TheWeekInCongress

TheWeekInCongress.com

Week Ending July 16, 2004

HR 4418 Customs Border Security Act of 2004

BRIEF

The bill authorizes the level of appropriations and some programs for the US Customs and Border Protection, the US Immigration and Customs Enforcement, the US Trade Representative and the US International Trade Commission.

Floor comments noted that the US Customs Service is now reorganized and placed under the Department of Homeland Security ending the over 220 years of operation as the first department of government established. Although the various elements of Customs have critical responsibilities guarding against terrorism collection of tariffs and managing cross-border trade and legalities there are increasing responsibilities as foreign trade now represents 25 percent of the US Gross Domestic Product.

Comments from committee members on the bill’s shortcomings tended to focus on lost revenue do to outdated procedures and actions taken or not taken that increased the US trade deficit (Reaching $459 billion this week). Minority members noted that a procedure allowing ‘new shippers’ to post a bond against fines has resulted in the failure to collect over $100 million in fines, mostly from importers of Chinese products, because the bonds were worthless. Minorities also expressed confusion over an additional $2 million for the Office of the US Trade Representative that would appear to go towards monitoring and enforcement of trade laws but is not specifically earmarked for that purpose. Despite those concerns the bill was passed out of committee to the House floor with a unanimous vote of 33 to 0.

San Antonio International airports designation as a customs port for private aircraft would be continued.

Sponsor: Rep. Philip M. Crane (R-IL-8^th)

Vote: Passed the House 341 to 85 (RC 373) (July 14, 2004)

Cost to the taxpayers: CBO estimated about $21 billion over the 2005-2009 period, assuming appropriation of the authorized amounts. All but $200 million of this total would be spending for Customs and Border Patrol and Immigration and Customs Enforcement. $80 million would finance the US Trade Representative for two years.