congressional_record: CREC-1994-10-08-pt1-PgE4
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| CREC-1994-10-08-pt1-PgE4 | 1994-10-08 | 103 | 2 | THE U.S. CUSTOMS SERVICE--A GOOD REORGANIZATION | HOUSE | EXTENSIONS | FRONTMATTER | E | E | [{"name": "J. J. Pickle", "role": "speaking"}] | 140 Cong. Rec. E | Congressional Record, Volume 140 Issue 146 (Saturday, October 8, 1994) [Congressional Record Volume 140, Number 146 (Saturday, October 8, 1994)] [Extensions of Remarks] [Page E] From the Congressional Record Online through the Government Printing Office [www.gpo.gov] [Congressional Record: October 8, 1994] From the Congressional Record Online via GPO Access [wais.access.gpo.gov] THE U.S. CUSTOMS SERVICE--A GOOD REORGANIZATION ______ HON. J.J. PICKLE of texas in the house of representatives Friday, October 7, 1994 Mr. PICKLE. Mr. Speaker, I am submitting today for the Record a copy of the recent Washington Post article on reorganization of the U.S. Customs Service and a copy of a letter I recently received from Customs Commission Weise which describes the agency's plans in more detail. Briefly, the reorganization plan will eliminate its 7 regional and 45 district/area offices as management layers, and will assign the employees to a nearby port or other Customs facilities. Also, the plan would reduce headquarters staffing by approximately one-third, moving those employees closer to the port level. Customs will not reduce services or personnel at any of its ports of entry. Customs also would reduce the number of Special Agent in Charge [SAC] offices from the existing 27 to 20 and establish 5 Strategic Trade Centers to identify and attack major trade enforcement issues facing the U.S. Customs entered into this plan with the cooperation and support of the Customs employees union. Reorganization of Customs is long overdue and we should all welcome the Commissioner's efforts. The Ways and Means Oversight Subcommittee has investigated Customs operations for as long as I have been subcommittee chairman, and coordinated our findings with the Subcommittee on Trade. For decades, Customs operated in a world of ``good old boy'' networks, ineffective enforcement strategies, and layers of management which stifled efficiency and focus. Allegations of wrongdoing within the agency plagued Customs and little was being done to address the situation. Part of the problem, I believe, was that Customs wasn't accountable to anyone at Treasury or in the Congress. In 1988, the subcommittee initiated a top to bottom review and investigation of Customs. As a result, the subcommittee issued a report titled, ``Abuse and Mismanagement in U.S. Customs Operations.'' This 1990 report contained 16 findings and 57 administrative recommendations for change. The subcommittee found that: Customs' commercial services had deteriorated and its systems were seriously flawed; management decisions were made without supporting data or analysis; Customs' accounting controls were in total disarray, including evidence of lost money from duty collections and seized property auctions; and, abuse existed in the handling of employee complaints and management of inspector overtime pay. Since the subcommittee's report, most of the subcommittee's recommendations were implemented by Customs. Further, legislation adopted by the Congress in NAFTA contained the Customs Modernization Act provisions which allows for electronic processing of Customs transactions, and provides for uniform treatment of imports across ports. All of these administrative and legislative changes were critical to making Customs a first-class agency. Finally, the critical step required to bring Customs into the 21st century is the action Customs proposes in its reorganization plan. I applaud Commissioner Weise for his tenacity in taking on this tough issue and urge us all to support him. [From the Washington Post, Oct. 3, 1994] Customs Service Begins a Major, Reorganization: First Restructuring in 30 Years Shifts 600 Jobs to Field Offices (By Stephen Barr) The U.S. Customs Service, faulted in past years for failures in enforcing trade laws and curbing illegal imports, has embarked on a reorganization aimed at improving service at 301 ports of entry nationwide. The restructuring will move 600 headquarters positions to the field and eliminate the agency's seven regional and 45 district offices. Twenty Customs Management Centers will be created to help with internal administration, and five Strategic Trade Centers will be established to address international trade issues. ``We're looking at this as a reinvestment of resources,'' said Customs Commissioner George J. Weise, who notified Congress last Friday that the agency was ready to overhaul an organizational structure that has been in place for 30 years. ``The basic thrust of the reorganization is that we're going to put more people on the front lines doing customer work and have fewer people in administrative capacities and managerial capacities.'' Weise said. The Customs Service is part of the Treasury Department, and in announcing the reorganization. Treasury Secretary Lloyd Bentsen said the department ``recognizes the need to adjust our business practices in order to deliver improved services.'' Vice President Gore,who has supported efforts to streamline federal bureaucracies, said the Customs initiative ``serves as a guide for other government agencies to follow.'' Established in 1789 to collect tariffs and duties, the Customs Service has always been an important source of revenue for the government. In 1993, it collected $21.5 billion, second only to the Internal Revenue Service. Besides collecting tariffs and inspecting imports, the Customs Service also processes about 448 million people who arrive in the United States each year by car, ship or plane. Customs employs about 18,000 people, with a staff of about 1,800 at its Washington headquarters. The headquarters reorganization will begin immediately, with the field restructuring to begin a year from now, said Weise, a former staff director of the House Ways and Means trade subcommittee. Planning for the reorganization began last year under the direction of Deputy Customs Commissioner Michael H. Lane. Lane's task force included officials from Customs, the Immigration and Naturalization Service and representatives from the National Treasury Employees Union (NTEU). The task force met with groups from trade and shipping industries. Customs was ``not a sick or ailing agency,'' Weise said, but in need of change. The agency had been criticized in Congress and by the General Accounting Office for poor management practices, including lax handling of seized drugs and weapons, he said. Gore's ``reinventing government'' report and budget constraints added to the impetus for change, he said. Larger issues--such as the enactment of the North American Free Trade Agreement (NAFTA) and the conclusion of the Uruguay Round of trade talks under the auspices of the General Agreement on Tariffs and Trade (GATT)--also will provide challenges for the Customs Services, according to the agency's reorganization report, ``People, Processes and Partnerships.'' To address major trade issues, Weise said Customs would create Strategic Trade Centers in Los Angeles, Dallas-Fort Worth, Chicago, Miami and New York. Miami, for example, would specialize in Caribbean and South American issues, while the Los Angeles office would develop expertise on the new economic powers along the so-called Pacific Rim. Up to 20 employees with experience in inspection, imports, intelligence and computers will staff each center. The staff at the trade centers ``will step back from our day-to-day work,'' Weise said. ``We have traditionally attempted to deal with trade problems on a case-by-case, transaction-by-transaction basis, as we try to catch violators. What this will do is try to deal with some of our more difficult trade problems * * * [and] come up with a more strategic approach to carrying out more effectively our commercial trade responsibilities.'' The trade centers, Weise said, will deal with old issues like trade fraud in textiles and new issues like the protection of intellectual property rights. But the biggest changes will hit the agency's mid- management and senior ranks, as Customs eliminates regional and district offices, Weise said. Regional commissioners and their deputies will move to new jobs, some with less status or prestige. When the reorganization is finished in about three years, tentative projections show that 800 to 1,400 positions will be shifted to the Nation's ports. ``The fundamental building block of this is that we are going to maintain and enhance all 300 ports of entry where we serve the public today * * * where people enter the country themselves or bring merchandise through. That's where we want to deliver our service,'' Weise said. Under the reorganization, port directors will be granted expanded authority to make decisions. Ten assistant commissioners will provide oversight of Customs operations, with a new assistant commissioner for field operations expected to provide strong leadership in the agency. The 20 Customs Management Centers--ranging from San Diego to Boston, from San Juan to Detroit--will provide administrative support for the ports, with each center employing only 15 to 20 people. Baltimore has been designated as the home for the mid-Atlantic management center. ``It's a reorganization that has been done right from the beginning,'' said NTEU President Robert M. Tobias. ``It was started without preconceptions and a focus on the mission of the Customs Service * * * I think this conceivably is a win for everybody.'' ____ The Commissioner of Customs, Washington, DC, September 30, 1994. Hon. J.J. Pickle, House of Representatives, Washington, DC. Dear Congressman Pickle: Today, I am proud to provide you with the Customs Reorganization Plan Report, ``People, Processes and Partnerships.'' The Treasury Department and the Vice President's National Performance Review have endorsed this plan. I trust that you will also find it to be an excellent concept which embodies the spirit and substance of the Administration's National Performance Review (NPR). It is a plan which will enable Customs to be one of the most effective, efficient and adaptable agencies in the Federal sector and better able to meet the challenges of the 21st century. Customs proposes to reorganize around its core business processes and to emphasize the needs of its customers. The focal point of the reorganization will be Customs 301 ports of entry--the operational field level. Under this reorganization plan, Customs will not reduce services or personnel at any of its ports of entry. Under this plan, Customs will not consolidate or close any of its ports. Customs will eliminate its 7 regional and 45 district/area offices as management layers, and will assign the employees of those offices to the port operation in the same location or to nearby ports or other Customs facilities. In this reorganization, Customs will do its utmost to keep its field employees in the locations where they are presently working. Although specific details of our reorganization are provided in the enclosed report, I would like to bring to your attention several key issues and concepts, which relate to our central theme ``People, Processes and Partnerships.'' Our relationship with the National Treasury Employees Union (NTEU), the legal representative of Customs employees, now also embodies the concepts of the NPR. Representatives of NTEU were members of the reorganization study team, and the union has expressed its support for the recommendations in the report. We believe it is essential that Customs management work together with NTEU to bring about the improvements to our work force that are needed to achieve our vision. I am pleased to advise you that on June 13, 1994, Customs entered into a partnership agreement with NTEU. We will build on this partnership during the implementation of the reorganization to minimize negative impact on our employees and to empower employees to make their maximum contributions to the mission and goals of the Customs Service. During the reorganization study, every effort was made to involve the trade community, industry, and other Government agencies. Their concerns and needs are incorporated in the report's recommendations. The report's recommendations have also incorporated the wisdom of experts from numerous outside sources whose advice and counsel we actively sought throughout our study process. The Brookings Institution, the Federal Quality Institute (FQI), and the National Academy of Public Administration (NAPA) provided invaluable assistance during the effort. In order to improve our organizational alignment, we will reduce Headquarters staffing by approximately one-third, moving those employees closer to the port level, where possible. Headquarters will be restructured to include a Chief Operating Officer and new Assistant Commissioners with a renewed focus on core business processes. Our new organization will have only three levels instead of the existing four levels. This will be accomplished by eliminating the existing 7 regions and 45 district/area offices as management layers. In their place, we will establish 20 Customs Management Centers (CMC)--very small area field management entities, transparent to day-to-day port operations, performing internal oversight and support functions and providing administrative services to the ports. A list of the CMC locations is enclosed for your information. We will also reduce the number of Special Agent In Charge (SAC) offices from the existing 27 to 20. Where possible, the SAC offices will be collocated with the CMC's. In addition, we will establish five Strategic Trade Centers (STC) to identify and attack major trade enforcement issues facing the United States. A list of the STC locations is also enclosed for your information. We anticipate that the organizational restructuring contemplated under the reorganization will permit a more effective use of personnel and resources. For example, our strategy calls for the retraining and reallocation of approximately 600-750 positions from central control and administrative type offices to locations where our core services are provided. Of course, any final decisions about reinvestment of resources will be made by the President and the Congress. To improve the overall management of Customs, we will implement a method of managing the Customs Service through business processes. We will develop a portfolio of management tools and statistically based compliance measurement systems to support this new management approach. We will improve service and performance by identifying customer expectations and establishing customer service standards. This organization and its people have made vast contributions to almost every aspect of American life over the history of the Nation. The proposed reorganization is intended to ensure the continuation of that proud tradition and to even greater contributions in the future. Customs is available for briefings to provide further detail on our reorganization and our approach to implementation of process management. I ask your support to help Customs achieve our new vision and organizational realignment. Sincerely, George J.Weise, Commissioner. Enclosures. CUSTOMS MANAGEMENT CENTERS AND SPECIAL AGENT IN CHARGE ------------------------------------------------------------------------ Management area City ------------------------------------------------------------------------ North Atlantic...................................... Boston. New York............................................ New York. Mid Atlantic........................................ Baltimore. South Atlantic...................................... Atlanta. North Florida....................................... Tampa. South Florida....................................... Miami. Puerto Rico/Virgin Islands.......................... San Juan. Gulf................................................ New Orleans. East Texas.......................................... Houston. South Tezas......................................... Laredo. West Texas/New Mexico............................... El Paso. Arizona............................................. Tucson. Southern California................................. San Diego. South Pacific....................................... Los Angeles. Mid Pacific......................................... San Francisco. North Pacific....................................... Seattle. Great Plains........................................ Denver. Mid America......................................... Chicago. West Great Lakes.................................... Detroit. East Great Lakes.................................... Buffalo. ------------------------------------------------------------------------ STRATEGIC TRADE CENTER ------------------------------------------------------------------------ Trade area City ------------------------------------------------------------------------ Pacific Rim......................................... Los Angeles. Mexico/Central America.............................. Dallas/Ft. Worth. Canada.............................................. Chicago. Caribbean/South America............................. Miami. Europe/Africa/Middle East........................... New York. ------------------------------------------------------------------------ ____________________ |