BACM legislation modified, moves forward

BACM legislation modified, moves forward '''Legislation to modernize U.S. Customs’ import process has been modified and is ready to be included in the House version of the proposed miscellaneous trade bill.
''''The legislation, known as H.R. 4337, was proposed by the U.S. Business Alliance for Customs Modernization earlier this year. This group of 22 major importers, including firms such as Sara-Lee, Wal-Mart, BP-Amoco and Target, has met with numerous industry associations and congressional staffers in recent months to prepare the legislation to move forward.
''''In the revised H.R. 4337, Congress will mandate that the Treasury Secretary undertake a six-month study into how Customs should reduce or eliminate outdated procedures in the import clearance process.
''''The study must consider what data is needed to be filed at the time of cargo release or what data should be reported at a later date in an importer activity summary statement. The summary statement is included in the 1993 Customs Modernization Act, but has never been implemented.
''''Customs is also directed to find more efficient ways to collect import data and how to use new data collection methods to improve its inspection process so not to obstruct the flow of legitimate trade. Importers estimate that Customs’ current data collection procedures alone add 5 percent to their costs to clear their goods.
''''In addition, H.R. 4337 requires Customs to implement new regulations that will eliminate the tedious requirement of importers having to file separate entries for split shipments. Mid-point interest filing for reconciliation purposes will also be extended.
''''The revised legislation, however, excludes earlier provisions proposed by BACM, such as establishing a corrective period for import data and creating the ability to net and offset under-declarations and over-declarations. BACM, Customs and industry associations have not yet reached consensus on these provisions.
''''”This is a small step in the right direction,” said James P. Finnegan, director of international trade and compliance for Sony Electronics and chairman of BACM. “It’s a springboard for us to introduce further legislative changes next year.”
''''The House version of the bill was sponsored by Rep. Bill Thomas, R-Calif. of the Ways and Means Trade Subcommittee. The Senate Finance Committee is also considering its version of the BACM legislation and may add its own provisions to the final legislation, Finnegan said.