Ports back bill to limit Customs charging for inspection services

House bill would ensure adequate CBP funding

CBP officers inspect cargo arriving at the Port of Philadelphia. (Photo: CBP/James Tourtellotte)
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Key Takeaways:

  • The American Association of Port Authorities (AAPA) supports the SPACE Act, a bill aiming to clarify CBP's leasing authority and ensure adequate federal funding for port inspection services.
  • The bill seeks to address CBP's practice of billing ports for inspection costs, a responsibility historically borne by the federal government.
  • The legislation aims to improve CBP's infrastructure at seaports, enhance coordination with port authorities, and utilize existing user fees for more transparent funding.
  • The bill has broad support from various trade and transportation organizations, emphasizing its potential to improve supply chain resilience and port efficiency.
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Ahead of an expected expansion by the Trump administration, port operators are backing a House bill that would limit Customs and Border Protection’s billing of ports for inspection services. 

The American Association of Port Authorities (AAPA) in a release endorsed the reintroduction of the bipartisan CBP Securing Ports and America’s Commerce and Economy (SPACE) Act by U.S. Reps. Laurel Lee (R-Fla.) and Marie Gluesenkamp Perez (D-Wash.). The measure, H.R. 4336, aims to address a critical aspect of U.S. port operations by ensuring that Customs and Border Protection is adequately funded, thus facilitating what it said would be optimal functioning of America’s ports.

According to a summary from the lawmakers, the act aims to clarify CBP’s leasing authority for operational space at seaports and other facilities, close enforcement gaps due to inadequate infrastructure, and enhance coordination with port authorities to bolster U.S. supply chain security.

Traditionally, the cost associated with government inspection operations at ports has been the responsibility of the federal government. 

“CBP Officers’ work is crucial to the safety, health, and vitality of America’s ports,” said Cary Davis, AAPA president and chief executive, in a release. “The costs of government inspection operations are historically and constitutionally, a federal government responsibility.” 

The agency has indicated that it wants ports to cover the cost of screening equipment or operations may be halted.

When introducing the bill, the lawmakers noted that Customs officers at many seaports operate in temporary or makeshift facilities because outdated legal restrictions prevent the agency from obtaining long-term leases.

The act aims to reutilize the existing user fees collected by the CBP, creating a more transparent financial strategy that ensures responsibility and sufficiency at the federal level.

This legislation is particularly significant given the vital role that ports play as economic engines and gateways for international trade. 

“In our post-Covid world, more people are now aware of the supply chain and the interconnectedness between ports and all of the partners necessary to keep product and people moving,” said Richard J. Hendrick, CEO of the Port of Albany, in the release.

The bill has garnered support from a coalition of 27 trade, transportation, supply chain, and agriculture organizations.

The AAPA said that the legislation not only presents a path towards enhanced operational efficiency at ports but also potentially bolsters the resilience of the supply chain. By securing federal funding for CBP, ports can focus resources on improving infrastructure and expanding capacity, ultimately benefiting the economy at large.

“Ports’ roles as economic engines and gateways for American products are strengthened when CBP is doing all it can to support them,” said Julianna Marler, CEO of the Port of Vancouver, Wash. “This sentiment underscores the necessity of the proposed legislation to facilitate a cooperative framework that enhances the capacity and functionality of American ports.”

Find more articles by Stuart Chirls here.

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Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.