AIIS: CBP, Deregulation and President Trump’s “Two for One”

By: | at 09:27 AM | Breakbulk & Projects  

One of the first Executive Orders issued by President Trump, on January 30, 2017, concerned Reducing Regulation and Controlling Regulatory Costs. This Order requires regulatory agencies, with some exceptions, to identify two regulations which can be repealed for every “significant” new regulation the agency proposes or promulgates. Alice Kipel, the executive director of the Office of Regulations and Rulings (OR&R) at U. S. Customs and Border Protection (CBP), recently stated that the agency is working on a list of regulations that could be repealed as part of this requirement.

The identification of two regulations for repeal may be delayed with regard to a new regulation that is required by law and has a specified implementation date, such as the drawback provisions in the Trade Facilitation and Enforcement Act (TFTEA). The required deregulatory actions must still be identified “as soon as practicable.” Certain regulations, including those which involve national security, and regulations governing an agency’s organization, management, or personnel, are exempt from the requirement.

CBP has not yet identified any new regulations that will require offsetting deregulation – the TFTEA regulations are still in the developmental process. Nevertheless, OR&R has begun the process of developing an “inventory of possible deregulatory actions” that could be used as offsets. The agency does state that if it identifies a regulation that is no longer necessary, or involves unnecessary costs to the public, such regulations may be revised or repealed as part of a regulatory reform process without being held for use as an offsetting repeal. However, an inventory of potential offsetting regulations is considered useful to have available.

OR&R is asking both internal CBP sources and the international trade industry for suggestions of regulations that could be repealed without significantly impacting the activities of CBP. This is an ongoing effort, with an emphasis on regulatory reform and trade facilitation, not just the development of an “offset list.” Regulations such as those listed above that are exempt from the requirement would most likely not qualify as offsetting deregulation.

SOURCE: Steven W. Baker, AIIS Customs Committee Chair


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