He has won Senate approval for an amendment he co-authored to enhance the effectiveness of the Customs Service when it moves to a Department of Homeland Security. The legislation sponsored by Grassley and Sen. Max Baucus of Montana was accepted as part of the Senate bill to create the new department.
Grassley said their bipartisan initiative is based on the cooperative relationship of the Customs Service with the international trade community. Their amendment ensures adequate support for continued construction of the Automated Commercial Environment, a comprehensive mechanism designed to monitor trade flows. The existing system is antiquated and subject to periodic slowdowns.
To prompt rapid deployment of a new ACE system, the Grassley-Baucus legislation establishes a new account within the Customs Service called the "Customs Commercial and Homeland Security Automation Account." It would ensure sufficient funding is available to complete construction of ACE after the Customs Service is moved from the Department of Treasury to the Department of Homeland Security. For fiscal 2003 through 2005, $350 million in Customs Service user fees would be allocated specifically to this account.
Grassley said an effective trade-monitoring system is important to the Customs Service's ability to facilitate international trade while also performing its law enforcement responsibilities. "The Customs Service needs to understand the business community and how trade works so it can be more adept at identifying anomalies in trade patterns that often point to illicit activity," he said. The Grassley-Baucus amendment also specifies that the Treasury Advisory Committee on the Commercial Operations of the Customs Service be transferred intact to the new homeland security department.
"A big part of homeland security is economic security," Grassley said. "And trade is a key component of our economic vitality. Exports accounted for 25 percent of U.S. economic growth from1990 to 2000. Today, exports support about 12 million jobs here at home. If we impede trade, we impede our own economic growth and our own well-being. Now, given the economic and security threats we face with the war on terrorism, it's very important that we use the best possible technology and capabilities to both secure our borders and foster economic prosperity."
The U.S. Customs Service is one of the oldest agencies in the federal government. It was created in 1789 to enforce U.S. tariff policy. The agency's mission has adapted over time to meet changing needs. Today the service is considered one of the most modernized federal agencies. It is responsible for managing over 23 million entries and 472 million passengers a year. It collects over $23 billion dollars in duties and fees and is responsible for seizing millions of pounds of contraband narcotics every year. "The Customs Service is a vital component of our government," Grassley said.
In July, Grassley and Baucus made recommendations to the Senate Committee on Governmental Affairs about the Customs Service while the committee was developing the homeland security bill being debated on the Senate floor. Grassley said most of their recommendations were incorporated in the committee-passed proposal.
The Homeland Security Act would create a cabinet-level Department of Homeland Security to plan, coordinate and implement activities relating to homeland security. Six areas are covered, including border and transportation protection, intelligence, critical infrastructure protection, emergency preparedness and response, immigration affairs, and science and technology. Debate on the overall legislation is expected to continue at least through next week. The House passed its version of the homeland security bill last summer.
Grassley is the ranking member and Baucus is the chairman of the Senate Committee on Finance, which is responsible for trade policy.