CONGRESS TOLD TO STRIKE IN-BOND LANGUAGE FROM MARITIME SECURITY BILL
A group of U.S. import industry officials have asked Congress to remove language in a proposed maritime security bill pertaining to in-bond shipments.
The Cargo Security Act of 2002 (S1214), better known as the Hollings Bill, would require importers to provide the six-digit Harmonized Tariff Schedule classification to Customs on all imports, including in-bonds, for the purpose of clearing goods at the U.S. port of arrival.
In-bond shipments clear Customs at inland points, as opposed to the port of discharge. Many shipments enter the United States under an in-bond status.
“This provision (Section 115(e)) needs to be deleted,” said more than 60 importers, customs brokers, carriers and trade associations representatives in a letter this week to House and Senate conferees reviewing the Hollings Bill. “We believe it is unworkable and potentially very damaging to the nation’s international trade, transportation and distribution system.”
The industry group outlined its reasons for removing the in-bond provision:
* Many importers do not have of this advanced information at the time of vessel loading overseas.
* U.S. Customs’ computer system is not ready to collect this type of information.
* The data would have “no impact” on cargo security.
* Without inland clearance, former in-bond cargo would suddenly clog the ports.
* Air and ocean carriers would have to assume traditional roles and duties of customs brokers.
* Although importers are willing to provide information to Customs, data would be made public through reporting services.
“We are not suggesting that some additional cargo data would not be useful for screening cargo arriving in this country,” the industry group said. “If Congress determines that additional data is needed for shipments, in-bond or otherwise, we believe that it is most appropriate to allow the relevant federal agency to promulgate regulations, subject to congressional oversight.”
“We do not believe that a congressional mandate to collect specific information which may not be possible to obtain, or even helpful in screening cargo, is the most effective way to proceed,” the industry group said.
Some of the letter’s signators included the Air Couriers Conference of America, American Apparel & Footwear Association, American Trucking Associations, Best Buy Co., Con-Way Transportation Services, Danzas AEI Intercontinental, Eddie Bauer, Emery Forwarding, International Mass Retail Association, National Association of Manufacturers, National Retail Federation, Pacific Coast Council of Customs Brokers & Freight Forwarders Association, Port of Portland, Reebok International, The Stride Rite Corp., and UPS.