Truck/Rail Container Residue Legislation Introduced in the House


Yesterday, HR 2806, the Residue Exemption and Streamlining Trade Act, was introduced by Representatives Kenny Marchant (R-TX) and Ron Kind (D-WI).  The legislation is intended to block efforts by CBP to impose manifesting requirements on so-called “instruments of international traffic” (IIT) such as rail cars, cargo tanks, portable tanks that are returning to the United States with residues of US goods.  The CBP proposal would require the classification, entering, and manifesting of residues in all returning IITs.  Additionally, tariffs would be payable if the residues exceeded 3%  or 7% of the cargo-carrying capacity in truck or rail IITs respectively.  It is estimated that importers will incur additional costs of more than $17 million for truck entries and $9.5 million for rail entries from the Northern border alone.  These additional costs, with no related security benefits, will negatively impact the competitiveness of companies in the United States.  Both Marchant and Kind are members of the House Ways and Means Committee where this legislation will be considered.  IME is working with an industry coalition to support this legislative change.