President Signs Into Law Pension Protection Bill (Part IV - Customs-Related Technical Amendments)

(The House of Representatives passed H.R. 4 on July 28, 2006 and the Senate passed, without amendment, the House-passed version on August 3, 2006.)

This is Part IV of a multi-part series of summaries of H.R. 4 and focuses on technical amendments to 19 USC regarding Customs modernization. See future issues of ITT for additional summaries of the trade-related provisions of H.R. 4.

Technical Amendments for Customs Modernization

The following are "highlights" of the technical amendments to 19 USC regarding Customs modernization contained in H.R. 4 (see bill text for complete description of all of the technical amendments):

Refunds prior to liquidation not limited to clerical errors, declaration by importer. H.R. 4 will amend 19 USC 1520(a)(4) in order to indicate the refund of duties or other receipts may be authorized as follows (added text is between ; deleted text is indicated by <>):

* * *

(4) Prior to liquidation - Prior to the liquidation of an entry or reconciliation, whenever an importer of record declares or it is ascertained that excess duties, fees, charges, or exactions have been deposited or paid <by reason of clerical error>.

Time limit for merchandise in bonded warehouses beyond 5 years. H.R. 4 will amend 19 USC 1557(a) (withdrawal of merchandise (from bonded warehouse); time; payment of charges) in order to indicate that merchandise may remain in a bonded warehouse beyond the five year limit at the discretion of CBP, upon a proper request being filed and good cause shown.

H.R. 4 will similarly amend 19 USC 1559 (warehouse goods deemed abandoned...) in order to indicate that merchandise may remain in a bonded warehouse beyond the five-year limit (without being regarded as abandoned) at the discretion of CBP, upon a proper request being filed and good cause shown.

Filing of an IASS. H.R. 4 will amend 19 USC 1484(a)(1)(A) to remove language indicating that when making entry, notification must be filed with CBP, on whether an import activity summary statement (IASS) will be filed.

IASS and reconfigured entries for goods released under special delivery permit. H.R. 4 will also revise 19 USC 1484(a)(2)(A) regarding the requirement and time of entry, in order to provide for the filing of Import Activity Summary Statements (IASS), and permit the filing of reconfigured entries, for merchandise released under a special delivery permit pursuant to Section 448(b).

Manipulation in bonded warehouse. H.R. 4 will amend 19 USC 1562 to read as follows (added text is between ; deleted text is indicated by <>):

"Merchandise shall only be withdrawn from a bonded warehouse in such quantity and in such condition as the Secretary of the Treasury shall by regulation prescribe. <Unless by special authority of the Secretary of the Treasury, no merchandise shall be withdrawn from bonded warehouse in less quantity than an entire bale, cask, box, or other package; or, if in bulk, in their entire quantity imported or in a quantity not less than one ton weight. All merchandise so withdrawn shall be withdrawn in the original packages in which imported unless, upon application of the importer, it appears to be the appropriate customs officer that it is necessary to the safety or preservation of the merchandise to repack or transfer the same; except that upon permission therefore> Upon permission being granted by the Secretary of the Treasury, and under customs supervision, at the expense of the proprietor, merchandise may be cleaned, sorted, repacked, or otherwise changed in condition, but not manufactured, in bonded warehouses established for that purpose and be withdrawn therefrom--

(See ITT's Online Archives or 08/11/06, 08/14/06, and 08/16/06 news, 06081115, 06081405, and 06081610, for Parts I-III.

See ITT's Online Archives or 08/03/06 news, 06080399 1, for BP summary on House passage of H.R. 4. See ITT's Online Archives or 08/07/06 news, 06080799 1, for BP summary of Senate passage of H.R. 4.)

H.R. 4, as passed by House and Senate available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:h4enr.txt.pdf.

BP Note

CBP refers to the trade portion of the Pension Protection Act of 2006 (P.L. 109-280) as the Miscellaneous Trade and Technical Corrections Act of 2006.