HR4336-119

What This Bill Does

The CBP SPACE Act changes how merchandise processing fee proceeds may be used for U.S. Customs and Border Protection at seaports. It amends section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 so fee collections can cover CBP salaries, expenses, and capital costs. It also adds passenger inspection services capital costs to the authorized disposition of customs user fees. The amendments take effect 180 days after enactment.

The bill states that the Secretary of the Treasury and the Commissioner of U.S. Customs and Border Protection should work together to set merchandise processing fees at a level that lets CBP fund equipment upgrades and construction, improvement, and maintenance of inspection facilities at U.S. seaports of entry. It separately bars the CBP Commissioner from requesting or requiring a seaport of entry to provide or maintain administrative, training, or recreational facilities for CBP inspection services.

The bill requires the CBP Commissioner to submit an annual report to specified Senate and House committees. The report must state how much merchandise processing fee revenue was collected during the preceding year, how much was directed to inspection facilities at seaports of entry, and the outstanding capital needs of those facilities.

Who Benefits and How

CBP passenger inspection facilities at U.S. seaports benefit because merchandise processing fee proceeds can be used for equipment upgrades, construction, improvement, and maintenance. Seaport authorities benefit from the prohibition on CBP requiring them to provide or maintain administrative, training, or recreational facilities for CBP inspection services. Congress benefits from annual visibility into fee collections, seaport inspection facility funding, and remaining capital needs.

Who Bears the Burden and How

Importers and maritime trade users that pay merchandise processing fees may face higher or more targeted fee collections if Treasury and CBP set rates to cover passenger inspection capital costs. CBP and Treasury fee-setting staff must coordinate on fee levels, and CBP reporting staff must produce annual reports for six congressional committees. CBP inspection managers may lose leverage to obtain non-inspection facilities from seaports.

Key Provisions

• Expands merchandise processing fee use from CBP salaries and expenses to salaries, expenses, and capital costs.
• Adds passenger inspection services capital costs to the authorized uses of customs user fee proceeds.
• Directs Treasury and CBP, as a sense of Congress, to set merchandise processing fees high enough to fund seaport inspection equipment, construction, improvement, and maintenance.
• Prohibits CBP from requesting or requiring seaports to provide or maintain administrative, training, or recreational facilities for CBP inspection services.
• Requires annual CBP reports on merchandise processing fee collections, amounts directed to seaport inspection facilities, and outstanding capital needs.
• Names the Senate Finance, Homeland Security and Governmental Affairs, and Appropriations Committees and the House Ways and Means, Homeland Security, and Appropriations Committees as report recipients.