Senate's Customs Reauthorization Bill Would Designate Enforcement Officers at 40 Ports, Raise Informal Entry Limit

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, and provide for more advance trade/congressional consultation.

Informal Entry Limit Would be Raised to $2,500

The statutory limit applicable to informal entries in 19 USC 1498 would be amended to require the Treasury Secretary to prescribe rules and regulations for the declaration and entry of merchandise if the aggregate value of the shipment of merchandise does not exceed $2,500. Excepted from this would be articles that have a value in excess of $250 and are classified under HTS Chapter 94 Sections VII, VIII, XI, or XII, or HTS Chapter 99, Subchapter III or IV.

(The current limit is $2,000, and the Treasury Secretary is authorized (not required) to set a limit up to $2,500.)

De Minimis Per Person Statutory Minimum Would be Raised to $500

1. USC 1321(a)(2)(C) would be amended to authorize the Treasury Secretary to issue regulations to allow certain articles (i.e., other than certain bona fide gifts and personal/household articles accompanying travelers) to be imported free of duty and tax by one person on one day in an amount not exceeding that specified by regulation, but not less than $500 (increased from the current limit of $200).

New Field Ops Customs Facilitation and Trade Enforcement Division

S. 1631 would establish, within CBP's Office of Field Operations, a Customs Facilitation and Trade Enforcement Division, headed by a Deputy Assistant Commissioner appointed by the CBP Commissioner.

In addition to the Deputy Assistant Commissioner, the CBP Commissioner would be required to designate and dedicate not less than five full-time equivalent personnel to operate the Customs Facilitation and Trade Enforcement Division.

Not later than September 30, 2011, the CBP Commissioner would be required to designate and dedicate within the Office of Field Operations (OFO) not less than 40 Commercial Enforcement Officers which would be assigned among the 40 U.S. ports of entry that experienced the highest volume of trade during fiscal year 2009. The Customs Enforcement Officers would supervise all trade enforcement activities of OFO personnel, coordinate with the Office of Trade all trade enforcement activities, direct the training of personnel, and otherwise conduct trade enforcement activities at the assigned port of entry.

24-Hour Commercial Land Border Port of Entry Pilot

S. 1631 would require the President to establish a pilot program under which he would designate certain land border crossings as commercial ports of entry and ensure that each commercial port of entry so designated has sufficient resources to perform its functions 24 hours a day.

Designation of 1-3 ports on each North and South border. Not later than 180 days after the date of the enactment, the President would designate not less than one and not more than three land border crossings on each of the northern and southern borders of the U.S. that meet specified designation criteria as 24-hour commercial ports of entry under the pilot program.

Report. Not later than 90 days before the President makes a determination on the economic benefit of the operation of the port of entry 24 hours a day, the President would be required to submit to the Senate Finance and House Ways and Means Committees a report that provides:

(1) a comparison of the vehicle traffic crossing at each land border crossing before and after it became operational under the pilot program;

(2) an estimate of the total value of commercial goods that crossed each land border crossing designated as a 24-hour commercial port of entry after becoming fully operational as a 24-hour commercial port of entry; and

(3) an analysis of the effect of the designation on wait times at other ports of entry in the same state.

Evaluation of pilot after two years. Not later than two years after the date a port of entry becomes fully operational as a 24-hour commercial port of entry under the pilot program, the President would be required to (i) determine whether the operation of the port of entry 24 hours a day provides a net economic benefit to the U.S.; and (ii) submit a report to the Senate Finance and House Ways and Means Committees on the economic benefit determination and the reasons for that determination.

Termination for port if no economic benefit. If the President determines that operating a port of entry 24 hours a day does not provide a net economic benefit to the U.S., that port of entry shall cease to operate 24 hours a day on the date on which the President submits the above report.

Penalties for Customs Brokers Convicted of Terrorism

S. 1631 would amend 19 USC 1641(d)(1) (Customs broker disciplinary proceedings) by allowing the DHS Secretary to impose a monetary penalty or revoke or suspend a customs broker's license or permit if it is shown that the broker has been convicted of committing or conspiring to commit an act of terrorism described in 18 USC 2332b (acts of terrorism transcending national boundaries).

S. 1631 also makes a few technical amendments to 16 USC 1641.

New CBP Database to Facilitate Origin Marking Verification for Honey

The CBP Commissioner would be required to direct appropriate CBP personnel and resources to address concerns that honey is being imported into the U.S. in violation of the customs and trade laws of the U.S.

The CBP Commissioner would be required to compile a database of the individual characteristics of honey produced in foreign countries to facilitate the verification of country of origin markings of imported honey and to seek to engage the customs agencies of foreign governments for assistance in compiling the database.

FDA National Standard of Identity for Honey Suggested by Congress

S. 1631 also expresses the sense of Congress that the Food and Drug Administration Commissioner should promptly establish a national standard of identity for honey for the CBP Commissioner to use to ensure that imports of honey are (i) classified accurately for purposes of assessing duties; and (ii) denied entry into the U.S. if such imports pose a threat to the health or safety of consumers in the U.S.

Public Comments Solicited by CBP on its Website Would Have to be Posted, Etc.

Not later than December 31, 2009, the CBP Commissioner would be required to provide for the (i) electronic submission and posting of any public comments solicited by CBP on its Web site; and (ii) prompt posting of public comments associated with any CBP rulemaking on the Federal Government Internet website for Federal regulations, www.regulations.gov, or any successor website.

(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, and 09/15/09 news, 09080715, 09081305, 09081405, 09081920, 09082015, 09082610, 09082715, 09082815, and 09091505, 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.