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1964 actual

Treasury balance....

344

-5

-13

224

1963 actual

550

13

344

-5

339

339

344

-5

-339 -1,556

-1,895

5 344

1965 estimate

Financial Condition (in thousands of dollars)

This revolving fund was created as self-insurance to cover losses in shipment of Government property such as coin, currency, securities, certain losses incurred by the Post Office Department, and losses in connection with the redemption of savings bonds (5 U.S.C. 134). Since these claims are only partially offset by recoveries, the net losses have gradually increased to $1,895 thousand as of June 30, 1964, and are expected to increase to $1,970 thousand by June 30, 1965. It is estimated that the creation of this fund has resulted in a savings of over $118 million of insurance premiums on shipments of Government property.

Revenue, Expense, and Retained Earnings (in thousands of dollars)

1964 actual

1965 1966 estimate estimate

76

-1

-224

149

76

-1

75

75

224

76

-|

1966 estimate

1

76

76

-1

-149

74

76 -1

75

75

149

76

-1

-75 -75 -1,895 -1,970 -1,970 -2,045

1

76

1964 1965 1966 actual estimate estimate

74

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General and special funds:

BUREAU OF CUSTOMS

Identification code 15-15-0602-0-1-904

SALARIES AND EXPENSES

For necessary expenses of the Bureau of Customs, including purchase of [seventy-five] seventy-four passenger motor vehicles (of which sixty shall be for replacement only) including [sixty-five] sixty-four for police-type use which may exceed by $300 each the general purchase price limitation for the current fiscal year; uniforms or allowances therefor, as authorized by the Act of September 1, 1954, as amended (5 U.S.C. 2131); services as authorized by section 15 of the Act of August 2, 1946 (5 U.S.C. 55a); and awards of compensation to informers as authorized by the Act of August 13, 1953 (22 U.S.C. 401); [$76,550,000] $82,850,000. (5 U.S.C. 118, 118a, 281a; 19 U.S.C. 68, 1524, 1619, 1701; 31 U.S.C. 5296, 530; 46 U.S.C. 1-1334; Treasury-Post Office Appropriation Act, 1965.)

Program and Financing (in thousands of dollars)

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1964

adjust

ments

1965 1966 estimate estimate

78,811 82,850 -150

78,661

-300 300

78,661 82,850

76,550 82,850

76,517

2,144

-33

78,661 2,995 -3,400

76,186

2,070

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82,850

-300 300

804

82,850

82,850

3,400 -7,508

78,668

74

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The Bureau of Customs collects the duties and taxes on imported merchandise, inspects all international traffic, regulates certain marine and aircraft activities, combats smuggling, undervaluation, and frauds on the customs revenue, and performs related functions in connection with the importation and exportation of merchandise.

Direct obligations are estimated to be $82,850 thousand for 1966, an increase of $6,300 thousand over the amount now appropriated for 1965.

The unobligated balance of $300 thousand is a special fund available to this account when necessary to help pay the expenses of reimbursable customs work pending the collection of receivables from private interests.

A supplemental appropriation is anticipated for separate transmittal.

1. Assessment and collection of duties, taxes, and fees.The collectors of customs assess and collect the duties and taxes on imported merchandise, inspect international traffic, combat smuggling, perform certain marine activities relating to ownership and documentation of vessels of the United States and the movement of vessels in the foreign trade, and enforce the laws of other Government agencies affecting imports and exports.

SELECTED WORKLOAD DATA [In thousands]

Formal entries accepted... Carriers of persons and merchandise arriving from foreign countries....

Persons arriving from foreign countries...

Packages examined. Packages sampled. Invoices received.

2. Appraisal of imported merchandise. The customs appraisers examine and ascertain the value of imported merchandise, and perform other functions in support of the collectors' determinations of rates of duty to be assessed and the admissibility of merchandise into the United States.

1964 1965 1966 actual estimate estimate

1,714 1.800 1,890

SELECTED WORKLOAD DATA [In thousands]

50,939 53,000 55,000 174,266 181,000 188,000

Liquidations verified..

Comptrollers' verifications pending at close of

Audit reports made..........

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year.

1964 actual 1,749 1,800 379 380 2,649 2,800

SELECTED WORKLOAD DATA

1964 actual

3. Investigations of violations of customs and related laws and regulations.-The customs agents in the United States and abroad make investigations in the enforcement of the Tariff Act of 1930, the Narcotics Drug Act of 1934, the Gold Reserve Act of 1934, the Export Control Act, and other laws affecting the movement of merchandise into and out of the United States. They also secure market. value information for customs appraisers. In fiscal 1964, a total of 20,447 investigations were made. The estimates for 1965 and 1966 are 21,000 and 22,000, respectively.

1965 1966 estimate estimate

4. Audit of collection and merchandise accounts.-The comptrollers of customs examine and certify collectors' accounts of receipts and disbursements of money and receipts and disposition of merchandise, and verify collectors' final assessments of duties and taxes, as well as allowances of drawback.

110,864 5,674

123

1,865 395 2,940

1965 1966 estimate estimate 40,000 40,000 2,000 2,000 115

128

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Identification code 15-20-4502-0-4-904

1964 actual

Program by activities:
Operating costs, funded:

160 -106

54

1. Engraving and printing.

2. Operation and maintenance of in-
cinerator and space utilized by
other agencies..

3. Other direct charges for miscel-
laneous services.

Total operating costs, funded.

-93
39

160

54 207 -112

148

1964 actual

24,859

1965 1966 estimate estimate

1 Selected resources as of June 30 are 1963, $207 thousand; 1964, $101 thousand; 1965, $2,976 thousand; 1966, $0. are as follows: Unpaid undelivered orders,

421

58

25,338

39 2,875

Air conditioning the Bureau of Engraving and Printing buildings. This provides for all expenses incident to air conditioning the Bureau of Engraving and Printing buildings in order to control atmospheric conditions and insure a more uniform quality product in the production of United States securities. This program will be completed in 1966.

2,914

2,875

5,789

BUREAU OF ENGRAVING AND PRINTING FUND

Program and Financing (in thousands of dollars)

-39

5,750

5,789

112 2,976 -2,976

2,925 2,976

2,976

2,976 -2,976

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The Bureau of Engraving and Printing designs, manufactures and supplies all major evidences of a financial character issued by the United States. It is the sole source of U.S. currency and Federal Reserve notes, various public debt instruments, and most of the minor evidences of a financial character issued by the United States, such as postage, internal revenue, customs and savings stamps. In addition, the Bureau prints a wide variety of miscellaneous commissions, certificates, etc., as well as postage and revenue stamps for the various territories administered by the United States.

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1964 actual 1965 estimate 1966 estimate

Rate per thousand
Average production per man-

Rate per thousand.

Average production per man

year..

(d) Commissions, certificates, etc.. Cost..

Rate per thousand.

2. Cost of operation and maintenance of incinerator and space utilized by other agencies.....

3. Other direct charges for miscellaneous services.

Total.....

569,480 $5,039 $8.85 1,153,168 $10,285 $8.92

1,011

24,958

5,502

$998 $181.32

24,694,102 24,484,000 24,823,000
$8,299 $8,593 $8,970
$0.336 $0.351 $0.363
1,976,798 2,018,356
$888
$954
$0.449 $0.473
399,055 424,886
$727

2,023,891
$981
$0.485
452,958

$569
$1.426

$797 $1.760

$1.711

50 4,588

$380

$82.76

11,880
$108

$9.05
1,937,384
$17,507
$9.04

1,073

$421

$58 $26,937

24,949

5,853 $1,236 $211.11

1,950,000
$16,450
$8.44

1,151

45 5,406 $377

$69.81

44 35,639 $584

$16.37

$438

$484

$40
$40
$29.980 $29,575

of the Government. The anticipated requirements of
the agencies reflect an increase of 6.4% in 1965 and 5%
in 1966 over 1964.

Bureau operations resulted in a loss of $33 thousand
during 1964. This loss, together with a deficit of $36
thousand brought forward from prior years, will be
recovered from any profits accruing in subsequent years,
in accordance with provisions of 31 U.S.C. 181-181e.
Budget expenditures are expected to be in excess of
receipts in the amount of $3,514 thousand in 1965 and
below receipts in the amount of $260 thousand in 1966.
The capital of the fund is expected to remain at $25.3
$1.270 million represented by an appropriation of $3.3 million
and donated assets of $22 million.

24,672
5,778

$219.87

Revenue, Expense, and Retained Earnings (in thousands of dollars)

The anticipated work volume is based on estimates of requirements submitted by agencies served. The program comprises the following activities:

1. Engraving and printing-(a) Currency.-Deliveries in 1965 and 1966 are anticipated to be approximately 13 percent higher as compared with the total 1964 deliveries. With the exception of a small quantity of U.S. currency ordered in 1964 for delivery in 1965, all of the requirements in the current and budget years will be for Federal Reserve notes, with the bulk of the deliveries being the new $1 Federal Reserve note which replaced the $1 silver certificate in compliance with the provisions of Public Law 88-36 approved June 4, 1963.

(b) Stamps.-The overall requirements in 1965 and 1966 for this class of work, which comprises primarily postage and internal revenue stamps, are substantially the same as for 1964. An analysis of the work program disclosed no material differences in each of the years in the quantity of stamps to be delivered on the various items.

(c) Securities.-This program encompasses the production of a wide variety of bonds, notes and debentures for the Bureau of the Public Debt and certain other agencies

(d) Commissions, certificates, etc.-The anticipated requirements of most of the agencies who requisition this type of work reflect very little change in 1965 as compared with 1964. The large increase in the unit deliveries for 1966 is due to a special project to be performed for the Department of Defense. However, the production costs associated with all of this miscellaneous work represent a very small percentage of the overall engraving and printing program of the Bureau.

2. Cost of operation and maintenance of incinerator and space utilized by other agencies.-Charges are made to other agencies on an actual cost basis for use of the incinerator and maintenance services provided for the space they occupy in the Bureau's buildings.

3. Other direct charges for miscellaneous services.Charges for a wide variety of miscellaneous services performed by Bureau personnel are made to the agencies concerned on an actual cost basis.

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