Media
Media
The U.S. House of Representatives on Wednesday passed a new farm bill with a provision urging U.S. Customs and Border Protection to back off from a proposal to redefine how imports are valued for tax purposes.
The Department of Homeland Security agency angered a large contingent of importers early this year when it declared plans to abolish the first sale methodology and instead require duty values to be based on the price of the last sale in a multiparty transaction. Basing duty rates on the less expensive first sale to a foreign middleman means importers pay lower duties on their goods.
Trade law firm Sandler, Travis & Rosenberg has led a coalition of importers that took its case to Congress and was rewarded last week when sources say Rep. Charles Rangel, chairman of the House Ways and Means Committee, inserted language in the joint farm bill that was approved by House-Senate conferees.
The bill expresses Congress' desire that CBP postpone any change to the valuation methodology until 2011, at which time the agency would have to consult with and provide notice to congressional oversight committees, the Treasury Department and the industry-led Commercial Operations Advisory Committee. Importers were upset that CBP unilaterally proposed the change without any warning.
The provision expresses the sense of Congress, but does not have the force of law.
The bill instructs CBP to collect data for one year on the number of importers declaring entries under First Sale, the tariff numbers used for and the transaction value for that merchandise. The information is to be submitted to the International Trade Commission on a monthly basis and considered as part of any future decision on the matter.
President Bush has threatened to veto the farm bill because of the cost and retention of subsidy programs at a time when commodity prices are high. The House passed the legislation by a veto-proof majority of 318-106. The bill is also expected to pass the Senate by a wide margin.
Source: American Shipper
qq.com