FOR IMMEDIATE RELEASE
March 29, 1999
No. TR-6
Congressman Philip M. Crane (R-IL), Chairman, Subcommittee on Trade of the Committee on Ways and Means, today announced that the Subcommittee will hold a hearing on budget authorizations for fiscal years (FY) 2000 and 2001 for the U.S. Customs Service (Customs), U.S. International Trade Commission (ITC), Office of the United States Trade Representative (USTR), and on other Customs issues. The hearing will take place on Tuesday, April 13, 1999, in room B-318 Rayburn House Office Building, beginning at 11:00 a.m.
Oral testimony at this hearing will be heard from both invited and public witnesses. Witnesses are expected to include representatives from Customs, ITC and USTR. However, any individual or organization not scheduled for an oral appearance may submit a written statement for consideration by the Committee or for inclusion in the printed record of the hearing.
BACKGROUND:
Budget Authorizations:
On February 1, 1999, President Clinton submitted his FY 2000 budget to the Congress. The submitted budget included proposals for Customs, ITC, and USTR. The President requested an increase over FY 1999 of $2.7 million for ITC, $2.3 million for USTR, and $95.5 million for Customs. Additional legislative proposals contained in the budget are described below.
Other Customs Issues:
Customs Automation: The current Customs automation system, the Automated Commercial System (ACS), is an aging 14-year-old system which has experienced several "brownouts" since last fall. ACS is operating on the average at 90 percent to 95 percent of its capacity, which is above its design specifications, creating difficulties in accommodating surges in filing Customs entry documentation that may occur daily or seasonally. Many observers, including Customs, have said that ACS is headed for a major system crash which may have an adverse impact on trade. They also believe that any serious failure of ACS could have widespread economic effect on U.S. businesses all along the supply chain including manufacturers, suppliers, brokers, and retailers.
Customs plans to replace ACS with the Customs Automated Environment (ACE) over the next four to seven years depending on funding. Some of the main differences between ACS and ACE are that ACE reportedly will use a single integrated system, modern standards, processes, techniques and language, and will be compatible with commercial software. By contrast, ACS does not have an integrated system, uses outdated techniques and languages, and cannot use commercially compatible software.
There are several issues for the Subcommittee to consider relating to ACE: (1) the cost of ACE, projected to be over $1 billion, (2) the lack of funding for ACE in the President's FY 2000 budget proposal, (3) the access fee for the use of Customs automation in the President's FY 2000 budget proposal, (4) the question of whether Customs' ACE design and architecture will meet future requirements, and (5) the role of the trade industry in building ACE.
International Trade Data System (ITDS): The ITDS is a Federal Government information technology initiative to create an integrated Government-wide system for electronic collection and dissemination of data relating to international trade. The ITDS is designed to be a front-end collection point to submit data and make payments required by all Federal Government agencies that regulate international trade transactions. It is also designed to provide the public with a single point for accessing data on international trade. The ITDS initiative is led by a Board of Directors chaired by the U.S. Department of the Treasury and composed of representatives from Government agencies, including the Customs Service, that are the major participants in government international trade data process. The President's FY 2000 budget proposes to appropriate $13 million to be available in FY 2001 for the ITDS to be offset by the assessment of an access fee for the use of Customs automated systems.
Customs COBRA User Fees: The Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) (P.L. 99-272) established user fees for certain inspectional services. Under COBRA, passengers arriving in the United States by commercial airline or vessel from a foreign location other than Canada, Mexico, or the Caribbean paid a $5 fee prior to 1994. The North American Free Trade Agreement Implementation Act (P.L. 103-182) increased the air- and sea-passenger processing fee from $5 to $6.50 for fiscal years 1994 through 1997 and removed the exemption for passengers arriving from Canada, Mexico, and the Caribbean. As of September 30, 1997, the fee reverted to $5, and Canada, Mexico, and the Caribbean regained their exemption. The President's FY 2000 budget proposes an increase in the passenger processing fee from $5 to $6.40 and removes the exemption for passengers arriving from Canada, Mexico, and the Caribbean.
Compensation System for Customs Officers: COBRA fees fund overtime and premium pay for Customs officers. The original overtime pay system for Customs inspectors was created by the Act of February 13, 1911, known as the "1911 Act." Section 13811 of the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66), known as the Customs Officer Pay Reform amendments, amended the 1911 Act in an attempt to eliminate abuses and mismanagement of the prior system. The reforms were intended to limit overtime and premium pay for Customs inspectors and canine officers to hours of work actually performed. In order to "make inspectors whole," the law also allowed overtime compensation to be counted as part of the basic pay for the Civil Service Retirement System up to
50 percent at the $30,000 statutory overtime cap, or $15,000. Due to arbitration decisions, Customs must now pay overtime plus interest to Customs officers for hours not actually worked under certain circumstances: (1) for hours requested but not granted because the officers reached a dollar limit set by port directors, (2) for officers who were inadvertently passed over for a specific overtime assignment, and (3) for officers whose overtime was inappropriately assigned to part-time employees. In the 105th Congress, Chairman Crane introduced H.R. 3809 , the "Drug Free Borders Act," which made reforms to overtime and premium pay, and devoted savings to pay for additional enforcement activities. H.R. 3809 was approved by the House on May 19, 1998, by a vote of 320-86. It was approved by the Senate in a different form, and no further action was taken.
In announcing the hearing, Chairman Crane stated: "As we approach the next millennium, we must make sure that our trade agencies have the tools they need to get their job done and done right, and maintain the capability to vigorously enforce our anti-drug and trade laws. However, we must do this in the most cost-effective manner, and continue to pursue needed reforms at Customs and elsewhere to ensure that the taxpayers and others who pay for these services are getting their money's worth."
FOCUS OF THE HEARING:
The hearing will focus on budget authorizations for fiscal years 2000 and 2001 for Customs, ITC, and USTR. In addition, the hearing will focus on other Customs issues, including: Customs automation and modernization efforts and the mechanisms needed to fund them; the need and funding for ITDS; the President's proposed changes to Customs passenger user fees; and the compensation system for Customs officers and related drug enforcement issues.
DETAILS FOR SUBMISSIONS OF REQUESTS TO BE HEARD:
Requests to be heard at the hearing must be made by telephone to Traci Altman or Pete Davila at (202) 225-1721 no later than the close of business, Thursday, April 1, 1999. The telephone request should be followed by a formal written request to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. The staff of the Subcommittee on Trade will notify by telephone those scheduled to appear as soon as possible after the filing deadline. Any questions concerning a scheduled appearance should be directed to the Subcommittee on Trade staff at (202) 225-6649.
In view of the limited time available to hear witnesses, the Subcommittee may not be able to accommodate all requests to be heard. Those persons and organizations not scheduled for an oral appearance are encouraged to submit written statements for the record of the hearing. All persons requesting to be heard, whether they are scheduled for oral testimony or not, will be notified as soon as possible after the filing deadline.
Witnesses scheduled to present oral testimony are required to summarize briefly their written statements in no more than five minutes. THE FIVE-MINUTE RULE WILL BE STRICTLY ENFORCED. The full written statement of each witness will be included in the printed record, in accordance with House Rules.
In order to assure the most productive use of the limited amount of time available to question witnesses, all witnesses scheduled to appear before the Subcommittee are required to submit 200 copies, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, of their prepared statement for review by Members prior to the hearing. Testimony should arrive at the Subcommittee on Trade office, room 1104 Longworth House Office Building, no later than Friday, April 9, 1999. Failure to do so may result in the witness being denied the opportunity to testify in person.
WRITTEN STATEMENTS IN LIEU OF PERSONAL APPEARANCE:
Any person or organization wishing to submit a written statement for the printed record of the hearing should submit six (6) single-spaced copies of their statement, along with an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, with their name, address, and hearing date noted on a label, by the close of business, Tuesday, April 27, 1999, to A.L. Singleton, Chief of Staff, Committee on Ways and Means, U.S. House of Representatives, 1102 Longworth House Office Building, Washington, D.C. 20515. If those filing written statements wish to have their statements distributed to the press and interested public at the hearing, they may deliver 200 additional copies for this purpose to the Subcommittee on Trade office, room 1104 Longworth House Office Building, by close of business the day before the hearing.
FORMATTING REQUIREMENTS:
Each statement presented for printing to the Committee by a witness, any written statement or exhibit submitted for the printed record or any written comments in response to a request for written comments must conform to the guidelines listed below. Any statement or exhibit not in compliance with these guidelines will not be printed, but will be maintained in the Committee files for review and use by the Committee.
1. All statements and any accompanying exhibits for printing must be submitted on an IBM compatible 3.5-inch diskette in WordPerfect 5.1 format, typed in single space and may not exceed a total of 10 pages including attachments. Witnesses are advised that the Committee will rely on electronic submissions for printing the official hearing record.
2. Copies of whole documents submitted as exhibit material will not be accepted for printing. Instead, exhibit material should be referenced and quoted or paraphrased. All exhibit material not meeting these specifications will be maintained in the Committee files for review and use by the Committee.
3. A witness appearing at a public hearing, or submitting a statement for the record of a public hearing, or submitting written comments in response to a published request for comments by the Committee, must include on his statement or submission a list of all clients, persons, or organizations on whose behalf the witness appears.
4. A supplemental sheet must accompany each statement listing the name, company, address, telephone and fax numbers where the witness or the designated representative may be reached. This supplemental sheet will not be included in the printed record.
The above restrictions and limitations apply only to material being submitted for printing. Statements and exhibits or supplementary material submitted solely for distribution to the Members, the press, and the public during the course of a public hearing may be submitted in other forms.
The
Committee seeks to make its facilities accessible to persons with
disabilities. If you are in need of special accommodations, please
call 202-225-1721 or 202-226-3411 TTD/TTY in advance of the event
(four business days notice is requested). Questions with regard to
special accommodation needs in general (including availability of
Committee materials in alternative formats) may be directed to the
Committee as noted above.