CBP Final Rule Raises Fee for Express Carriers, Etc. (Part I)

This is Part I of a two-part series of summaries of this final rule, and provides an overview and highlights of its regulatory text. See future issue of ITT for BP summary on the comments submitted in response to the proposed rule.

19 CFR Amended to Reflect 2002 and 2004 Changes to Customs User Fee Statute

Among other things, CBP's final rule amends 19 CFR to reflect changes to the customs user fee statute made by section 337 of the Trade Act of 2002 and section 2004(f) of the Miscellaneous Trade and Technical Corrections Act of 2004.

(The statutory amendments made by section 337 concern the fees payable for customs services provided in connection with the informal entry or release of shipments at express consignment carrier facilities and/or centralized hub facilities, and primarily replaced the annual lump sum paymentprocedure with a quarterly payment procedure based on a specific fee for each individual air waybill or bill of lading.

Section 2004(f) authorized the assessment of both the merchandise processing fee (MPF) and a reimbursable fee on each air waybill or bill of lading for merchandise that is formally entered at these sites and valued at $2,000 or less.)

Final Rule Raises Fee on Individual Air Waybills/Bills of Lading to $1 Each

CBP's final rule also raises the existing fee assessed on individual air waybills or bills of lading for customs processing at express consignment carrier facilities or centralized hub facilities to the maximum authorized amount of $1.00 (from $0.66) each, effective July 9, 2007.

Highlights of the Final Rule's Regulatory Text

Highlights of the amendments this final rule makes to 19 CFR include (partial list):

Fees per individual air waybill/bill of lading. New 19 CFR 24.23(b)(4) states that each carrier or operator using an express consignment carrier facility or a centralized hub facility must pay to CBP a fee in the amount of $1.00 per individual air waybill or individual bill of lading for the processing of airway bills for shipments arriving in the U.S. In addition, if merchandise is formally entered and valued at $2,000 or less, the importer of record must pay to CBP the ad valorem fee of .21% as specified in 24.23(b)(1) (formal entry or release), if applicable.

(The fee of $1.00 is effective July 9, 2007. Also note that 24.23(b)(2) (informal entry or release) is also amended to indicate that (b)(2) does not apply to merchandise covered by (b)(4) above.)

'Individual' bill is at 'lowest level'. New 19 CFR 24.23(b)(4) also states that an individual air waybill or individual bill of lading is the individual document issued by the carrier or operator for transporting and/or tracking an individual item, letter, package, envelope, record, document, or shipment. An individual air waybill is the bill at the lowest level, and is not a master bill or other consolidated document. An individual air waybill or bill of lading is a bill representing an individual shipment that has its own unique bill number and tracking number, where the shipment is assigned to a single ultimate consignee, and no lower bill unit exists.

Payment of 'individual' bill fees to CBP on a quarterly basis. Under new 19 CFR 24.23(b)(4), payments must be made to CBP on a quarterly basis and must cover the individual fees for all subject transactions that occurred during a calendar quarter. The following information must be included with the quarterly payment: (1) the identity of the calendar quarter to which the payment relates; (2) the identity of the facility(ies) for which the payment is made and the port code(s) that apply(ies) to that location and the portion of the payment that pertains to each port code; and (3) the total number of individual air waybills and individual bills of lading covered by the payment with a breakdown of that total for each facility covered by the payment according to the number covered by formal or informal entry procedures, etc.

Failure to pay 'individual' bill fees each quarter results in double fees. Amended 19 CFR 113.64(a) (international carrier bond conditions) states that if the principal (carrier or operator) fails to pay the fees for processing letters, documents, records, shipments, merchandise, or other items on or before the last day of the month that follows the close of the calendar quarter to which the processing fees relate pursuant to 19 CFR 24.23(b)(4), the obligors (principal and surety, jointly and severally) agree to pay liquidated damages equal to two times the processing fees not timely paid to CBP as prescribed by regulation.

Express consignment carriers must provide quarterly list of those using facility. 19 CFR 128.11(b)(7) is amended to state that at the beginning of each calendar quarter, express consignment carrier facilities must provide CBP a list of all carriers or operators currently using the facility and notify CBP whenever a new carrier or operator begins to use the facility or whenever a carrier or operator ceases to use the facility.

Small airports/facilities to reimburse CBP for informally entered letters, documents, etc. New 19 CFR 24.23(b)(3) states that with respect to the processing of letters, documents, records, shipments, merchandise, or any other item that is valued at $2,000 or less, or any higher amount prescribed for purposes of informal entry in 19 CFR 143.21, a small airport or other facility must pay to CBP an amount equal to the reimbursement (including overtime) which the facility is required to make during the fiscal year under 19 CFR 24.17.

(See ITT's Online Archives or 08/03/06, 08/07/06, and 08/17/06 news, 06080305, 06080720, and 06081720 for Parts I, II, and III of BP's summary of the proposed rule.)

CBP Contact - Michael Jackson (202) 344-1196

CBP final rule (CBP Dec. 07-29; USCBP-2006-0015, FR Pub 06/08/07) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-11071.pdf