83 FR 37509 - COBRA Fees To Be Adjusted for Inflation in Fiscal Year 2019

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

Federal Register Volume 83, Issue 148 (August 1, 2018)

Page Range37509-37511
FR Document2018-16510

This document announces that U.S. Customs and Border Protection (CBP) is adjusting certain customs user fees and limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year 2019 in accordance with the Fixing America's Surface Transportation Act (FAST Act) as implemented by CBP regulations.

Federal Register, Volume 83 Issue 148 (Wednesday, August 1, 2018)
[Federal Register Volume 83, Number 148 (Wednesday, August 1, 2018)]
[Notices]
[Pages 37509-37511]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-16510]


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

DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. 18-08]


COBRA Fees To Be Adjusted for Inflation in Fiscal Year 2019

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

ACTION: General notice.

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

SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) is adjusting certain customs user fees and limitations 
established by the Consolidated Omnibus Budget Reconciliation Act 
(COBRA) for Fiscal Year 2019 in accordance with the Fixing America's 
Surface Transportation Act (FAST Act) as implemented by CBP 
regulations.

DATES: The adjusted amounts of customs COBRA user fees and their 
corresponding limitations set forth in this notice for Fiscal Year 2019 
are required as of October 1, 2018.

FOR FURTHER INFORMATION CONTACT: Tina Ghiladi, Director--Office of 
Finance, 202-344-3722, [email protected].

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 amended 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.
    Sections 24.22 and 24.23 of title 19 of the Code of Federal 
Regulations (19 CFR 24.22 and 24.23) describe the procedures that 
implement the requirements of the FAST Act. Specifically, paragraph (k) 
in section 24.22 (19 CFR 24.22(k)) sets forth the methodology to 
determine the change in inflation as well as the factor by which the 
fees and limitations will be adjusted, if necessary. The fees and 
limitations subject to adjustment, which are set forth in Appendix A 
and Appendix B of part 24, include the commercial vessel arrival fees, 
commercial truck arrival fees, railroad car arrival fees, private 
vessel arrival fees, private aircraft arrival fees, commercial aircraft 
and vessel passenger arrival fees, dutiable mail fees, customs broker 
permit user fees, barges and other bulk carriers arrival fees, and 
merchandise processing fees, as well as the corresponding limitations.

Determination of Whether an Adjustment Is Necessary for Fiscal Year 
2019

    In accordance with 19 CFR 24.22, CBP must determine annually 
whether the fees and limitations must be adjusted to reflect inflation. 
For fiscal year 2019, CBP is making this determination by comparing the 
average of the Consumer Price Index--All Urban Consumers, U.S. All 
items, 1982-84 (CPI-U) for the current year (June 2017-May 2018) with 
the average of the CPI-U for the comparison year (June 2016-May 2017) 
to determine the change in inflation, if any. If there is an increase 
in the CPI of greater than one (1) percent, CBP must adjust the customs 
COBRA user fees and corresponding limitations using the methodology set 
forth in 19 CFR 24.22(k). (19 CFR 24.22(k)). Following the steps 
provided in paragraph (k)(2) of section 24.22, CBP has determined that 
the increase in the CPI between the most recent June to May 12-month 
period (June 2017-May 2018) and the comparison year (June 2016-May 
2017) is 2.063 \1\ percent. As the increase in the CPI is greater than 
one (1) percent, the customs COBRA user fees and corresponding 
limitations must be adjusted for Fiscal Year 2019.
---------------------------------------------------------------------------

    \1\ The figures provided in this notice may be rounded for 
publication purposes only. The calculations for the adjusted fees 
and limitations were made using unrounded figures, unless otherwise 
noted.
---------------------------------------------------------------------------

Determination of the Adjusted Fees and Limitations

    Using the methodology set forth in section 24.22(k)(2) of the CBP 
regulations (19 CFR 24.22(k)), CBP has determined that the factor by 
which the base fees and limitations will be adjusted is 4.866 percent 
(base fees and limitations can be found in Appendix A and B to part 24 
of title 19). In reaching this determination, CBP calculated the values 
for each variable found in paragraph (k) of 19 CFR 24.22 as follows:
     The arithmetic average of the CPI-U for June 2017-May 
2018, referred to as (A) in the CBP regulations, is 247.540;
     The arithmetic average of the CPI-U for Fiscal Year 2014, 
referred to as (B), is 236.009;
     The arithmetic average of the CPI-U for the comparison 
year, referred to as (C), is 242.328;
     The difference between the arithmetic averages of the CPI-
U of the

[[Page 37510]]

comparison year (June 2016-May 2017) and the current year (June 2017-
May 2018), referred to as (D), is 5.212;
     This difference rounded to the nearest whole number, 
referred to as (E), is 5;
     The percentage change in the arithmetic averages of the 
CPI-U of the comparison year (June 2016-May 2017) and the current year 
(June 2017-May 2018), referred to as (F), is 2.063 percent;
     The difference in the arithmetic average of the CPI-U 
between the current year (June 2017-May 2018) and the base year (Fiscal 
Year 2014), referred to as (G), is 11.532; and
     Lastly, the percentage change in the CPI-U from the base 
year (Fiscal Year 2014) to the current year (June 2017-May 2018), 
referred to as (H), is 4.886 percent.

Announcement of New Fees and Limitations

    The adjusted amounts of customs COBRA user fees and their 
corresponding limitations for Fiscal Year 2019 as adjusted by 4.886 
percent set forth below are required as of October 1, 2018. Table 1 
provides the fees and limitations found in 19 CFR 24.22 as adjusted for 
Fiscal Year 2019 and Table 2 provides the fees and limitations found in 
19 CFR 24.23 as adjusted for Fiscal Year 2019.
---------------------------------------------------------------------------

    \2\ The Commercial Truck Arrival fee is the CBP fee only, it 
does not include the United States Department of Agriculture (USDA) 
Animal and Plant Health Inspection Services agricultural quarantine 
and inspection (APHIS/AQI) fee that is collected by CBP on behalf of 
USDA. See 7 CFR 354.3(c) and 19 CFR 24.22(c)(1). Once 19 Single 
Crossing Fees have been paid and used for a vehicle identification 
number (VIN)/vehicle in a Decal and Transponder Online Procurement 
System (DTOPS) account within a calendar year, the payment required 
for the 20th (and subsequent) single-crossing is only the APHIS/AQI 
fee and no longer includes the CBP Commercial Truck Arrival fee (for 
the remainder of that calendar year).
    \3\ The Commercial Truck Arrival fee is adjusted down from 5.77 
to the nearest lower nickel. See 82 FR 50523 (November 1, 2017).
    \4\ See footnote 2 above.
    \5\ Although the minimum limitation is published, the fee 
charged is the fee required by 19 U.S.C. 58c(b)(9)(A)(ii).
    \6\ Only the limitation is increasing; the ad valorem rate of 
0.3464% remains the same. See 82 FR 32661 (July 17, 2017).
    \7\ Id.
    \8\ For monthly pipeline entries, see: https://www.cbp.gov/trade/entry-summary/pipeline-monthly-entry-processing/pipeline-line-qa.

             Table 1--Customs COBRA User Fees and Limitations Found in 19 CFR 24.22 as Adjusted for
                                                Fiscal Year 2019
----------------------------------------------------------------------------------------------------------------
                                                                                                    New fee/
                                                                                                   limitation
         19 U.S.C. 58c                    19 CFR 24.22              Customs COBRA user fee/        adjusted in
                                                                           limitation            accordance with
                                                                                                  the FAST Act
----------------------------------------------------------------------------------------------------------------
(a)(1).........................  (b)(1)(i).....................  Fee: Commercial Vessel                  $458.35
                                                                  Arrival Fee.
(b)(5)(A)......................  (b)(1)(ii)....................  Limitation: Calendar Year              6,245.97
                                                                  Maximum for Commercial
                                                                  Vessel Arrival Fees.
(a)(8).........................  (b)(2)(i).....................  Fee: Barges and Other Bulk               115.37
                                                                  Carriers Arrival Fee.
(b)(6).........................  (b)(2)(ii)....................  Limitation: Calendar Year              1,573.29
                                                                  Maximum for Barges and Other
                                                                  Bulk Carriers Arrival Fees.
(a)(2).........................  (c)(1)........................  Fee: Commercial Truck Arrival          \3\ 5.75
                                                                  Fee \2\.
(b)(2).........................  (c)(2) and (3)................  Limitation: Commercial Truck             104.89
                                                                  Calendar Year Prepayment Fee
                                                                  \4\.
(a)(3).........................  (d)(1)........................  Fee: Railroad Car Arrival Fee              8.65
(b)(3).........................  (d)(2) and (3)................  Limitation: Railroad Car                 104.89
                                                                  Calendar Year Prepayment Fee.
(a)(4).........................  (e)(1) and (2)................  Fee and Limitation: Private               28.84
                                                                  Vessel or Private Aircraft
                                                                  First Arrival/Calendar Year
                                                                  Prepayment Fee.
(a)(6).........................  (f)...........................  Fee: Dutiable Mail Fee.......              5.77
(a)(5)(A)......................  (g)(1)(i).....................  Fee: Commercial Vessel or                  5.77
                                                                  Commercial Aircraft
                                                                  Passenger Arrival Fee.
(a)(5)(B)......................  (g)(1)(ii)....................  Fee: Commercial Vessel                     2.02
                                                                  Passenger Arrival Fee (from
                                                                  one of the territories and
                                                                  possessions of the United
                                                                  States).
(a)(7).........................  (h)...........................  Fee: Customs Broker Permit               144.74
                                                                  User Fee.
----------------------------------------------------------------------------------------------------------------


             Table 2--Customs COBRA User Fees and Limitations Found in 19 CFR 24.23 as Adjusted for
                                                Fiscal Year 2019
----------------------------------------------------------------------------------------------------------------
                                                                                                    New fee/
                                                                                                   limitation
         19 U.S.C. 58c                    19 CFR 24.23              Customs COBRA user fee/        adjusted in
                                                                           limitation            accordance with
                                                                                                  the FAST Act
----------------------------------------------------------------------------------------------------------------
(b)(9)(A) (ii).................  (b)(1)(i)(A)..................  Fee: Express Consignment                  $1.05
                                                                  Carrier/Centralized Hub
                                                                  Facility Fee, Per Individual
                                                                  Waybill/Bill of Lading Fee.
(b)(9)(B)(i)...................  (b)(1)(i)(B)(2)...............  Limitation: Minimum Express                0.37
                                                                  Consignment Carrier/
                                                                  Centralized Hub Facility Fee
                                                                  \5\.
(b)(9)(B)(i)...................  (b)(1)(i)(B)(2)...............  Limitation: Maximum Express                1.05
                                                                  Consignment Carrier/
                                                                  Centralized Hub Facility Fee.
(a)(9)(B)(i); (b)(8)(A)(i).....  (b)(1)(i)(B)(1)...............  Limitation: Minimum                       26.22
                                                                  Merchandise Processing Fee
                                                                  \6\.
(a)(9)(B)(i); (b)(8)(A)(i).....  (b)(1)(i)(B)(1)...............  Limitation: Maximum                      508.70
                                                                  Merchandise Processing Fee 7
                                                                  8.
(b)(8)(A)(ii)..................  (b)(1)(ii)....................  Fee: Surcharge for Manual                  3.15
                                                                  Entry or Release.
(a)(10)(C)(i)..................  (b)(2)(i).....................  Fee: Informal Entry or                     2.10
                                                                  Release; Automated and Not
                                                                  Prepared by CBP Personnel.
(a)(10)(C)(ii).................  (b)(2)(ii)....................  Fee: Informal Entry or                     6.29
                                                                  Release; Manual and Not
                                                                  Prepared by CBP Personnel.
(a)(10)(C)(iii)................  (b)(2)(iii)...................  Fee: Informal Entry or                     9.44
                                                                  Release; Automated or
                                                                  Manual; Prepared by CBP
                                                                  Personnel.
(b)(9)(A)(ii)..................  (b)(4)........................  Fee: Express Consignment                   1.05
                                                                  Carrier/Centralized Hub
                                                                  Facility Fee, Per Individual
                                                                  Waybill/Bill of Lading Fee.
----------------------------------------------------------------------------------------------------------------


[[Page 37511]]

    Tables 1 and 2 setting forth the adjusted fees and limitations for 
Fiscal Year 2019 will also be maintained for the public's convenience 
on the CBP website at www.cbp.gov.

    Dated: July 27, 2018.
Kevin K. McAleenan,
Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2018-16510 Filed 7-31-18; 8:45 am]
 BILLING CODE 9111-14-P


Current View
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionGeneral notice.
DatesThe adjusted amounts of customs COBRA user fees and their corresponding limitations set forth in this notice for Fiscal Year 2019 are required as of October 1, 2018.
ContactTina Ghiladi, Director--Office of Finance, 202-344-3722, [email protected]
FR Citation83 FR 37509 

2024 Federal Register | Disclaimer | Privacy Policy
USC | CFR | eCFR