President Signs into Law Transportation Bill That Repeals the HMT on Exports, Etc.
On August 10, 2005, President Bush signed into law (enacted) the conference version of H.R. 3, the "Safe, Accountable, Flexible and Efficient Transportation Equity Act: A Legacy for Users" (SAFETEA-LU).
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
(The House and Senate approved the conference version of H.R. 3 on July 29, 2005.)
The following are highlights of selected trade-related provisions in H.R. 3:
Repeal of the HMT on Exports
The conference version of H.R. 3 contains a provision that repeals the Harbor Maintenance Tax (HMT, also referred to as the Harbor Maintenance Fee (HMF)) on exports.
According to the conference report accompanying H.R. 3, the bill conforms the U.S Code to the Supreme Court decision in U.S. Shoe Corp. v. U.S., which ruled that the HMT on exports was unconstitutional, and exempts exported commercial cargo from the HMT.
The conference report also states that this provision is effective before, on, and after the date of enactment.
Specifically, H.R. 3 amends 26 USC 4462 (regarding definitions and special rules related to the HMT) to read as follows:
"(d) Nonapplicability of Tax to Exports - The tax imposed by section 4461(a) shall not apply to any port use with respect to any commercial cargo to be exported from the United States"
H.R. 3 also amends 26 USC 4461 (regarding the HMT) by deleting 26 USC 4461(c)(1)(B) and 4461(c)(2)(A) (and part of 4461(c)(2)(B)) in order to remove references to exported cargo, etc.
(See ITT's Online Archives or 08/04/05 news, 05080435, for BP summary of a recent Court of International Trade (CIT) decision that ordered all HMT actions pending after December 1, 2005 to be dismissed, etc.)
CBP Required to Transmit Taxable Fuels Information to the IRS Using EDI
The conference version of H.R. 3 also requires DHS and Treasury to transmit information to the IRS pertaining to taxable fuels destined for importation into the U.S.
The conference report states that this provision provides that not later than one year after the date of enactment, the Secretary of Homeland Security, together with the Secretary of Treasury, is to establish an electronic data interchange (EDI) system through which U.S. Customs and Border Protection (CBP) shall transmit to the Internal Revenue Service (IRS) information pertaining to cargoes of taxable fuels (as defined in section 4083) that CBP has obtained electronically under its regulations adopted to carry out the Trade Act of 2002 requirement. For this purpose, not later than one year after the date of enactment of the paragraph, all filers of required cargo information for such taxable fuels, as defined, must provide such information to CBP through its approved EDI system.
(The conference report notes that certain carriers of bulk cargo are exempt from CBP's Trade Act of 2002 advance electronic information requirements, and thus, taxable fuels are not required to file the Cargo Declaration within 24 hours before such cargo is laden aboard the vessel at the foreign port. Instead, the Cargo Declaration must be filed within 24 hours prior to arrival in the U.S.)
Hazardous Materials Shipment Safety
According to a Senate Commerce, Science and Transportation Committee press release, the conference report reauthorizes hazardous materials (hazmat) transportation safety programs, which were last reauthorized over 10 years ago. The bill authorizes $25 million in fiscal year (FY) 2005, $29 million in FY 2006, and $30 million each for FYs 2007 and 2008 for the Pipeline and Hazardous Materials Safety Administration's (PHMSA's) hazmat safety programs.
The conference version also improves hazmat safety and security by increasing the funding and flexibility of hazmat materials safety planning and training grants and provides new enforcement options for serious violations of hazmat safety regulations. The conference version further requires Mexican and Canadian commercial motor vehicle operators transporting hazmats in the U.S. to undergo a background check similar to that required for U.S. licensed operators, and improves the procedures of current hazmat background checks.
H.R. 3 conference report available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_reports&docid=f:hr203.109.pdf.
House Ways and Means summary available at http://waysandmeans.house.gov/media/pdf/taxdocs/072805highwaysummary.pdf.
Senate Commerce, Science, and Transportation Committee press release available at http://commerce.senate.gov/newsroom/printable.cfm?id=242136.