The following table shows man-year employment data in fiscal 1959 and 1960. 1 Salaries reimbursed to the Government by the private firms who received the exclusive services of these employees. Management improvement program Actions taken under the Customs management improvement program made possible a saving of $612,000 during fiscal year 1960. Of this amount, $423,000, equal to 66 man-years, are annual recurring savings and $79,500 are one-time savings. Savings from the incentive awards program totaled $37,500. The remaining $72,000 represents space released to the General Services Administration. The major portion of the recurring savings was obtained through procedural improvements, elimination of unnecessary work, delegations of authority to field officers, etc., all of which resulted in more effective use of personnel. The savings enabled the Customs Service to meet many demands of a constantly increasing workload which would otherwise have been impossible in a year in which significant customs transactions reached record levels. The Customs management improvement program continued to emphasize the facilitation of international trade and travel as well as the development of a more efficient customs organization. Legislation, coupled with administrative actions, brought about considerable progress in these areas. Legislation.-An act approved September 14, 1959 (19 U.S.C. 1201), eliminated a troublesome paragraph of the Tariff Act by redefining works of art. This law permits free entry of all original art forms if they are so regarded by a sufficient body of recognized authority. Another law, passed May 13, 1960 (74 Stat. 130), raised to $40,000 the amount of money that Customs may spend on border inspection facilities and permits Customs and the Immigration Service to spend up to $80,000 for these structures to be used jointly by the two agencies. A proposed customs administrative act and a bill to permit more realistic customs and marine fees and charges were not enacted. Trade and travel.-Collectors of customs have been delegated authority to remit or mitigate the $500 statutory penalty imposed by section 584 of the Tariff Act of 1930 (19 U.S.C. 1584) on the master of a vessel having merchandise manifested but which is not found on board. The additional documentation required for residue cargo moving to interior ports on a substitute aircraft of the importing airline has been discontinued under certain conditions. In order to facilitate the use of cargo containers in international trade, the customs regulations were changed to permit customs clearance, without entry or payment of duty, of lift vans, shipping tanks, pallets, and other similar instruments used in transporting cargo between the United States and foreign countries. Preflight customs clearance began at Nassau, Bahamas, on August 15, 1959. Under this procedure persons departing on direct flights by commercial aircraft to the United States clear through U.S. Customs before boarding their aircraft. Preclearance enables them to proceed without further delay upon arrival in the United States. Similar procedures are already in effect in Canada at Toronto, Montreal, and Winnipeg. The minimum amount of a term bond for the temporary importation of merchandise at a single port has been reduced from $10,000 to $1,000. This will allow importers to use a term bond, rather than a single entry bond, for temporary importation at only one port in circumstances which previously made its use impractical because of the $10,000 minimum amount. In addition the need for surety or cash deposit for certain types of temporary importation bonds, where the face value of the bond does not exceed $25, has been eliminated. The procedures which were adopted jointly by Customs and the Post Office Department in 1958, for controlling collections of duties and taxes assessed on mail importation not exceeding $250 in value, have been completely revised. The new system retains the important feature of removing the function of disbursing duty collections from 38,000 postmasters and centralizing it in 15 regional comptrollers' offices. However, major changes were made to relieve excessive workload in some areas and to achieve better internal control in both Customs and the Post Office Department. The delivery of mail shipments was further facilitated by permitting postal employees, under certain conditions, to release unaccompanied tourist purchases to persons other than the addressees and by extending authority to all customs mail bureaus to make adjustments in duty and tax assessments on unpaid informal mail entries issued at any port and for any class of mail. Collectors of customs were delegated authority to establish the wastage allowance to be used in computing duties on imported materials processed in customs bonded smelting and refining warehouses. Merchandise not conforming to sample or specification may now be more easily exported with benefit of drawback. It may be returned to customs custody at any port instead of only the port at which it was entered, and examination by an appraising officer is no longer always required. At bonded warehouses where facilities are available for gauging and proofing distilled spirits in large tanks, the gauging and proofing of individual packages have been discontinued. This practice also eliminates scoring numbers and stamping of the individual packages. Forwarding initial shipments of diamonds or other precious stones to the appraiser at New York for a report on value has been made. discretionary with the appraiser at the port where a shipment is entered. Previously, the forwarding of all such initial shipments was mandatory. Another improvement in appraisement involves the use of the Stanley Jones daily quotations of grain prices on the Winnipeg market for ascertaining the dutiable value of imported grains. Use of these quotations will permit more uniform appraisement in less time. Authority was delegated collectors of customs to establish rates of drawback under section 313(a) of the Tariff Act (19 U.S.C. 1313(a)) covering the domestic manufacture or production of articles with the use of imported merchandise and to amend existing or future rates. Standardized instructions were formulated by Customs-Immigration to provide for training and for annual joint inspections of dualscreening and dual-inspection operations. This will promote uniformity and better enforcement of both customs and immigration laws. The authority of collectors to determine the domestic value of seized property has been extended by raising the value limit from $250 to $500. This extension of authority will expedite the disposition of petty seizures. The determination of the appraised value of imported merchandise dutiable at ad valorem rates has been centralized at the appraisers' headquarters ports in the St. Lawrence, Ohio, Laredo, El Paso, and Arizona districts. Formerly, the appraisement was performed by deputy collector-appraisers in charge of the various small subports in these districts. Centralization will insure more uniform appraisals, expedite appraisements, reduce reporting to the Customs Information Exchange, and improve service to importers. Appraisers now have discretionary authority to complete appraisement under several conditions in which it was formerly necessary to withhold appraisement. A simplified procedure was prescribed for ascertaining the final amount of duties and taxes due on formal consumption entries in which no change in quantities, values, or rates of duty has been reported by inspecting and appraising officers. An appendix to the Customs Personnel Manual was issued which broadened the authority of certain Bureau officials and clarified the authority of principal field officers to approve personnel actions. The new delegation order was necessary to effect a recent further delegation of authority in this area by the Secretary of the Treasury to the Commissioner of Customs and to insure that principal field officers have a clear understanding of their authority under the merit promotion program. New qualification standards were issued for the examiner and appraiser positions. New position classification and qualification standards for positions in the customs entry and liquidating series also have been approved. Two centralized courses for the training of customs examiners were conducted at Boston, Mass. The effectiveness of the training program was demonstrated by the rapidity with which the new examiners were able to assume job responsibilities after assignments to their permanent posts. A revised edition of the Marking Digest was compiled and distributed to customs officers. The digest combines under a single cover all pertinent reference materials, Bureau decisions, and laws relating to the proper marking of imported merchandise. The digest expedites the quick disposal of routine questions concerning marking. Management teams inspected 31 collection and appraisement districts during the year. Manpower requirements were reevaluated in terms of existing and anticipated workloads and improvements were made. Improvements in the method of handling of imported merchandise at Chicago, Ill., such as the release of air freight at the airports, expansion of wharf examination, and transfer of general order merchandise to customs bonded warehouses made possible the release to the General Services Administration of 24,000 square feet of floor space. Steps were taken to establish a vigorous servicewide program to accelerate the upgrading of old furniture and equipment through the acquisition of property declared excess by other Federal agencies. In conjunction with procedural improvements and the forms analysis program, 7 forms were abolished, 9 were established, and 75 were revised. Office of Defense Lending The Office of Defense Lending was established on July 1, 1957, by Treasury Order No. 185. Assigned to this Office were the following functions which had been transferred to the Secretary of the Treasury. Activities under the Defense Production Act The making and administering of loans to private business enterprises under the authority of section 302 of the Defense Production Act of 1950, as amended (50 app. U.S.C. 2153), were assigned to the Secretary of the Treasury by Executive Order No. 10489, dated September 26, 1953. Under section 302, this Office can consider only applications for loans which are certified as essential for national defense purposes by the Office of Civil and Defense Mobilization. No new loans were authorized during the fiscal year 1960. On July 1, 1959, there were loans outstanding amounting to $169.4 million and deferred participation commitments of $15.8 million. By the close of the fiscal year 1960 these loans had been reduced to $162.9 million and commitments to $14.7 million. Civil defense loans The lending functions under section 409 of the Federal Civil Defense Act were transferred to the Secretary of the Treasury on September 28, 1953, pursuant to section 104 of the Reconstruction Finance Corporation Liquidation Act (50 app. U.S.C. 2261). Beginning with the fiscal year 1956 no administrative expense allowance has been authorized for this program, and no applications for new loans have been accepted. On July 1, 1959, there were loans outstanding amounting to $1,008,920 and deferred participation commitments of $2,436,727. By June 30, 1960, these loans had been reduced to $904,085 and the commitments to $2,129,110. Liquidation of Reconstruction Finance Corporation assets Pursuant to the provisions of Reorganization Plan No. 1 of 1957 the Reconstruction Finance Corporation was abolished effective at the close of June 30, 1957. Its remaining assets, liabilities, and obligations were transferred to the Secretary of the Treasury, the Ad ministrator of the Small Business Administration, the Housing and Home Finance Administrator, and the Administrator of General Services. The Secretary of the Treasury is responsible for completing the liquidation of business loans and securities with individual balances of $250,000 or more, securities of and loans to railroads, securities of financial institutions, and the windup of corporate affairs. During fiscal 1960 there was paid into the Treasury as miscellaneous receipts $15,500,000, representing net income and proceeds of liquidation on the various loans, securities, and commitments. This brought to $40 million the total paid into the Treasury since July 1, 1957. On June 30, 1960, the portfolio of RFC loans, securities, and commitments amounted to $20 million, a reduction of $14 million from the $34 million outstanding on July 1, 1959. Total reductions effected have amounted to $35.5 million or approximately 64 percent of the portfolio of $55.5 million transferred to the Secretary of the Treasury on July 1, 1957. Bureau of Engraving and Printing The Bureau of Engraving and Printing designs, engraves, and prints United States currency, Federal Reserve notes, securities, postage and revenue stamps, and various commissions, certificates, and other forms of engraved work for Government agencies. The Bureau also prints bonds and postage and revenue stamps for the governments of insular possessions of the United States. r Deliveries of all classes of work to the customer agencies in the fiscal year 1960 totaled 27,643,428,932 pieces, as compared with 53,855,956,036 pieces in 1959, a decrease of 26,212,527,104 pieces, or 49 percent in the overall deliveries of Bureau products. This decrease was due primarily to the decision of the Department to discontinue the use of certain internal revenue stamps in connection with tax collections for cigarette and other tobacco items. Organizational changes A Supply Requirements and Property Utilization Branch was established on July 1, 1959, to administer the Bureau's excess property program. Items of property declared excess to the needs of certain Bureau operations and valued at approximately $125,680 were utilized in other areas of the Bureau through this program. Management attainments Continuing its efforts to effect economies in every way possible, without relaxing security or quality standards, management has concentrated especially on full utilization of manpower and has adopted the policy of filling only the vacancies absolutely essential to carrying out the Bureau's production program. Personnel was reduced from 3,335 employees at the beginning of the fiscal year to 3,191 employees at the end of fiscal 1960. Through a stores management survey to reduce the quantities of stores in line with the projected production program, the value of raw materials inventories was reduced more than $450,000 during the year. Review of the specifications for servicing postage stamp perforating • Revised. 563852-61- -8 |