Market Updates

US Customs: PNGM MPF and COBRA Adjustment Announcement

The Petroleum Natural Gas and Minerals Center of Excellence and Expertise (PNGM for short) announced a modified Merchandise Processing Fee (MPF) schedule which will be implemented on October 1, 2018.  

Subsequently, US Customs and Border Patrol (CBP) and the Department of Homeland Security have announced that COBRA fees will be adjusted for inflation in Fiscal Year 2019.

 Below, you will find both announcements in full: 


PETROLEUM NATURAL GAS AND MINERALS CENTER OF EXCELLENCE AND EXPERTISE
U.S. CUSTOMS AND BORDER PROTECTION
Department of Homeland Security

PUBLIC INFORMATION NOTICE 

DATE: 09-17-18  NUMBER: PNGM-18-01
For Further Information Contact: cee-petroleum@cbp.dhs.gov

SUBJECT: Merchandise Processing Fee Increase

PURPOSE

On December 4, 2015, Public Law 114–94 amended the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 (19 U.S.C. 58c) to require that certain customs COBRA user fees and corresponding limitations be adjusted for inflation.

POLICY

The August 1, 2018 Federal Register (Vol. 83, No. 184, P. 37509; CBP Dec. 18-08) announced the modified Merchandise Processing Fee (MPF) schedule to be implemented October 1, 2018.  Certain of these modifications are of particular interest to partner importers and others whose entry summaries fall under the jurisdiction of the Petroleum Natural Gas and Minerals Center (PNGM Center).

PROCEDURES

On October 1, 2018:

  • Minimum MPF for a formal entry increases to $26.22 per 19 CFR 24.23(b)(1)(i)(B)(1).
  • Maximum MPF for a formal entry increases to $508.70 per 19 CFR 24.23(b)(1)(i)(B)(1).
  • Maximum MPF for a monthly consolidated pipeline entry will remain $400 per 19 CFR 24.23(b)(1)(i)(A).

The ad valorem rate of 0.3464% remains unchanged.

Questions regarding this notice may be directed to Entry Chief Shelley Wise via the PNGM Center group email inbox at cee-petroleum@cbp.dhs.gov .

David S. McGurk

Director

PNGM Center


COBRA Fees To Be Adjusted for Inflation in Fiscal Year 2019

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, UserFeeNotices@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 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.

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 Start Printed 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.

Table 1—Customs COBRA User Fees and Limitations Found in 19 CFR 24.22 as Adjusted for Fiscal Year 2019

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

Table 2—Customs COBRA User Fees and Limitations Found in 19 CFR 24.23 as Adjusted for Fiscal Year 2019

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

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.

 

Footnotes

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.

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

[FR Doc. 2018-16510 Filed 7-31-18; 8:45 am]

BILLING CODE 9111-14-P

Document details:

Printed version: PDFPublication Date:08/01/2018 Agencies:U.s. Customs and Border Protection 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. Document Type:NoticeDocument Citation:83 FR 37509 Page:37509-37511 (3 pages )Agency/Docket Number:CBP Dec. 18-08 Document Number:2018-16510


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