BACM PREPARES FOR MOD ACT II LEGISLATION IN 2000-01

BACM PREPARES FOR MOD ACT II LEGISLATION IN 2000-01    The U.S. Business Alliance for Customs Modernization will assemble with its industry association allies in Washington for an all-day meeting Friday to prepare for the upcoming legislative year.
   During the past year and half, BACM, a group of 22 large importers, has maintained an aggressive agenda to modernize Customs’ import process in accordance with what was promised to the industry in the 1993 Customs Modernization Act.
   Along with other industry groups, such as the National Customs Brokers and Forwarders Association of America, the Joint Industry Group, the American Association of Exporters and Importers, and the Customs and International Trade Bar Association, BACM crafted legislation (H.R. 4868) in the House version of miscellaneous trade bill that calls for a six-month Treasury study into how Customs could reduce or eliminate procedures in the import process.
   The legislation requires Customs to find a more efficient way to collect import data and how to use it to improve its cargo inspection process. It also requires the agency to implement new regulations that will eliminate the tedious requirement of importers having to file separate entries for split shipments. In addition, mid-point interest filing for reconciliation purposes will be extended.
   H.R. 4868, however, excludes earlier provisions sought by BACM, such as establishing a corrective period for import data and creating the ability to net and offset overdeclarations and underdeclarations.
   The Senate Finance Committee is also considering its version of the BACM legislation, and may add its own provisions or BACM’s original provisions from H.R. 4337 to the final legislation. The committee is expected to act on the legislation before the end of the month.
   Other potential provisions include a 60-day corrective period in Customs’ Automated Broker Interface system, the ability to file “no-change” liquidations, the elimination of origin markings for minor product accessories, and a change in Customs law to permit offsetting of underdeclarations with overdeclarations during a Customs audit review.
   But the battle to reform Customs’ import processes is far from over. “We’re setting the stage for Mod Act II legislation in the coming year,” said James P. Finnegan, director of international trade and compliance for Sony Electronics and chairman of BACM.