Summary of Ways and Means Recommendations
To the Committee on Homeland Security Regarding
The Transfer of Customs to a New Department of Homeland Security

Sec. 402 of base text:  The recommendation would authorize the transfer of functions, personnel, assets, and liabilities of the Customs Service in their entirety to the Division for Border and Transportation Security.

 Sec. 411:  A new Customs Service is established within the Department of Homeland Security and vested with certain revenue-related offices and functions as specifically identified.  The new Customs entity would have a Senate-confirmed Commissioner. 

 Sec. 412(a):  The recommendation would reserve revenue collecting statutory authority to Treasury and transfer all other authority exercised by the existing Customs Service to the Department of Homeland Security.  Treasury may delegate its reserved authority to Homeland Security.  Treasury shall consult with Homeland Security on all matters and regulations affecting customs functions.

 Sec. 412(b):  With regard to this new Customs entity, reorganization or decrease in the funding or staff or reductions to Title 5 pay and benefits levels is prohibited in order to preserve these critical trade functions. 

 Sec. 413:  The Secretary shall maintain adequate staffing to assure that existing levels of customs revenue services are maintained, and the Secretary shall notify Congress of actions that reduce such services. 

 Sec. 414:  Customs is required to implement a cost accounting system in order to determine and track the use of $1.5 billion of Customs user fees. 

 Sec. 415:  Customs fees must continue to be used for currently authorized functions and fee receipts may not be transferred outside of Customs. 

Sec. 416:  The recommendation would make further changes for the purpose of ensuring that certain commercial functions are carried out.  The text would require that all reports now provided to Congress from the Customs Service shall continue to be provided to the House Ways and Means and Senate Finance Committees. 

 Sec. 417:  A portion of the Customs Merchandise Processing Fee must go to build the new Customs computer.

 Sec. 418:  The Administration is required to provide a separate budget request on the customs revenue functions within the new Department. 

 Sec. 419:  The merchandise entry process is changed to authorize monthly billing with a prohibition against deferral of duty past a statutory deadline.

 Sec. 420:  Defines Customs revenue functions.

 Sec. 421:  GAO will report on all trade functions performed by the executive branch.