82 FR 58008 - Revenue Modernization: Mobile Collections & Receipt (MCR) Pilot

DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection

Federal Register Volume 82, Issue 235 (December 8, 2017)

This document announces that U.S. Customs and Border Protection (CBP) will be conducting a pilot test program to allow for the electronic payment of certain taxes and fees imposed on commercial vessels prior to or upon a vessel's arrival at four designated ports of entry. The pilot also introduces portable, electronic devices that authorized CBP employees will use to electronically process payments of certain taxes and fees and to send electronic receipts via email. The pilot will not affect the amount of taxes and fees due, the clearance process, or the proof of documentation required to be presented to CBP. This notice describes the pilot, including its purpose, procedures, locations, and how to participate, and invites public comment on any aspect of the pilot.

[Federal Register Volume 82, Number 235 (Friday, December 8, 2017)]
[Notices]
[Pages 58008-58010]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-26505]


=======================================================================
-----------------------------------------------------------------------

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Revenue Modernization: Mobile Collections & Receipt (MCR) Pilot

AGENCY: U.S. Customs and Border Protection; DHS.

ACTION: General notice.

-----------------------------------------------------------------------

SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) will be conducting a pilot test program to allow for 
the electronic payment of certain taxes and fees imposed on commercial 
vessels prior to or upon a vessel's arrival at four designated ports of 
entry. The pilot also introduces portable, electronic devices that 
authorized CBP employees will use to electronically process payments of 
certain taxes and fees and to send electronic receipts via email. The 
pilot will not affect the amount of taxes and fees due, the clearance 
process, or the proof of documentation required to be presented to CBP. 
This notice describes the pilot, including its purpose, procedures, 
locations, and how to participate, and invites public comment on any 
aspect of the pilot.

DATES: The pilot will begin no earlier than January 8, 2018 and will 
continue for 18 months at the designated ports of entry. Comments 
concerning this notice and all aspects of the pilot may be submitted at 
any time during the pilot to the address set forth below.

ADDRESSES: Written comments concerning any aspect of the pilot should 
be submitted to the CBP Revenue Modernization (``Rev Mod'') Office at 
[email protected]. In the subject line of your email please indicate 
``Comment on Mobile Collections & Receipt Pilot.''

FOR FURTHER INFORMATION CONTACT: Kathleen Druitt, Rev Mod Program 
Manager, Office of Finance, U.S. Customs and Border Protection, via 
email at [email protected] or by telephone at (202) 427-
8448. For additional information, please visit www.cbp.gov/368.

SUPPLEMENTARY INFORMATION:

Background

    U.S. Customs and Border Protection (CBP) collects various maritime 
taxes and fees with regard to commercial vessels that enter ports of 
entry, proceed coast-wise, or utilize certain customs services at a 
port. These maritime taxes and fees include tonnage taxes and light 
money, Consolidated Omnibus Budget Reconciliation Act (COBRA) user 
fees, Agriculture Quarantine and Inspection (AQI) user fees, and 
navigation fees.\1\ CBP regulations require payment of these taxes and 
fees by cash or check and specify a paper-based payment process that 
occurs at the ports.
---------------------------------------------------------------------------

    \1\ See 46 U.S.C. 60301-60303 and 19 CFR 4.20-4.23 (tonnage tax 
and light money); 19 U.S.C. 58c and 19 CFR 24.22(b) (COBRA user 
fees); 19 U.S.C. 58a and 19 CFR 4.98 (navigation fees); and 21 
U.S.C. 136a and 7 CFR 354.3(b) (AQI user fees). CBP collects AQI 
user fees pursuant to an inter-agency agreement with the U.S. 
Department of Agriculture's Animal and Plant Health Inspection 
Service.
---------------------------------------------------------------------------

Current Payment Methods

    CBP regulations require that most customs duties, taxes, fees, 
interest, and other charges be paid by cash or check. See title 19 Code 
of Federal Regulations section 24.1 (19 CFR 24.1). Accordingly, a party 
responsible for the payment of commercial vessel maritime taxes and 
fees must pay all applicable tonnage taxes, light money, COBRA user 
fees, AQI user fees, and navigation fees, including the prepayment of 
annual COBRA user fees, by cash or check only. Maritime taxes and fees 
cannot be paid by credit card or through any other electronic method.

Current Payment Process

    Pursuant to CBP regulations, maritime taxes and fees are paid at 
the port to an authorized CBP employee either onboard the vessel or at 
the port office. See 19 CFR 24.2. Specifically, all applicable tonnage 
taxes, light money, and COBRA user fees must be paid to an authorized 
CBP employee on arrival at a port of entry. See 19 CFR 4.20 (tonnage 
taxes and light money) and 19 CFR 24.22(b) (COBRA user fee). Annual 
COBRA user fees may be prepaid. In such case, they must be paid at the 
port office. See 19 CFR 24.22(b)(3). Navigation fees and AQI user fees 
must be paid at the time the applicable service is provided. See 19 CFR 
4.98 (navigation fees) and 7 CFR 354.3(b) (AQI user fee).
    When a cash register is unavailable to process a payment, such as 
when

[[Page 58009]]

payment is made directly to a CBP officer, the officer must process the 
payment by filling out CBP Collection Receipt Form 368 (Form 368) and, 
if tonnage tax is paid, a Certificate of Payment of Tonnage Tax Form 
1002 (Form 1002). See 19 CFR 4.23. Form 368 is used to process payments 
of maritime taxes and fees. It is a serially-numbered, triplicate 
carbon-copy form that comes in books of 50. Form 1002 is used by CBP to 
confirm a vessel owner's payment of tonnage tax. It is a serially-
numbered, carbon-copy duplicate form. Both forms are used by vessel 
owners to provide evidence to CBP officers at other ports or at 
subsequent entries that a particular tax or fee has been paid.
    In order to process a payment using Form 368 or 1002, the CBP 
officer must manually calculate the applicable taxes and fees due, 
manually complete the forms, and collect the cash or check payment. CBP 
employees must then process the payment by manually entering the 
payment information into CBP systems. CBP must treat the Form 368 books 
as cash and must perform multiple processes to ensure their security 
and accuracy, including taking inventory, auditing completed books, 
auditing in-use books, accounting for lost books, and investigating any 
alleged misuse of books. Additionally, a CBP officer who collects 
payment for an amount over $100 in the form of a government check, 
personal check, traveler's check, or money order must obtain the 
approval and signature of the Customs officer in charge in order to 
accept the payment. See 19 CFR 24.1(b)(2). Upon payment, the CBP 
officer provides the commercial vessel operator with a carbon copy of 
the completed Form 368 and Form 1002, if applicable, which the vessel 
operator may use as proof of payment at subsequent ports and entries.

Revenue Modernization: Mobile Collections & Receipt Pilot

    The Mobile Collections & Receipt (MCR) pilot introduces the MCR 
system, which through its interface with Pay.gov \2\ and the Automated 
Commercial Environment (ACE), will enable entities that are 
participating in the pilot to pay certain commercial vessel taxes and 
fees online upon or prior to the vessel's arrival at designated ports 
of entry. The commercial vessel maritime taxes and fees eligible for 
payment online through this pilot are: regular tonnage tax, special 
tonnage tax, light money, COBRA user fees, including the prepayment of 
the annual COBRA fee, AQI user fees, and navigation fees. Additionally, 
pursuant to the pilot, CBP will use the MCR system to electronically 
process payments of commercial vessel taxes and fees made at the port 
and to send electronic versions of Forms 368 and 1002 via email.
---------------------------------------------------------------------------

    \2\ Pay.gov is a Web site managed by the Department of Treasury 
that enables individuals to make online payments to the federal 
government using various forms of payment, including credit cards, 
debit cards, direct debit, or digital wallet services such as 
PayPal.
---------------------------------------------------------------------------

Purpose of the Pilot

    CBP is working towards the elimination of cash and check payments 
of maritime taxes and fees by allowing for electronic payments and 
automating the collection and receipt process. The purpose of the MCR 
pilot is to modernize the payment and processing of commercial vessel 
maritime taxes and fees for pilot participants by introducing a new 
optional electronic payment method, automating the calculation of fees, 
and introducing electronic receipts.
    The pilot will provide benefits to both CBP and to commercial 
vessel owners and operators. Cash and check collection at the port of 
entry is a manual, burdensome, and time-consuming process. The 
automation and online payment option for certain taxes and fees will 
reduce the time necessary to accept and process a payment, improve 
processing and clearance times of vessels, and ensure applicable fees 
are calculated correctly. This will result in cost savings for pilot 
participants.
    Additionally, the pilot will enable CBP to process the collection, 
accounting, and transmittal of maritime taxes and fees more 
efficiently. Under the pilot, CBP officers will no longer be required 
to manually calculate applicable fees, manually complete Forms 368 and 
1002, perform the various manual audit and security processes related 
to the protection of Form 368 books, or manually enter data when 
payments are made by cash or check. Under the pilot, CBP officers will 
not be required to obtain the signature of the Customs officer in 
charge for payments over $100 made with a government check, personal 
check, traveler's check, or money order. These increased efficiencies 
will provide CBP officers more time to perform higher priority mission 
support activities.

Participation in the Pilot

    Any commercial vessel agent or other entity responsible for payment 
of commercial vessel taxes and fees at designated ports of entry may 
participate in the pilot. At this time, only four ports of entry, 
discussed below, are designated. No application is required to 
participate. However, in order to receive notification emails from the 
MCR system, a commercial vessel agent or other party submitting payment 
must create an MCR profile and maintain a valid email address as part 
of the profile. For more information and for instructions on how to 
create an MCR profile, visit www.cbp.gov/368. When a commercial vessel 
arrives at a designated port, the vessel's agent or other party wishing 
to receive email notifications or receive electronic versions of Forms 
368 and 1002 will be able to confirm his or her email address and 
provide additional email addresses for this purpose.

Description and Implementation of the Pilot

    The MCR pilot authorizes entities that are participating in the 
pilot to pay certain commercial vessel taxes and fees online through 
the MCR Web site with respect to vessels arriving at designated ports 
of entry. Additionally, CBP employees will be able to access the MCR 
system through either a portable, electronic device or a desktop 
computer to view commercial vessel arrival data, automatically 
calculate applicable fees, electronically process payments, create 
electronic versions of Forms 368 and 1002, and send the forms via 
email.
Online Payments
    The MCR system will automatically identify the commercial vessels 
that are due to arrive within a certain number of days at the 
designated ports of entry. The MCR system will then determine whether 
the arrival information submitted to CBP through approved electronic 
data interchange systems, such as ACE, is sufficient to calculate the 
applicable maritime taxes and fees due for each commercial vessel. If 
there is sufficient information, CBP will send a notification email to 
those carriers or vessel agents that have created a profile with the 
MCR system. The notification email will state that the applicable 
maritime taxes and fees have been calculated for a specific commercial 
vessel and payment can now be made on the MCR Web site. The party 
responsible for payment will then have the opportunity to log-on to the 
MCR Web site, review the calculated amount of taxes and fees due, and, 
through MCR's interface with Pay.gov, submit payment online through 
Pay.gov. After payment is accepted, the MCR system will send an 
electronic version of Form 368 and Form 1002, if applicable, to the 
email address or addresses provided by the party that made the payment. 
Electronic payments will be accepted on the MCR Web site from prior to 
the

[[Page 58010]]

vessel's arrival and up to the time the vessel is cleared by CBP. 
Payments required for CBP clearance must be made before clearance is 
granted.
    Only commercial vessel maritime taxes and fees are eligible for 
prepayment online through this pilot. The commercial vessel maritime 
taxes and fees eligible for potential prepayment online through this 
pilot are: Regular tonnage tax, special tonnage tax, light money, COBRA 
user fees, including the prepayment of the annual COBRA fee, AQI user 
fees, and navigation fees. CBP may expand the pilot to include 
additional taxes and fees. Any expansion of the fees that are eligible 
for online payment will be announced in the Federal Register and posted 
on the CBP Web site, http://www.cbp.gov.
Process at the Designated Ports of Entry
    When a commercial vessel arrives at a designated port of entry, a 
CBP employee will access the MCR system to determine whether the 
applicable taxes and fees have been prepaid online for that vessel. If 
the applicable taxes and fees have not been prepaid online, the vessel 
agent or other party responsible for payment will have the option to 
pay all applicable taxes and fees either electronically through the MCR 
system or at the port of entry with cash or check. If payment is made 
by cash or check, the CBP officer accepting payment will access the MCR 
system to review any relevant arrival information, automatically 
calculate the applicable fees, prepare an electronic version of Form 
368 and Form 1002, if applicable, and email an electronic copy of the 
forms to the vessel operator, owner, or agent. In all situations, CBP 
officers will have the ability to review, amend, or add data as needed 
to accurately calculate applicable taxes and fees prior to entering or 
clearing a vessel.
    Throughout the pilot, commercial vessel agents and other entities 
responsible for payment will continue to be able to pay applicable 
maritime taxes and fees to an authorized CBP employee by cash or check. 
CBP will provide electronic versions of Forms 368 and 1002 as a receipt 
for all payments, regardless of whether payment was made in person by 
cash or check or paid online. The port office will provide paper copies 
of Forms 368 and 1002 upon request.
    This pilot will not affect the amount of taxes and fees due or the 
requirement that all applicable fees must be paid prior to the issuance 
of a clearance certificate. Additionally, vessel operators will 
continue to be required to present paper copies of Forms 368 and 1002 
as proof of payment at subsequent ports and entries.

Designated Ports of Entry and Duration of the Pilot

    The pilot will initially operate at the following ports of entry: 
Los Angeles-Long Beach, California; New Orleans, Louisiana; Gulfport, 
Mississippi; and, Mobile, Alabama.
    The pilot will begin no earlier than January 8, 2018 and will 
continue for 18 months. If it is determined that the pilot is working 
successfully at these initial ports, the pilot may be expanded to 
additional ports of entry, extended for an additional period of time, 
and/or expanded to include additional maritime fees, taking into 
consideration any comments that are received. Any expansion or 
extension of the pilot would be announced in the Federal Register.

Privacy

    CBP will ensure that all Privacy Act requirements and applicable 
policies are adhered to during the implementation of this pilot.

Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(d)) 
requires that CBP consider the impact of paperwork and other 
information collection burdens imposed on the public. An agency may not 
conduct, and a person is not required to respond to, a collection of 
information unless the collection of information displays a valid 
control number assigned by the Office of Management and Budget. There 
is no information collection associated with this pilot, so the 
provisions of the PRA do not apply.

Authorization for the Pilot

    This pilot is being conducted in accordance with 19 CFR 101.9(a), 
which authorizes the Commissioner to impose requirements different from 
those specified in the CBP regulations for the purposes of conducting a 
test program or procedure designed to evaluate the effectiveness of new 
technology or operational procedures regarding the processing of 
passengers, vessels, or merchandise. For participants in this pilot, 
CBP will waive the requirements to pay tonnage tax, light money, COBRA 
user fees, AQI user fees, and navigation fees by cash or check at the 
time of arrival or when the applicable service is provided, if the 
participant has paid all applicable taxes and fees due online prior to 
the vessel's arrival or prior to the time the vessel is cleared by CBP. 
The pilot also permits CBP officers to process the payment of checks 
over $100 without obtaining authorization from the Customs officer in 
charge.

    Dated: December 5, 2017.
Sean Mildrew,
Acting Assistant Commissioner, Office of Finance.
[FR Doc. 2017-26505 Filed 12-7-17; 8:45 am]
 BILLING CODE 9111-14-P