Customs Business Fairness Act of 2005

Customs Business Fairness Act of 2005 - Amends Federal bankruptcy law governing priority among claims and expenses to place in the tenth order of priority allowed unsecured claims for duties, taxes, or other charges paid to the U.S. Customs Service by customs brokers and sureties on behalf of the debtor arising out of the importation of merchandise entered for consumption within one year before the date of the filing of the petition in bankruptcy.

[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1294 Introduced in House (IH)]






109th CONGRESS
  1st Session
                                H. R. 1294

To amend title 11, United States Code, to establish a priority for the 
  payment of claims for duties paid to the United States by licensed 
          customs brokers and sureties on behalf of a debtor.


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                    IN THE HOUSE OF REPRESENTATIVES

                             March 15, 2005

 Mr. Brown of South Carolina introduced the following bill; which was 
               referred to the Committee on the Judiciary

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                                 A BILL


 
To amend title 11, United States Code, to establish a priority for the 
  payment of claims for duties paid to the United States by licensed 
          customs brokers and sureties on behalf of a debtor.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Customs Business Fairness Act of 
2005''.

SEC. 2. AMENDMENT.

    Section 507(a) of title 11, United States Code, is amended by 
adding at the end the following:
            ``(10) Tenth, allowed unsecured claims of customs brokers 
        (as defined in section 641 of the Tariff Act of 1930) and 
        sureties (as provided in section 623 of the Tariff Act of 1930) 
        for duties, taxes, or other charges paid to the Bureau of 
        Customs and Border Protection of the Department of Homeland 
        Security on behalf of the debtor arising out of the importation 
        of merchandise entered for consumption within one year before 
        the date of the filing of the petition.''.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendment made by this Act shall take effect on the date of the 
enactment of this Act.
    (b) Application of Amendment.--The amendment made by this Act shall 
apply only with respect to cases commenced under title 11, United 
States Code, on or after the date of the enactment of this Act.
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