Senate Customs Bill, Already Gaining Some Industry Support, Includes New Sections on Import Safety, IP
Customs reauthorization legislation introduced in the Senate March 22 is already garnering support from some in the industry, who say the bipartisan bill, combined with progress on the two House customs bills introduced last term, proves Congress is committed to CBP reauthorization this year. Sponsored by Finance Committee leaders Max Baucus, D-Mont., and Orrin Hatch, R-Utah, the Senate bill “contains several measures that will build on recent progress in improving CBP’s approach to trade facilitation and bringing a better balance to the agency by widening their focus beyond a narrow approach to security,” said Mike Mullen, executive director of the Express Association of America. Mullen praised the bill’s inclusion of trusted trader programs -- which he said will forge a more secure trading environment -- the planned strengthening of the trade advocate position, and the proposed $800 de minimis level. (See 13032610 and 13032701 for more on the Senate bill).
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The Baucus-Hatch bill does include a section on antidumping and countervailing duties; 15 customs-related associations recently asked Congressional leaders to remove in the interests of pushing the bill forward (see 13032501). The AD/CVD section is the only difference between the two House bills. Mullen said it still “would be better” if the AD/CVD issue was set aside. “[We] prefer to see that issue not in there if it’s going to cause contention.”
Customs reauthorization is “clearly going to be a priority for Congress this year,” said another high-level industry source. “My sense is that they [Congress] do believe there is a real deadline,” the source added, citing movement on global trade deals, like the World Trade Organization trade facilitation agreement, which partners are working to finish by December’s Bali Ministerial Conference.
The Baucus-Hatch bill generally follows the same path as the two House customs bills introduced last term: HR-6642 and HR-6656 (here and here). There are, however, some brand-new provisions in the Senate bill, including:
Illegal Drug Control
The bill assigns some new responsibilities to the CBP Commissioner and the Director of Immigration and Customs Enforcement. The two must draft a list of which components of U.S. drug control laws the agencies have authority over, and start work on a drug control law enforcement strategy. They would also be required to submit a report to congressional committees on the number and extent of likely violations of drug control laws for the coming year, plus the relative incidence of such violations among U.S. ports of entry. The report would be confidential, disclosed only to relevant House and Senate members, their staff, and government employees designated by the commissioner or director. Within 90 days of the report's submission, CBP and ICE would also be required to develop a strategy on how to best enforce drug control laws and address the estimated violations.
Import Safety
The bill creates an interagency Import Safety Working Group, charged with crafting a joint import safety rapid response plan on practices CBP should use to respond to cargo that poses a health or safety threat to U.S. consumers. The working group would consist of various trade-related federal agencies, including Homeland Security, Treasury, Commerce, Agriculture, the Office of the U.S. Trade Representative and Health and Human Services. The CBP commissioner would be required to test the plan, in conjunction with federal, state and local agencies, then share best practices and recommendations with stakeholders.
Intellectual Property
The Baucus-Hatch bill has a much broader intellectual property (IP) section than the House bills. It creates a National Intellectual Property Rights Coordination Center, requires the commissioner to ensure “sufficient” personnel for intellectual property rights enforcement and effective training for those personnel on how to detect IP infringement. The bill also requires the Homeland Security director to develop and implement a public education campaign to educate travelers about the implications of importing intellectual property right-infringed goods into the U.S.
Honey Transshipment
Under the bill, CBP must direct appropriate resources to address concerns about honey import violations. The agency would also have to begin building a database -- with the help of foreign governments, private industry and the Food and Drug Administration -- of individual characteristics of honey produced in foreign countries. Within 180 days of the bill’s passage, the agency would release a report analyzing existing capabilities on determining honey’s country of origin. -- Jessica Arriens