Procedures To Adjust Customs COBRA User Fees To Reflect Inflation, 32661-32669 [2017-14824]

Download as PDF Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules Issued in Renton, Washington, on July 6, 2017. Dionne Palermo, Acting Manager, Transport Airplane Directorate, Aircraft Certification Service. [FR Doc. 2017–14795 Filed 7–14–17; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection DEPARTMENT OF THE TREASURY 19 CFR Parts 24 and 111 [USCBP–2017–0025] RIN 1515–AE25 Procedures To Adjust Customs COBRA User Fees To Reflect Inflation U.S. Customs and Border Protection, Department of Homeland Security; Department of the Treasury. ACTION: Notice of proposed rulemaking. AGENCY: This document proposes to amend the U.S. Customs and Border Protection (CBP) regulations to reflect that customs user fees and limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) will be adjusted for inflation in accordance with the Fixing America’s Surface Transportation Act (FAST Act). DATES: Comments must be received on or before August 16, 2017. ADDRESSES: You may submit comments, identified by docket number, by one of the following methods: • Federal eRulemaking Portal: https:// www.regulations.gov. Follow the instructions for submitting comments via docket number USCBP–2017–0025. • Mail: Trade and Commercial Regulations Branch, Regulations and Rulings, Office of Trade, U.S. Customs and Border Protection, 90 K Street NE., 10th Floor, Washington, DC 20229– 1177. Instructions: All submissions received must include the agency name and docket number for this rulemaking. All comments received will be posted without change to https:// www.regulations.gov, including any personal information provided. For detailed instructions on submitting comments and additional information on the rulemaking process, see the ‘‘Public Participation’’ heading of the SUPPLEMENTARY INFORMATION section of this document. Docket: For access to the docket to read background documents or comments received, go to https:// jstallworth on DSK7TPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 www.regulations.gov. Submitted comments may also be inspected during regular business days between the hours of 9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, Regulations and Rulings, Office of Trade, U.S. Customs and Border Protection, 90 K Street NE., 10th Floor, Washington, DC Arrangements to inspect submitted comments should be made in advance by calling Mr. Joseph Clark at (202) 325–0118. FOR FURTHER INFORMATION CONTACT: Jeffrey Caine, Executive Director— Budget, 202–325–4054, jeffrey.caine@ cbp.dhs.gov; or Bruce Ingalls, Director— Revenue Division, 317–298–1107, bruce.ingalls@cbp.dhs.gov. SUPPLEMENTARY INFORMATION: Background 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 amends section 13031 of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 (19 U.S.C. 58c) by requiring certain customs COBRA user fees and corresponding limitations to be adjusted by the Secretary of the Treasury (‘‘Secretary’’) to reflect certain increases in inflation. The specific fees and corresponding limitations to be adjusted for inflation are set forth in Tables 1 and 2 below and include the commercial vessel arrival fees, commercial truck arrival fees, railroad car arrival fees, private vessel arrival fees, private aircraft arrival fees, commercial aircraft 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. (19 U.S.C. 58c(a) and (b)). Further, the FAST Act includes a particular measure of inflation for these purposes and special rules when considering adjustments. According to the FAST Act, the customs COBRA user fees and limitations were to be adjusted on April 1, 2016, and by the end of each fiscal year to reflect the percent increase (if any) in the Consumer Price Index (CPI) for the preceding 12-month period compared to the CPI for fiscal year 2014. The statute permits the Secretary to ignore any CPI increase of less than one (1) percent from the time of the previous adjustment. As a result, if the increase in the CPI since the previous adjustment is less than one (1) percent, the Secretary has discretion to determine whether the fees should be adjusted. On June 15, 2016, CBP published a notice in the Customs Bulletin PO 00000 Frm 00013 Fmt 4702 Sfmt 4702 32661 announcing the April 2016 determination that no adjustment to the customs COBRA user fees and limitations was necessary based on the FAST Act provision as the increase of the CPI was less than one (1) percent. (Customs Bulletin, Vol. 50, No. 24, p. 13). CBP published a second notice in the Customs Bulletin on December 7, 2016, announcing that based on a less than one (1) percent increase in inflation no adjustment was necessary for fiscal year 2017. (Customs Bulletin Vol. 50, No. 49, p. 4). The FAST Act specifies that the customs COBRA user fees and corresponding limitations should be adjusted to reflect the percentage of the increase (if any) in the average of the CPI for the preceding 12-month period compared to the CPI for fiscal year 2014. CBP has determined that the 12-month period for comparison will be June through May. This timeframe will allow for sufficient notice to the public of any adjustments prior to any changes becoming effective for each fiscal year. The statute further requires the Secretary to round the amount of any increase in the CPI to the nearest dollar. The rounding requirement applies to the difference in the CPI from the comparison year to the current year when determining whether an adjustment is necessary. The rounding requirement does not apply to the fee amount resulting from any adjustment. As noted above, if the difference in the CPI since the last adjustment is less than one (1) percent, the Secretary may elect not to adjust the fees and limitations. CBP proposes to use the Consumer Price Index—All Urban Consumers, U.S. All items, 1982–84 (CPI–U) which can be found on the U.S. Department of Labor, Bureau of Labor Statistics Web site: www.bls.gov/cpi/. CBP’s Office of Finance will determine annually whether an adjustment to the fees and limitations is necessary and a notice specifying the amount of the fees and limitations will be published in the Federal Register for each fiscal year at least 30 days prior to the effective date of the new fees and limitations. Explanation of Amendments Part 24 Part 24 of Title 19 of the Code of Federal Regulations (CFR) sets forth the regulations regarding customs financial and accounting procedures. (19 CFR part 24). Section 24.22 describes the customs COBRA user fees and corresponding limitations for certain services (set forth in Table 1 below), which include the commercial vessel arrival fees, commercial truck arrival E:\FR\FM\17JYP1.SGM 17JYP1 32662 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules fees, railroad car arrival fees, private vessel arrival fees, private aircraft arrival fees, commercial aircraft passenger arrival fees, dutiable mail fees, customs broker permit user fees, barges and other bulk carriers arrival fees. (19 CFR 24.22). Section 24.23 describes the customs COBRA user fees and corresponding limitations for processing merchandise (set forth in Table 2 below). (19 CFR 24.23). CBP proposes to amend sections 24.22 and 24.23 to reflect the new requirements set forth in the FAST Act. Specifically, CBP proposes to add a new specific authority citation for section 24.22 and to amend the specific authority citation for section 24.23 to include the American Jobs Creation Act of 2004 (Pub. L. 108–357) and the FAST Act. In addition, CBP proposes to add an introductory paragraph to both sections explaining that the COBRA user fees and corresponding limitations are subject to adjustment annually to reflect the increase, if any, in the CPI– U pursuant to the FAST Act. The new introduction will also explain where to find the methodology that CBP will use to determine whether an adjustment to the fees and limitations is necessary as well as the means of notice and publication of any fee adjustments. CBP will announce the adjusted fee and limitation amounts by publishing a notice in the Federal Register annually for each fiscal year at least 30 days prior to the effective date of the new fees and limitations. The current amount for all customs COBRA user fees and corresponding limitations will be maintained on the CBP Web site at www.cbp.gov. Proposed Amendments to § 24.22 CBP proposes to amend paragraphs (b)(1)(i), (b)(1)(ii), (b)(2)(i), (b)(2)(ii), (c)(1), (c)(2), (c)(3), (d)(1), (d)(2), (d)(3), (e)(1), (e)(2), (f), (g)(1)(i), (g)(1)(ii), (g)(2), (g)(5)(v), (i)(7), (i)(8) and (h) of section 24.22 to explain that the specific fee amounts and annual fee limitations (set forth in Table 1 below) are subject to adjustment in accordance with the terms in a new paragraph (k). (19 CFR 24.22). The new paragraph (k) will set forth the methodology for determining whether and by what amount the customs COBRA user fees should be adjusted pursuant to the FAST Act. Table 1 below lists both the user fees and corresponding limitations currently set forth in section 24.22. (19 CFR 24.22). CBP proposes to add this table to the regulations as Appendix A to part 24. TABLE 1—CUSTOMS COBRA USER FEES AND LIMITATIONS IN 19 CFR 24.22 19 CFR 24.22 Customs COBRA user fee/limitation (a)(1) ............................. (b)(5)(A) ......................... (b)(1)(i) ......................... (b)(1)(ii) ........................ (a)(8) ............................. (b)(6) ............................. (b)(2)(i) ......................... (b)(2)(ii) ........................ (a)(2) (b)(2) (a)(3) (b)(3) (a)(4) ............................. ............................. ............................. ............................. ............................. (c)(1) ............................ (c)(2) and (3) ............... (d)(1) ............................ (d)(2) and (3) ............... (e)(1) and (2) ............... (a)(6) ............................. (a)(5)(A) ......................... (a)(5)(B) ......................... (f) ................................. (g)(1)(i) ......................... (g)(1)(ii) ........................ (a)(7) ............................. jstallworth on DSK7TPTVN1PROD with PROPOSALS 19 U.S.C. 58c (h) ................................ Fee: Commercial Vessel Arrival Fee ....................................................... Limitation: Calendar Year Maximum for Commercial Vessel Arrival Fees. Fee: Barges and Other Bulk Carriers Arrival Fee ................................... Limitation: Calendar Year Maximum for Barges and Other Bulk Carriers Arrival Fees. Fee: Commercial Truck Arrival Fee ......................................................... Limitation: Commercial Truck Calendar Year Prepayment Fee .............. Fee: Railroad Car Arrival Fee .................................................................. Limitation: Railroad Car Calendar Year Prepayment Fee ....................... Fee and Limitation: Private Vessel or Private Aircraft First Arrival/Calendar Year Prepayment Fee. Fee: Dutiable Mail Fee ............................................................................ Fee: Commercial Vessel or Commercial Aircraft Passenger Arrival Fee Fee: Commercial Vessel Passenger Arrival Fee (from Canada, Mexico, one of the territories and possessions of the United States, or one of the adjacent islands). Fee: Customs Broker Permit User Fee ................................................... CBP also proposes to amend paragraph (c) to clarify that there are two distinct fees that the current regulations describe as one fee. First, the CBP commercial truck arrival fee (currently $5.50) and second the Animal and Plant Health Inspection Service/ Agricultural Quarantine Inspection (APHIS/AQI) fee (currently $7.55) that CBP collects on behalf of APHIS. (19 CFR 24.22(c)). Specifically, CBP proposes to revise the header and the text in paragraph (c)(1) to state that there are two fees and to state in paragraph (c)(2) that the annual limitation on the CBP portion of the commercial truck arrival fee is $100 VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 once a prepayment in that amount is made. (19 CFR 24.22(c)). In addition, CBP proposes to make technical updates to paragraph (g) to reflect the elimination of the user fee exemption for passengers arriving from Canada, Mexico or one of the adjacent islands pursuant to the United StatesColombia Trade Promotion Agreement Implementation Act. (Colombia TPA, Pub. L. 112–42, October 21, 2011). Section 601 of the Colombia TPA amended 19 U.S.C. 58c(b)(1)(A)(i) to limit the fee exemption to passengers whose journey originated in a territory or possession of the United States, or originated in the United States and was limited to the territories and possessions PO 00000 Frm 00014 Fmt 4702 Sfmt 4702 FY14 Base fee/ limitation (subject to adjustment in accordance with the FAST Act) $437 5,955 110 1,500 5.50 100 8.25 100 27.50 5.50 5.50 1.93 138 of the United States. (19 U.S.C. 58c(b)(1)(A)(i)). CBP has been collecting the non-exempt user fees since the law became effective on November 5, 2011. CBP proposes corresponding updates to remove this exemption from the regulations found in paragraphs (g)(1)(i), (g)(1)(i)(A), (g)(1)(i)(B), (g)(1)(ii), (g)(1)(iii), the chart in paragraph (g)(2)(iv), and the collection procedures in paragraphs (g)(4)(ii)(A), (g)(4)(ii)(B), (g)(4)(ii)(C), (g)(4)(iii)(A), (g)(4)(iii)(B), and (g)(4)(iii)(C). (19 CFR 24.22(g)). CBP also proposes to remove the definition of ‘‘adjacent islands’’ from paragraph (g)(1)(iii) as references to adjacent islands have been removed from paragraph (g). (19 CFR 24.22(g)). E:\FR\FM\17JYP1.SGM 17JYP1 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules Additionally, CBP proposes an amendment to paragraph (g)(2)(iii) to clarify that journeys between ports in the United States are not subject to the fee. (19 CFR 24.22(g)(2)(iii)). CBP also proposes to amend paragraph (h) of section 24.22 by changing the name of the fee from broker permit fee to broker permit user fee and specifying the fee amount of $138. (19 CFR 24.22(h)). Finally, CBP proposes to amend paragraph (h) by removing the cross-reference to section 111.96(c) and replacing it with a reference to new paragraph (k). (19 CFR 24.22(h) and 111.96(c).) A new paragraph (k) is added setting forth the methodology to determine whether adjustments of fee and limitation amounts are necessary, and if so, how to calculate the adjustments. CBP will determine annually whether an adjustment to the fees and limitations is necessary and a notice specifying the amount of the fees and limitations will be published in the Federal Register annually for each fiscal year at least 30 days prior to the effective date of the new fees and limitations. Steps for Adjusting Fees and Limitations CBP proposes to use the following methodology in determining whether adjustment of the fees and corresponding limitations is necessary and, if so, by how much the amounts would be adjusted. Step 1: Calculate the arithmetic average of the Consumer Price Index— All Urban Consumers, U.S. All items, 1982–84 = 100 (CPI–U) for the current year based on the most recent June–May period. This figure is referred to as (A). Step 2: Use the figure 236.009 which is the arithmetic average of the CPI–U for FY 2014. This figure is referred to as (B). Step 3: State the arithmetic average of CPI–U for the comparison year, which will be either (B) if the fees have never been adjusted in accordance with this paragraph (k), or the arithmetic average of the CPI–U for the last year in which fees were adjusted in accordance with this paragraph (k) (as set forth in the Federal Register notice that last adjusted the fee). This figure is referred to as (C). Step 4: Calculate the difference between the arithmetic averages of the CPI–U of the comparison year (C) and the current year (A). This difference is referred to as (D). (D) = (A)¥(C). Step 5: Round the difference (D) to the nearest whole number. This figure is referred to as (E). Step 6: Calculate the percentage change in the arithmetic averages of the CPI–U of the comparison year (C) and the current year (A), which is referred to as (F). (F) = ((E) ÷ (C)) × 100%. 32663 Step 7: If (F) is one (1) percent or more, proceed to the next step (8). If (F) is less than one (1) percent, no adjustment will be made. Step 8: Calculate the difference in the arithmetic average of the CPI–U between the current year (the most recent June through May period) and the base year (FY 2014). This difference is referred to as (G). (G) = (A)¥(B). Step 9: Calculate the percentage change in the CPI–U from the base year to the current year. This figure is referred to as (J). (H) = ((G) ÷ (B)) × 100%. Step 10: Increase the fees and limitations that are subject to the rules of this paragraph by (H), calculating fees to the second decimal. Proposed Amendments to § 24.23 In section 24.23, CBP proposes to amend paragraphs (b)(1)(i)(A), (b)(1)(i)(B), (b)(1)(ii), (b)(2)(i), (b)(2)(ii), (b)(2)(iii) and (b)(4) to add a reference to explain that the specific fee amounts and annual fee limitations (set forth in Table 2 below) are subject to adjustment in accordance with the terms in new paragraph (k) of section 24.22. (19 CFR 24.23(b).) Table 2 below indicates the customs COBRA user fees and corresponding limitations currently set forth in section 24.23. (19 CFR 24.23). CBP proposes to add this table to the regulations as Appendix B to part 24. TABLE 2—CUSTOMS COBRA USER FEES AND LIMITATIONS IN 19 CFR 24.23 19 CFR 24.23 Customs COBRA user fee/limitation (b)(9)(A) (ii) ....................................... (b)(1)(i)(A) ....................................... (b)(9)(B)(i) ......................................... (b)(1)(i)(B)(2) ................................... (b)(9)(B)(i) ......................................... (b)(1)(i)(B)(2) ................................... (a)(9)(B)(i); (b)(8)(A)(i) ...................... (a)(9)(B)(i); (b)(8)(A)(i) ...................... (b)(8)(A)(ii) ........................................ (a)(10)(C)(i) ....................................... (b)(1)(i)(B)(1) ................................... (b)(1)(i)(B)(1) ................................... (b)(1)(ii) ........................................... (b)(2)(i) ............................................ (a)(10)(C)(ii) ...................................... (b)(2)(ii) ........................................... (a)(10)(C)(iii) ..................................... (b)(2)(iii) ........................................... (b)(9)(A)(ii) ........................................ jstallworth on DSK7TPTVN1PROD with PROPOSALS 19 U.S.C. 58c (b)(4) ............................................... Fee: Express Consignment Carrier/Centralized Hub Facility Fee, Per Individual Waybill/Bill of Lading Fee. Limitation: Minimum Express Consignment Carrier/Centralized Hub Facility Fee. Limitation: Maximum Express Consignment Carrier/Centralized Hub Facility Fee. Limitation: Minimum Merchandise Processing Fee ................................. Limitation: Maximum Merchandise Processing Fee ................................ Fee: Surcharge for Manual Entry or Release .......................................... Fee: Informal Entry or Release; Automated and Not Prepared by CBP Personnel. Fee: Informal Entry or Release; Manual and Not Prepared by CBP Personnel. Fee: Informal Entry or Release; Automated or Manual; Prepared by CBP Personnel. Fee: Express Consignment Carrier/Centralized Hub Facility Fee, Per Individual Waybill/Bill of Lading Fee. The Merchandise Processing Fee (MPF) is comprised of an ad valorem rate, a minimum fee amount, and a maximum fee amount. Adjusting the minimum and maximum fee amounts for the MPF pursuant to the FAST Act will reflect any increase in inflation. The value of the merchandise—to which VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 the rate applies—will necessarily increase on its own along with inflation, obviating the need separately to adjust the rate specified in 19 CFR 24.23(b)(1)(i)(A). In addition, CBP proposes to amend paragraph (b)(4) to include the statutory minimum and maximum limitations on PO 00000 Frm 00015 Fmt 4702 Sfmt 4702 FY14 base fee/limitation (subject to adjustment in accordance with the FAST Act) $1 0.35 1 25 485 3 2 the fees for express consignment carrier facilities or centralized hubs. (19 CFR 24.23(b).) The statute provides for adjustment of this fee from an amount not less than $0.35 to an amount not more than $1 per individual airway bill or bill of lading. (19 U.S.C.58c(b)(9)(B)(i).) These fee E:\FR\FM\17JYP1.SGM 17JYP1 6 9 1 32664 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules limitations are also subject to adjustment pursuant to the FAST Act and therefore, must also be annually adjusted for inflation, if necessary. To include this second set of maximum and minimum fees, CBP proposes to split paragraph (b)(4) into three new paragraphs: (i) For general provisions, (ii) to describe the maximum and minimum fees, and (iii) for quarterly payment requirements. (19 CFR 24.23(b)). New paragraph (b)(4)(iii) will also reflect that two electronic payment methods, Fedwire and pay.gov, are available for submitting quarterly payments. The figure of $2,000 found at 19 U.S.C. 58c(b)(9)(A) is neither a fee nor a limitation on a fee, but a reference to the allowable value for informal entries authorized pursuant to 19 U.S.C. 1498, that are subject to the fee established by 19 U.S.C. 58c(b)(9). It is not subject to the adjustment for inflation under the FAST Act. (19 U.S.C. 1498 was amended in 1993, and the merchandise value limitation on informal entries authorized by 19 U.S.C. 1498 was raised from $2,000 to $2,500.) jstallworth on DSK7TPTVN1PROD with PROPOSALS Part 111 CBP proposes conforming amendments to Part 111. (19 CFR part 111.) Specifically, CBP proposes to remove the specific amount of the annual customs broker permit user fee ($138), found in paragraph (c) of section 111.19 and paragraph (c) of section 111.96, and add a reference to section 24.23(h) in section 111.96(c). (19 CFR 24.23(h), 111.19(c) and 111.96(c).) Executive Orders 12866, 13563 and 13771 Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits (including potential economic, environmental, public health and safety effects, distributive impacts, and equity). Executive Order 13563 emphasizes the importance of quantifying both costs and benefits, of reducing costs, of harmonizing rules, and of promoting flexibility. This proposed rule has not been designated a ‘‘significant regulatory action,’’ under section 3(f) of Executive Order 12866. Accordingly, the Office of Management and Budget (OMB) has not reviewed this rule. Furthermore, because this rule is not significant, the rule is not subject to the requirements of Executive Order 13771, meaning it is not necessary for CBP to identify two existing regulations to repeal. VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 Regulatory Flexibility Act The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended by the Small Business Regulatory Enforcement and Fairness Act of 1996, requires agencies to assess the impact of regulations on small entities. A small entity may be a small business (defined as any independently owned and operated business not dominant in its field that qualifies as a small business per the Small Business Act); a small notfor-profit organization; or a small governmental jurisdiction (locality with fewer than 50,000 people). This rule will affect a combination of individuals and businesses. While most of the businesses that pay the customs COBRA user fees are large corporations, the rule affects all businesses that pay these fees, so this rule will affect a substantial number of small entities. However, the impact will be small and in line with inflation; for example, with 2% inflation the commercial truck fee will increase by 11 cents. Therefore, CBP certifies that this rule will not have a significant economic impact on a substantial number of small entities. Paperwork Reduction Act In accordance with the Paperwork Reduction Act of 1995 (Pub. L. 104–13, 44 U.S.C. 3507) 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 OMB. This rule does not involve any collection of information. Signing Authority This regulation is being issued in accordance with 19 CFR 0.1(a)(1) pertaining to the Secretary of the Treasury’s authority (or that of his delegate) to approve regulations related to certain customs revenue functions. List of Subjects 19 CFR Part 24 Accounting, Claims, Customs duties and inspection, Harbors, Reporting and recordkeeping requirements, Taxes. 19 CFR Part 111 Administrative practice and procedure, Brokers, Customs duties and inspection, Penalties, Reporting and recordkeeping requirements Proposed Amendments to the CBP Regulations For the reasons set forth in the preamble, parts 24 and 111 of title 19 of the Code of Federal Regulations (19 CFR parts 24 and 111) are proposed to be amended as set forth below. PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 PART 24—CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE 1. The general authority citation for part 24 continues to read as follows, the specific authority citation for § 24.22 is added, and the specific authority citation for § 24.23 is revised to read as follows: ■ Authority: 5 U.S.C. 301; 19 U.S.C. 58a– 58c, 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1505, 1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107–296, 116 Stat. 2135 (6 U.S.C. 1 et seq.). * * * * * Section 24.22 also issued under Sec. 892, Pub. L. 108–357, 118 Stat. 1418 (19 U.S.C. 58c); Sec. 32201, Pub. L. 114–94, 129 Stat. 1312 (19 U.S.C. 58c). Section 24.23 also issued under 19 U.S.C. 3332; Sec. 892, Pub. L. 108–357, 118 Stat. 1418 (19 U.S.C. 58c); Sec. 32201, Pub. L. 114–94, 129 Stat. 1312 (19 U.S.C. 58c). * * * * * ■ 2. In § 24.22: ■ a. Add a new introductory text before paragraph (a); ■ b. In paragraph (b): ■ i. Paragraph (b)(1)(i) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘amount of $437’’; ■ ii. Paragraph (b)(1)(ii) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘total of $,5,955 in fees’’; ■ iii. Paragraph (b)(2)(i) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘fee of $110’’; and ■ iv. Paragraph (b)(2)(ii) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘$1,500 in fees’’; ■ c. In paragraph (c): ■ i. Paragraphs (c)(1) and (c)(2) are revised; and ■ ii. Paragraph (c)(3) is amended by adding the words ‘‘of the $100 CBP fee, as adjusted in accordance with the terms of paragraph (k) of this section, and the APHIS/AQI fee set forth in 7 CFR 354.3’’ between the words ‘‘Prepayment’’ and ‘‘must be made’’ in the second sentence; ■ d. In paragraph (d): ■ i. Paragraph (d)(1) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘fee of $8.25’’; ■ ii. Paragraph (d)(2) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph E:\FR\FM\17JYP1.SGM 17JYP1 jstallworth on DSK7TPTVN1PROD with PROPOSALS Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules (k) of this section,’’ after the words ‘‘prepayment of $100’’; and ■ iii. Paragraph (d)(3) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘fee of $100’’; ■ e. In paragraph (e): ■ i. Paragraph (e)(1) is amended by adding the words, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘sum of $27.50; and ■ ii. Paragraph (e)(2) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section’’ to the end of the first sentence after the word ‘‘section’’; ■ f. Paragraph (f) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section’’ after the words ‘‘amount of $5.50’’; ■ g. In paragraph (g): ■ i. Paragraphs (g)(1)(i)–(iii) are revised; ■ ii. Paragraph (g)(2)(i) is amended by: ■ A. Removing the text ‘‘Canada, Mexico, any’’ between the words ‘‘means’’ and ‘‘territories’’; and ■ B. Removing the text ‘‘, and any adjacent islands’’ after the words ‘‘United States’’; ■ iii. Paragraph (g)(2)(iii) is amended by adding the words ‘‘and/or the United States’’ after the words ‘‘Specified Location’’; ■ iv. The chart in paragraph (g)(2)(iv) is revised; ■ v. Paragraph (g)(4)(ii)(A) is amended by: ■ A. Removing the words ‘‘in and arrives’’ between the words ‘‘originates’’ and ‘‘from’’; ■ B. Removing the words ‘‘Canada, Mexico,’’ between the words ‘‘other than’’ and ‘‘one of the territories’’; and ■ C. Removing the words ‘‘, or an adjacent island’’ from the end of the sentence; ■ vi. Paragraphs (g)(4)(ii)(B) and (C) are revised; ■ vii. Paragraph (g)(4)(iii)(A) is amended by: ■ A. Removing the words ‘‘from Canada, Mexico,’’ between the words ‘‘United States’’ and ‘‘one of the territories’’ and adding in their place the words ‘‘that originated in’’; and ■ B. Removing the comma and the words ‘‘or an adjacent island’’ from the end of the paragraph; ■ viii. Paragraph (g)(4)(iii)(B) is amended by: ■ A. Removing the words ‘‘and the return arrival to the United States is from Canada, Mexico, one of’’ between the words ‘‘United States’’ and ‘‘the territories’’ and adding in their place the words ‘‘and was limited to’’; and VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 B. Removing the comma and the words ‘‘or an adjacent island’’ following the words ‘‘United States’’ at the end of the sentence; ■ ix. Paragraph (g)(4)(iii)(C) is revised; and ■ x. Paragraph (g)(5)(v) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section,’’ after the words ‘‘vessel passenger fee’’ in each place that they appear; ■ h. Paragraph (h) is revised; ■ i. In paragraph (i), ■ i. Paragraph (7) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section’’ after the words ‘‘commercial aircraft passengers’’; and ■ ii. Paragraph (8) is amended by adding the words ‘‘, as adjusted in accordance with the terms of paragraph (k) of this section’’ after the words ‘‘commercial vessel passengers’’; and ■ j. A new paragraph (k) is added. The revisions to § 24.22 read as follows: ■ § 24.22 Fees for certain services. This section sets forth the terms and conditions for when the fees and corresponding limitations for certain services are required. The specific customs user fee amounts and corresponding limitations that appear in this section are not the actual fees or limitations but represent the base year amounts that are subject to adjustment each fiscal year in accordance with the Fixing America’s Surface Transportation Act (FAST Act) using Fiscal Year 2014 as the base year for comparison. (See Appendix A to part 24 for a table setting forth the fees and limitations subject to adjustment along with the corresponding statutory authority, the regulatory citation, the name of the fee or limitation, and the Fiscal Year 2014 base amount which reflects the statutory amounts that were adjusted by the American Jobs Creation Act of 2004 (Pub. L. 108–357).) The methodology for adjusting the fees and limitations to reflect the percentage, if any, of the increase in the average of the Consumer Price Index—All Urban Consumers, U.S. All items, 1982–84 (CPI–U) for the preceding 12-month period (June through May) compared to the Consumer Price Index for fiscal year 2014 is set forth in paragraph (k) of this section. CBP will determine annually whether an adjustment to the fees and limitations is necessary and a notice specifying the amount of the fees and limitations will be published in the Federal Register annually for each fiscal year at least 30 days prior to the effective date of the new fees and PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 32665 limitations. The fees and the limitations will also be maintained for the public’s convenience on the CBP Web site at www.cbp.gov. If a customs user has prepaid or met the calendar year limit prior to the effective date of the new fees and limitations, no additional fees will be required for that calendar year. If the customs user has not pre-paid or met the calendar year limit prior to the effective date of the new fees and limitations, the customs user will be subject to the adjusted limitation or prepayment amount. * * * * * (c) Fees for arrival of a commercial truck— (1) Fees. The fees for the arrival of a commercial truck consist of two separate fees. A CBP fee of $5.50, as adjusted by the terms of paragraph (k) of this section, and an Animal and Plant Health Inspection Service/Agricultural Quarantine Inspection (APHIS/AQI) fee set forth in 7 CFR 354.3 for the services provided that CBP collects on behalf of APHIS. Upon arrival at a CBP port of entry, the driver or other person in charge of a commercial truck must tender the fees to CBP unless they have been prepaid as provided for in paragraph (c)(3) of this section. The fees will not apply to any commercial truck which, at the time of arrival, is being transported by any vessel other than a ferry. For purposes of this paragraph, the term ‘‘commercial truck’’ means any self-propelled vehicle, including an empty vehicle or a truck cab without a trailer, which is designed and used for the transportation of commercial merchandise or for the transportation or non-commercial merchandise on a forhire basis. (2) CBP fee limitation. No CBP fee will be collected under paragraph (c)(1) of this section for the arrival of a commercial truck during any calendar year once a prepayment of $100, as adjusted by the terms of paragraph (k) of this section, has been made and a transponder has been affixed to the vehicle windshield as provided in paragraph (c)(3) of this section. * * * * * (g) * * * (1) * * * (i) Subject to paragraphs (g)(1)(ii) and (g)(3) of this section, a fee of $5.50, as adjusted by the terms of paragraph (k) of this section, must be collected and remitted to CBP for services provided in connection with the arrival of each passenger aboard a commercial vessel or commercial aircraft from a place outside the United States except: E:\FR\FM\17JYP1.SGM 17JYP1 32666 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules (A) When the journey of the arriving passenger originates in a territory or possession of the United States; or (B) When the journey of the arriving passenger originates in the United States and was not limited to the territories and possessions of the United States. (ii) Subject to paragraph (g)(3) of this section, a fee of $1.93, as adjusted by the terms of paragraph (k) of this section, Place where journey originates (see (g)(1)(iv)) SL ...................... Other than SL or U.S. U.S.* .................. U.S.* * ................ Fee status for arrival from SL Vessel jstallworth on DSK7TPTVN1PROD with PROPOSALS * * * * (4) * * * (ii) * * * (B) When a return ticket or travel document is issued (or a receipt or other document that indicates an infant traveling without a return ticket or travel document is issued) in connection with a journey which originates in the United States, includes a stop in a place other than the United States or one of the territories and possessions of the United States and the return arrival to the United States is from a place outside the United States; and (C) When a passenger on a journey through the United States to a foreign destination arrives in the customs territory of the United States from a place outside the United States, unless that passenger’s journey originated in the territories and possessions of the United States. (iii) * * * (C) When a passenger on a journey through the United States to a foreign destination arrives in the customs territory of the United States from a place outside the United States and that passenger’s journey originated in one of the territories and possessions of the United States and is processed by CBP. * * * * * (h) Annual customs broker permit user fee. Customs brokers are subject to an annual user fee of $138, as adjusted by the terms of paragraph (k) of this section, for each district permit and for a national permit held by an individual, 14:53 Jul 14, 2017 Jkt 241001 (iii) For the purposes of this paragraph (g), the term ‘‘territories and possessions of the United States’’ includes American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. * * * (2) * * * (iv) * * * Fee status for arrival from other than SL Aircraft Vessel No fee ................................... No fee ................................... No fee. $5.50, as adjusted by the terms of paragraph (k) of this section. No fee ................................... $5.50, as adjusted by the terms of paragraph (k) of this section. N/A ........................................ $5.50, as adjusted by the terms of paragraph (k) of this section. N/A. $5.50, as adjusted by the terms of paragraph (k) of this section. $1.93, as adjusted by the terms of paragraph (k) of this section. $5.50, as adjusted by the terms of paragraph (k) of this section. $1.93, as adjusted by the terms of paragraph (k) of this section. $5.50, as adjusted by the terms of paragraph (k) of this section. * VerDate Sep<11>2014 must be collected and remitted to CBP for services provided in connection with the arrival of each passenger aboard a commercial vessel whose journey originated in a territory or possession of the United States or whose journey originated in the United States and was limited to the territories and possessions of the United States. $5.50, as adjusted by the terms of paragraph (k) of this section. $5.50, as adjusted by the terms of paragraph (k) of this section. partnership, association, or corporation. The annual user fee for each district permit must be submitted to the port through which the broker was granted the permit. The annual user fee for a national permit must be submitted to the port through which the broker’s license is delivered. * * * * * (k) Adjustment for inflation of Customs Consolidated Omnibus Budget Reconciliation Act (COBRA) user fees— (1) Fee amounts. CBP will determine annually whether an adjustment to the fees and limitations is necessary and a notice specifying the amount of the fees and limitations, as adjusted, will be published in the Federal Register annually for each fiscal year at least 30 days prior to the effective date of the new fees and limitations. The fee and limitation amounts will also be maintained for the public’s convenience on the CBP Web site at www.cbp.gov. (2) Methodology for annual adjustments of fees and limitation amounts for inflation. CBP will determine the adjustments, if any, by making the following calculations: (i) Calculate the arithmetic average of the Consumer Price Index—All Urban Consumers, U.S. All items, 1982–84 = 100 (CPI–U) for the current year based on the most recent June–May period. This figure is referred to as (A). (ii) Use the figure 236.009 which is the arithmetic average of the CPI–U for FY 2014. This figure is referred to as (B). (iii) State the arithmetic average of CPI–U for the comparison year which PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 Aircraft will be either (B) if the fees have never been adjusted in accordance with this paragraph (k), or the arithmetic average of the CPI–U for the last year in which fees were adjusted in accordance with this paragraph (k) as set forth in the Federal Register notice that last adjusted the fee. This figure is referred to as (C). (iv) Calculate the difference between the arithmetic averages of the CPI–U of the comparison year (C) and the current year (A). This difference is referred to as (D). (D) = (A)¥(C). (v) Round the difference (D) to the nearest whole number. This figure is referred to as (E). (vi) Calculate the percentage change in the arithmetic averages of the CPI–U of the comparison year (C) and the current year (A) which is referred to as (F). (F) = ((E)÷(C)) × 100%. (vii) If (F) is one percent or more, proceed to the next step (viii). If (F) is less than one percent, no adjustment will be made. (viii) Calculate the difference in the arithmetic average of the CPI–U between the current year (the most recent June through May period) and the base year (FY 2014). This difference is referred to as (G). (G) = (A)¥(B). (ix) Calculate the percentage change in the CPI–U from the base year to the current year. This figure is referred to as (H). (H) = ((G)÷(B)) × 100%. (x) Increase the fees and limitations that are subject to the rules of this paragraph by (H), calculating fees and limitations to the second decimal. ■ 3. In § 24.23: E:\FR\FM\17JYP1.SGM 17JYP1 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules a. Add a new introductory text before paragraph (a). ■ b. In paragraph (b): ■ i. Paragraph (b)(1)(i)(A) is amended by adding the words ‘‘, as adjusted in accordance with the terms of § 24.22(k) of this part,’’ after the words ‘‘$1.00 per individual air waybill or bill of lading fee’’; ■ ii. Paragraph (b)(1)(i)(B) is amended by adding the words ‘‘, as adjusted in accordance with the terms of § 24.22(k) of this part,’’ after the amounts ‘‘$485’’ and ‘‘$25’’; ■ iii. Paragraph (b)(1)(ii) is amended by adding the words ‘‘, as adjusted in accordance with the terms of § 24.22(k) of this part,’’ after the words ‘‘surcharge of $3’’; ■ iv. Paragraph (b)(2)(i) is amended by adding the words ‘‘, as adjusted in accordance with the terms of § 24.22(k) of this part,’’ after the amount ‘‘$2’’; ■ v. Paragraph (b)(2)(ii) is amended by adding the words ‘‘, as adjusted in accordance with the terms of § 24.22(k) of this part,’’ after the amount ‘‘$6’’; ■ vi. Paragraph (b)(2)(iii) is amended by adding the words ‘‘, as adjusted in accordance with the terms of § 24.22(k) of this part,’’ after the amount ‘‘$9’’; and ■ vii. Paragraph (b)(4) is revised. The revisions to § 24.23 read as follows: ■ jstallworth on DSK7TPTVN1PROD with PROPOSALS § 24.23 Fees for processing merchandise. This section sets forth the terms and conditions for when the fees for processing merchandise are required. The specific merchandise processing fee amounts and corresponding limitations that appear in this section are not the actual fees or limitations, but represent the base year amounts that are subject to adjustment each fiscal year in accordance with the Fixing America’s Surface Transportation Act (FAST Act) using Fiscal Year 2014 as the base year for comparison. (See Appendix B to part 24 for a table setting forth the fees and limitations subject to adjustment along with the corresponding statutory authority, the regulatory citation, the name of the fee or limitation, and the Fiscal Year 2014 base amount which reflects the statutory amounts that were adjusted by the American Jobs Creation Act of 2004 (Pub. L. 108–357).) The methodology for adjusting the fees and limitations to reflect the percentage, if any, of the increase in the average of the Consumer Price Index—All Urban Consumers, U.S. All items, 1982–84 (CPI–U) for the preceding 12-month period (June through May) compared to the Consumer Price Index for fiscal year 2014 is set forth in § 24.22(k) of this part. CBP will determine annually whether an adjustment to the fees and VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 limitations is necessary and a notice specifying the amount of the fees and limitations will be published in the Federal Register annually for each fiscal year at least 30 days prior to the effective date of the new fees and limitations. The fees and the limitations will also be maintained for the public’s convenience on the CBP Web site at www.cbp.gov. * * * * * (b) * * * (4) Express consignment carrier and centralized hub facilities. (i) General. Each carrier or operator using an express consignment carrier facility or a centralized hub facility must pay to CBP a fee in the amount of $1.00, as adjusted in accordance with the terms of paragraph (k) of § 24.22 of this chapter, per individual air waybill or individual bill of lading for the processing of airway bills for shipments arriving in the United States. In addition, if merchandise is formally entered and valued at $2,500 or less, the importer of record must pay to CBP the ad valorem fee specified in paragraph (b)(1) of this section, if applicable. An individual air waybill or individual bill of lading is the individual document issued by the carrier or operator for transporting and/or tracking an individual item, letter, package, envelope, record, document, or shipment. An individual air waybill is not a consolidation of several air waybills, and is not a master bill or other consolidated document. An individual air waybill or bill of lading is 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. Payment must be made to CBP on a quarterly basis and must cover the individual fees for all subject transactions that occurred during a calendar quarter. (ii) Maximum and minimum fees. Subject to the provisions of paragraph (b)(1)(i)(A) and (b)(4) of this section relating to the express consignment carrier facility or centralized hub facility fee, the fee per individual air waybill or bill of lading charged under paragraph (b)(1)(i)(A) of this section must not exceed $1, as adjusted in accordance with the terms of paragraph (k) of § 24.22 of this chapter, and must not be less than $0.35, as adjusted by paragraph (k) of § 24.22 of this chapter. (iii) Quarterly payments. The following additional requirements and conditions apply to each quarterly payment made under this section: (A) The quarterly payment must conform to the requirements of § 24.1, PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 32667 must be submitted electronically via Fedwire or pay.gov, or mailed to Customs and Border Protection, Revenue Division/Attention: Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 46278, and must 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. (B) The following information must be included with the quarterly payment: (1) The identity of the calendar quarter to which the payment relates; (2) 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 (3) 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 §§ 128.24(e) and 143.23(j) of this chapter, and the number covered by other informal entry procedures. (C) Overpayments or underpayments may 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, the following procedures apply: (1) In the case of an overpayment, the carrier or operator 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 must specify the grounds for the refund and must be received by CBP within one year of the date the fee for which the refund is sought was paid to CBP; and (2) In the case of an underpayment, interest will accrue on the amount not paid from the date payment was initially due to the date that payment to CBP is made. (D) The underpayment or failure of a carrier or operator using an express consignment carrier facility or a centralized hub facility to pay all applicable fees owed to CBP pursuant to paragraph (b)(4) of this section may result in the assessment of penalties under 19 U.S.C. 1592, liquidated damages, and any other action authorized by law. * * * * * ■ 4. Add Appendix A and Appendix B to part 24 to read as follows: E:\FR\FM\17JYP1.SGM 17JYP1 32668 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules Appendix A to Part 24—Customs Cobra User Fees and Limitations in 19 CFR 24.22 FY14 base fee/ limitation (subject to adjustment in accordance with the FAST Act) 19 U.S.C. 58c 19 CFR 24.22 Customs COBRA user fee/limitation (a)(1) ............................. (b)(5)(A) ......................... (b)(1)(i) ......................... (b)(1)(ii) ........................ (a)(8) ............................. (b)(6) ............................. (b)(2)(i) ......................... (b)(2)(ii) ........................ (a)(2) (b)(2) (a)(3) (b)(3) (a)(4) ............................. ............................. ............................. ............................. ............................. (c)(1) ............................ (c)(2) and (3) ............... (d)(1) ............................ (d)(2) and (3) ............... (e)(1) and (2) ............... (a)(6) ............................. (a)(5)(A) ......................... (a)(5)(B) ......................... (f) ................................. (g)(1)(i) ......................... (g)(1)(ii) ........................ (a)(7) ............................. (h) ................................ Fee: Commercial Vessel Arrival Fee ....................................................... Limitation: Calendar Year Maximum for Commercial Vessel Arrival Fees. Fee: Barges and Other Bulk Carriers Arrival Fee ................................... Limitation: Calendar Year Maximum for Barges and Other Bulk Carriers Arrival Fees. Fee: Commercial Truck Arrival Fee ......................................................... Limitation: Commercial Truck Calendar Year Prepayment Fee .............. Fee: Railroad Car Arrival Fee .................................................................. Limitation: Railroad Car Calendar Year Prepayment Fee ....................... Fee and Limitation: Private Vessel or Private Aircraft First Arrival/Calendar Year Prepayment Fee. Fee: Dutiable Mail Fee ............................................................................ Fee: Commercial Vessel or Commercial Aircraft Passenger Arrival Fee Fee: Commercial Vessel Passenger Arrival Fee (from Canada, Mexico, one of the territories and possessions of the United States, or one of the adjacent islands). Fee: Customs Broker Permit User Fee ................................................... $437 5,955 110 1,500 5.50 100 8.25 100 27.50 5.50 5.50 1.93 138 Appendix B to Part 24—Customs Cobra User Fees and Limitations in 19 CFR 24.23 FY14 base fee/ limitation (subject to adjustment in accordance with the FAST Act) 19 U.S.C. 58c 19 CFR 24.23 Customs COBRA user fee/limitation (b)(9)(A) (ii) ................... (b)(1)(i)(A) .................... (b)(9)(B)(i) ..................... (b)(1)(i)(B)(2) ................ (b)(9)(B)(i) ..................... (b)(1)(i)(B)(2) ................ (a)(9)(B)(i); (b)(8)(A)(i) .. (a)(9)(B)(i); (b)(8)(A)(i) .. (b)(8)(A)(ii) ..................... (a)(10)(C)(i) ................... (b)(1)(i)(B)(1) ................ (b)(1)(i)(B)(1) ................ (b)(1)(ii) ........................ (b)(2)(i) ......................... (a)(10)(C)(ii) .................. (b)(2)(ii) ........................ (a)(10)(C)(iii) .................. (b)(2)(iii) ....................... (b)(9)(A)(ii) ..................... (b)(4) ............................ Fee: Express Consignment Carrier/Centralized Hub Facility Fee, Per Individual Waybill/Bill of Lading Fee. Limitation: Minimum Express Consignment Carrier/Centralized Hub Facility Fee. Limitation: Maximum Express Consignment Carrier/Centralized Hub Facility Fee. Limitation: Minimum Merchandise Processing Fee ................................. Limitation: Maximum Merchandise Processing Fee ................................ Fee: Surcharge for Manual Entry or Release ......................................... Fee: Informal Entry or Release; Automated and Not Prepared by CBP Personnel. Fee: Informal Entry or Release; Manual and Not Prepared by CBP Personnel. Fee: Informal Entry or Release; Automated or Manual; Prepared by CBP Personnel. Fee: Express Consignment Carrier/Centralized Hub Facility Fee, Per Individual Waybill/Bill of Lading Fee. PART 111—CUSTOMS BROKERS Section 111.96 also issued under 19 U.S.C. 58c, 31 U.S.C. 9701. 5. The general authority citation for part 111 and the specific authority citation for § 111.96 continue to read as follows: * Authority: 19 U.S.C. 66, 1202 (General Note 3(i), Harmonized Tariff Schedule of the United States), 1624, 1641. ■ jstallworth on DSK7TPTVN1PROD with PROPOSALS ■ * * * VerDate Sep<11>2014 * * 14:53 Jul 14, 2017 Jkt 241001 * § 111.19 * * * 6. In § 111.19(c): a. Remove the phrase ‘‘$100 and $138’’ in the first sentence; and ■ b. Remove the amounts ‘‘$100’’ and ‘‘$138’’ in each place that they appear. PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 0.35 1 25 485 3 2 [Amended] 7. In § 111.96(c): a. In the first sentence, remove the words ‘‘of $138’’ and add in their place the words ‘‘specified in § 24.22(h) of this chapter’’; and ■ ■ [Amended] ■ § 111.96 $1 E:\FR\FM\17JYP1.SGM 17JYP1 6 9 1 Federal Register / Vol. 82, No. 135 / Monday, July 17, 2017 / Proposed Rules ■ b. Remove the figure ‘‘$138’’ in each place that it appears. Kevin K. McAleenan, Acting Commissioner, U.S. Customs and Border Protection. Approved: July 10, 2017. Timothy E. Skud, Deputy Assistant Secretary of the Treasury. [FR Doc. 2017–14824 Filed 7–14–17; 8:45 am] BILLING CODE 9111–14–P DEPARTMENT OF HOMELAND SECURITY U.S. Customs and Border Protection 19 CFR Part 101 [Docket No. USCBP–2017–0017] Extension of Port Limits of Savannah, GA Correction In proposed rule document 2017– 13983, beginning on page 30807, in the issue of Monday, July 3, 2017, make the following correction: On page 30808, in the first column, the coordinates listed in line seven of ‘‘III. Proposed Port Limits of Savannah, Georgia’’, ‘‘080°04.998′ W.’’ should read ‘‘080°54.998′ W.’’ [FR Doc. C1–2017–13983 Filed 7–14–17; 8:45 am] BILLING CODE 1301–00–D ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R05–OAR–2016–0327; FRL–9964–95– Region 5] Air Plan Approval; Minnesota; State Board Requirements Environmental Protection Agency (EPA). ACTION: Proposed rule. AGENCY: The Environmental Protection Agency (EPA) is proposing to approve a state implementation plan (SIP) submission from Minnesota addressing the state board requirements of the Clean Air Act (CAA). EPA is also proposing to approve elements of Minnesota’s submission addressing the infrastructure requirements relating to state boards for the 1997 ozone, 1997 fine particulate (PM2.5), 2006 PM2.5, 2008 lead (Pb), 2008 ozone, 2010 nitrogen dioxide (NO2), 2010 sulfur dioxide (SO2), and 2012 PM2.5 National Ambient Air Quality Standards (NAAQS). This SIP revision was jstallworth on DSK7TPTVN1PROD with PROPOSALS SUMMARY: VerDate Sep<11>2014 14:53 Jul 14, 2017 Jkt 241001 submitted by the Minnesota Pollution Control Agency (MPCA) on May 26, 2016. Comments must be received on or before August 16, 2017. ADDRESSES: Submit your comments, identified by Docket ID No. EPA–R05– OAR–2016–0327 at https:// www.regulations.gov, or via email to aburano.douglas@epa.gov. For comments submitted at Regulations.gov, follow the online instructions for submitting comments. Once submitted, comments cannot be edited or removed from Regulations.gov. For either manner of submission, EPA may publish any comment received to its public docket. Do not submit electronically any information you consider to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute. Multimedia submissions (audio, video, etc.) must be accompanied by a written comment. The written comment is considered the official comment and should include discussion of all points you wish to make. EPA will generally not consider comments or comment contents located outside of the primary submission (i.e. on the web, cloud, or other file sharing system). For additional submission methods, please contact the person identified in the FOR FURTHER INFORMATION CONTACT section. For the full EPA public comment policy, information about CBI or multimedia submissions, and general guidance on making effective comments, please visit https://www2.epa.gov/dockets/ commenting-epa-dockets. FOR FURTHER INFORMATION CONTACT: Eric Svingen, Environmental Engineer, Attainment Planning and Maintenance Section, Air Programs Branch (AR–18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 353–4489, svingen.eric@epa.gov. SUPPLEMENTARY INFORMATION: Throughout this document whenever ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean EPA. This supplementary information section is arranged as follows: DATES: I. What is the background of this SIP submission? II. What guidance is EPA using to evaluate this SIP submission? III. What is the result of EPA’s review of this SIP submission? IV. What action is EPA taking? V. Incorporation by Reference. VI. Statutory and Executive Order Reviews. I. What is the background of this SIP submission? This rulemaking addresses a SIP submission from the MPCA dated May PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 32669 26, 2016, which addresses CAA requirements relating to the state board requirements under section 128, as well as infrastructure requirements of section 110 relating to state boards for the 1997 ozone, 1997 PM2.5, 2006 PM2.5, 2008 Pb, 2008 ozone, 2010 NO2, 2010 SO2, and 2012 PM2.5 NAAQS. The requirement for states to make infrastructure SIP submissions arises out of CAA section 110(a)(1). Pursuant to section 110(a)(1), states must make SIP submissions ‘‘within 3 years (or such shorter period as the Administrator may prescribe) after the promulgation of a national primary ambient air quality standard (or any revision thereof),’’ and these SIP submissions are to provide for the ‘‘implementation, maintenance, and enforcement’’ of such NAAQS. The statute directly imposes on states the duty to make these SIP submissions, and the requirement to make the submissions is not conditioned upon EPA’s taking any action other than promulgating a new or revised NAAQS. Section 110(a)(2) includes a list of specific elements that ‘‘[e]ach such plan’’ submission must address. EPA has historically referred to these SIP submissions made for the purpose of satisfying the requirements of CAA section 110(a)(1) and (2) as ‘‘infrastructure SIP’’ submissions. Although the term ‘‘infrastructure SIP’’ does not appear in the CAA, EPA uses the term to distinguish this particular type of SIP submission from submissions that are intended to satisfy other SIP requirements under the CAA. This specific rulemaking is only taking action on the CAA 110(a)(2)(E)(ii) element of these infrastructure SIP requirements. II. What guidance is EPA using to evaluate this SIP submission? EPA’s guidance relating to infrastructure SIP submissions can be found in a guidance document entitled ‘‘Guidance on SIP Elements Required Under Sections 110(a)(1) and (2) for the 1997 8-hour Ozone and PM2.5 1 National Ambient Air Quality Standards’’ (2007 Guidance). Further guidance is provided in a September 13, 2013, document entitled ‘‘Guidance on Infrastructure State Implementation Plan (SIP) Elements under CAA Sections 110(a)(1) and (2)’’ (2013 Guidance). III. What is the result of EPA’s review of this SIP submission? Pursuant to section 110(a), states must provide reasonable notice and 1 PM 2.5 refers to particles with an aerodynamic diameter of less than or equal to 2.5 micrometers, oftentimes referred to as ‘‘fine’’ particles. E:\FR\FM\17JYP1.SGM 17JYP1

Agencies

[Federal Register Volume 82, Number 135 (Monday, July 17, 2017)]
[Proposed Rules]
[Pages 32661-32669]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-14824]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 24 and 111

[USCBP-2017-0025]
RIN 1515-AE25


Procedures To Adjust Customs COBRA User Fees To Reflect Inflation

AGENCY: U.S. Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend the U.S. Customs and Border 
Protection (CBP) regulations to reflect that customs user fees and 
limitations established by the Consolidated Omnibus Budget 
Reconciliation Act (COBRA) will be adjusted for inflation in accordance 
with the Fixing America's Surface Transportation Act (FAST Act).

DATES: Comments must be received on or before August 16, 2017.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: https://www.regulations.gov. 
Follow the instructions for submitting comments via docket number 
USCBP-2017-0025.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, Office of Trade, U.S. Customs and Border Protection, 90 K 
Street NE., 10th Floor, Washington, DC 20229-1177.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to https://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to https://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, Office of Trade, U.S. Customs and Border 
Protection, 90 K Street NE., 10th Floor, Washington, DC Arrangements to 
inspect submitted comments should be made in advance by calling Mr. 
Joseph Clark at (202) 325-0118.

FOR FURTHER INFORMATION CONTACT: Jeffrey Caine, Executive Director--
Budget, 202-325-4054, jeffrey.caine@cbp.dhs.gov; or Bruce Ingalls, 
Director--Revenue Division, 317-298-1107, bruce.ingalls@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION: 

Background

    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 amends section 13031 of the Consolidated Omnibus Budget 
Reconciliation Act (COBRA) of 1985 (19 U.S.C. 58c) by requiring certain 
customs COBRA user fees and corresponding limitations to be adjusted by 
the Secretary of the Treasury (``Secretary'') to reflect certain 
increases in inflation. The specific fees and corresponding limitations 
to be adjusted for inflation are set forth in Tables 1 and 2 below and 
include the commercial vessel arrival fees, commercial truck arrival 
fees, railroad car arrival fees, private vessel arrival fees, private 
aircraft arrival fees, commercial aircraft 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. (19 U.S.C. 58c(a) and (b)). Further, the 
FAST Act includes a particular measure of inflation for these purposes 
and special rules when considering adjustments.
    According to the FAST Act, the customs COBRA user fees and 
limitations were to be adjusted on April 1, 2016, and by the end of 
each fiscal year to reflect the percent increase (if any) in the 
Consumer Price Index (CPI) for the preceding 12-month period compared 
to the CPI for fiscal year 2014. The statute permits the Secretary to 
ignore any CPI increase of less than one (1) percent from the time of 
the previous adjustment. As a result, if the increase in the CPI since 
the previous adjustment is less than one (1) percent, the Secretary has 
discretion to determine whether the fees should be adjusted.
    On June 15, 2016, CBP published a notice in the Customs Bulletin 
announcing the April 2016 determination that no adjustment to the 
customs COBRA user fees and limitations was necessary based on the FAST 
Act provision as the increase of the CPI was less than one (1) percent. 
(Customs Bulletin, Vol. 50, No. 24, p. 13). CBP published a second 
notice in the Customs Bulletin on December 7, 2016, announcing that 
based on a less than one (1) percent increase in inflation no 
adjustment was necessary for fiscal year 2017. (Customs Bulletin Vol. 
50, No. 49, p. 4).
    The FAST Act specifies that the customs COBRA user fees and 
corresponding limitations should be adjusted to reflect the percentage 
of the increase (if any) in the average of the CPI for the preceding 
12-month period compared to the CPI for fiscal year 2014. CBP has 
determined that the 12-month period for comparison will be June through 
May. This timeframe will allow for sufficient notice to the public of 
any adjustments prior to any changes becoming effective for each fiscal 
year. The statute further requires the Secretary to round the amount of 
any increase in the CPI to the nearest dollar. The rounding requirement 
applies to the difference in the CPI from the comparison year to the 
current year when determining whether an adjustment is necessary. The 
rounding requirement does not apply to the fee amount resulting from 
any adjustment. As noted above, if the difference in the CPI since the 
last adjustment is less than one (1) percent, the Secretary may elect 
not to adjust the fees and limitations. CBP proposes to use the 
Consumer Price Index--All Urban Consumers, U.S. All items, 1982-84 
(CPI-U) which can be found on the U.S. Department of Labor, Bureau of 
Labor Statistics Web site: www.bls.gov/cpi/. CBP's Office of Finance 
will determine annually whether an adjustment to the fees and 
limitations is necessary and a notice specifying the amount of the fees 
and limitations will be published in the Federal Register for each 
fiscal year at least 30 days prior to the effective date of the new 
fees and limitations.

Explanation of Amendments

Part 24

    Part 24 of Title 19 of the Code of Federal Regulations (CFR) sets 
forth the regulations regarding customs financial and accounting 
procedures. (19 CFR part 24). Section 24.22 describes the customs COBRA 
user fees and corresponding limitations for certain services (set forth 
in Table 1 below), which include the commercial vessel arrival fees, 
commercial truck arrival

[[Page 32662]]

fees, railroad car arrival fees, private vessel arrival fees, private 
aircraft arrival fees, commercial aircraft passenger arrival fees, 
dutiable mail fees, customs broker permit user fees, barges and other 
bulk carriers arrival fees. (19 CFR 24.22). Section 24.23 describes the 
customs COBRA user fees and corresponding limitations for processing 
merchandise (set forth in Table 2 below). (19 CFR 24.23). CBP proposes 
to amend sections 24.22 and 24.23 to reflect the new requirements set 
forth in the FAST Act.
    Specifically, CBP proposes to add a new specific authority citation 
for section 24.22 and to amend the specific authority citation for 
section 24.23 to include the American Jobs Creation Act of 2004 (Pub. 
L. 108-357) and the FAST Act. In addition, CBP proposes to add an 
introductory paragraph to both sections explaining that the COBRA user 
fees and corresponding limitations are subject to adjustment annually 
to reflect the increase, if any, in the CPI-U pursuant to the FAST Act. 
The new introduction will also explain where to find the methodology 
that CBP will use to determine whether an adjustment to the fees and 
limitations is necessary as well as the means of notice and publication 
of any fee adjustments. CBP will announce the adjusted fee and 
limitation amounts by publishing a notice in the Federal Register 
annually for each fiscal year at least 30 days prior to the effective 
date of the new fees and limitations. The current amount for all 
customs COBRA user fees and corresponding limitations will be 
maintained on the CBP Web site at www.cbp.gov.

Proposed Amendments to Sec.  24.22

    CBP proposes to amend paragraphs (b)(1)(i), (b)(1)(ii), (b)(2)(i), 
(b)(2)(ii), (c)(1), (c)(2), (c)(3), (d)(1), (d)(2), (d)(3), (e)(1), 
(e)(2), (f), (g)(1)(i), (g)(1)(ii), (g)(2), (g)(5)(v), (i)(7), (i)(8) 
and (h) of section 24.22 to explain that the specific fee amounts and 
annual fee limitations (set forth in Table 1 below) are subject to 
adjustment in accordance with the terms in a new paragraph (k). (19 CFR 
24.22). The new paragraph (k) will set forth the methodology for 
determining whether and by what amount the customs COBRA user fees 
should be adjusted pursuant to the FAST Act.
    Table 1 below lists both the user fees and corresponding 
limitations currently set forth in section 24.22. (19 CFR 24.22). CBP 
proposes to add this table to the regulations as Appendix A to part 24.

                        Table 1--Customs Cobra User Fees and Limitations in 19 CFR 24.22
----------------------------------------------------------------------------------------------------------------
                                                                                                 FY14 Base fee/
                                                                                                   limitation
                                                                                                  (subject to
           19 U.S.C. 58c                19 CFR 24.22       Customs COBRA user fee/limitation     adjustment in
                                                                                                accordance with
                                                                                                 the FAST Act)
----------------------------------------------------------------------------------------------------------------
(a)(1)............................  (b)(1)(i)...........  Fee: Commercial Vessel Arrival Fee.               $437
(b)(5)(A).........................  (b)(1)(ii)..........  Limitation: Calendar Year Maximum                5,955
                                                           for Commercial Vessel Arrival Fees.
(a)(8)............................  (b)(2)(i)...........  Fee: Barges and Other Bulk Carriers                110
                                                           Arrival Fee.
(b)(6)............................  (b)(2)(ii)..........  Limitation: Calendar Year Maximum                1,500
                                                           for Barges and Other Bulk Carriers
                                                           Arrival Fees.
(a)(2)............................  (c)(1)..............  Fee: Commercial Truck Arrival Fee..               5.50
(b)(2)............................  (c)(2) and (3)......  Limitation: Commercial Truck                       100
                                                           Calendar Year Prepayment Fee.
(a)(3)............................  (d)(1)..............  Fee: Railroad Car Arrival Fee......               8.25
(b)(3)............................  (d)(2) and (3)......  Limitation: Railroad Car Calendar                  100
                                                           Year Prepayment Fee.
(a)(4)............................  (e)(1) and (2)......  Fee and Limitation: Private Vessel               27.50
                                                           or Private Aircraft First Arrival/
                                                           Calendar Year Prepayment Fee.
(a)(6)............................  (f).................  Fee: Dutiable Mail Fee.............               5.50
(a)(5)(A).........................  (g)(1)(i)...........  Fee: Commercial Vessel or                         5.50
                                                           Commercial Aircraft Passenger
                                                           Arrival Fee.
(a)(5)(B).........................  (g)(1)(ii)..........  Fee: Commercial Vessel Passenger                  1.93
                                                           Arrival Fee (from Canada, Mexico,
                                                           one of the territories and
                                                           possessions of the United States,
                                                           or one of the adjacent islands).
(a)(7)............................  (h).................  Fee: Customs Broker Permit User Fee                138
----------------------------------------------------------------------------------------------------------------

    CBP also proposes to amend paragraph (c) to clarify that there are 
two distinct fees that the current regulations describe as one fee. 
First, the CBP commercial truck arrival fee (currently $5.50) and 
second the Animal and Plant Health Inspection Service/Agricultural 
Quarantine Inspection (APHIS/AQI) fee (currently $7.55) that CBP 
collects on behalf of APHIS. (19 CFR 24.22(c)). Specifically, CBP 
proposes to revise the header and the text in paragraph (c)(1) to state 
that there are two fees and to state in paragraph (c)(2) that the 
annual limitation on the CBP portion of the commercial truck arrival 
fee is $100 once a prepayment in that amount is made. (19 CFR 
24.22(c)).
    In addition, CBP proposes to make technical updates to paragraph 
(g) to reflect the elimination of the user fee exemption for passengers 
arriving from Canada, Mexico or one of the adjacent islands pursuant to 
the United States-Colombia Trade Promotion Agreement Implementation 
Act. (Colombia TPA, Pub. L. 112-42, October 21, 2011). Section 601 of 
the Colombia TPA amended 19 U.S.C. 58c(b)(1)(A)(i) to limit the fee 
exemption to passengers whose journey originated in a territory or 
possession of the United States, or originated in the United States and 
was limited to the territories and possessions of the United States. 
(19 U.S.C. 58c(b)(1)(A)(i)). CBP has been collecting the non-exempt 
user fees since the law became effective on November 5, 2011. CBP 
proposes corresponding updates to remove this exemption from the 
regulations found in paragraphs (g)(1)(i), (g)(1)(i)(A), (g)(1)(i)(B), 
(g)(1)(ii), (g)(1)(iii), the chart in paragraph (g)(2)(iv), and the 
collection procedures in paragraphs (g)(4)(ii)(A), (g)(4)(ii)(B), 
(g)(4)(ii)(C), (g)(4)(iii)(A), (g)(4)(iii)(B), and (g)(4)(iii)(C). (19 
CFR 24.22(g)). CBP also proposes to remove the definition of ``adjacent 
islands'' from paragraph (g)(1)(iii) as references to adjacent islands 
have been removed from paragraph (g). (19 CFR 24.22(g)).

[[Page 32663]]

Additionally, CBP proposes an amendment to paragraph (g)(2)(iii) to 
clarify that journeys between ports in the United States are not 
subject to the fee. (19 CFR 24.22(g)(2)(iii)).
    CBP also proposes to amend paragraph (h) of section 24.22 by 
changing the name of the fee from broker permit fee to broker permit 
user fee and specifying the fee amount of $138. (19 CFR 24.22(h)). 
Finally, CBP proposes to amend paragraph (h) by removing the cross-
reference to section 111.96(c) and replacing it with a reference to new 
paragraph (k). (19 CFR 24.22(h) and 111.96(c).)
    A new paragraph (k) is added setting forth the methodology to 
determine whether adjustments of fee and limitation amounts are 
necessary, and if so, how to calculate the adjustments. CBP will 
determine annually whether an adjustment to the fees and limitations is 
necessary and a notice specifying the amount of the fees and 
limitations will be published in the Federal Register annually for each 
fiscal year at least 30 days prior to the effective date of the new 
fees and limitations.

Steps for Adjusting Fees and Limitations

    CBP proposes to use the following methodology in determining 
whether adjustment of the fees and corresponding limitations is 
necessary and, if so, by how much the amounts would be adjusted.
    Step 1: Calculate the arithmetic average of the Consumer Price 
Index--All Urban Consumers, U.S. All items, 1982-84 = 100 (CPI-U) for 
the current year based on the most recent June-May period. This figure 
is referred to as (A).
    Step 2: Use the figure 236.009 which is the arithmetic average of 
the CPI-U for FY 2014. This figure is referred to as (B).
    Step 3: State the arithmetic average of CPI-U for the comparison 
year, which will be either (B) if the fees have never been adjusted in 
accordance with this paragraph (k), or the arithmetic average of the 
CPI-U for the last year in which fees were adjusted in accordance with 
this paragraph (k) (as set forth in the Federal Register notice that 
last adjusted the fee). This figure is referred to as (C).
    Step 4: Calculate the difference between the arithmetic averages of 
the CPI-U of the comparison year (C) and the current year (A). This 
difference is referred to as (D). (D) = (A)-(C).
    Step 5: Round the difference (D) to the nearest whole number. This 
figure is referred to as (E).
    Step 6: Calculate the percentage change in the arithmetic averages 
of the CPI-U of the comparison year (C) and the current year (A), which 
is referred to as (F). (F) = ((E) / (C)) x 100%.
    Step 7: If (F) is one (1) percent or more, proceed to the next step 
(8). If (F) is less than one (1) percent, no adjustment will be made.
    Step 8: Calculate the difference in the arithmetic average of the 
CPI-U between the current year (the most recent June through May 
period) and the base year (FY 2014). This difference is referred to as 
(G). (G) = (A)-(B).
    Step 9: Calculate the percentage change in the CPI-U from the base 
year to the current year. This figure is referred to as (J). (H) = ((G) 
/ (B)) x 100%.
    Step 10: Increase the fees and limitations that are subject to the 
rules of this paragraph by (H), calculating fees to the second decimal.

Proposed Amendments to Sec.  24.23

    In section 24.23, CBP proposes to amend paragraphs (b)(1)(i)(A), 
(b)(1)(i)(B), (b)(1)(ii), (b)(2)(i), (b)(2)(ii), (b)(2)(iii) and (b)(4) 
to add a reference to explain that the specific fee amounts and annual 
fee limitations (set forth in Table 2 below) are subject to adjustment 
in accordance with the terms in new paragraph (k) of section 24.22. (19 
CFR 24.23(b).) Table 2 below indicates the customs COBRA user fees and 
corresponding limitations currently set forth in section 24.23. (19 CFR 
24.23). CBP proposes to add this table to the regulations as Appendix B 
to part 24.

                        Table 2--Customs Cobra User Fees and Limitations in 19 CFR 24.23
----------------------------------------------------------------------------------------------------------------
                                                                                                  FY14 base fee/
                                                                                                    limitation
                                                                                                    (subject to
             19 U.S.C. 58c                     19 CFR 24.23           Customs COBRA user fee/      adjustment in
                                                                             limitation             accordance
                                                                                                  with the  FAST
                                                                                                       Act)
----------------------------------------------------------------------------------------------------------------
(b)(9)(A) (ii)........................  (b)(1)(i)(A).............  Fee: Express Consignment                   $1
                                                                    Carrier/Centralized Hub
                                                                    Facility Fee, Per Individual
                                                                    Waybill/Bill of Lading Fee.
(b)(9)(B)(i)..........................  (b)(1)(i)(B)(2)..........  Limitation: Minimum Express              0.35
                                                                    Consignment Carrier/
                                                                    Centralized Hub Facility Fee.
(b)(9)(B)(i)..........................  (b)(1)(i)(B)(2)..........  Limitation: Maximum Express                 1
                                                                    Consignment Carrier/
                                                                    Centralized Hub Facility Fee.
(a)(9)(B)(i); (b)(8)(A)(i)............  (b)(1)(i)(B)(1)..........  Limitation: Minimum                        25
                                                                    Merchandise Processing Fee.
(a)(9)(B)(i); (b)(8)(A)(i)............  (b)(1)(i)(B)(1)..........  Limitation: Maximum                       485
                                                                    Merchandise Processing Fee.
(b)(8)(A)(ii).........................  (b)(1)(ii)...............  Fee: Surcharge for Manual                   3
                                                                    Entry or Release.
(a)(10)(C)(i).........................  (b)(2)(i)................  Fee: Informal Entry or                      2
                                                                    Release; Automated and Not
                                                                    Prepared by CBP Personnel.
(a)(10)(C)(ii)........................  (b)(2)(ii)...............  Fee: Informal Entry or                      6
                                                                    Release; Manual and Not
                                                                    Prepared by CBP Personnel.
(a)(10)(C)(iii).......................  (b)(2)(iii)..............  Fee: Informal Entry or                      9
                                                                    Release; Automated or
                                                                    Manual; Prepared by CBP
                                                                    Personnel.
(b)(9)(A)(ii).........................  (b)(4)...................  Fee: Express Consignment                    1
                                                                    Carrier/Centralized Hub
                                                                    Facility Fee, Per Individual
                                                                    Waybill/Bill of Lading Fee.
----------------------------------------------------------------------------------------------------------------

    The Merchandise Processing Fee (MPF) is comprised of an ad valorem 
rate, a minimum fee amount, and a maximum fee amount. Adjusting the 
minimum and maximum fee amounts for the MPF pursuant to the FAST Act 
will reflect any increase in inflation. The value of the merchandise--
to which the rate applies--will necessarily increase on its own along 
with inflation, obviating the need separately to adjust the rate 
specified in 19 CFR 24.23(b)(1)(i)(A).
    In addition, CBP proposes to amend paragraph (b)(4) to include the 
statutory minimum and maximum limitations on the fees for express 
consignment carrier facilities or centralized hubs. (19 CFR 24.23(b).) 
The statute provides for adjustment of this fee from an amount not less 
than $0.35 to an amount not more than $1 per individual airway bill or 
bill of lading. (19 U.S.C.58c(b)(9)(B)(i).) These fee

[[Page 32664]]

limitations are also subject to adjustment pursuant to the FAST Act and 
therefore, must also be annually adjusted for inflation, if necessary. 
To include this second set of maximum and minimum fees, CBP proposes to 
split paragraph (b)(4) into three new paragraphs: (i) For general 
provisions, (ii) to describe the maximum and minimum fees, and (iii) 
for quarterly payment requirements. (19 CFR 24.23(b)). New paragraph 
(b)(4)(iii) will also reflect that two electronic payment methods, 
Fedwire and pay.gov, are available for submitting quarterly payments.
    The figure of $2,000 found at 19 U.S.C. 58c(b)(9)(A) is neither a 
fee nor a limitation on a fee, but a reference to the allowable value 
for informal entries authorized pursuant to 19 U.S.C. 1498, that are 
subject to the fee established by 19 U.S.C. 58c(b)(9). It is not 
subject to the adjustment for inflation under the FAST Act. (19 U.S.C. 
1498 was amended in 1993, and the merchandise value limitation on 
informal entries authorized by 19 U.S.C. 1498 was raised from $2,000 to 
$2,500.)

Part 111

    CBP proposes conforming amendments to Part 111. (19 CFR part 111.) 
Specifically, CBP proposes to remove the specific amount of the annual 
customs broker permit user fee ($138), found in paragraph (c) of 
section 111.19 and paragraph (c) of section 111.96, and add a reference 
to section 24.23(h) in section 111.96(c). (19 CFR 24.23(h), 111.19(c) 
and 111.96(c).)

Executive Orders 12866, 13563 and 13771

    Executive Orders 12866 and 13563 direct agencies to assess the 
costs and benefits of available regulatory alternatives and, if 
regulation is necessary, to select regulatory approaches that maximize 
net benefits (including potential economic, environmental, public 
health and safety effects, distributive impacts, and equity). Executive 
Order 13563 emphasizes the importance of quantifying both costs and 
benefits, of reducing costs, of harmonizing rules, and of promoting 
flexibility. This proposed rule has not been designated a ``significant 
regulatory action,'' under section 3(f) of Executive Order 12866. 
Accordingly, the Office of Management and Budget (OMB) has not reviewed 
this rule. Furthermore, because this rule is not significant, the rule 
is not subject to the requirements of Executive Order 13771, meaning it 
is not necessary for CBP to identify two existing regulations to 
repeal.

Regulatory Flexibility Act

    The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended 
by the Small Business Regulatory Enforcement and Fairness Act of 1996, 
requires agencies to assess the impact of regulations on small 
entities. A small entity may be a small business (defined as any 
independently owned and operated business not dominant in its field 
that qualifies as a small business per the Small Business Act); a small 
not-for-profit organization; or a small governmental jurisdiction 
(locality with fewer than 50,000 people).
    This rule will affect a combination of individuals and businesses. 
While most of the businesses that pay the customs COBRA user fees are 
large corporations, the rule affects all businesses that pay these 
fees, so this rule will affect a substantial number of small entities. 
However, the impact will be small and in line with inflation; for 
example, with 2% inflation the commercial truck fee will increase by 11 
cents. Therefore, CBP certifies that this rule will not have a 
significant economic impact on a substantial number of small entities.

Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995 (Pub. L. 
104-13, 44 U.S.C. 3507) 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 
OMB. This rule does not involve any collection of information.

Signing Authority

    This regulation is being issued in accordance with 19 CFR 0.1(a)(1) 
pertaining to the Secretary of the Treasury's authority (or that of his 
delegate) to approve regulations related to certain customs revenue 
functions.

List of Subjects

19 CFR Part 24

    Accounting, Claims, Customs duties and inspection, Harbors, 
Reporting and recordkeeping requirements, Taxes.

19 CFR Part 111

    Administrative practice and procedure, Brokers, Customs duties and 
inspection, Penalties, Reporting and recordkeeping requirements

Proposed Amendments to the CBP Regulations

    For the reasons set forth in the preamble, parts 24 and 111 of 
title 19 of the Code of Federal Regulations (19 CFR parts 24 and 111) 
are proposed to be amended as set forth below.

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
1. The general authority citation for part 24 continues to read as 
follows, the specific authority citation for Sec.  24.22 is added, and 
the specific authority citation for Sec.  24.23 is revised to read as 
follows:

    Authority:  5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 3(i), Harmonized Tariff Schedule of the United States), 1505, 
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).

* * * * *
    Section 24.22 also issued under Sec. 892, Pub. L. 108-357, 118 
Stat. 1418 (19 U.S.C. 58c); Sec. 32201, Pub. L. 114-94, 129 Stat. 
1312 (19 U.S.C. 58c).
    Section 24.23 also issued under 19 U.S.C. 3332; Sec. 892, Pub. 
L. 108-357, 118 Stat. 1418 (19 U.S.C. 58c); Sec. 32201, Pub. L. 114-
94, 129 Stat. 1312 (19 U.S.C. 58c).
* * * * *

0
2. In Sec.  24.22:
0
 a. Add a new introductory text before paragraph (a);
0
 b. In paragraph (b):
0
 i. Paragraph (b)(1)(i) is amended by adding the words ``, as adjusted 
in accordance with the terms of paragraph (k) of this section,'' after 
the words ``amount of $437'';
0
 ii. Paragraph (b)(1)(ii) is amended by adding the words ``, as 
adjusted in accordance with the terms of paragraph (k) of this 
section,'' after the words ``total of $,5,955 in fees'';
0
 iii. Paragraph (b)(2)(i) is amended by adding the words ``, as 
adjusted in accordance with the terms of paragraph (k) of this 
section,'' after the words ``fee of $110''; and
0
 iv. Paragraph (b)(2)(ii) is amended by adding the words ``, as 
adjusted in accordance with the terms of paragraph (k) of this 
section,'' after the words ``$1,500 in fees'';
0
 c. In paragraph (c):
0
 i. Paragraphs (c)(1) and (c)(2) are revised; and
0
 ii. Paragraph (c)(3) is amended by adding the words ``of the $100 CBP 
fee, as adjusted in accordance with the terms of paragraph (k) of this 
section, and the APHIS/AQI fee set forth in 7 CFR 354.3'' between the 
words ``Prepayment'' and ``must be made'' in the second sentence;
0
 d. In paragraph (d):
0
 i. Paragraph (d)(1) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph (k) of this section,'' after the 
words ``fee of $8.25'';
0
 ii. Paragraph (d)(2) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph

[[Page 32665]]

(k) of this section,'' after the words ``prepayment of $100''; and
0
iii. Paragraph (d)(3) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph (k) of this section,'' after the 
words ``fee of $100'';
0
 e. In paragraph (e):
0
 i. Paragraph (e)(1) is amended by adding the words, as adjusted in 
accordance with the terms of paragraph (k) of this section,'' after the 
words ``sum of $27.50; and
0
 ii. Paragraph (e)(2) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph (k) of this section'' to the end 
of the first sentence after the word ``section'';
0
 f. Paragraph (f) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph (k) of this section'' after the 
words ``amount of $5.50'';
0
g. In paragraph (g):
0
i. Paragraphs (g)(1)(i)-(iii) are revised;
0
ii. Paragraph (g)(2)(i) is amended by:
0
A. Removing the text ``Canada, Mexico, any'' between the words 
``means'' and ``territories''; and
0
 B. Removing the text ``, and any adjacent islands'' after the words 
``United States'';
0
iii. Paragraph (g)(2)(iii) is amended by adding the words ``and/or the 
United States'' after the words ``Specified Location'';
0
iv. The chart in paragraph (g)(2)(iv) is revised;
0
v. Paragraph (g)(4)(ii)(A) is amended by:
0
A. Removing the words ``in and arrives'' between the words 
``originates'' and ``from'';
0
 B. Removing the words ``Canada, Mexico,'' between the words ``other 
than'' and ``one of the territories''; and
0
 C. Removing the words ``, or an adjacent island'' from the end of the 
sentence;
0
vi. Paragraphs (g)(4)(ii)(B) and (C) are revised;
0
vii. Paragraph (g)(4)(iii)(A) is amended by:
0
 A. Removing the words ``from Canada, Mexico,'' between the words 
``United States'' and ``one of the territories'' and adding in their 
place the words ``that originated in''; and
0
 B. Removing the comma and the words ``or an adjacent island'' from the 
end of the paragraph;
0
viii. Paragraph (g)(4)(iii)(B) is amended by:
0
 A. Removing the words ``and the return arrival to the United States is 
from Canada, Mexico, one of'' between the words ``United States'' and 
``the territories'' and adding in their place the words ``and was 
limited to''; and
0
 B. Removing the comma and the words ``or an adjacent island'' 
following the words ``United States'' at the end of the sentence;
0
ix. Paragraph (g)(4)(iii)(C) is revised; and
0
x. Paragraph (g)(5)(v) is amended by adding the words ``, as adjusted 
in accordance with the terms of paragraph (k) of this section,'' after 
the words ``vessel passenger fee'' in each place that they appear;
0
h. Paragraph (h) is revised;
0
i. In paragraph (i),
0
 i. Paragraph (7) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph (k) of this section'' after the 
words ``commercial aircraft passengers''; and
0
ii. Paragraph (8) is amended by adding the words ``, as adjusted in 
accordance with the terms of paragraph (k) of this section'' after the 
words ``commercial vessel passengers''; and
0
j. A new paragraph (k) is added.
    The revisions to Sec.  24.22 read as follows:


Sec.  24.22  Fees for certain services.

    This section sets forth the terms and conditions for when the fees 
and corresponding limitations for certain services are required. The 
specific customs user fee amounts and corresponding limitations that 
appear in this section are not the actual fees or limitations but 
represent the base year amounts that are subject to adjustment each 
fiscal year in accordance with the Fixing America's Surface 
Transportation Act (FAST Act) using Fiscal Year 2014 as the base year 
for comparison. (See Appendix A to part 24 for a table setting forth 
the fees and limitations subject to adjustment along with the 
corresponding statutory authority, the regulatory citation, the name of 
the fee or limitation, and the Fiscal Year 2014 base amount which 
reflects the statutory amounts that were adjusted by the American Jobs 
Creation Act of 2004 (Pub. L. 108-357).) The methodology for adjusting 
the fees and limitations to reflect the percentage, if any, of the 
increase in the average of the Consumer Price Index--All Urban 
Consumers, U.S. All items, 1982-84 (CPI-U) for the preceding 12-month 
period (June through May) compared to the Consumer Price Index for 
fiscal year 2014 is set forth in paragraph (k) of this section. CBP 
will determine annually whether an adjustment to the fees and 
limitations is necessary and a notice specifying the amount of the fees 
and limitations will be published in the Federal Register annually for 
each fiscal year at least 30 days prior to the effective date of the 
new fees and limitations. The fees and the limitations will also be 
maintained for the public's convenience on the CBP Web site at 
www.cbp.gov. If a customs user has pre-paid or met the calendar year 
limit prior to the effective date of the new fees and limitations, no 
additional fees will be required for that calendar year. If the customs 
user has not pre-paid or met the calendar year limit prior to the 
effective date of the new fees and limitations, the customs user will 
be subject to the adjusted limitation or prepayment amount.
* * * * *
    (c) Fees for arrival of a commercial truck--
    (1) Fees. The fees for the arrival of a commercial truck consist of 
two separate fees. A CBP fee of $5.50, as adjusted by the terms of 
paragraph (k) of this section, and an Animal and Plant Health 
Inspection Service/Agricultural Quarantine Inspection (APHIS/AQI) fee 
set forth in 7 CFR 354.3 for the services provided that CBP collects on 
behalf of APHIS. Upon arrival at a CBP port of entry, the driver or 
other person in charge of a commercial truck must tender the fees to 
CBP unless they have been prepaid as provided for in paragraph (c)(3) 
of this section. The fees will not apply to any commercial truck which, 
at the time of arrival, is being transported by any vessel other than a 
ferry. For purposes of this paragraph, the term ``commercial truck'' 
means any self-propelled vehicle, including an empty vehicle or a truck 
cab without a trailer, which is designed and used for the 
transportation of commercial merchandise or for the transportation or 
non-commercial merchandise on a for-hire basis.
    (2) CBP fee limitation. No CBP fee will be collected under 
paragraph (c)(1) of this section for the arrival of a commercial truck 
during any calendar year once a prepayment of $100, as adjusted by the 
terms of paragraph (k) of this section, has been made and a transponder 
has been affixed to the vehicle windshield as provided in paragraph 
(c)(3) of this section.
* * * * *
    (g) * * *
    (1) * * *
    (i) Subject to paragraphs (g)(1)(ii) and (g)(3) of this section, a 
fee of $5.50, as adjusted by the terms of paragraph (k) of this 
section, must be collected and remitted to CBP for services provided in 
connection with the arrival of each passenger aboard a commercial 
vessel or commercial aircraft from a place outside the United States 
except:

[[Page 32666]]

    (A) When the journey of the arriving passenger originates in a 
territory or possession of the United States; or
    (B) When the journey of the arriving passenger originates in the 
United States and was not limited to the territories and possessions of 
the United States.
    (ii) Subject to paragraph (g)(3) of this section, a fee of $1.93, 
as adjusted by the terms of paragraph (k) of this section, must be 
collected and remitted to CBP for services provided in connection with 
the arrival of each passenger aboard a commercial vessel whose journey 
originated in a territory or possession of the United States or whose 
journey originated in the United States and was limited to the 
territories and possessions of the United States.
    (iii) For the purposes of this paragraph (g), the term 
``territories and possessions of the United States'' includes American 
Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. 
Virgin Islands.
     * * *
    (2) * * *
    (iv) * * *

----------------------------------------------------------------------------------------------------------------
                                      Fee status for arrival from SL      Fee status for arrival from other than
 Place where journey originates  ----------------------------------------                   SL
        (see (g)(1)(iv))                                                 ---------------------------------------
                                        Vessel             Aircraft             Vessel             Aircraft
----------------------------------------------------------------------------------------------------------------
SL..............................  $1.93, as adjusted  No fee............  No fee............  No fee.
                                   by the terms of
                                   paragraph (k) of
                                   this section.
Other than SL or U.S............  $5.50, as adjusted  $5.50, as adjusted  $5.50, as adjusted  $5.50, as adjusted
                                   by the terms of     by the terms of     by the terms of     by the terms of
                                   paragraph (k) of    paragraph (k) of    paragraph (k) of    paragraph (k) of
                                   this section.       this section.       this section.       this section.
U.S.*...........................  $1.93, as adjusted  No fee............  N/A...............  N/A.
                                   by the terms of
                                   paragraph (k) of
                                   this section.
U.S.* *.........................  $5.50, as adjusted  $5.50, as adjusted  $5.50, as adjusted  $5.50, as adjusted
                                   by the terms of     by the terms of     by the terms of     by the terms of
                                   paragraph (k) of    paragraph (k) of    paragraph (k) of    paragraph (k) of
                                   this section.       this section.       this section.       this section.
----------------------------------------------------------------------------------------------------------------

* * * * *
    (4) * * *
    (ii) * * *
    (B) When a return ticket or travel document is issued (or a receipt 
or other document that indicates an infant traveling without a return 
ticket or travel document is issued) in connection with a journey which 
originates in the United States, includes a stop in a place other than 
the United States or one of the territories and possessions of the 
United States and the return arrival to the United States is from a 
place outside the United States; and
    (C) When a passenger on a journey through the United States to a 
foreign destination arrives in the customs territory of the United 
States from a place outside the United States, unless that passenger's 
journey originated in the territories and possessions of the United 
States.
    (iii) * * *
    (C) When a passenger on a journey through the United States to a 
foreign destination arrives in the customs territory of the United 
States from a place outside the United States and that passenger's 
journey originated in one of the territories and possessions of the 
United States and is processed by CBP.
* * * * *
    (h) Annual customs broker permit user fee. Customs brokers are 
subject to an annual user fee of $138, as adjusted by the terms of 
paragraph (k) of this section, for each district permit and for a 
national permit held by an individual, partnership, association, or 
corporation. The annual user fee for each district permit must be 
submitted to the port through which the broker was granted the permit. 
The annual user fee for a national permit must be submitted to the port 
through which the broker's license is delivered.
* * * * *
    (k) Adjustment for inflation of Customs Consolidated Omnibus Budget 
Reconciliation Act (COBRA) user fees--(1) Fee amounts. CBP will 
determine annually whether an adjustment to the fees and limitations is 
necessary and a notice specifying the amount of the fees and 
limitations, as adjusted, will be published in the Federal Register 
annually for each fiscal year at least 30 days prior to the effective 
date of the new fees and limitations. The fee and limitation amounts 
will also be maintained for the public's convenience on the CBP Web 
site at www.cbp.gov.
    (2) Methodology for annual adjustments of fees and limitation 
amounts for inflation. CBP will determine the adjustments, if any, by 
making the following calculations:
    (i) Calculate the arithmetic average of the Consumer Price Index--
All Urban Consumers, U.S. All items, 1982-84 = 100 (CPI-U) for the 
current year based on the most recent June-May period. This figure is 
referred to as (A).
    (ii) Use the figure 236.009 which is the arithmetic average of the 
CPI-U for FY 2014. This figure is referred to as (B).
    (iii) State the arithmetic average of CPI-U for the comparison year 
which will be either (B) if the fees have never been adjusted in 
accordance with this paragraph (k), or the arithmetic average of the 
CPI-U for the last year in which fees were adjusted in accordance with 
this paragraph (k) as set forth in the Federal Register notice that 
last adjusted the fee. This figure is referred to as (C).
    (iv) Calculate the difference between the arithmetic averages of 
the CPI-U of the comparison year (C) and the current year (A). This 
difference is referred to as (D). (D) = (A)-(C).
    (v) Round the difference (D) to the nearest whole number. This 
figure is referred to as (E).
    (vi) Calculate the percentage change in the arithmetic averages of 
the CPI-U of the comparison year (C) and the current year (A) which is 
referred to as (F). (F) = ((E)/(C)) x 100%.
    (vii) If (F) is one percent or more, proceed to the next step 
(viii). If (F) is less than one percent, no adjustment will be made.
    (viii) Calculate the difference in the arithmetic average of the 
CPI-U between the current year (the most recent June through May 
period) and the base year (FY 2014). This difference is referred to as 
(G). (G) = (A)-(B).
    (ix) Calculate the percentage change in the CPI-U from the base 
year to the current year. This figure is referred to as (H). (H) = 
((G)/(B)) x 100%.
    (x) Increase the fees and limitations that are subject to the rules 
of this paragraph by (H), calculating fees and limitations to the 
second decimal.
0
3. In Sec.  24.23:

[[Page 32667]]

0
a. Add a new introductory text before paragraph (a).
0
b. In paragraph (b):
0
 i. Paragraph (b)(1)(i)(A) is amended by adding the words ``, as 
adjusted in accordance with the terms of Sec.  24.22(k) of this part,'' 
after the words ``$1.00 per individual air waybill or bill of lading 
fee'';
0
ii. Paragraph (b)(1)(i)(B) is amended by adding the words ``, as 
adjusted in accordance with the terms of Sec.  24.22(k) of this part,'' 
after the amounts ``$485'' and ``$25'';
0
 iii. Paragraph (b)(1)(ii) is amended by adding the words ``, as 
adjusted in accordance with the terms of Sec.  24.22(k) of this part,'' 
after the words ``surcharge of $3'';
0
 iv. Paragraph (b)(2)(i) is amended by adding the words ``, as adjusted 
in accordance with the terms of Sec.  24.22(k) of this part,'' after 
the amount ``$2'';
0
v. Paragraph (b)(2)(ii) is amended by adding the words ``, as adjusted 
in accordance with the terms of Sec.  24.22(k) of this part,'' after 
the amount ``$6'';
0
 vi. Paragraph (b)(2)(iii) is amended by adding the words ``, as 
adjusted in accordance with the terms of Sec.  24.22(k) of this part,'' 
after the amount ``$9''; and
0
vii. Paragraph (b)(4) is revised.
    The revisions to Sec.  24.23 read as follows:


Sec.  24.23  Fees for processing merchandise.

    This section sets forth the terms and conditions for when the fees 
for processing merchandise are required. The specific merchandise 
processing fee amounts and corresponding limitations that appear in 
this section are not the actual fees or limitations, but represent the 
base year amounts that are subject to adjustment each fiscal year in 
accordance with the Fixing America's Surface Transportation Act (FAST 
Act) using Fiscal Year 2014 as the base year for comparison. (See 
Appendix B to part 24 for a table setting forth the fees and 
limitations subject to adjustment along with the corresponding 
statutory authority, the regulatory citation, the name of the fee or 
limitation, and the Fiscal Year 2014 base amount which reflects the 
statutory amounts that were adjusted by the American Jobs Creation Act 
of 2004 (Pub. L. 108-357).) The methodology for adjusting the fees and 
limitations to reflect the percentage, if any, of the increase in the 
average of the Consumer Price Index--All Urban Consumers, U.S. All 
items, 1982-84 (CPI-U) for the preceding 12-month period (June through 
May) compared to the Consumer Price Index for fiscal year 2014 is set 
forth in Sec.  24.22(k) of this part. CBP will determine annually 
whether an adjustment to the fees and limitations is necessary and a 
notice specifying the amount of the fees and limitations will be 
published in the Federal Register annually for each fiscal year at 
least 30 days prior to the effective date of the new fees and 
limitations. The fees and the limitations will also be maintained for 
the public's convenience on the CBP Web site at www.cbp.gov.
* * * * *
    (b) * * *
    (4) Express consignment carrier and centralized hub facilities.
    (i) General. Each carrier or operator using an express consignment 
carrier facility or a centralized hub facility must pay to CBP a fee in 
the amount of $1.00, as adjusted in accordance with the terms of 
paragraph (k) of Sec.  24.22 of this chapter, per individual air 
waybill or individual bill of lading for the processing of airway bills 
for shipments arriving in the United States. In addition, if 
merchandise is formally entered and valued at $2,500 or less, the 
importer of record must pay to CBP the ad valorem fee specified in 
paragraph (b)(1) of this section, if applicable. An individual air 
waybill or individual bill of lading is the individual document issued 
by the carrier or operator for transporting and/or tracking an 
individual item, letter, package, envelope, record, document, or 
shipment. An individual air waybill is not a consolidation of several 
air waybills, and is not a master bill or other consolidated document. 
An individual air waybill or bill of lading is 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. Payment must be made to CBP on a 
quarterly basis and must cover the individual fees for all subject 
transactions that occurred during a calendar quarter.
    (ii) Maximum and minimum fees. Subject to the provisions of 
paragraph (b)(1)(i)(A) and (b)(4) of this section relating to the 
express consignment carrier facility or centralized hub facility fee, 
the fee per individual air waybill or bill of lading charged under 
paragraph (b)(1)(i)(A) of this section must not exceed $1, as adjusted 
in accordance with the terms of paragraph (k) of Sec.  24.22 of this 
chapter, and must not be less than $0.35, as adjusted by paragraph (k) 
of Sec.  24.22 of this chapter.
    (iii) Quarterly payments. The following additional requirements and 
conditions apply to each quarterly payment made under this section:
    (A) The quarterly payment must conform to the requirements of Sec.  
24.1, must be submitted electronically via Fedwire or pay.gov, or 
mailed to Customs and Border Protection, Revenue Division/Attention: 
Reimbursables, 6650 Telecom Drive, Suite 100, Indianapolis, Indiana 
46278, and must 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.
    (B) The following information must be included with the quarterly 
payment:
    (1) The identity of the calendar quarter to which the payment 
relates;
    (2) 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
    (3) 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 Sec. Sec.  128.24(e) and 143.23(j) of 
this chapter, and the number covered by other informal entry 
procedures.
    (C) Overpayments or underpayments may 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, the following procedures apply:
    (1) In the case of an overpayment, the carrier or operator 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 must specify the 
grounds for the refund and must be received by CBP within one year of 
the date the fee for which the refund is sought was paid to CBP; and
    (2) In the case of an underpayment, interest will accrue on the 
amount not paid from the date payment was initially due to the date 
that payment to CBP is made.
    (D) The underpayment or failure of a carrier or operator using an 
express consignment carrier facility or a centralized hub facility to 
pay all applicable fees owed to CBP pursuant to paragraph (b)(4) of 
this section may result in the assessment of penalties under 19 U.S.C. 
1592, liquidated damages, and any other action authorized by law.
* * * * *
0
4. Add Appendix A and Appendix B to part 24 to read as follows:

[[Page 32668]]

Appendix A to Part 24--Customs Cobra User Fees and Limitations in 19 
CFR 24.22

----------------------------------------------------------------------------------------------------------------
                                                                                                 FY14 base fee/
                                                                                                   limitation
                                                                                                  (subject to
           19 U.S.C. 58c                19 CFR 24.22       Customs COBRA user fee/limitation     adjustment in
                                                                                                accordance with
                                                                                                 the FAST Act)
----------------------------------------------------------------------------------------------------------------
(a)(1)............................  (b)(1)(i)...........  Fee: Commercial Vessel Arrival Fee.               $437
(b)(5)(A).........................  (b)(1)(ii)..........  Limitation: Calendar Year Maximum                5,955
                                                           for Commercial Vessel Arrival Fees.
(a)(8)............................  (b)(2)(i)...........  Fee: Barges and Other Bulk Carriers                110
                                                           Arrival Fee.
(b)(6)............................  (b)(2)(ii)..........  Limitation: Calendar Year Maximum                1,500
                                                           for Barges and Other Bulk Carriers
                                                           Arrival Fees.
(a)(2)............................  (c)(1)..............  Fee: Commercial Truck Arrival Fee..               5.50
(b)(2)............................  (c)(2) and (3)......  Limitation: Commercial Truck                       100
                                                           Calendar Year Prepayment Fee.
(a)(3)............................  (d)(1)..............  Fee: Railroad Car Arrival Fee......               8.25
(b)(3)............................  (d)(2) and (3)......  Limitation: Railroad Car Calendar                  100
                                                           Year Prepayment Fee.
(a)(4)............................  (e)(1) and (2)......  Fee and Limitation: Private Vessel               27.50
                                                           or Private Aircraft First Arrival/
                                                           Calendar Year Prepayment Fee.
(a)(6)............................  (f).................  Fee: Dutiable Mail Fee.............               5.50
(a)(5)(A).........................  (g)(1)(i)...........  Fee: Commercial Vessel or                         5.50
                                                           Commercial Aircraft Passenger
                                                           Arrival Fee.
(a)(5)(B).........................  (g)(1)(ii)..........  Fee: Commercial Vessel Passenger                  1.93
                                                           Arrival Fee (from Canada, Mexico,
                                                           one of the territories and
                                                           possessions of the United States,
                                                           or one of the adjacent islands).
(a)(7)............................  (h).................  Fee: Customs Broker Permit User Fee                138
----------------------------------------------------------------------------------------------------------------

Appendix B to Part 24--Customs Cobra User Fees and Limitations in 19 
CFR 24.23

----------------------------------------------------------------------------------------------------------------
                                                                                                 FY14 base fee/
                                                                                                   limitation
                                                                                                  (subject to
           19 U.S.C. 58c                19 CFR 24.23       Customs COBRA user fee/limitation     adjustment in
                                                                                                accordance with
                                                                                                 the FAST Act)
----------------------------------------------------------------------------------------------------------------
(b)(9)(A) (ii)....................  (b)(1)(i)(A)........  Fee: Express Consignment Carrier/                   $1
                                                           Centralized Hub Facility Fee, Per
                                                           Individual Waybill/Bill of Lading
                                                           Fee.
(b)(9)(B)(i)......................  (b)(1)(i)(B)(2).....  Limitation: Minimum Express                       0.35
                                                           Consignment Carrier/Centralized
                                                           Hub Facility Fee.
(b)(9)(B)(i)......................  (b)(1)(i)(B)(2).....  Limitation: Maximum Express                          1
                                                           Consignment Carrier/Centralized
                                                           Hub Facility Fee.
(a)(9)(B)(i); (b)(8)(A)(i)........  (b)(1)(i)(B)(1).....  Limitation: Minimum Merchandise                     25
                                                           Processing Fee.
(a)(9)(B)(i); (b)(8)(A)(i)........  (b)(1)(i)(B)(1).....  Limitation: Maximum Merchandise                    485
                                                           Processing Fee.
(b)(8)(A)(ii).....................  (b)(1)(ii)..........  Fee: Surcharge for Manual Entry or                   3
                                                           Release.
(a)(10)(C)(i).....................  (b)(2)(i)...........  Fee: Informal Entry or Release;                      2
                                                           Automated and Not Prepared by CBP
                                                           Personnel.
(a)(10)(C)(ii)....................  (b)(2)(ii)..........  Fee: Informal Entry or Release;                      6
                                                           Manual and Not Prepared by CBP
                                                           Personnel.
(a)(10)(C)(iii)...................  (b)(2)(iii).........  Fee: Informal Entry or Release;                      9
                                                           Automated or Manual; Prepared by
                                                           CBP Personnel.
(b)(9)(A)(ii).....................  (b)(4)..............  Fee: Express Consignment Carrier/                    1
                                                           Centralized Hub Facility Fee, Per
                                                           Individual Waybill/Bill of Lading
                                                           Fee.
----------------------------------------------------------------------------------------------------------------

PART 111--CUSTOMS BROKERS

0
5. The general authority citation for part 111 and the specific 
authority citation for Sec.  111.96 continue to read as follows:

    Authority:  19 U.S.C. 66, 1202 (General Note 3(i), Harmonized 
Tariff Schedule of the United States), 1624, 1641.

* * * * *
    Section 111.96 also issued under 19 U.S.C. 58c, 31 U.S.C. 9701.
* * * * *


Sec.  111.19  [Amended]

0
6. In Sec.  111.19(c):
0
 a. Remove the phrase ``$100 and $138'' in the first sentence; and
0
 b. Remove the amounts ``$100'' and ``$138'' in each place that they 
appear.


Sec.  111.96  [Amended]

0
7. In Sec.  111.96(c):
0
a. In the first sentence, remove the words ``of $138'' and add in their 
place the words ``specified in Sec.  24.22(h) of this chapter''; and

[[Page 32669]]

0
 b. Remove the figure ``$138'' in each place that it appears.

Kevin K. McAleenan,
 Acting Commissioner, U.S. Customs and Border Protection.
    Approved: July 10, 2017.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2017-14824 Filed 7-14-17; 8:45 am]
 BILLING CODE 9111-14-P
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