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DOCUMENT RESUME
07116 - [B2647701]
(Cistons Check Depositing Procedures °ed Improvecent].
FGMSD-78-58; B-114898. September 2C .978. 4 pr.
Report to Rep. Bill Gradison; by D. L. Scantlebury, Director,
Financial and General Management Studies Div.
Issue Area: Accountiag :nd Financial Reparting: Collection of
Amounts Ow,-.d (2803.-,
Contact: Financial 4nd General Management Studies Div.
Budget Function: Miscellaneous: Financial Management and
Information Systems (1002).
Organization Concerned% Department of the Treasury; United
States Customs Service; United States Shoe Corp.; Harlo Air
Cargo Brokers, Inc.
Conersssional Relevance: Rep. Bill Gradison.
United States Shoe Corporation alleged that it suffered
losses because it had to make good on checks issued by its
bankrupt import broker, Haric Air Cargo Bro.o-c, inc., and
contended that the loss occurred because of the U.S. Customs
Service's delay in depositing the broker's checkh.. U.S. Shoe's
$80,381 loss included $60,170 of Harlo's duty paymevt checks
that were returned by the bank for insurficie,3' funds. At the
same time, Customs vas processing import documents with checks
attached for $20,2:1. it coull not be ascertained if any of the
returned checks would have cleared the bank if Custo&a had
ceposited them earlier because extensive analysis oi bank
:ecords would have been required, and Harlo's insolvency was at
Least partially caused by the incolvency of another company
whose checks tc Harlo were returned unpaid. Cu-toms' Ner York
reyion deposited the checks an average of 7.5 workdays after
2eceipt--substanti lly less than the v~veral months delay
alleged by U.S. Shoe. 1he delay in depositing Harlo's checks was
caused by a regional office procedure requiring that checks
accompany import documents during initial prccessing. The Neu
York office's check depositing procedures are unique within th-
Customs Service. In Boston, Los Angeles, and Detroit, checks tre
deposited upcn receipt, usually the same or the follovinc
workday. The Customs Service has purchased modern processing
machines, decreasing the delay at John F. Kennedy Airport, and
has prepared instructicns requiring the de.-osit cti duties and
taxes upon receipt. (RES)](ViewImageLocal?handle=hein.gao/gaobaaxzc0001&div=1&collection=&method=preview&ext=.png&size=3)