H.R. 4336: CBP SPACE Act (119th Congress) Bill Summary

This bill, known as the CBP SPACE Act, proposes changes to how merchandise processing fees are managed by U.S. Customs and Border Protection (CBP). Here’s a breakdown of the main components:

1. Adjusting Merchandise Processing Fees

The bill allows CBP to adjust the rates of merchandise processing fees to cover capital costs incurred during operations. Specifically, it amends existing laws to include ‘capital costs’ alongside ‘salaries and expenses’ in contracts and budget allocations. This means that CBP can factor in costs for things like equipment upgrades and infrastructure improvements when determining how much to charge for processing merchandise at ports.

2. Effective Date

The amendments proposed in the bill would take effect 180 days after it is enacted. This gives CBP time to plan and implement the changes.

3. Cooperation Requirement

The bill states that the Secretary of the Treasury and the Commissioner of U.S. Customs and Border Protection should work together to establish appropriate levels for these merchandise processing fees. The goal is to ensure that CBP has enough funding to maintain and upgrade facilities and equipment at U.S. sea ports of entry.

4. Prohibitions on Facilities Maintenance

CBP is prohibited from requiring sea ports to provide or maintain administrative, training, or recreational facilities as part of their inspection services. This means that the burden of facility maintenance will not fall on ports, potentially reallocating responsibilities and resources for port operations.

5. Annual Reporting Requirements

CBP must report annually to Congress on the proceeds from the merchandise processing fees. This report will include:

The total amount collected from these fees in the prior year.
The portion of those proceeds used for inspection facilities at sea ports.
An overview of any capital needs that remain for improving these facilities.

6. Definition of Appropriate Congressional Committees

The bill defines the "appropriate congressional committees" that should receive these reports, including various committees in both the House and Senate focused on finance, homeland security, and appropriations.