is happening," the groups said. The ENFORCE Act also lacks sufficient recognition of participation within trusted trader programs, said the groups.