Opening Statement of the Hon. Philip M. Crane, a Representative in Congress from the State of Illinois,
and Chairman, Subcommittee on Trade

Hearing on Trade Agency Budget Authorizations and Other Customs Issues

July 17, 2001

Welcome to the Trade Subcommittee hearing on budget authorizations for fiscal years 2002 and 2003 for the U.S. Customs Service, the U.S. International Trade Commission, and the Office of the U.S. Trade Representative, and on other Customs issues.

The Office of the U.S. Trade Representative is responsible for developing, coordinating, and advising the President on U.S. international trade policy. USTR staff and consultants conduct our trade negotiations, seek new markets for U.S. goods and services, and defend our rights in the World Trade Organization. We should be impressed by the breadth and depth of USTR's work and accomplishments, especially now when we are asking them to undertake so many trade initiatives around the world.

We will also review the Customs budget request during our hearing. As a multi-mission organization, Customs is expected to meet a variety of demands and responsibilities, some of which might be conflicting. Customs is expected to facilitate trade to meet the fast deadlines for goods and services delivery while playing a critical role in border inspection, anti-terrorism, and drug interdiction, which often results in delays.

Customs must recognize the need to facilitate the movement of legitimate commerce. This is where technology such as non-intrusive inspection technology or automated screening systems can assist Customs' efforts. This is also where modern technology for trade data can also assist Customs' data processing efforts. It is essential to update U.S. customs automated systems for U.S. industry and the population at large. Any potential slow down or "brown out" in U.S. customs electronic entry process system can adversely affect critical imports. Today we will hear views from Customs, the Treasury, the General Accounting Office, and the trade community about modernizing and funding for automation to meet the increasing volume of trade data. We will also hear about efforts to revise the process of bringing goods into the U.S. and what improvements are being proposed.

One of the most important points I want to make today is addressed to Customs and the Treasury Department. This Congress passed the Africa Growth and Opportunity Act and the Caribbean Basin Trade Partnership Act with the intent of helping those regions develop. Some provision are simply being ignored or given tortured meanings to render them null and void. Where trade has been enhanced, Customs is virtually strangling it with regulations. Our message to the Administration is simple - implement this free trade law!

Customs faces enormous challenges, and every day Customs officers rise to meet these challenges. While I acknowledge the outstanding work of Customs officials, I remain concerned about the law written before Republicans took the majority that allows Customs officials to receive night time pay for working at noon. I to have an open mind about this matter, and I have asked several witnesses to address this matter bringing new data to bear. I am very willing to listen to ideas of mending an apparent flaw while properly compensating Customs officers for their actual hard work performed. Today, we will hear from the Office of the Inspector General, the General Accounting Office and the Union on these Customs labor issues.

Finally, Customs must take care that its integrity is intact and that its internal corruption tolerance rate is zero. Our ability to interdict drugs at our borders depends on maintaining sound integrity.

We will also receive testimony from the International Trade Commission. The ITC has a unique role within the Federal government as an independent, nonpartisan, quasi-judicial agency. The ITC conducts trade investigations, provides Congress with technical assistance in developing trade policy, maintains the Harmonized Tariff Schedule, and offers technical advice to business seeking remedies under the trade laws. The ITC and this Subcommittee have always enjoyed a close and supportive relationship.