Details on House-Passed Customs Border Security and Trade Agencies Authorization Act

This is Part III of a multi-part series of summaries on H.R. 4418 and focuses on various miscellaneous provisions and technical corrections. (See ITT's Online Archives or 07/22/04 and 07/23/04 news, 04072215 and 04072310, for Parts I and II. See future issues of ITT for additional summaries on H.R. 4418.)

12 Days to Deposit Estimated Duties and Fees

H.R. 4418 would amend the provisions on the deposit of estimated duties and fees in 19 USC 1505(a) in order to require (unless the entry is subject to a periodic payment referred to in this subsection or the merchandise is entered for warehouse or transportation, or under bond) the importer of record to deposit with U.S. Customs and Border Protection (CBP) estimated duties and fees at time of entry, or at such later time as may be prescribed by regulation (but not later than 12 working days after entry or release).

(19 USC 1505(a) currently states that the deposit of estimated duties and fees must be not later than 10 working days after entry or release.)

Regulations for Periodic Payment of Estimated Duties and Fees

H.R. 4418 would also amend 19 USC 1505(a) in order to require, as soon as a periodic payment module of the Automated Commercial Environment (ACE) is developed, but no later than October 1, 2004, the promulgation of regulations, after testing the module, permitting a participating importer of record to deposit estimated duties and fees for entries of merchandise (other than merchandise entered for warehouse, transportation, or under bond) no later than 15 working days following the month in which the merchandise is entered or released, whichever comes first.

(19 USC 1505(a) currently does not mention the promulgation of regulations, and states that no later than the above October 1, 2004 timeframe, a participating importer of record, or the importer's filer, may deposit estimated duties and fees (without an exclusion for merchandise entered for warehouse, transportation, or under bond) no later than the 15th day of the month following the month in which the merchandise is entered or released, whichever comes first.)

Reimbursements and Payments to CBP for Goods Processed at an Express Consignment Carrier Facility, Centralized Hub Facility, Etc.

H.R. 4418 would amend the provision for the reimbursement and payment to CBP under 19 USC 58c(b)(9)(A) for the processing of letters, documents, records, shipments, merchandise, or any other item (except items entered for transportation and exportation or immediate exportation) at small airports and other facilities, express consignment carrier facilities, or centralized hub facilities so that it applies to items valued at $2,000 or less (rather than the current threshold of less than $2,000).

Application of MPF to Formal Entries Processed at Express Consignment Carrier and Centralized Hub Facilities

H.R. 4418 would amend 19 USC 58c(b)(9)(A)(ii) regarding the payment to CBP for the processing of letters, documents, etc. (see above list) at express consignment carrier facilities or centralized hub facilities in order to state that the following fees would apply:

$.66 per individual airway bill or bill of lading; and

if the merchandise is formally entered, the fee provided for in 19 USC 58c(a)(9), if applicable. (19 USC 58c(a)(9) provides for the merchandise processing fee (MPF) for formal entries.)

(Current 19 USC 58c(b)(9)(A)(ii) does not state formal entries are subject to the MPF.)

H.R. 4418 would also make a conforming change to 19 USC 58c(b)(9)(B)(ii) to reflect the above revisions.

Extension of the Designation of San Antonio International Airport for Processing Certain Private Aircraft

H.R. 4418 would extend for an additional four years (for a total of six years from the November 9, 2000 date of enactment of the Tariff Suspension and Trade Act of 2000 (P.L. 106-476)), the designation of San Antonio International Airport as an airport at which certain private aircraft may land for processing by CBP.

Integrated Border Inspection Areas at the U.S.-Canada Border

H.R. 4418 would require the Commissioner of Customs, in consultation with the Canadian Customs and Revenue Agency (CCRA), to seek to establish Integrated Border Inspection Areas (IBIAs), such as areas on either side of the U.S.-Canada border, in which Customs officers can inspect vehicles entering the U.S. from Canada before they enter the U.S., or Canadian Customs officers can inspect vehicles entering Canada from the U.S. before they enter Canada.

Among other things, H.R. 4418 would require the Commissioner of Customs, in consultation with the CCRA, to seek to locate IBIAs in areas with bridges or tunnels with high traffic volume, significant commercial activity, and that have experienced backups and delays since September 11, 2001.

Customs Services for Charter Air Carrier Flights

H.R. 4418 would amend 19 USC 58c(e)(1) regarding the provision of customs services in order to permit CBP to provide services for charter air carrier passengers and their baggage for flights arriving after normal operating hours upon their request and at their expense.

Sense of Congress on Interpretation of Textile and Apparel Provisions

H.R. 4418 also includes a statement that it is the sense of Congress that CBP should interpret, implement, and enforce the provisions of 19 USC 3721 (African Growth and Opportunity Act (AGOA)), 19 USC 3203 (Andean Trade Preference Act (ATPA)), and 19 USC 2703 (Caribbean Basin Economic Recovery Act (CBERA)), relating to preferential treatment of textile and apparel articles, broadly in order to expand trade by maximizing opportunities for imports of such articles from eligible beneficiary countries.

H.R. 4418, as passed by the House, available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4418eh.txt.pdf,BP Note

Many of the provisions summarized above appear to be substantially similar to certain provisions included in either the House- or Senate-passed versions of H.R. 1047, the Miscellaneous Trade and Technical Corrections Act of 2003.

(See ITT's Online Archives or 03/24/04 and 04/21/04 news, 04032415 and 04042120, for BP summaries of Senate-passed version of H.R. 1047. See ITT's Online Archives or 03/10/03 and 03/26/03 news, 03031005 and 03032615, for BP summaries of House-passed version of H.R. 1047.)