APHIS to Charge Canada Commercial Carriers, Air Passengers, AQI User Fees; Subject All Agricultural Products to AQI Inspection

Effective November 24, 2006, this interim rule will also remove the exemptions from AQI inspection for imported fruits and vegetables grown in Canada.¹

APHIS explains that it is removing these exemptions for several reasons, including APHIS' concern about bioterrorism. In addition, APHIS is not recovering the costs of its current inspection activities at the U.S./Canada border. APHIS data indicates an increasing number of interceptions at Canadian airport preclearance centers and on the U.S/Canada border, of prohibited material that originated in regions other than Canada that present a high risk of introducing plant pests or animal diseases into the U.S.

(According to APHIS, this interim rule will close the inspection exemption loophole for fruits and vegetables entering the U.S. from Canada; recover the costs of AQI services it is already providing at the U.S./Canada border; and recover the costs of new, expanded AQI services at the U.S./Canada border.)

Written comments on this interim rule are due by November 24, 2006.

AQI User Fees

This interim rule will amend 7 CFR 354.3 to no longer exempt commercial surface, waterborne, and air conveyances, as well as international air passengers (as described below), that are subject to inspection under 7 CFR 330 and 9 CFR Chapter I Subchapter D, from paying AQI user fees when entering the U.S. from Canada.

As a result, the following AQI user fees will apply with respect to Canada:

Commercial truck fees. The driver or other person in charge of a commercial truck entering the U.S from Canada will be subject to a user fee (currently $5.25) per crossing; as an alternative, the owner or operator of a commercial truck may instead purchase a prepaid AQI permit for a one year period (currently $105).

The owner or operator of a commercial truck, if entering the U.S. and applying for a prepaid Customs permit for a calendar year, must apply for a prepaid AQI permit for the same calendar year. Applicants must apply to U.S. Customs and Border Protection for prepaid AQI permits. The cost of prepaid permits amounts to 20 times the AQI user fee for each arrival.

(See http://www.cbp.gov/xp/cgov/travel/pleasure_boats/user_fee/user_fee_decal.xml for upcoming information on obtaining this prepaid AQI permit, along with the prepaid Customs permit, for Canada.)

Commercial railroad car fees. An AQI user fee (currently $7.75) will be charged for each loaded commercial railroad car entering the U.S. from Canada. The railroad company receiving a commercial railroad car in interchange at a port of entry or moving a car in line haul service into the U.S. is responsible for paying the AQI user fee. the cost of prepaid permits amounts to 20 times the AQI user fee for each arrival.

Commercial vessel fees. Unless excepted, specified commercial vessels of 100 net tons or more entering the U.S. from Canada will be charged an AQI user fee (currently $490). The AQI user fee will not exceed 15 payments in a calendar year (i.e., no additional fee will be charged for a 16th or subsequent arrival in a calendar year).

Commercial aircraft fees. Unless excepted, commercial aircraft arriving in the U.S. from Canada will be charged an AQI user fee of $70.50 for each arrival.

International air passenger fees. Unless excepted, passengers aboard a commercial aircraft (whose journey originates in Canada) arriving in the U.S. from Canada will be charged an AQI user fee (currently $5.00 each).

Inspections, Etc. at Port of First Arrival for Fruits/Vegetables Grown in Canada

Upon implementation of this interim rule, fruits and vegetables grown in Canada will be subject to AQI inspection and other requirements at the port of first arrival under 7 CFR 319.56-6.

1. CFR 319.56-6 states that the owner or the agent must make full disclosure at the port of first arrival of the type, quantity, and country of origin of all fruits and vegetables in the shipment, either orally for non-commercial shipments or on an invoice or similar document for commercial shipments, and present that document to an inspector prior to moving the fruits or vegetables from the port. No person may move a fruit or vegetable from the U.S. port of first arrival unless the inspector has: (1) inspected and released it; (2) ordered treatment and, after treatment, released it; (3) authorized movement to another location for treatment, further inspection, or destruction; (4) ordered it to be re-exported; or (5) waived the inspection.

(According to 7 CFR 319.56-6(f), APHIS is responsible only for the costs of providing the services of an inspector during regular hours and duty locations, and the owner of imported fruits or vegetables is responsible for all additional costs of inspection, treatment, movement, storage, or destruction ordered by an inspector, including any labor, chemicals, packing materials, or other supplies required.)

¹ 7 CFR 319.56-2(c) provides that potatoes from the Municipality of Central Saanich in the Province of British Columbia east of the West Saanich Road are prohibited importation into the U.S.

-Comments should be received on or before November 24, 2006

APHIS Contact - Alan Green (301) 734-8261

(See ITT's Online Archives or 12/16/04 news 04121625 for BP summary of APHIS' final rule on AQI user fees for FY 2005 through 2010.)

APHIS interim rule, D/N APHIS 2006-0096, FR Pub 08/25/06, available at http://a257.g.akamaitech.net/7/257/2422/01jan20061800/edocket.access.gpo.gov/2006/pdf/E6-14128.pdf

APHIS press release on interim rule (dated 08/28/06) available at http://www.aphis.usda.gov/newsroom/content/2006/08/Canfees.shtml

BP Note

With respect to commercial trucks, CBP sources state that the prepaid, one year AQI permit ($105) is expected to be purchased with the prepaid, one year Customs permit ($100), for a total permit fee of $205 (which is how it is done for Mexico).