Notice2023-16197
COBRA Fees to be Adjusted for Inflation in Fiscal Year 2024 CBP Dec. 23-08
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Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
July 28, 2023
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
This document announces that U.S. Customs and Border Protection (CBP) is adjusting certain customs user fees and corresponding limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year 2024 in accordance with the Fixing America's Surface Transportation Act (FAST Act) as implemented by the CBP regulations.
Full Text
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<title>Federal Register, Volume 88 Issue 144 (Friday, July 28, 2023)</title>
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[Federal Register Volume 88, Number 144 (Friday, July 28, 2023)]
[Notices]
[Pages 48900-48903]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-16197]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
COBRA Fees to be Adjusted for Inflation in Fiscal Year 2024 CBP
Dec. 23-08
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: This document announces that U.S. Customs and Border
Protection (CBP) is adjusting certain customs user fees and
corresponding limitations established by the Consolidated Omnibus
Budget Reconciliation Act (COBRA) for Fiscal Year 2024 in accordance
with the Fixing America's Surface Transportation Act (FAST Act) as
implemented by the CBP regulations.
DATES: The adjusted amounts of customs COBRA user fees and their
corresponding limitations set forth in this notice for Fiscal Year 2024
are required as of October 1, 2023.
FOR FURTHER INFORMATION CONTACT: Tina Ghiladi, Senior Advisor,
International Travel & Trade, Office of Finance, 202-344-3722,
<a href="/cdn-cgi/l/email-protection#4b1e382e390d2e2e05243f22282e380b28293b652f2338652c243d"><span class="__cf_email__" data-cfemail="feab8d9b8cb89b9bb0918a979d9b8dbe9d9c8ed09a968dd0999188">[email protected]</span></a>.
[[Page 48901]]
SUPPLEMENTARY INFORMATION:
I. Background
A. Adjustments of COBRA User Fees and Corresponding Limitations for
Inflation
On December 4, 2015, the Fixing America's Surface Transportation
Act (FAST Act, Pub. L. 114-94) was signed into law. Section 32201 of
the FAST Act amended section 13031 of the Consolidated Omnibus Budget
Reconciliation Act (COBRA) of 1985 (19 U.S.C. 58c) by requiring the
Secretary of the Treasury (Secretary) to adjust certain customs COBRA
user fees and corresponding limitations to reflect certain increases in
inflation.
Sections 24.22 and 24.23 of title 19 of the Code of Federal
Regulations (19 CFR 24.22 and 24.23) describe the procedures that
implement the requirements of the FAST Act. Specifically, paragraph (k)
in section 24.22 (19 CFR 24.22(k)) sets forth the methodology to
determine the change in inflation as well as the factor by which the
fees and limitations will be adjusted, if necessary. The fees and
limitations subject to adjustment, which are set forth in Appendix A
and Appendix B of part 24, include the commercial vessel arrival fees,
commercial truck arrival fees, railroad car arrival fees, private
vessel arrival fees, private aircraft arrival fees, commercial aircraft
and vessel passenger arrival fees, dutiable mail fees, customs broker
permit user fees, barges and other bulk carriers arrival fees, and
merchandise processing fees, as well as the corresponding limitations.
B. Determination of Whether an Adjustment Is Necessary for Fiscal Year
2024
In accordance with 19 CFR 24.22, CBP must determine annually
whether the fees and limitations must be adjusted to reflect inflation.
For Fiscal Year 2024, CBP is making this determination by comparing the
average of the Consumer Price Index--All Urban Consumers, U.S. All
items, 1982--1984 (CPI-U) for the current year (June 2022-May 2023)
with the average of the CPI-U for the comparison year (June 2021-May
2022) to determine the change in inflation, if any. If there is an
increase in the CPI-U of greater than one (1) percent, CBP must adjust
the customs COBRA user fees and corresponding limitations using the
methodology set forth in 19 CFR 24.22(k). Following the steps provided
in paragraph (k)(2) of section 24.22, CBP has determined that the
increase in the CPI-U between the most recent June to May twelve-month
period (June 2022-May 2023) and the comparison year (June 2021-May
2022) is 6.79 \1\ percent. As the increase in the CPI-U is greater than
one (1) percent, the customs COBRA user fees and corresponding
limitations must be adjusted for Fiscal Year 2024.
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\1\ The figures provided in this notice may be rounded for
publication purposes only. The calculations for the adjusted fees
and limitations were made using unrounded figures, unless otherwise
noted.
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C. Determination of the Adjusted Fees and Limitations
Using the methodology set forth in section 24.22(k)(2) of the CBP
regulations (19 CFR 24.22(k)), CBP has determined that the factor by
which the base fees and limitations will be adjusted is 26.670 percent
(base fees and limitations can be found in Appendices A and B to part
24 of title 19). In reaching this determination, CBP calculated the
values for each variable found in paragraph (k) of 19 CFR 24.22 as
follows:
<bullet> The arithmetic average of the CPI-U for June 2022-May
2023, referred to as (A) in the CBP regulations, is 298.952;
<bullet> The arithmetic average of the CPI-U for Fiscal Year 2014,
referred to as (B), is 236.009;
<bullet> The arithmetic average of the CPI-U for the comparison
year (June 2021-May 2022), referred to as (C), is 279.974;
<bullet> The difference between the arithmetic averages of the CPI-
U of the comparison year (June 2021-May 2022) and the current year
(June 2022--May 2023), referred to as (D), is 18.978;
<bullet> This difference rounded to the nearest whole number,
referred to as (E), is 19;
<bullet> The percentage change in the arithmetic averages of the
CPI-U of the comparison year (June 2021-May 2022) and the current year
(June 2022-May 2023), referred to as (F), is 6.79 percent;
<bullet> The difference in the arithmetic average of the CPI-U
between the current year (June 2022-May 2023) and the base year (Fiscal
Year 2014), referred to as (G), is 62.943; and
<bullet> Lastly, the percentage change in the CPI-U from the base
year (Fiscal Year 2014) to the current year (June 2022-May 2023),
referred to as (H), is 26.670 percent.
D. Announcement of New Fees and Limitations
The adjusted amounts of customs COBRA user fees and their
corresponding limitations for Fiscal Year 2024 as adjusted by 26.670
percent set forth below are required as of October 1, 2023. Table 1
provides the fees and limitations found in 19 CFR 24.22 as adjusted for
Fiscal Year 2024, and Table 2 provides the fees and limitations found
in 19 CFR 24.23 as adjusted for Fiscal Year 2024.
Table 1--Customs COBRA User Fees and Limitations Found in 19 CFR 24.22 as Adjusted for Fiscal Year 2024
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New fee/
limitation
19 U.S.C. 58c 19 CFR 24.22 Customs COBRA user fee/ adjusted in
limitation accordance with
the FAST Act
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(a)(1)............................... (b)(1)(i)............... Fee: Commercial Vessel $553.55
Arrival Fee.
(b)(5)(A)............................ (b)(1)(ii).............. Limitation: Calendar Year 7,543.20
Maximum for Commercial
Vessel Arrival Fees.
(a)(8)............................... (b)(2)(i)............... Fee: Barges and Other Bulk 139.34
Carriers Arrival Fee.
(b)(6)............................... (b)(2)(ii).............. Limitation: Calendar Year 1,900.05
Maximum for Barges and
Other Bulk Carriers Arrival
Fees.
(a)(2)............................... (c)(1).................. Fee: Commercial Truck 6.95
Arrival Fee \2\ \3\.
(b)(2)............................... (c)(2) and (3).......... Limitation: Commercial Truck 126.67
Calendar Year Prepayment
Fee \4\.
(a)(3)............................... (d)(1).................. Fee: Railroad Car Arrival 10.45
Fee.
[[Page 48902]]
(b)(3)............................... (d)(2) and (3).......... Limitation: Railroad Car 126.67
Calendar Year Prepayment
Fee.
(a)(4)............................... (e)(1) and (2).......... Fee and Limitation: Private 34.83
Vessel or Private Aircraft
First Arrival/Calendar Year
Prepayment Fee.
(a)(6)............................... (f)..................... Fee: Dutiable Mail Fee...... 6.97
(a)(5)(A)............................ (g)(1)(i)............... Fee: Commercial Vessel or 6.97
Commercial Aircraft
Passenger Arrival Fee.
(a)(5)(B)............................ (g)(1)(ii).............. Fee: Commercial Vessel 2.44
Passenger Arrival Fee (from
one of the territories and
possessions of the United
States).
(a)(7)............................... (h)..................... Fee: Customs Broker Permit 174.80
User Fee.
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Table 2--Customs COBRA User Fees and Limitations Found in 19 CFR 24.23 as Adjusted for Fiscal Year 2024
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New fee/
limitation
19 U.S.C. 58c 19 CFR 24.23 Customs COBRA user fee/ adjusted in
limitation accordance with
the FAST Act
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(b)(9)(A)(ii)........................ (b)(1)(i)(A)............ Fee: Express Consignment $1.27
Carrier/Centralized Hub
Facility Fee, Per
Individual Waybill/Bill of
Lading Fee.
(b)(9)(B)(i)......................... (b)(4)(ii) \5\.......... Limitation: Minimum Express 0.44
Consignment Carrier/
Centralized Hub Facility
Fee \6\.
(b)(9)(B)(i)......................... (b)(4)(ii) \7\.......... Limitation: Maximum Express 1.27
Consignment Carrier/
Centralized Hub Facility
Fee.
(a)(9)(B)(i);........................ (b)(1)(i)(B) \8\........ Limitation: Minimum 31.67
(b)(8)(A)(i)......................... Merchandise Processing Fee
\9\.
(a)(9)(B)(i);........................ (b)(1)(i)(B) \10\....... Limitation: Maximum 614.35
(b)(8)(A)(i)......................... Merchandise Processing Fee
\11\ \12\.
(b)(8)(A)(ii)........................ (b)(1)(ii).............. Fee: Surcharge for Manual 3.80
Entry or Release.
(a)(10)(C)(i)........................ (b)(2)(i)............... Fee: Informal Entry or 2.53
Release; Automated and Not
Prepared by CBP Personnel.
(a)(10)(C)(ii)....................... (b)(2)(ii).............. Fee: Informal Entry or 7.60
Release; Manual and Not
Prepared by CBP Personnel.
(a)(10)(C)(iii)...................... (b)(2)(iii)............. Fee: Informal Entry or 11.40
Release; Manual; Prepared
by CBP Personnel.
(b)(9)(A)(ii)........................ (b)(4).................. Fee: Express Consignment 1.27
Carrier/Centralized Hub
Facility Fee, Per
Individual Waybill/Bill of
Lading Fee.
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Tables 1 and 2, setting forth the adjusted fees and limitations for
Fiscal Year 2024, will also be maintained for the public's convenience
on the CBP website at <a href="http://www.cbp.gov">www.cbp.gov</a>.
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\2\ The Commercial Truck Arrival Fee is the CBP fee only; it
does not include the United States Department of Agriculture (USDA)
Animal and Plant Health Inspection Service (APHIS) Agricultural and
Quarantine Inspection (AQI) User Fee (currently $7.29) that is
collected by CBP on behalf of USDA to make a total Single Crossing
Fee of $14.24. See 7 CFR 354.3(c) and 19 CFR 24.22(c)(1). Once
eighteen Single Crossing Fees have been paid and used for a vehicle
identification number (VIN)/vehicle in a Decal and Transponder
Online Procurement System (DTOPS) account within a calendar year,
the payment required for the nineteenth (and subsequent) single-
crossing is only the AQI fee (currently $7.29) and no longer
includes CBP's $6.95 Commercial Truck Arrival fee (for the remainder
of that calendar year).
\3\ The Commercial Truck Arrival fee is adjusted down from $6.97
to the nearest lower nickel. See 82 FR 50523 (November 1, 2017).
\4\ The Commercial Truck Calendar Year Prepayment Fee is the CBP
fee only; it does not include the AQI Commercial Truck with
Transponder Fee (currently $291.60) that is collected by CBP on
behalf of APHIS to make the total Commercial Vehicle Transponder
Annual User Fee of $418.27.
\5\ Appendix B of part 24 inadvertently included a reference to
paragraph (b)(1)(i)(B)(2) of section 24.23. However, the reference
should have been to paragraph (b)(4)(ii). CBP intends to publish a
future document in the Federal Register to make several technical
corrections to part 24 of title 19 of the CFR, including corrections
to Appendix B of part 24. The technical corrections will also
address the inadvertent errors specified in footnotes 7, 8, and 10
below.
\6\ Although the minimum limitation is published, the fee
charged is the fee required by 19 U.S.C. 58c(b)(9)(A)(ii).
\7\ Appendix B of part 24 inadvertently included a reference to
paragraph (b)(1)(i)(B)(2) of section 24.23. However, the reference
should have been to paragraph (b)(4)(ii).
\8\ Appendix B of part 24 inadvertently included a reference to
paragraph (b)(1)(i)(B)(1) of section 24.23. However, the reference
should have been to paragraph (b)(1)(i)(B).
\9\ Only the limitation is increasing; the ad valorem rate of
0.3464 percent remains the same. See 82 FR 50523 (November 1, 2017).
\10\ Appendix B of part 24 inadvertently included a reference to
paragraph (b)(1)(i)(B)(1) of section 24.23. However, the reference
should have been to paragraph (b)(1)(i)(B).
\11\ Only the limitation is increasing; the ad valorem rate of
0.3464 percent remains the same. See 82 FR 50523 (November 1, 2017).
\12\ For monthly pipeline entries, see <a href="https://www.cbp.gov/trade/entry-summary/pipeline-monthly-entry-processing/pipeline-line-qa">https://www.cbp.gov/trade/entry-summary/pipeline-monthly-entry-processing/pipeline-line-qa</a>.
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Troy A. Miller, Senior Official Performing the Duties of the
Commissioner, having reviewed and approved this document, has delegated
the authority to electronically sign this document to the Director (or
Acting Director, if applicable) of the Regulations and Disclosure Law
[[Page 48903]]
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Division of CBP, for purposes of publication in the Federal Register.
Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings,
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2023-16197 Filed 7-26-23; 4:15 pm]
BILLING CODE 9111-14-P
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