Notice2023-27626
Mobile Collections & Receipts (MCR): Implementation of Phase Two
Primary source
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
December 15, 2023
Issuing agencies
Homeland Security DepartmentU.S. Customs and Border Protection
Abstract
U.S. Customs and Border Protection (CBP) is conducting a test to allow for the payment of certain commercial vessel taxes and fees with electronic methods, including credit cards. Payment can be made through the existing Mobile Collections & Receipts (MCR) system's payment portal at eCBP (https://e.cbp.dhs.gov) or at the ports of entry for any commercial vessel arriving at a maritime port of entry. Participation in the test is voluntary. CBP will continue to accept payments by cash or check at the ports of entry. This notice describes the test and invites public comment on any aspect of the test.
Full Text
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<title>Federal Register, Volume 88 Issue 240 (Friday, December 15, 2023)</title>
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[Federal Register Volume 88, Number 240 (Friday, December 15, 2023)]
[Notices]
[Pages 86912-86915]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-27626]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
Mobile Collections & Receipts (MCR): Implementation of Phase Two
AGENCY: U.S. Customs and Border Protection; U.S Department of Homeland
Security.
ACTION: General notice.
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SUMMARY: U.S. Customs and Border Protection (CBP) is conducting a test
to allow for the payment of certain commercial vessel taxes and fees
with electronic methods, including credit cards. Payment can be made
through the existing Mobile Collections & Receipts (MCR) system's
payment portal at eCBP (<a href="https://e.cbp.dhs.gov">https://e.cbp.dhs.gov</a>) or at the ports of entry
for any commercial vessel arriving at a maritime port of entry.
Participation in the test is voluntary. CBP will continue to accept
payments by cash or check at the ports of entry. This notice describes
the test and invites public comment on any aspect of the test.
DATES: The test will begin no earlier than January 16, 2024 and will
continue for two years. Comments concerning this notice and all aspects
of the test may be submitted at any time during the test to the address
set forth below.
ADDRESSES: Written comments concerning any aspect of the test should be
submitted to the CBP Revenue Modernization Office at
<a href="/cdn-cgi/l/email-protection#9deff8ebf0f2f9ddfeffedb3f9f5eeb3faf2eb"><span class="__cf_email__" data-cfemail="94e6f1e2f9fbf0d4f7f6e4baf0fce7baf3fbe2">[email protected]</span></a>. In the subject line of your email please indicate
``Comment on Mobile Collections & Receipts Test.''
FOR FURTHER INFORMATION CONTACT: Clint Kiehl, Rev Mod Program Manager,
Office of Finance, U.S. Customs and Border Protection, via email at
<a href="/cdn-cgi/l/email-protection#77141b1e19031819591c1e121f1b3714150759131f0459101801"><span class="__cf_email__" data-cfemail="b1d2ddd8dfc5dedf9fdad8d4d9ddf1d2d3c19fd5d9c29fd6dec7">[email protected]</span></a> or by telephone at (317) 677-4579.
SUPPLEMENTARY INFORMATION:
I. Background
A. Mobile Collections & Receipts (MCR) System
U.S. Customs and Border Protection (CBP) is committed to
modernizing the payment and processing of various taxes and fees paid
by the public. In furtherance of this goal, CBP developed the Mobile
Collections & Receipts (MCR) system.\1\ The MCR system calculates the
amount of taxes and fees due based on information pulled from other CBP
databases electronically or entered by an authorized CBP employee. The
MCR system then automatically populates an electronic receipt, which is
a single, combined electronic equivalent of two separate paper forms--
CBP Form 368 Collection Receipt (CBP Form 368) and CBP Form 1002
Certificate of Payment of Tonnage Tax (CBP Form 1002). This notice
refers to this electronic receipt as the electronic Form 368/1002. The
MCR system sends the electronic Form 368/1002 via email to the entity
responsible for payment.
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\1\ For more information on the Mobile Collections and Receipts
initiative, visit: <a href="https://www.cbp.gov/trade/priority-issues/revenue/revenue-modernization/automation-368-and-1002-receipts">https://www.cbp.gov/trade/priority-issues/revenue/revenue-modernization/automation-368-and-1002-receipts</a>.
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The MCR system also allows the public to pay applicable taxes and
fees through electronic methods, such as online or through Europay,
Mastercard and Visa (EMV) card readers, which enables contactless
payments through various methods, including credit cards and digital
wallets. For online payment, MCR's public-facing payment website is
located at the eCBP portal (<a href="https://e.cbp.dhs.gov">https://e.cbp.dhs.gov</a>), which directs the
entity making the payment to complete the transaction on <a href="http://Pay.gov">Pay.gov</a>.\2\
Currently, the MCR system, through eCBP and its interface with <a href="http://Pay.gov">Pay.gov</a>,
allows the
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public to make payments related to the Customs Broker License Exam and
Triennial Status Report, with additional fees to be added in the
future.
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\2\ <a href="http://Pay.gov">Pay.gov</a> is a website managed by the Department of the
Treasury that enables entities to make online payments to the
federal government using various forms of payment.
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The MCR system largely replaced what is a paper-based, manual, and
burdensome process for the calculation and processing of payments.
Under the manual process, CBP officers (CBPOs) and other authorized CBP
employees are required to manually calculate the amount due for a
particular transaction, manually complete a paper version of CBP Forms
368 and 1002 (if applicable), and manually enter the payment
information in CBP's systems after collecting payment.\3\ See, e.g.,
sections 4.23 and 24.2 of title 19 of the Code of Federal Regulations
(19 CFR 4.23, 24.2). Since the implementation of MCR for the
calculation and processing of certain maritime fees, maritime ports
have adopted MCR and generally no longer use the manual method.
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\3\ For additional details on the paper-based process for
commercial vessel taxes and fees, see the notice published in the
Federal Register (82 FR 58008) on December 8, 2017, announcing the
2017 MCR Pilot.
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B. Phase One of the MCR Test
Phase One of the MCR test, the Mobile Collections and Receipts
(MCR) Pilot, was announced on December 8, 2017, in the Federal Register
(82 FR 58008) (2017 MCR Pilot). The 2017 MCR Pilot allowed for the
electronic payment of and receipt generation for certain commercial
vessel taxes and fees through the MCR system. 82 FR at 58008.
Specifically, the 2017 MCR Pilot permitted online payment and developed
electronic receipts for the following taxes and fees: regular and
special tonnage tax; light money; Consolidated Omnibus Budget
Reconciliation Act (COBRA) user fees, including the prepayment of the
annual COBRA fee; Agriculture Quarantine and Inspection (AQI) Fees; and
navigation fees. See 82 FR at 58010. However, when CBP began operating
the MCR system and issuing electronic receipts, CBP was unable to begin
accepting online payments for these specified commercial vessel taxes
and fees.
The 2017 MCR Pilot was limited to commercial vessels arriving at
one of four designated ports of entry: Los Angeles-Long Beach,
California; New Orleans, Louisiana; Gulfport, Mississippi; and, Mobile,
Alabama. See 82 FR at 58010. Any entity responsible for the payment of
the taxes and fees for vessels arriving at one of the four designated
ports of entry could participate in the 2017 MCR Pilot by providing the
processing CBPO or other authorized CBP employee with an email address.
82 FR at 58009. The MCR system generated an electronic version of Forms
368 and 1002 and sent an electronic copy via email to the entity
responsible for payment. 82 FR 58009. The 2017 MCR Pilot Notice was
also the first time that CBP announced the implementation of the MCR
system in the Federal Register and described the electronic receipt
process, including the creation and issuance of electronic versions of
Forms 368 and 1002, and the use of electronic devices that CBP
employees could use to access the MCR system outside the port office.
See 82 FR at 58009.
CBP is now able to accept online payments and is implementing Phase
Two of the MCR test, which will authorize entities to pay commercial
vessel taxes and fees online, in order to allow these entities to fully
benefit from the efficiencies of the MCR system.
C. Purpose of the MCR Test: Phase Two
CBP regulations currently restrict the payment methods available
for various taxes and fees. For example, in general, CBP will accept
payment of Customs duties, taxes, fees, interest, and other charges
with cash or check only. See 19 CFR 24.1 and 24.2. Payment with a
credit or charge card is limited to non-commercial entries. 19 CFR
24.1(a)(7). Additionally, a CBPO who collects payment for an amount
over $100 in the form of a government check, personal check, traveler's
check, or money order must obtain the approval and signature of the
CBPO in charge in order to accept the payment. See 19 CFR 24.1(b)(2).
Phase Two of the MCR test will allow CBP to test the feasibility of
accepting electronic payment options for five categories of commercial
vessel taxes and fees that cannot be paid electronically under CBP's
current regulations. The five categories of commercial vessel taxes and
fees are: tonnage tax (regular and special) and light money (19 CFR
4.20), Consolidated Omnibus Budget Reconciliation Act (COBRA) user fees
(19 CFR 24.22(b)), Agriculture Quarantine and Inspection (AQI) fees (7
CFR 354.3(b)), and navigation fees (19 CFR 4.98). By CBP's allowing for
electronic payments of these commercial vessel taxes and fees, vessel
owners/operators and vessel agents will be able to take full advantage
of the MCR system. This will provide numerous benefits for CBP and the
trade. For example, the MCR system reduces the number of mistakes in
the calculation of taxes and fees due because the MCR system can
implement any changes to the fee calculations quickly and efficiently
for all ports. Additionally, the MCR system eliminates the need for CBP
employees to manually enter information into CBP's systems or to
perform other tasks necessary to maintain the security or inventory of
the paper versions of CBP Forms 368 and 1002. This enables CBP
employees to spend less time on administrative tasks and more time
focusing on higher priority mission support activities.
II. MCR Test: Phase Two
Phase Two of the MCR test will allow for the electronic payment of
certain vessel maritime taxes and fees for commercial vessels. Payment
through electronic methods will be voluntary and CBP will continue to
accept cash or check payments consistent with current requirements and
practice. The collection of payments under Phase Two will operate
largely the same as described in the initial 2017 MCR Pilot, except
that Phase Two will allow for electronic payments for vessels arriving
at any maritime port of entry (as opposed to the four ports of entry
designated in the 2017 MCR Pilot) and will include online payments and
using an EMV card reader at the port. Details of Phase Two of the MCR
test are provided below.
A. Participation in the Test
Any commercial vessel agent or other entity responsible for payment
of commercial vessel taxes and fees may participate in the test. No
application is required to participate. However, in order to receive
notification emails from the MCR system, a commercial vessel agent or
other entity submitting payment must register an email address with the
CBPO or other authorized CBP employee processing the vessel arrival in
the MCR system. When a commercial vessel arrives at a port of entry,
the vessel's agent or other entity wishing to receive email
notifications or receive the electronic Form 368/1002 will be able to
confirm any email addresses with an authorized CBP employee and provide
additional email addresses for receipt of electronic receipts.
B. Eligible Taxes and Fees
Phase Two allows for the electronic payment of the following
commercial vessel taxes and fees: tonnage tax (regular and special) and
light money (19 CFR 4.20), Consolidated Omnibus Budget Reconciliation
Act (COBRA) user fees (19 CFR 24.22(b)), Agriculture Quarantine and
Inspection (AQI) fees (7 CFR 354.3(b)), and navigation fees (19 CFR
4.98).
Additionally, CBPOs and other authorized CBP employees, at the time
of inspection, will have the option to
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add applicable non-commercial fees and taxes for which credit or charge
cards have been authorized by the Commissioner of CBP pursuant to 19
CFR 24.1(a)(7) to the vessel's overall transaction. Such non-commercial
fees and taxes are not part of Phase Two of the MCR test.\4\ However,
for the convenience of the vessel owner/agent and CBP, all taxes and
fees, whether authorized for electronic payment by this MCR test or by
current regulations, can be combined for purposes of making a single
payment and receipt.
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\4\ Examples of non-commercial fees that may be applicable to a
particular vessel include duties for passenger or crew baggage,
excise taxes imposed on crew and passengers, and immigration fees
applicable to crew and passengers, such as fees for port of entry
parole of crewmembers. A complete list of the eligible fees will be
available at the MCR website (<a href="https://www.cbp.gov/trade/priority-issues/revenue/revenue-modernization">https://www.cbp.gov/trade/priority-issues/revenue/revenue-modernization</a>).
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CBP may further expand the MCR test in the future to allow for the
electronic payment of additional commercial taxes and fees. Any
expansion of Phase Two of the MCR test will be announced in the Federal
Register.
C. Electronic Payment Process at the Ports of Entry
The MCR system will automatically identify the commercial vessels
that are due to arrive at the designated ports of entry. The CBPO or
other authorized CBP employee will use the MCR system to then determine
whether the arrival information submitted to CBP through approved
electronic data interchange systems is sufficient to calculate the
applicable maritime taxes and fees due for each commercial vessel. If
there is not sufficient information, the CBPO or other authorized CBP
employee can obtain the necessary information at the time of inspection
or payment.
Once the CBPO has sufficient information, the vessel agent or
carrier will be asked whether the agent or carrier wants to pay online
or with the EMV card reader, which accepts various forms of payment,
including credit cards and digital wallet payments at the point of
collection. If online payment is selected, CBP will send a notification
email to the relevant carrier or vessel agent at the email address they
registered with eCBP. The notification email will state that the
applicable taxes and fees have been calculated for a specific
commercial vessel and payment can now be made on the eCBP payment
portal. The entity responsible for payment will then have the
opportunity to log on to the MCR system's customer-facing eCBP payment
portal, review the calculated amount of taxes and fees due, and,
through eCBP's interface with <a href="http://Pay.gov">Pay.gov</a>, submit payment online through
<a href="http://Pay.gov">Pay.gov</a> with a credit or debit card, or any other payment option
available on <a href="http://Pay.gov">Pay.gov</a> at the time of payment. Alternatively, the entity
responsible for payment may pay using an EMV card reader. Additionally,
for test participants who make payment online, through the EMV card
reader, or by check or money order, CBPOs will not be required to
obtain the signature of the CBPO in charge, as is otherwise required
for payments over $100 made with a government check, personal check,
traveler's check, or money order pursuant to 19 CFR 24.1(b)(2).
After payment is accepted, the MCR system will send an electronic
Form 368/1002 to the email address/addresses provided by the entity
that made the payment. Electronic payments will be accepted up to the
time the vessel is cleared by CBP. Payments required for CBP clearance
must be made before clearance is granted. In all situations, CBPOs and
other authorized CBP employees will have the ability to review, amend,
or add data as needed to accurately calculate applicable taxes and fees
prior to entering or clearing a vessel.
Payment though electronic methods, including credit cards, is
voluntary. Throughout the test, commercial vessel agents and other
entities responsible for payment for commercial vessel taxes and fees
will continue to be able to pay by cash or check in accordance with
current requirements. CBP will provide the electronic Form 368/1002 as
a receipt for all payments made by test participants, regardless of
whether payment was made in person by cash or check, online, or in-
person using a card reader. However, the port office will provide paper
copies of electronic Form 368/1002 upon request.
This test will not affect the amount of taxes and fees due or the
requirement that all applicable fees must be paid prior to CBP issuing
a clearance certificate. Additionally, vessel operators will continue
to be required to present paper copies of Forms 368 and 1002 as proof
of payment at subsequent ports and entries. This means that vessel
owners/operators must print out the electronic Form 368/1002 to present
it to CBP.
D. Eligible Ports of Entry
Phase Two of the MCR test allows for electronic payments for
commercial vessels arriving at any of the U.S. maritime ports of entry.
E. Duration of the Test
The test will begin no earlier than January 16, 2024 and will
continue for two years.
III. Privacy
CBP will ensure that all Privacy Act requirements and applicable
policies are adhered to during the implementation of this test.
IV. Paperwork Reduction Act
The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(d))
requires that CBP consider the impact of paperwork and other
information collection burdens imposed on the public. An agency may not
conduct, and a person is not required to respond to, a collection of
information unless the collection of information displays a valid
control number assigned by the Office of Management and Budget. There
is no information collection associated with this test, so the
provisions of the PRA do not apply.
V. Authorization for the Test
This test is being conducted in accordance with 19 CFR 101.9(a),
which authorizes the Commissioner to impose requirements different from
those specified in the CBP regulations for the purposes of conducting a
test program or procedure designed to evaluate the effectiveness of new
technology or operational procedures regarding the processing of
passengers, vessels, or merchandise. Consequently, the regulatory
provisions set forth in chapter 1 of title 19 of the CFR will be
suspended to the extent that they conflict with the terms of this test.
Such regulatory suspension will remain in effect for the duration of
this test and will only apply to test participants; the regulatory
provisions remain in effect for all non-test participants.
As explained above, for participants in this test, CBP will waive
the requirements to pay commercial vessel taxes and fees with cash or
check, as required by 19 CFR 24.1, at the time of arrival or when the
applicable service is provided, if the participant has paid all
applicable taxes and fees electronically pursuant the procedures of
this test and prior to the time the vessel is cleared by CBP. The test
also permits CBPOs to process the payment of over $100 made by check,
money order, online, or through the EMV card reader without
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obtaining authorization from the CBP officer in charge.
Jeffrey Caine,
CBP Chief Financial Officer and Assistant Commissioner, Office of
Finance, U.S. Customs and Border Protection.
[FR Doc. 2023-27626 Filed 12-14-23; 8:45 am]
BILLING CODE 9111-14-P
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This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.