[Federal Register: April 24, 2006 (Volume 71, Number 78)]
[Proposed Rules]
[Page 20922-20925]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ap06-16]
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DEPARTMENT OF HOMELAND SECURITY
DEPARTMENT OF THE TREASURY
Bureau of Customs and Border Protection
19 CFR Parts 24 and 111
RIN 1505-AB62
[USCBP-2006-0035]
Fees for Certain Services
AGENCY: Customs and Border Protection, Homeland Security; Treasury.
ACTION: Proposed rule.
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SUMMARY: This document proposes to amend the rules dealing with customs
financial and accounting procedures by revising the fees charged for
certain customs inspectional services under section 13031 of the
Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.
These revisions propose to exercise authority provided under recent
changes in the pertinent statutory provisions.
DATES: Written comments must be received by May 24, 2006.
ADDRESSES: You may submit comments, identified by docket number, by one
of the following methods:
Federal eRulemaking Portal: http://www.regulations.gov.
Follow the instructions for submitting comments via docket number
USCBP-2006-0035.
Mail: Trade and Commercial Regulations Branch, Office of
Regulations and Rulings, Bureau of Customs and Border Protection, 1300
Pennsylvania Avenue, NW. (Mint Annex), Washington, DC 20229.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Submitted comments
may also be inspected during the regular business days between the
hours of 9 a.m. and 4:30 p.m. at the Office of Regulations and Rulings,
Bureau of Customs and Border Protection, 799 9th Street, NW., 5th
Floor, Washington, DC. Arrangements to inspect submitted comments
should be made in advance by calling Mr. Joseph Clark at (202) 572-
8768.
FOR FURTHER INFORMATION CONTACT: For information concerning user fee
policy and rates, contact Mr. Jerry Petty, Director, Cost Management
Division, 1300 Pennsylvania Avenue, NW., Room 4.5A, Washington, DC
20229. Telephone: (202) 344-1317.
SUPPLEMENTARY INFORMATION:
Public Participation
Interested persons are invited to participate in this rule-making
by submitting written data, views, or arguments on all aspects of the
proposed rule. The Bureau of Customs and Border Protection (CBP) also
invites comments that relate to the economic, environmental, or
federalism effects that might result from this proposed rule. If
appropriate to a specific comment, the commenter should reference the
specific portion of the proposed rule, explain the reason for any
recommended change, and include data, information, or authority that
support such recommended change.
Background
CBP collects fees to pay for the costs incurred in providing
customs services in connection with certain activities under the
authority of section 13031 of the Consolidated Omnibus Budget
Reconciliation Act of 1985 (COBRA), as amended, codified at section 19
U.S.C. 58c.
On October 22, 2004, the President signed the American Jobs
Creation Act of 2004 (Pub. L. 108-357). Section 892 of the American
Jobs Creation Act amended 19 U.S.C. 58c to renew the fees provided
under COBRA, which would have otherwise expired March 1, 2005, and to
allow the Secretary of the Treasury to increase such fees by an amount
not to exceed 10 percent in the period beginning fiscal year 2006
through the period for which fees are authorized by law. It is noted
that the law specifically mentions the Secretary of the Treasury, even
though CBP is now a component of the Department of Homeland Security.
Regulations concerning user fees, among other customs revenue
functions, were retained by the Secretary of the Treasury pursuant to
Treasury Department Order No. 100-16.
In accordance with the current statutory provisions, CBP is
proposing to amend the regulations by increasing the fees for customs
services provided in connection with (1) the arrival of certain
commercial vessels, commercial trucks, railroad cars, private aircraft
and private vessels, passengers aboard commercial aircraft and
commercial vessels, and barges or other bulk carrier arrivals, (2) each
item of dutiable mail for which a customs officer prepares
documentation, and (3) annual customs brokers permits.
CBP is proposing to increase the fees by the amounts authorized so
that they more accurately reflect the actual costs of providing the
services for which they are charged. None of the user fees being raised
in this package have been adjusted since their implementation in 1986.
However, the costs incurred by CBP in performing certain customs
inspection services have continued to grow because of higher volumes,
greater varieties of cargo and increased security concerns which
require inspections of individuals and conveyances entering the United
States. As a result, CBP currently collects COBRA fees covering only
thirty-two percent of the costs incurred by the agency. With this
proposed increase, we estimate COBRA fees will generate an additional
$26 million annually. Approximately 84 percent of these fees come from
individual travelers, which are
[[Page 20923]]
categorized as individual user fees. As such, the impact on business
will be minimal.
It must be noted that the proposed fee changes would only apply to
customs inspection fees charged by CBP under COBRA and do not impact
the administration of any other user fees charged by CBP. Certain user
fees, by statute, have annual caps that were not included in the
legislation authorizing these increases and, as such, the amount of the
annual caps remain unchanged.
Discussion of Changes
Following is a summary of the user fees affected and a description
of customs services each fee covers.
Commercial Vessel User Fee (Vessel of 100 Net Tons or More)
CBP inspects commercial vessels of 100 net tons or more arriving at
ports of entry in the customs territory of the United States. Vessel
owners or operators pay a user fee for each arrival, up to a calendar
year maximum amount.
The current CBP user fee for each commercial vessel arrival is $397
and a calendar year maximum of $5,955. The current fee became effective
in 1985 and has not been adjusted prior to this rule. The user fee is
proposed to be raised to $437 per arrival while retaining the maximum
of $5,955 each calendar year.
User Fees for Commercial Trucks
CBP inspects commercial trucks arriving at all land ports in the
customs territory of the United States. The United States Department of
Agriculture (USDA) also assesses a commercial truck user fee for
arrivals at certain land ports.
Commercial truck owners or operators can elect to pay a per arrival
fee or pay a fee to cover the entire calendar year. The annual payment
covers an unlimited number of entries during the calendar year. Upon
payment of the annual fee, which includes both CBP and USDA user fees,
the truck owner or operator receives a transponder to place on the
truck windshield. This indicates that both the CBP and USDA user fees
for the truck have been paid for that calendar year.
The current CBP commercial truck user fee is $5.00 for each arrival
and $100 for the annual fee. The current fee became effective in 1985.
This document proposes to raise the CBP user fee to $5.50 for each
arrival and $100 for the calendar year fee.
An electronic transponder recently replaced the paper decal
formerly used. Questions about the transponder should be directed to
``Decal'' Inquiries, National Finance Center, (317) 298-1245.
Railroad Car Passenger/Freight User Fee and Decal
CBP inspects railroad cars, carrying passengers or commercial
freight, arriving at land ports in the customs territory of the United
States. However, CBP does not assess a fee on empty railroad cars.
There is a calendar year maximum that applies to railroad cars and a
decal may be purchased for the entire calendar year.
The current user fee is $7.50 for the arrival of each railroad car
carrying passengers or commercial freight and $100 for a decal that
covers the calendar year. The current fee became effective in 1986. The
fee is proposed to be raised to $8.25 for the arrival of each railroad
car carrying passengers or commercial freight and to $100 for a decal
for the calendar year.
Private Aircraft and Private Vessel Decal Fees
CBP inspects private aircraft and private vessels arriving in the
customs territory of the United States. Owners and operators of both
private aircraft and private vessels are required to purchase a decal
each calendar year.
Those parties currently pay $25 for all arrivals made during a
calendar year by a private vessel or aircraft. The current fee became
effective in 1985. This document proposes to raise the decal fee to
$27.50 for all arrivals made during a calendar year by a private vessel
or aircraft.
User Fee Passenger Aboard a Commercial Aircraft
CBP inspects commercial airline passengers arriving at airports in
the customs territory of the United States. Millions of travelers pass
through U.S. airports daily. Our overall goal, keeping in mind airport
security, is a timely, seamless inspection process that is integrated
with the clearance processes of other Federal agencies with inspection
responsibilities. Our joint goal is to enhance security and improve
enforcement and regulatory processes in order that international air
passengers are cleared through the entire Federal inspection process as
quickly as possible without jeopardizing our security requirements.
Currently, the user fee for international airline passenger
clearance is $5.00 per passenger. The fee is proposed to be raised to
$5.50 per passenger.
User Fee Passenger Aboard a Commercial Vessel (Non-Exempt)
CBP inspects commercial vessel passengers arriving at ports in the
customs territory of the United States. Our overall goal, keeping in
mind port security, is a timely, seamless inspection process that is
integrated with the clearance processes of other Federal agencies with
inspection responsibilities. Our joint goal is to enhance security and
improve enforcement and regulatory processes in order that commercial
vessel passengers are cleared through the entire Federal inspection
process as quickly as possible without jeopardizing our security
requirements.
Currently, the user fee for commercial vessel passenger clearance
is $5.00 per passenger. The fee is proposed to be increased to $5.50
per passenger.
Passenger Commercial Vessel User Fee (Canada, Mexico, Territory or
Possession of the U.S., or Adjacent Island as Defined in 8 U.S.C.
1101(b)(5))
CBP inspects commercial vessel passengers arriving at ports in the
customs territory of the United States from Canada, Mexico, territory
or possession of the U.S., or adjacent island as defined in the
aforementioned statute.
Currently, the user fee for commercial vessel passenger processing
relating to the above locations is $1.75 per passenger. The current fee
became effective in 1999. The fee is proposed to be increased to $1.93
per passenger.
Dutiable Mail Entries User Fee
All international mail is subject to inspection by CBP; however, we
assess a user fee only on packages and/or mail containing dutiable
merchandise.
Currently, the user fee for dutiable mail is $5.00 per item. The
current fee became effective in 1985. The fee is proposed to be raised
to $5.50 per item.
Customs Broker Permits
Brokers are required to pay an annual fee to maintain their license
for customs purposes. The fees are applicable for each district permit
and each national permit held by an individual, partnership,
association, or corporation. Currently, the user fee for a broker
permit is $125.00 per permit. The current fee became effective in 1985.
The fee is proposed to be raised to $138.00 per permit.
Barges and Other Bulk Carriers (From Canada or Mexico)
CBP inspects barges and other bulk carriers from Canada and Mexico.
Currently, the user fee for barge and
[[Page 20924]]
bulk carrier inspection is $100 per arrival and a calendar year maximum
of $1,500. The current fee became effective in 1986. The fee is
proposed to be raised to $110 per arrival and a calendar year maximum
of $1,500.
New Fee Structure
Table 1 indicates the customs inspection user fees currently in
effect and the proposed user fee rates.
Table 1.--Summary of New Fee Rates
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Current fees/
Customs services annual cap Proposed fees
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Commercial Vessels................ $397.00/$5,955 $437.00/$5,955
Commercial Trucks................. $5.00/$100.00 $5.50/$100.00
Railroad Cars..................... $7.50/$100.00 $8.25/$100.00
Private Aircraft (Decal).......... $25.00 $27.50
Private Vessel (Decal)............ $25.00 $27.50
Commercial Aircraft Passenger..... $5.00 $5.50
Commercial Vessel Passenger (Non- $5.00 $5.50
Exempt)..........................
Commercial Vessel Passenger....... $1.75 $1.93
Dutiable Mail..................... $5.00 $5.50
Broker Permit..................... $125.00 $138.00
Barges and other bulk carriers.... $100.00/$1,500 $110.00/$1,500
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Standard for Setting Fees
As noted above, Section 892 of the American Jobs Creation Act
specifically gives the Secretary of the Treasury the authority to
increase the COBRA fees by an amount not to exceed 10 percent in the
period beginning fiscal year 2006 through the period for which fees are
authorized by law. In addition, this provision requires that the
amounts of fees charged (a) be reasonably related to the costs of
providing customs services in connection with the activity or item for
which the fee is charged, (b) may not exceed, in the aggregate, the
amounts paid in that fiscal year for the costs incurred in providing
customs services in connection with the activity or item for which the
fee is charged, and (c) may not be collected except to the extent such
fee will be expended to pay the costs incurred in providing customs
services in connection with the activity or item for which the fee is
charged.
Accordingly, CBP has compared the amounts of user fees charged and
the corresponding costs incurred in providing customs services in
connection with the activity or item for which the fee is charged to
ensure that the fees accurately reflect the actual costs incurred in
providing each service.
The fees are proposed to be increased by the amounts necessary to
align them with the costs incurred by CBP in performing such services,
subject to the 10 percent increase limit set by law.
Table 2 shows the collections received and obligations incurred by
CBP, in Fiscal Year 2004, in performing customs inspectional services.
Table 2.--Summary of Fee Collections and Obligations
------------------------------------------------------------------------
Fiscal year 2004 Fiscal year 2004
Customs services collection by obligation by
type type
------------------------------------------------------------------------
Commercial Vessels................ $18,915,411 $87,816,021
Commercial Trucks................. 18,576,419 224,047,446
Railroad Cars..................... 7,737,910 27,052,069
Private Aircraft.................. 755,390 32,908,142
Private Vessel.................... 729,678 5,934,279
Commercial Aircraft Passenger..... 236,939,037 494,340,066
Commercial Vessel Passenger (Non- 1,475,810 8,409,194
Exempt)..........................
Commercial Vessel Passenger....... 12,431,417 13,276,642
Dutiable Mail..................... 344,510 49,038,824
Broker Permit..................... 494,170 10,858,344
Barges and Other Bulk Carriers*... 451,475 1,271,805
------------------------------------------------------------------------
* Barge/Bulk Carrier obligations for Fiscal Year 2002.
The Regulatory Flexibility Act
Based on the supplementary information set forth in the preceding
section and as illustrated in Table 2 above, this proposed rule
generally affects individuals and large commercial carriers. The
proposed increase, if adopted, would only increase fees by 10 percent
over the amounts currently paid by users of the customs services for
which each fee is charged. The American Jobs Creation Act specifically
provides that the Secretary of the Treasury shall charge fees that are
reasonably related to these activities. Accordingly, CBP certifies that
this proposed rule will not have a significant impact on a substantial
number of small entities because the majority of fees will come from
individual travelers into the United States. Therefore, it is not
subject to the analysis provisions of the Regulatory Flexibility Act,
as amended (5 U.S.C. 601 et seq.).
Executive Order 12866
For the same reasons stated above, the proposed amendments do not
meet the criteria for a ``significant regulatory action'' as specified
in E.O. 12866. Accordingly, a regulatory impact analysis is not
required thereunder.
Signing Authority
This document is being issued in accordance with Sec. 0.1(a) of
Chapter I of Title 19, Code of Federal Regulations (19 CFR 0.1)
pertaining to the exercise
[[Page 20925]]
of authority to approve regulations in 19 CFR chapter I.
List of Subjects
19 CFR Part 24
Accounting, Claims, Customs duties and inspection, Fees, Financial
and accounting procedures, Imports, Taxes, User fees.
19 CFR Part 111
Administrative practice and procedure, Brokers, Customs duties and
inspection, Imports, Licensing.
Proposed Amendments to the Regulations
For the reasons stated in the preamble, parts 24 and 111 of the
Customs and Border Protection Regulations (19 CFR parts 24 and 111) are
proposed to be amended as follows:
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
1. The authority citation for part 24 continues to read in part as
follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 3(i), Harmonized Tariff Schedule of the United States), 1505,
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701; Public Law 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
Sec. 24.22 [Amended]
2. Amend Sec. 24.22 as follows:
a. In paragraph (b)(1)(i), the figure ``$397'' is removed and, in
its place, the figure ``$437'' is added.
b. In paragraph (b)(2)(i), the figure ``$100'' is removed and, in
its place, the figure ``$110'' is added.
c. In paragraph (c)(1), the figure ``$5'' is removed and, in its
place, the figure ``$5.50'' is added.
d. In paragraph (d)(1), the figure ``$7.50'' is removed and, in its
place, the figure ``$8.25'' is added.
e. In paragraph (e)(1), the figure ``$25'' is removed and, in its
place, the figure ``$27.50'' is added.
f. In paragraph (e)(2), the figure ``$25'' is removed and, in its
place, the figure ``$27.50'' is added.
g. In paragraph (f), the figure ``$5'' is removed and, in its
place, the figure ``$5.50'' is added.
h. In paragraph (g)(1)(i), the figure ``$5'' is removed and, in its
place, the figure ``$5.50'' is added.
i. In paragraph (g)(1)(ii), the figure ``$1.75'' is removed and, in
its place, the figure ``$1.93'' is added.
j. In the table under paragraph (g)(2), in both columns headed
``Fee status for arrival from SL'', all the figures reading ``$1.75''
are removed and, in their place, the figure ``$1.93'' is added; and, in
the column headed ``Fee status for arrival from other than SL'', all
the figures reading ``$5'' are removed and, in their place, the figure
``$5.50'' is added.
k. In paragraph (g)(5)(v), the figure ``$5'' is removed and, in its
place, the figure ``$5.50'' is added; and, the figure ``$1.75'' is
removed and, in its place, the figure ``$1.93'' is added.
l. In paragraph (i)(7), the figure ``$5'' is removed and, in its
place, the figure ``$5.50'' is added.
m. In paragraph (i)(8), the figure ``$1.75'' is removed and, in its
place, the figure ``$1.93'' is added.
PART 111--CUSTOMS BROKERS
3. The authority citation for part 111 continues to read in part as
follows:
Authority: 19 U.S.C. 66, 1202, (General Note 3(i), Harmonized
Tariff Schedule of the United States), 1624, 1641.
* * * * *
Section 111.96 also issued under 19 U.S.C. 58c; 31 U.S.C. 9701.
Sec. 111.19 [Amended]
4. Section 111.19 is amended in paragraph (c) by removing all the
figures reading ``$125'' and adding in their place the figure ``$138''.
Sec. 111.96 [Amended]
5. Section 111.96 is amended in paragraph (c) by removing all the
figures reading ``$125'' and adding in their place the figure ``$138''.
Approved: April 19, 2006.
Deborah J. Spero,
Acting Commissioner, Customs and Border Protection.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 06-3867 Filed 4-21-06; 8:45 am]
BILLING CODE 9111-14-P