United States Customs Service

Back in the golden age of the Republic, prior to the imposition of the income tax, virtually the entire operations of the federal government were funded by customs duties imposed on imported goods and by duties on shipping. The second statute enacted by the First Congress of the United States in 1789 imposed duties on imported merchandise. The third statute imposed duties on tonnage. And the fifth statute, adopted on July 31, 1789, provided for the regulation of the collection of these two duties. The eleven states that had ratified the new Constitution (North Carolina and Rhode Island not having acted yet) were divided into districts and the position of Collector of Customs was established for each district. In addition to collecting the customs and tonnage duties, the Collector was allowed to assess a fee for each official act, to be paid by the shipowner or the importer as appropriate. The position of Collector of Customs was both fairly lucrative and prestigious. President George Washington appointed all of the initial Collectors, naming mostly heroes of the Revolutionary War and prominent politicians. Each Collector was allowed to hire a Deputy Collector and other staff as necessary. While the Collectors always worked through the Secretary of the Treasury, it was some years before a formal Customs Bureau was established. This later was renamed as the Customs Service. The first Customs Commissioner was appointed by President Coolidge in 1927. Over time and as the federal government created new revenue streams, the Customs Service took on additional responsibilities, regulating trade and prohibiting the importation of contraband. After the horrific terrorist attacks of September 11, 2001, the Department of Homeland Security was established. The portion of the Customs Service primarily involved with merchandise and cargoes was merged with the U.S. Border Patrol to form the U.S. Customs and Border Protection (CBP). The portion of the Customs Service primarily involved with crews and passengers merged with the Immigration Service to form the U.S. Immigration and Customs Enforcement (ICE).  Regardless, the historic roles from 1789 continue to serve as core missions of these venerable agencies.