Customs Facilitation Act of 2025

Bill Number

S. 956

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-03-11: Read twice and referred to the Committee on Finance.

Last Updated

2026-03-02T16:16:09Z

AI-Generated Summary

Purpose of the Legislation

The Customs Facilitation Act of 2025 aims to modernize U.S. customs processes by improving coordination among federal agencies, streamlining import and export procedures, enhancing data transparency, and facilitating legitimate trade while strengthening enforcement against illicit activities. It seeks to boost economic competitiveness by reducing redundancies, accelerating cargo processing, and promoting efficient border management.

Key Provisions

The bill is divided into three titles, focusing on interagency coordination, process modernization, and data improvements.

Title I: One United States Government at the Border

• Border Interagency Executive Council (Sec. 101): Establishes a council led by the Commissioner of U.S. Customs and Border Protection (CBP) to coordinate policies across agencies like State, Treasury, Agriculture, and others involved in border approvals. The council develops shared risk management, standardizes terminology, reduces data redundancies, and engages stakeholders to improve supply chain efficiency. It must issue biennial public reports on progress.
• Single Window Import and Export Cargo Processing Release System (Sec. 102): Requires CBP to implement a unified automated platform (building on the Automated Commercial Environment, or ACE) for processing cargo manifests, advance data, admissibility checks, and financial information across agencies. Includes assessments for commercial technology use, collaboration with trade groups, and exemptions from certain advisory committee rules. Implementation deadline: 1 year after funding availability.
• Continued Modernization of the Automated Commercial Environment (Sec. 103): Mandates ongoing updates to ACE (or successor) through consultations with agencies and trade stakeholders, including regular meetings for feedback, user testing, and a communication system for reporting issues. Annual progress reports to Congress are required.
• Authorization of Appropriations (Sec. 104): Provides funding starting in fiscal year 2026 for the single window system and ACE improvements.

Title II: Modernizing Customs Processes

• Simplification of Drawback Procedures (Sec. 201): Drawback refers to refunds of duties paid on imported goods that are later exported. Allows accelerated payments of estimated refunds during claim processing (with repayment if overpaid by more than $20), eliminates prior export notice requirements for qualified claimants (those with bonds and documentation), permits electronic claim amendments, and removes advance approval needs for substitution drawback claims (where similar goods are substituted).
• Streamlined Export Processes (Sec. 202): Directs the Secretary of Commerce to adjust regulations for advance export documentation, considering business models, submission timelines, and avoiding overlaps with other laws (e.g., CBP requirements).
• Treatment of Clerical Errors in Submission of Export Data (Sec. 203): Clarifies that non-intentional clerical mistakes or electronic repetitions are not violations unless part of a pattern of misconduct.
• Government Accountability Office Report on Fee Schedule (Sec. 204): Requires a GAO report within 1 year assessing CBP's fees, proposing restructurings to lower costs for highly compliant traders while ensuring all beneficiaries pay, and offering congressional recommendations.
• Improvements to Centers of Excellence and Expertise (Sec. 205): Expands these CBP hubs (specialized teams for trade compliance) to develop guidance on entry procedures, post-entry audits, and handling admissibility issues like forced labor violations.

Title III: Improving Customs Data and Transparency

• Requirements for Regulations Relating to Data Collection (Sec. 301): Sets guidelines for new data rules by Treasury, Homeland Security, and council agencies: consult stakeholders, impose requirements on those with direct knowledge, account for competition and transport modes, avoid redundancies, provide tech transition periods, and balance timing with commerce flow. Includes rules for U.S. Postal Service data transmission on international mail.
• Updates to CBP Website and CTPAT Trade Compliance Handbook (Sec. 302): Customs-Trade Partnership Against Terrorism (CTPAT) is a voluntary program for secure supply chains. Requires notifications and consultations for content changes, modeled on tariff schedule updates; adds best practices for forced labor risks in the handbook, consulting the Forced Labor Enforcement Task Force.
• Establishment of Deadlines for Agency Responses (Sec. 303): Directs CBP to review and potentially shorten deadlines for rulings, protests (challenges to decisions), and advice requests within 1 year. GAO must report on response times, processes, and improvement recommendations.
• Accessibility of Contact Information (Sec. 304): Requires a system for trade community to easily access up-to-date contacts for CBP headquarters, port personnel, partner agencies, and Centers of Excellence.

Significant Changes to Existing Law

• Amends the Tariff Act of 1930 (19 U.S.C. 1313, 1411) to simplify drawback refunds, integrate the new council into the International Trade Data System, and eliminate some prior approvals.
• Modifies title 13 U.S. Code (export regulations) to allow flexible advance data timelines, treat clerical errors leniently, and coordinate with CBP to reduce redundancies.
• Updates the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. 4317) to enhance Centers of Excellence roles in compliance guidance.
• Replaces or builds on Executive Order 13659's interagency group with the new council, adding reporting and functions.
• Introduces new mandates for technology assessments, stakeholder consultations, and transparency not previously required.

Potential Impacts

• Government Agencies: Enhances interagency collaboration via the council and single window system, potentially reducing silos and operational costs through shared data and streamlined reviews. Could increase workload for CBP in implementation but improve enforcement efficiency.
• Citizens and Businesses: Speeds up import/export processing, lowers administrative burdens (e.g., via electronic filings and error tolerances), and provides faster refunds/drawbacks, benefiting compliant traders with reduced fees and delays. May ease compliance for small businesses through clearer guidance and contacts.
• International Relations: Promotes U.S. standards for single window systems globally, encouraging data sharing with trading partners to facilitate cross-border trade and align with international agreements, potentially strengthening economic ties while aiding enforcement against illicit trade like forced labor goods.

Main Stakeholders Affected

• Federal Agencies: Primarily CBP (lead implementer), plus Treasury, Homeland Security, Commerce, Agriculture, State, and others on the council; also GAO and the U.S. Postal Service.
• Trade Community: Importers, exporters, customs brokers, carriers (e.g., air, sea, land), freight forwarders, platforms (e.g., e-commerce), and supply chain participants, who gain from streamlined processes and transparency.
• Businesses and Industry Groups: Compliant entities (e.g., CTPAT members) benefit from fee reductions and guidance; Trade Support Network and Commercial Customs Operations Advisory Committee provide input.
• General Public: Indirectly affected through faster trade flows, potentially lower consumer prices, and stronger protections against unsafe or illegal imports.

Notable Legal, Constitutional, or Political Implications

• Legal: Reduces regulatory burdens by minimizing redundancies and prior approvals, potentially decreasing disputes over delays or errors; emphasizes "reasonable care" standards to balance enforcement with facilitation, aligning with existing trade laws like the Tariff Act.
• Constitutional: Supports executive branch coordination under Article II without infringing on congressional oversight, as it authorizes appropriations and requires reports to Congress; promotes due process through expedited responses and stakeholder consultations.
• Political: Bipartisan introduction signals broad support for trade efficiency amid economic recovery goals; focuses on national security and competitiveness without partisan mandates, but implementation may face scrutiny over funding and tech timelines.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Sen. Cassidy, Bill [R-LA]

Cosponsors (1)

Sen. Cortez Masto, Catherine [D-NV]

Recent Actions

• 2025-03-11: Read twice and referred to the Committee on Finance.
• 2025-03-11: Introduced in Senate

Bill Versions

• Customs Facilitation Act of 2025 — issued 2025-03-11 — PDF (35 pages)