CSMS Message: 93-000812

TO : ALL ABI BROKERS.

FROM : WILLIAM ZZ-PATTERSON

SUBJECT : COMM WEISE'S 8/30 BROKER MSG

DATE : 08/30/93

AUGUST 30, 1993

TO: BROKERS/ENTRY FILERS

AS PREVIOUSLY INDICATED TO THE NCBFAA, BEFORE ADOPTING A
CUSTOMS POSITION ON THE ISSUE OF REMOTE ENTRY FILING, I WANTED TO
LISTEN TO THE OPINIONS OF ALL PARTIES. I HAVE MET WITH MANY
PEOPLE AS I HAVE BEEN TRAVELLING AROUND THE COUNTRY, PARTICULARLY
BROKERS, AND HAVE HEARD A VARIETY OF OPINIONS. I ASSURE YOU I
RECOGNIZE THE SENSITIVITY THAT EXISTS WITHIN YOUR INDUSTRY
REGARDING THIS ISSUE AND THE SINCERITY OF THE BROKERS WHO HAVE
EXPRESSED DEEP CONCERN ABOUT THIS PROVISION. I HAVE CONCLUDED
THAT THERE IS NO NEW APPROACH THAT WILL RESOLVE THE DIFFERENCES
AND MAKE ALL PARTIES HAPPY.

RECOGNIZING THIS DILEMMA, BOTH CUSTOMS AND THE DEPARTMENT OF
TREASURY HAVE DECIDED THAT WE WILL SUPPORT LEGISLATION THAT
CONTAINS A REMOTE ENTRY FILING PROVISION THAT SPECIFICALLY
PROVIDES FOR NATIONAL PERMITS FOR ELECTRONICALLY FILED REMOTE
ENTRIES. THIS IS THE APPROACH THAT WAS USED IN LAST YEAR'S
LEGISLATION WHICH WAS PASSED BY CONGRESS.

I CAN NO LONGER AFFORD THE LUXURY OF MAINTAINING NEUTRALITY
ON THIS ISSUE. THE CUSTOMS SERVICE CANNOT MEET THE BUDGETARY
CHALLENGES WE ARE NOW FACING WITHOUT THE EARLY ENACTMENT OF THE
MOD ACT. AS YOU ARE AWARE, I HAVE BEEN VERY INVOLVED WITH THE
DEVELOPMENT OF THE CUSTOMS MODERNIZATION LEGISLATION. IN MY NEW
POSITION, I HAVE BECOME EVEN MORE IMPRESSED WITH THE CRITICAL
NEED FOR THE PASSAGE OF THIS LEGISLATION IF WE ARE TO MAXIMIZE
THE BENEFITS OF THE INVESTMENT WE HAVE ALL MADE IN AUTOMATION. AS
YOU KNOW, THE REMOTE FILING PROVISION OF THE LEGISLATION REMAINS
QUITE CONTROVERSIAL WITHIN YOUR INDUSTRY. VARIOUS APPROACHES HAVE
BEEN DISCUSSED REGARDING HOW TO DEAL FAIRLY WITH THE PROVISION.
FRANKLY, MANY OF THE SUGGESTED OPTIONS HAVE EMPHASIZED LIMITING A
BROKER'S ABILITY TO COMPETE AGAINST OTHER BROKERS, OR IN SOME
CASES, THE IMPORTER FOR THE IMPORTER'S BUSINESS. I HAVE NEVER
UNDERSTOOD HOW SUCH REQUIREMENTS WOULD SERVE THE BROKER INDUSTRY
OR THE IMPORTER'S BEST INTERESTS. I HAVE TRIED TO LISTEN TO ALL
THE PARTIES AND I HAVE BECOME CONVINCED THAT THE FAIREST APPROACH
IS TO REVERT TO THE "NATIONAL PERMIT" LANGUAGE THAT WAS IN LAST
YEAR'S LEGISLATION WHICH WAS PASSED BY CONGRESS.

I KNOW THAT THIS DECISION WILL BE A DISAPPOINTMENT TO SOME
BROKERS. THOSE THAT ARE DISAPPOINTED MUST RECOGNIZE THAT AS
COMMISSIONER OF CUSTOMS, I MUST BE SENSITIVE TO THE CONCERNS OF
ALL INTERESTS. MOST PARTIES FEEL THAT REMOTE FILING IS LIKELY TO
INCREASE COMPETITIVE PRESSURES WITHIN THE BROKERAGE INDUSTRY.
SOME OF YOU PERCEIVE THAT AS A THREAT AND OTHERS AS AN
OPPORTUNITY. MY GOAL IS TO PROVIDE A "LEVEL PLAYING FIELD" THAT
PERMITS ALL PARTIES TO COMPETE WITHOUT FAVORING ANY PARTICULAR
INDUSTRY OR INTEREST GROUP. TO THIS END, I INTEND TO RECOMMEND
LEGISLATIVE LANGUAGE REQUIRING EQUAL TREATMENT FOR THE COMPETING
INTERESTS REGARDING OPERATIONAL AND AUTOMATION REQUIREMENTS FOR
REMOTE FILING.

THE BROKER INDUSTRY HAS BEEN A VALUED PARTNER OF THE CUSTOMS
SERVICE. CERTAINLY ACS AND, PARTICULARLY ABI, COULD NOT HAVE BEEN
ACCOMPLISHED WITHOUT YOUR VALUED INPUT AND COOPERATION. IT IS
UNFORTUNATE THAT IN THE INTENSIVE DEBATE REGARDING "REMOTE
FILING" VARIOUS PRESS ARTICLES HAVE PORTRAYED THE BROKER INDUSTRY
AS ONE SOLELY DEPENDENT UPON "PROTECTIONIST LEGISLATION" FOR ITS
EXISTENCE. I KNOW THAT THE VAST MAJORITY OF YOU RECOGNIZE THAT
THE BUSINESS OF "TRADE" IS VERY COMPLEX AND CONTINUALLY CHANGING
AND THAT YOUR INDUSTRY EXISTS TO DEAL WITH THOSE REALITIES AND
EXPEDITE THE SMOOTH FLOW OF CARGO THROUGH THAT MAIZE OF
REQUIREMENTS.

THE MOD ACT IS DESIGNED TO UPDATE OUR STATUTES IN ORDER TO
DEAL WITH TODAY'S COMMERCIAL REALITIES, PARTICULARLY AUTOMATION.
WE MUST RECOGNIZE THE TECHNOLOGICAL ADVANCES THAT HAVE OCCURRED
AND MAXIMIZE THEIR BENEFITS. THE ADMINISTRATION BELIEVES STRONGLY
THAT REMOTE FILING IS A LOGICAL BENEFIT OF AUTOMATION AND WE WILL
NOT SUPPORT ANY BILL THAT DOES NOT CONTAIN THE FEATURE. REMOTE
FILING WILL UNDOUBTEDLY RESULT IN SOME CHANGES IN YOUR INDUSTRY
JUST AS ABI DID. IN FACT, MANY OF THE SAME CONCERNS EXISTED
REGARDING ABI. YET, AFTER EXTENSIVE CONSIDERATION, YOUR INDUSTRY
CAME TO THE CONCLUSION THAT AUTOMATION WAS INEVITABLE AND YOU HAD
BEST DEAL WITH THE REALITY AND ADAPT TO IT. IN OUR OPINION, THE
SAME RATIONALE EXISTS REGARDING REMOTE FILING. THE TECHNOLOGY
EXISTS TO PROVIDE THE IMPORTING PUBLIC WITH FAR GREATER
ELECTRONIC PROCESSING FLEXIBILITY THAN COULD EVER BE ACHIEVED IN
A "PAPER" WORLD. WE ALL NEED TO RECOGNIZE THAT REALITY AND DEAL
WITH IT REALISTICALLY.

I HOPE YOU WILL ALL WORK WITH US TO SUPPORT THIS VITAL
LEGISLATION SO THAT WE CAN GET IT PASSED THIS YEAR. THE TIME HAS
COME TO MOVE FORWARD AND WORK TOGETHER FOR THE BENEFIT OF
EVERYONE.

GEORGE J. WEISE
COMMISSIONER OF CUSTOMS