AAEI Asks for Moratorium on 102 and Lacey Act Regulations, Quicker ACE Rollout, Etc.

AAEI is asking the President and Congress to take action to spur private investment and expand trade without spending additional public funds.

Highlights of AAEI's recommended actions include (partial list):

Moratorium on 102 and Lacey Act rules, etc. An Executive Order directing a moratorium on all pending trade-related regulations (such as 102, the Lacey Act Amendments, etc.) would have an immediate benefit of freezing the current regulatory environment, and supports the spirit of the Regulatory Review memorandum issued by Chief of Staff Emanuel on January 20, 2009¹.

Enact pending FTAs. Enact the already negotiated free trade agreements with Colombia, Korea, and Panama, which will help assure U.S. trading partners concerned about the "Buy American" provision contained in the American Recovery and Investment Act² that the U.S.will not abandon global trade.

Amend pending legislation to delay implementation/enforcement dates. The U.S. continues to face a number of challenges, such as trade security and product safety, which require Congressional action. Already, there are a number of bills, including one seeking an annual registration fee of $10,000 for importers of drugs, devices, foods and cosmetics³.

AAEI states it does not oppose the importance of such legislation, but seeks Congressional restraint by delaying implementation and enforcement of these requirements to allow the trade significant time to adjust.

Speed up rollout of ACE and ITDS. The President should directU.S. Customs and Border Protection (CBP) to speed up the rollout of two critical trade facilitation programs, the Automated Commercial Environment and the International Trade Data System. AAEI notes that these programs are already funded by user fees assessed on the trade community through the Merchandise Processing Fee (MPF) at the time of entry.

Streamline export controls. The report recently issued by the National Academy of Sciences, "Beyond Fortress America,"⁴ provides a good first step and road map for streamlining the export control process. The report suggests that the President issue an Executive Order implementing the recommendations, and AAEI supports Presidential action recognizing the importance of promoting U.S. competitiveness in restructuring the U.S. export controls process.

Expand CIT's jurisdiction to include trade security and exports. A bill will soon be introduced to expand the jurisdiction of the U.S. Court of International Trade, an Article III court, to handle trade security and export matters in addition to its current case load of customs matters, antidumping and Trade Adjustment Assistance claims. If this bill is passed the private sector will have one exclusive tribunal to bring trade-related cases.

Pass the Drawback Simplification Act. AAEI states that the Drawback Simplification Act has languished in the last two sessions of Congress, and believes that quick action on this statute, either as a stand alone bill or part of a legislative package, would create jobs by making exports more profitable for U.S. companies.

¹See ITT's Online Archives or 01/22/09 news, 09012205, for BP summary of the memo.

²H.R. 1, The Economic Stimulus Bill recently enacted into law contains Buy American provisions for (i) iron, steel, and manufactured goods; and (ii) certain textiles, clothing, etc. (See ITT's Online Archives or 02/17/09 news, 09021720, for BP summary.)

³See ITT's Online Archives or 02/18/09 news, 09021820, for BP summary of H.R. 759, which includes a provision requiring importers to pay a registration fee.

⁴Report available for online reading or purchase at http://books.nap.edu/catalog.php?record_id=12567toc

AAEI letter (dated 02/25/09) available at http://www.aaei.org/aaei/files/ccLibraryFiles/Filename/000000004159/GREX-WH%20%20Ltr%20to%20President%20Obama%20re%20Stimulus%20Package%20for%20Trade%20%2802-25-09%29.pdf