Customs Bill resurfaces to restrict fees for examination tasks
The bipartisan SPACE Act (H.R. 4336), endorsed by the American Association of Port Authorities (AAPA), is designed to address critical issues in U.S. port operations and enhance supply chain security. The key purpose of this legislation is to ensure that Customs and Border Protection (CBP) is adequately funded while relieving local ports from the financial burden of government inspection costs, which traditionally and constitutionally are the responsibility of the federal government.
The SPACE Act has gained support from a coalition of 27 trade, transportation, supply chain, and agriculture organizations. This support underscores the significance of the bill given the vital role that ports play as economic engines and gateways for international trade. Julianna Marler, CEO of the Port of Vancouver, Wash, stated that the proposed legislation could enhance the capacity and functionality of American ports, strengthening their roles as economic engines and gateways for American products.
Key provisions of the SPACE Act include clarifying CBP's leasing authority for operational space at seaports and other facilities, closing enforcement gaps caused by inadequate port infrastructure, and enhancing coordination between CBP and port authorities to strengthen the security and resilience of the U.S. supply chain. The act seeks to limit CBP's billing to ports for inspection services, allowing existing customs fees to cover these costs instead. This shift protects local port budgets and jobs by removing the financial burden from local entities, ultimately supporting the optimal functioning of American ports and facilitating smoother trade flows.
By securing federal funding for CBP, ports can focus resources on improving infrastructure and expanding capacity. Cary Davis, AAPA president and CEO, stated that the costs of government inspection operations are constitutionally a federal government responsibility. The improved infrastructure and expanded capacity, as a result, could benefit the economy at large. The legislation, according to the AAPA, could potentially bolster the resilience of the supply chain, ensuring that goods can be moved efficiently and securely.
In conclusion, the SPACE Act aims to secure funding for federal inspection operations, improve port infrastructure, and foster better collaboration with port authorities to bolster national supply chain security and enhance the efficiency and safety of U.S. port operations. The bill's passage could mark a significant step towards strengthening America's ports and ensuring their continued role as economic engines and gateways for international trade.
This coalition of trade, transportation, supply chain, and agriculture organizations supports the SPACE Act, acknowledging the bill's importance given the ports' role as economic engines and gateways for international trade. The Act, if passed, could facilitate financial benefits for the industry, as it proposes to limit Customs and Border Protection's billing to ports for inspection services, thereby safeguarding local port budgets and jobs in the finance sector.
