Representatives Peter King (R-NY) and Gregory Meeks (D-NY) have introduced H.R. 2261, the Customs Business Fairness Act of 2019. This act protects customs brokers in the event an importer-client declares bankruptcy. As currently written, the bankruptcy laws allow bankruptcy trustees to recover duty payments made by the importer to CBP through the customs broker during the 90-day “claw back” period.
The Customs Business and Fairness Act will allow customs brokers to be “subrogated” to the priority rights of CBP for duties paid by the customs broker on behalf of an importer that subsequently files for bankruptcy – allowing a customs broker to standing the shoes of CBP as a credit who collected duties from the importer.
Click on this link below to call or write to Congress about HR 2261: