Importers' bill seeks entry simplification

By Staff -- Logistics Management, 5/1/2000

Support for simplifying the complex import entry process is growing. In March, four organizations-the American Association of Exporters and Importers, the Joint Industry Group, the U.S. Business Alliance for Customs Modernization (BACM), and the National Customs Brokers and Forwarders Association of America-met in Washington to discuss that subject. BACM has taken the lead in bringing entry simplification to Congress's attention. The group, which includes 21 of the largest U.S. retailers and manufacturers, has proposed legislation that would authorize numerous changes to entry processing. California Rep. William M. Thomas introduced that bill in April as H.R. 4337.

BACM Chairman Jim Finnegan, manager of international trade and compliance for Sony Electronics, emphasizes that BACM's initiative is separate from the Customs Service's Entry Revision Project (ERP) proposal. (See "Customs proposal could ease importers' burden," Page 63.) BACM's legislation, he explains, contains near-term technical changes that would make the account-based processes that were envisioned in the Customs Modernization Act (the Mod Act)-but have never been implemented-available to importers.

H.R. 4337 addresses many issues that have long been bugaboos for importers. In brief, some of its most important proposals would do the following:

• Allow importers to file at time of entry only the data required to determine admissibility. It would preserve the Customs Service's right to seek additional information but only as it related to whether the goods may be refused entry into the United States. All other data could be filed later on an aggregate basis.

• Mandate implementation of Import Activity Summary Statements, which were defined in the Mod Act as periodic transmissions of data that would allow the Customs Service to collect accurate trade statistics; assess duties, taxes, and fees; and ensure other legal requirements were met. Importers would have the choice of using IASS or the current transaction-based entry methods.

• Eliminate the requirement that entries requiring later amendment be "flagged." Amendments would be handled as ordinary corrections under a longer corrective period than is now permitted.

• Specify that certain types of errors be classified as immaterial clerical errors and allow importers to offset duty overpayments against underpayments. The Customs Service would receive the resulting net payments.

• Exempt containers, pallets, and similar devices from tracking requirements for customs purposes.

• Allow importers of project cargoes that must be shipped in sections to classify the goods for entry under a single description of the whole, rather than classify each component part individually. Post-importation adjustments could be allocated to the whole rather than proportionately to individual line items.

Finnegan says the bill has not generated any significant opposition, and he hopes the legislation will pass by the end of this year.