NCBFAA INITIATES ?GRASSROOTS? CAMPAIGN TO REFORM BANKRUPTCY LAW

NCBFAA INITIATES ôGRASSROOTSö CAMPAIGN TO REFORM BANKRUPTCY LAW    With Congress returning to session this week, the National Customs Brokers and Forwarders Association of America has launched a “grassroots” campaign to reform the country’s bankruptcy law.
   “Currently, if an importer files for bankruptcy, Customs has a priority over other creditors in the proceeding while customs brokers must go to the back of the line to pursue a claim,” said Jon Kent, legislative representative for the NCBFAA. “This is unfair to the brokers as they advance duty payments to Customs. Customs benefits greatly from this service that brokers render.”
   Last year, Rep. Lindsey Graham, R-S.C., introduced legislation (H.R. 2569) to amend the bankruptcy code so that brokers would receive some measure of protection against insolvent importers. “The bill would establish ‘priority’ for duty payments that brokers advance to the Customs Service on behalf of importers who later file for bankruptcy,” Kent said.
   The NCBFAA has asked its members to send letters to their representatives in support for H.R. 2569. “Now is the time for NCBFAA members to begin preparations for a grassroots campaign for this legislation,” Kent said.