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Customs Service: Acceptance of Centralized Cargo Examinations Varies

GGD-90-24 Published: Dec 22, 1989. Publicly Released: Dec 22, 1989.
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Highlights

Pursuant to a congressional request, GAO reviewed the Customs Service's Centralized Examination Stations (CES) Program, which requires importers to take their goods to central locations for Customs examination, focusing on the: (1) perceived program costs and benefits; (2) degree to which the importing community accepted CES; (3) the program's impact on segments of the importing community; and (4) answers to legal questions involving adherence to legal requirements and the permissible use of funds from the merchandise processing fees.

Recommendations

Recommendations for Executive Action

Agency Affected Recommendation Status
Department of the Treasury To provide a basis for assessing program performance and to support decisionmaking, the Secretary of the Treasury should require the Commissioner of Customs to systematically evaluate CES program effectiveness.
Closed – Implemented
Customs developed an implementation plan to conduct periodic industry surveys on program effectiveness. The first survey was conducted in early 1991.
Department of the Treasury The Secretary of the Treasury should direct the Commissioner of Customs to ensure that fees are reasonable at CES by amending Customs Directive 3270-03 to provide guidance as to how and when districts should evaluate CES-related fees.
Closed – Implemented
Customs Directive 3270-03, superceded by 3270-05, dated August 31, 1990, provides guidance in evaluating CES fees. In addition, Customs is issuing a handbook for the evaluation process. Customs management is currently reviewing the proposed handbook.
Department of the Treasury The Secretary of the Treasury should direct the Commissioner of Customs to amend Customs Directive 3270-03 to require uniform written agreements between Customs and CES operators that specify mutual responsibilities and liabilities of the parties.
Closed – Implemented
Customs Directive 3270-03, superceded by 3270-05, dated August 31, 1990, requires written agreements and specifies responsibilities and liabilities of Customs and CES operators. An accomplishment report will be done after the first recommendation is fully implemented.

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Topics

Administrative costsCentralizationCustoms administrationFeesGovernment liability (legal)Staff utilizationImport regulationImportingInspectionProgram evaluation