A bill that would retroactively renew the Generalized System of Preferences, and extend the program for developing countries until the end of 2020, passed the House of Representatives Feb. 13 by a nearly unanimous vote -- 400-2 in favor. A companion bill has not yet been introduced in the Senate.
The House of Representatives will vote Feb. 13 on a bill to extend the Generalized System of Preferences, according to an announcement from Majority Leader Kevin McCarthy's office. The bill extends the tariff exemptions through the end of 2020, and it allows importers to be reimbursed for tariffs paid on goods this year that should have been entered duty-free (see 1802080058). A companion bill has not yet been introduced in the Senate, but Finance Committee Chairman Orrin Hatch, R-Utah, "recognizes the importance of this program, which enjoys strong bipartisan support in Congress. He is talking with members on how to best move forward and ensure the program is renewed as soon as possible," a commmittee spokeswoman said. Articles classified by CBP under about 3,500 tariff rate lines were duty-free from 120 GSP beneficiaries. The program helped importers avoid more than $865 million in tariffs in 2017, according to a statement Feb. 8 from House Trade Subcommittee Chairman Dave Reichert, R-Wash., who introduced the bill, H.R. 4979, with Ways and Means Chairman Kevin Brady, R-Texas, that day.
A partial federal government shutdown lasted less than six hours after midnight on Feb. 9, as President Donald Trump signed a bill that will keep the government funded through March 23. The stopgap will give legislative staff time to write the $1.3 trillion spending bill that will fund the government through the end of the fiscal year on Sept. 30. That measure, supported by 71 senators and 240 House members, will increase domestic spending by $591 billion and military spending by $700 billion through Sept. 30, 2019. That additional spending is partially paid for by a yearlong extension of the Merchandise Processing Fee, to Feb. 24, 2027, and a two-year extension of other Consolidated Omnibus Budget Reconciliation Act (COBRA) fees, until Sept. 30, 2027.
House Ways and Means leaders said a visit from the U.S. trade representative Feb. 7 was a productive meeting about modernizing NAFTA. "I want to make sure we hold our trading partners accountable through strong, enforceable commitments with effective dispute settlement, including ISDS, because it creates U.S. jobs. People in my district and across the country are counting on us to get this right, which is why we all have to stay at the table. Congress has the Constitutional responsibility over trade and we’re committed to fulfilling our duty in close coordination with the Administration," Chairman Kevin Brady, R-Texas, said in a statement after the private meeting.
CBP has consistently failed to hire mandated levels of trade-related staff, and bills recently introduced in the House and Senate aim to remedy the problem. Both bills only have Democratic sponsors. The bills propose hiring 500 new CBP officers and 100 new agricultural officers each year until the staffing shortage is resolved. The Senate bill says it would cost $69.5 million in each fiscal year from 2018 to 2024. The House version was released Feb. 6. The Government Accountability Office wrote last year that import specialists, customs auditors, national import specialists and drawback specialists have been below the mandated levels in at least three years. More broadly, the agency should have at least 8,658 CBP officers, the report said, and it had 6,889 in October 2014, the report said (See 1706130015). "Staffing shortfalls can impact CBP's ability to enforce trade effectively, for example, by leading to reduced compliance audits and decreased cargo inspections, according to CBP officials," the report said. "CBP cited several challenges to filling staffing gaps, including that hiring for trade positions is not an agency-wide priority."
A bill that would exempt sea urchin and sea cucumber exports from Fish and Wildlife Service export and import inspections passed the House of Representatives Feb. 5 by unanimous consent. Maine's delegation has pushed for legislation to overturn FWS rulemaking from 2008. A companion bill to H.R. 2504 was introduced by both Maine senators in 2017. Rep. Chellie Pingree, D-Maine, says that about $25 million in sea urchin roe is exported from Maine annually, and most of it is sent to Japan. She said the product only has a shelf life of one week, and the inspection regime "can lead to a loss of product and money." The chief of law enforcement for FWS, William Woody, told Congress in 2016, when it was considering the same action, that typically shipments are cleared on the same business day. The agency does ask exporters to give 48 hours' notice before arrival at the port, he said. "Sustainable regulated harvest is essential to preserve the economic interests of those involved in the industry," Woody testified then, to collect data that can fight overfishing and declining stocks.
Calling NAFTA "a destructive race to the bottom," a small group of Senate Democrats sent a letter to President Donald Trump Feb. 2 asking that the trade agreement include stronger rules of origin and transshipment rules. Sen. Bernie Sanders, I-Vt., and five Democrats said NAFTA must include new rules of origin "safeguards that reduce opportunities for leakage in order to incentivize production in North America." Better rules to "stop 'transshipment' cheating must also be added."
House Energy and Commerce Committee ranking member Frank Pallone, D-N.J., asked the Food and Drug Administration "to examine the alarming issue of dangerous contamination of imported cosmetic products," in a Feb. 2 letter to FDA Commissioner Scott Gottlieb. The FDA also should investigate reports of asbestos found in cosmetics sold by Claire's and Justice Retail that was marketed to girls and young women, he said in a news release. Pallone previously raised the issue last summer (see 1708020028).
The Senate Finance Committee again advanced the nomination of current Acting CBP Commissioner Kevin McAleenan to be permanent CBP commissioner, it said in an emailed news release. The full Senate still must vote on the nomination. The committee previously approved McAleenan's nomination in December (see 1712070058). The nomination had to be resubmitted by the White House because the full Senate didn't vote on the nomination before the end of the annual session in 2017 (see 1801090003).
The Senate Finance Committee will again consider the nomination of Kevin McAleenan for CBP commissioner, on Jan. 17, it said in a notice. The committee previously approved Acting CBP Commissioner McAleenan's nomination in December (see 1712070058). The nomination had to resubmitted by the White House because the full Senate didn't vote on the nomination before the end of the annual session (see 1801090003).