LPOE Modernization Trust Fund Bill Top Lobbying Priority for NCBFAA

Advocating for a bipartisan bill introduced by Southwestern lawmakers to direct certain fees to land port expansions, equipment investments and staffing was the top priority for customs brokers in town to lobby as part of the group's annual government affairs conference.

The Land Ports of Entry Modernization Trust Fund Act, led by Rep. Henry Cuellar, D-Texas, would establish something similar to the Harbor Maintenance Trust Fund.

Although Cuellar and his wife have been indicted on bribery and money laundering charges, the Cook Political Report says he is likely to win re-election. The bill is also sponsored by three other Texas members of Congress and Rep. Gabe Vasquez, D-N.M., whose seat is considered a toss-up in November by Cook.

There are 167 land ports of entry at the Canadian and Mexican borders; 29 are in Texas.

The trust fund would be filled with up to $1.6 billion of merchandise processing fees, 25% of immigrant user fees, land border inspection fees and machine-readable visa fees. In addition to existing fees, the bill would add $40 to the immigrant user fee, $6 to the land border inspection fee and $20 for the machine-read visas.

Sandler Travis senior director for international trade and government affairs Ned Steiner told an audience at the National Customs Brokers & Forwarders Association of America conference that most shipments from Canada and Mexico pay no MPF, due to USMCA.

Steiner said House Ways and Means Committee Chairman Jason Smith, R-Mo., wants the spending from these fees to be discretionary and not mandated. Steiner said the bill's text already says appropriators would have to identify what projects to fund, and how much to spend.

It says the money may be spent on building new ports of entry, expanding or improving existing ports" to accommodate high volumes of commercial, vehicle, and pedestrian traffic," buying technology to inspect cargo and vehicle and pedestrian traffic, and hiring CBP officers, agricultural specialists and professional staff to support the trade mission,

"We just want to make sure that this is created," Steiner said. "In a world where appropriations is not always assured from the general funds, it’s important to have this alternative funding stream."

The panelists also encouraged members to ask senators to vote for Ocean Shipping Reform Act 2.0, which passed the House.

"Our argument is that these amendments are needed to address Chinese Communist Party influence over supply chains and unfair ocean shipping practices," Steiner said.

Leah Ellis, NCBFAA legislative committee chair, said the group doesn't think OSRA 2.0 will pass in the Senate this year.