[Insert Company Logo Here]
August 15, 2013
Hon. Senator [Last Name]
[Insert Name] Senate Office Building
Washington, DC 20510-2602
Dear Senator [Last Name]:
As a representative of [Insert Company Name] located in [Insert City and State], I am writing to express my strong support for S. 662, the Trade Facilitation and Trade Enforcement Reauthorization Act, introduced on March 22nd by Senators Max Baucus and Orrin Hatch. By authorizing funding for U.S. Customs and Border Protection to complete development of the Automated Commercial Environment (ACE), this legislation will at last complete modernization of our nation’s trade processing system – reducing compliance costs and further extending the benefits of global trade to U.S.-based companies such as ours.
[My company name], which is a Foreign-Trade Zone [User/Operator/Grantee], employs [Insert Number of Employees] in [Insert Location]. Our participation in the FTZ program enables us to source [products/manufacturing inputs] from around the world at global prices, helping us to remain competitive in international trade. The 2,800 companies involved in the U.S. Foreign-Trade Zones program range from globally recognized manufacturers to small, independently owned businesses, collectively employing 340,000 Americans in 2011.
U.S. Customs’ border processing efficiency plays a critical role in the ability of U.S. FTZ-based companies such as ours to compete effectively in the global economy. For too long, firms operating in the United States have been handicapped by an outdated, paper-based trade processing system. It is hardly an exaggeration to state that this “legacy” Customs system lags at least two decades behind the speed and efficiency of modern global business processes. As a result, international trade compliance is costly and labor-intensive, consuming resources which would otherwise be utilized for investment, or hiring new employees. The current system also makes it more difficult for Customs officials to process cargo quickly, delaying the arrival of critical manufacturing inputs needed by American companies.
By replacing paper reporting requirements with online submission of documents required by Customs and other federal agencies, the ACE system will:
· Expedite legitimate trade by providing Customs with the technology to efficiently process imports and exports and move goods quickly across the border;
· Facilitate efficient collection, collaboration and compliance efforts between Customs and the trade community; and
· Provide an information-sharing platform for trade data between government agencies, consolidating data submission and aiding agencies in the risk-assessment process.
Recognizing the urgent need to bring U.S. border administration into the 21st century, S.662 would instruct Customs to complete the development of ACE by September of 2015. It would also authorize the necessary appropriations to operate and manage the ACE program from FY 2017 through FY 2018. While these are worthwhile goals, Customs should also make the inclusion of foreign-trade zones in ACE a top priority, and commit to a timeline for their integration into the program as soon as possible.
Foreign-trade zone users account for more than 12 percent of total U.S. goods imports, and have made an outsized contribution to reaching the goals of the National Export Initiative. These companies also face many additional, FTZ-specific reporting requirements that have not yet been integrated into ACE. If continued, this delay will put these vital U.S. manufacturers at a disadvantage. Congress should ensure that steps are taken by Customs to fully integrate foreign-trade zones in the ACE transition process immediately.
As our economy continues along the path to recovery, it is critical for Congress to ensure that U.S.-based companies will remain competitive in international commerce. Passage of the Trade Facilitation and Trade Enforcement Reauthorization Act would be a very positive step in that direction. We look forward to working with you and your staff to help create continued opportunities for [Insert State Name] businesses to succeed. Thank you for your consideration.
Sincerely,
[Insert Signature]
[Insert Title]