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Congress Passes Legislation to Expand Authorizations for Financing Arrangements at Land Ports of Entry

The House and Senate last week passed H.R. 875, the Cross-Border Trade Enhancement Act of 2016, which would authorize the CBP commissioner to enter into alternative financing arrangements with entities to provide customs, agricultural processing or border security services at U.S. land ports of entry, compensating CBP for administering those services. The House passed the legislation Dec. 6 under suspension of the rules, before the Senate passed it under unanimous consent on Dec. 10. Specifically, the legislation would authorize the commissioner and General Services Administration (GSA) chief to enter into cost-sharing or reimbursement agreements for the construction or maintenance of a new or existing CBP or GSA facility, or other infrastructure, at land ports of entry. The bill would also allow CBP and GSA to accept "real or personal property" donations, including money to use toward these infrastructure activities.

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The bill would require the commissioner to develop a process to oversee the services funded through the fee agreements, including a report on the full cost of providing construction and maintenance services and a procedure for increasing the fees; drafting of a remittance schedule to replenish appropriations, accounts or funds; and identification of costs paid by the fees, according to the bill text (here). The legislation would also mandate the commissioner to give equal consideration to each fee agreement proposal, regardless of port size.

House Ways and Means Committee Chairman Kevin Brady, R-Texas, applauded passage of the bill originally introduced by fellow Texan Rep. Henry Cuellar, D, saying in a statement that it will help CBP trade enforcement functions, facilitate border security and aid the flow of legitimate trade through U.S. ports of entry (here). The bill now awaits President Barack Obama's signature.