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Customs
Splits in Two Under
the Department of Homeland Security
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February
26, 2003
On March 1, 2003, U.S. Customs will become a part
of the new Department
of Homeland Security (DHS). Under the plan, the functions
of Customs will be split into two parts, and the pieces placed
into a Border and Transportation Security Directorate of the DHS.
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Department
of Homeland Security
The Department of
Homeland Security was mandated by the Homeland Security Act of 2002, and the Department became operational
January 24, 2003. According to the President, the purpose of
the DHS is three-fold:
- Prevent
terrorist attacks within the United States;
- Reduce
America's vulnerability to terrorism; and
- Minimize
the damage from potential attacks and natural disasters.
Responsibility
for the DHS falls on a single Cabinet official (currently, Tom
Ridge, ex-Governor of Pennsylvania), whose primary mission is
to protect the American homeland from terrorism. The DHS would
have an organizational structure with basically four divisions:
-
Border
and Transportation Security (BTS)
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Emergency
Preparedness and Response
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Chemical,
Biological, Radiological, and Nuclear Countermeasures
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Information
Analysis and Infrastructure Protection
The
Bush Administration has published a fact
sheet describing the structure of the agency, and an organizational
chart is available on the DHS web site.
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Customs in the DHS
-
Moving
Major Components into the DHS
March 1, 2003, the major components of the DHS will
be moved into place, including the U.S. Customs Service. Other components
of the DHS will include the U.S. Secret Service, the Coast Guard,
the Federal Law Enforcement Training Center, the Federal Emergency
Management Agency, and many other bureaus and agencies.
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Customs
Will Be Split Within
The Border And Transportation Security Directorate
The Directorate of the BTS will be headed by the Commissioner
of Customs, who will report to an Under Secretary for Border and
Transportation Security. Commissioner Bonner may continue in service
until another Commissioner is appointed. However, the next Commissioner
will be appointed by the President with the advice and consent of
the Senate.
Once in the BTS Directorate, Customs will be split between
two bureaus, according to whether the activity is related to "protection"
or "enforcement" functions:
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The
Bureau of Customs and Border Protection
The Bureau of Customs and Border Protection will focus exclusively on
providing inspection, protection, and security services at ports-of-entry
and along the borders. The BTS will also include other agencies,
such as the Immigration and Naturalization Service (Department
of Justice), the Border Patrol, and the Animal and Plant Health
Inspection Services (Department oF Agriculture).
The bureau will consist mainly of Border Patrol officers and inspectors
from INS, Customs, and Agricultural Quarantine Inspection (AQI).
The idea is to unify inspection functions under a single chain
of command. Rather than having individuals and cargo inspected
by multiple agencies, this new structure is intended to provide
a single, seamless inspection system ("one-stop shopping")
for people and merchandise entering the United States.
-
The
Bureau of Immigration and Customs Enforcement
The
Bureau of Immigration and Customs Enforcement will focus on enforcement
of the immigration and customs laws as they relate to foreign
nationals and the entry of goods. The Bureau will be vested with
Customs' current "enforcement" functions and, as noted
below, many of Customs' current "revenue" functions.
It will be composed of commercial operations, investigative and
enforcement personnel from the Customs Service, INS, and the Federal
Protective Service.
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Customs'
"Revenue" Functions As A Part Of The "Enforcement"
Function
Customs has always implemented important revenue functions,
and this will continue under the DHS after the merger; however,
the actual authority for these revenue functions will remain with
the Treasury Department. The "revenue" functions will
include:
- Assessing
and collecting Customs duties, excise taxes, fees, and penalties
due on imported merchandise, including classifying and valuing
merchandise for purposes of such assessment (such duties will
include AD, CVD, and duties imposed under safeguard provisions);
-
Processing
and sometimes denying entry for persons, baggage, cargo, and
mail;
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Detecting
and apprehending persons engaged in fraudulent practices designed
to circumvent the Customs laws of the U.S.;
-
Enforcing
Section 337 of the Tariff Act of 1930 and provisions relating
to import quotas and the marking of imported merchandise,
and providing Customs Recordations for copyrights, patents,
and trademarks;
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Collecting
accurate import data for compilation of international trade
statistics;
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Enforcing
reciprocal trade agreements;
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Any
related functions performed by the following Customs' offices:
Office
of Information and Technology,
Office
of Laboratory Services,
Office
of Chief Counsel,
Office
of Congressional Affairs,
Office
of International Affairs, and
Office
of Training and Development.
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Personnel
Attributable To Customs Revenue Functions
These
current Customs revenue functions are performed by the following
personnel, and will soon be performed by the Bureau of Immigration
and Customs Enforcement:
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Safeguarding
The Revenue Of The Treasury Department
Since the Treasury retains authority over revenue, limits will
be placed on the DHS in terms of reducing Customs' revenue functions.
The Secretary of the Treasury is authorized to appoint up to
20 new personnel to work with personnel of the DHS in performing
all of Customs' revenue functions.
The DHS may not consolidate, discontinue, or diminish the Customs'
revenue functions performed by Customs.
The DHS may neither reduce the staffing level nor reduce the
resources attributable to these Customs revenue functions, and the
DHS must ensure that an appropriate management structure is implemented
to carry out such functions.
No funds available to Customs or collected under (1) through
(8) of 19 U.S.C. §58c(a) (i.e., various Customs user fees,
except for the merchandise processing fee (MPF)) may be transferred
for use by any other agency or office in the DHS.
In
addition, the Secretary of Homeland Security must notify the House
Ways and Means and Senate Finance Committees at least 90 days before
taking any action that would result in:
- Any
significant reduction in Customs revenue services;
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Any
reduction of hours of operation;
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The
elimination or relocation of any office of DHS which provides
Customs revenue services; or
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The
elimination of any port of entry.
Please contact George Tuttle, III, at geo@tuttlelaw.com if you have any questions
regarding this
or other Customs law matters.
George
R. Tuttle, III, is an attorney with the Law Offices of George
R. Tuttle in San Francisco. The information in this article is
general in nature and is not intended to constitute legal advice
or to create an attorney-client relationship with respect to any
event or occurrence, and may not be considered such.
Copyright
© 2003 by Tuttle Law Offices.
All
rights reserved. Information has been obtained from sources believed
to be reliable. However, because of the possibility of human or
mechanical error by our offices or by others, we do not guarantee
the accuracy, adequacy, or completeness of any information and are
not responsible for any errors, omissions, or for the results obtained
from the use of such information.
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