H.R. 7812: Securing Accountability in Foreign Entries Act

This bill, known as the Securing Accountability in Foreign Entries Act, proposes several amendments to the Tariff Act of 1930 aimed at strengthening the requirements for importers of record in the United States.

Key Provisions

• Importer of Record Requirement: The bill mandates that the importer of record must be located in the United States. This includes individuals who must be U.S. citizens or lawful permanent residents, or entities that have a physical presence in the U.S. and certain qualifications regarding ownership and employment.
• Verification Regulations: Within 360 days of the bill's enactment, U.S. Customs and Border Protection (CBP) must establish regulations for verifying that importers meet the new requirements, including penalties for non-compliance.
• Payment of Duties: The bill updates the duty payment process to require that duties, taxes, and fees be paid directly to CBP through electronic transfers from a verified U.S. bank account in the name of the importer.
• Bonding Requirements: It establishes an increase in the bonding requirement for importers. Each importer using a continuous import bond must maintain a bond of not less than $100,000. This applies to new bonds issued after the bill's enactment.
• Role of Customs Brokers: While customs brokers may prepare and file entry documentation, they cannot use their bond for merchandise entry unless they are designated as the importer of record.
• Express Consignment Operators and Carriers: The bill provides specific conditions under which express consignment operators or carriers can designate a customs broker to act as the importer of record if they meet certain operational criteria in the U.S.

Implementation Timeline

The amendments made by this bill are set to take effect one year after the date of its enactment, allowing time for the required regulations to be established.

Impact on Import Process

This legislation aims to enhance accountability in the import process by ensuring that entities responsible for importing goods abide by stricter laws, which could potentially reduce fraud and tax evasion related to imports.

Relevant Companies

• UPS - United Parcel Service may be impacted due to its role in logistics and customs handling for imports, necessitating adjustments to its operations in line with new import regulations.
• DHL - As a global leader in international shipping, DHL may have to adapt its importing practices and customer service systems to comply with the new requirements.