CBP Issues Proposed Rule to Amend Fees for Express Carrier/Centralized Hub Facilities, Etc. (Part II - Fees, Quarterly Payment)
U.S. Customs and Border Protection has issued a proposed rule that would amend 19 CFR Part 24 to increase the user fee for customs services provided to express consignment carrier facilities or centralized hub facilities in connection with the entry or release of shipments to $1.00 (from $0.66) for each individual air waybill or bill of lading.
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CBP's proposed rule would also amend 19 CFR Parts 24, 113, and 128 to provide regulations to reflect changes to the customs user fee statute applicable to such facilities that were made by the Trade Act of 2002 and the Miscellaneous Trade and Technical Corrections Act of 2004 (Acts), among other things.
This is Part II of a multipart series of summaries highlighting this proposed rule, and covers proposed 19 CFR 24.23(b)(4) on user fees for Customs' processing of imported merchandise for express consignment carrier and centralized hub facilities, and their quarterly payment. (See ITT's Online Archives or 08/03/06 news, 06080305 for Part I. See future issues of ITT for additional summaries.)
Proposed Rule Would Increase Fee, Set Quarterly Payment Procedures
The proposed rule would add a new 19 CFR 24.23(b)(4) (Express consignment carrier and centralized hub facilities) in order to set forth both a user fee increase and certain requirements for quarterly payments, as follows:
Proposed user fee increase for individual AWBs/BLs, etc. Each carrier using an express consignment carrier facility or a centralized hub facility would be required to pay to CBP a fee in the amount of $1.00 (rather than the current $0.66) per individual air waybill or individual bill of lading and, if merchandise is formally entered, the .21% ad valorem fee (MPF) detailed in 19 CFR 24.23(b)(1), if applicable.
(According to sources at CBP's Revenue Division's User Fee Office in Indianapolis, only the individual AWB/BL user fees are paid quarterly.)
Individual AWB or BL would be "bill at the lowest level." An individual air waybill or individual bill of lading would be the individual document issued by the carrier for transporting and/or tracking an individual item, letter, package, envelope, record, document, or shipment. An individual air waybill would be the bill at the lowest level, and would not be a master bill or other consolidated document. An individual air waybill or bill of lading would be 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.
Quarterly payment requirements and conditions. Payment would be made to CBP on a quarterly basis and would cover the individual fees for all subject transactions that occurred during a calendar quarter. The following additional requirements and conditions would apply to each quarterly payment made under this section:
The quarterly payment would conform to the requirements of 19 CFR 24.1, and would be mailed to: Customs and Border Protection, Revenue Division/Attention: Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 46278. These payments would be received by CBP no later than the last day of the month that follows the close of the calendar quarter to which the payment relates.
The following information would be included with the quarterly payment:
o The identity of the calendar quarter to which the payment relates;
o The identity of the facility for which the payment is made and the port code that applies to that location and, if the payment covers multiple facilities, the identity of each facility and its port code and the portion of the payment that pertains to each port code; and
o The total number of individual air waybills and individual bills of lading covered by the payment, and a breakdown of that total for each facility covered by the payment according to the number covered by formal entry procedures, the number covered by informal entry procedures specified in 19 CFR 128.24(e) and 143.23(j), and the number covered by other informal entry procedures.
Overpayments or underpayments would have to be accounted for by an explanation in, and adjustment of, the next due quarterly payment to CBP. In the case of an overpayment or underpayment that is not accounted for by an adjustment of the next due quarterly payment to CBP:
- In the case of an overpayment, the carrier may request a refund by writing to: Customs and Border Protection, Revenue Division/Attention: Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 46278.
- The refund request would have to specify the grounds for the refund and would have to be received by CBP within one year of the date the fee for which the refund is sought was paid to CBP; and
- In the case of an underpayment, interest would accrue on the amount not paid from the date payment was initially due to the date that payment to CBP is made.
The underpayment or failure of a carrier using an express consignment carrier facility or a centralized hub facility to pay all applicable fees owed to CBP pursuant to 19 CFR 24.23(b)(4) may result in the assessment of penalties under 19 U.S.C. 1592 and any other action authorized by law.
-written comments must be received on or before August 28, 2006
CBP Contact - Michael Jackson (202) 344-1196
CBP Proposed Rule (USCBP-2006-0015, FR Pub 07/28/06) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-12067.pdf