New Proposed Legislations Have Potential for Major Impact on U.S. Importers

Issue 45, July 8, 2009

Two new pieces of legislation have the potential to have major effects on U.S. Importers. One deals with, along with other topics, changes in the application of Harbor Maintenance Fee. The other would apply new requirements upon commercial importers of drugs, devices, and food.

MOVEMENT Act of 2009

H.R. 2355, aka the Making Opportunities via Efficient and More Effective National Transportation (MOVEMENT) Act of 2009, was introduced in the House of Representatives. The bill proposes to generate funding for infrastructure projects related to the movement of goods. Included within the bill are provisions that would-

• Increase the Harbor Maintenance Fee (HMF), aka Harbor Maintenance Tax (HMT), from .125 % to.4375% of the value of the involved commercial cargo.
• Expand the scope of the HMF to include all ports at which taxes are collected (seaports or land ports). A HMF of.3125% would be imposed on goods that have entered the customs territory of the U.S. “other than by port use following foreign port use.”
• Create afund to which 71.34% of the new fees would contribute. The fund wouldbe used for grants for eligible goods movement improvement, environmental, andhomeland security projects.

A copy of H.R. 2355 is available at-
http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=111_cong_bills& docid=f:h2355ih.txt.pdf.

Food Safety Enhancement Act of 2009

H.R. 2479, aka The Food Safety Enhancement Act of 2009, is currently with House Energy and Commerce Committee for review and discussion.

The draft law would require commercial importers of drugs, devices, and food to register with the Food and Drug Administration annually, maintain good importer practices (including the verification of good manufacturing practices and preventative controls of their foreign suppliers) and to pay an annual registration fee. The draft would also impose a registration and annual fee requirement on Customs brokers and entry filers.

Registrations could be suspended if the Act is violated or for making an inaccurate or incomplete statement or submission of information relating to the importation of the food, drugs, or devices.

As well, failure to register, submission of inaccurate information, etc. could be subject to penalties.

A copy of the Congressional press release on this topic is available at-
http://energycommerce.house.gov/index.php?option=com_content&view=article& id=1631:waxman-dingell-and-pallone-release-food-safety-enhancement-act-of-2009-draft& catid=122:media-advisories&Itemid=55.

The current draft version of HR 2479 is available at-
http://energycommerce.house.gov/Press_111/20090610/hr2749_ans.pdf.

It is important to note that both of the above pieces of legislation are in their early stages and have the potential of being dismissed or significantly amended prior to being approved and enacted. However, due to their potential impact on the importing community, importers need to be aware of these items and monitor for news and updates.

Regards,

Paul Vroman
Regulatory & Compliance Consultant
DHL Global Forwarding