U.S. Customs and Border Protection (CBP) is running a test to allow for the payment of certain commercial vessel taxes and fees with electronic methods, including credit cards. Payment can be made through the existing Mobile Collections & Receipts (MCR) system’s payment portal at eCBP or at the port of entry for any commercial vessel arriving at a maritime port of entry.

The test will begin no earlier than Jan. 16, 2024 and will continue for two years.

Participation in the test is voluntary, and CBP will continue to accept payments by cash or check at the ports of entry.

This test marks the start of Phase Two of the MCR Pilot. Phase One was announced in 2017, and allowed for certain commercial vessel taxes and fees to be paid electronically through the MCR system.

Specifically, the 2017 MCR Pilot permitted online payment and electronic receipts for the following taxes and fees:

The 2017 MCR Pilot was limited to commercial vessels arriving at one of four designated ports of entry: Los Angeles-Long Beach, California; New Orleans, Louisiana; Gulfport, Mississippi; and Mobile, Alabama.

In Phase Two of the MCR test, CBP will test the feasibility of accepting electronic payment options for five categories of commercial vessel taxes, allowing vessel owners, operators, and agents to take full advantage of the MCR system.

According to CBP, using the MCR system will result in a reduction in the number of mistakes in the calculation of taxes and fees due because the MCR system can implement any changes to the fee calculations quickly and efficiently for all ports. Additionally, the MCR system eliminates the need for CBP employees to manually enter information into CBP’s systems or to perform other tasks necessary to maintain the security or inventory of the paper versions of CBP Forms 368 and 1002, which means they can spend less time on administrative tasks and more time focusing on higher priority mission support activities.

Like Phase One, payment through electronic methods will be voluntary and CBP will continue to accept cash or check payments consistent with current requirements and practice. The collection of payments under Phase Two will operate largely the same as in the initial 2017 MCR Pilot, except that Phase Two will allow for electronic payments for vessels arriving at any maritime port of entry (as opposed to the four ports of entry designated in the 2017 MCR Pilot) and will include online payments and using an EMV card reader at the port.

Comments concerning this notice and all aspects of the test may be submitted at any time during the test.

For more info, view the full Notice at the Federal Registry.

To stay informed on trade news and other important updates, stay connected with a customs broker.

U.S. Customs and Border Protection (CBP) will begin collecting import fees on pecans and Christmas trees on Nov. 5 after the issue that had been preventing the fee updates in ACE CERT has been resolved.

The impacted tariffs are as follows:

Pecans

Handlers will collect assessments from producers based on pounds of pecans received and importers will pay assessments on pecans when they enter the United States.

Importers who import less than 50,000 pounds of inshell pecans, 25,000 pounds of shelled pecans, or a combination of the two, on average for four fiscal periods will be exempt from paying assessments and can apply for the exemption through the American Pecan Promotion Board.

Christmas trees

The fee for Christmas trees is $0.15 per tree regardless of the variety.

Importers who import less than 500 trees in a fiscal period can claim an exemption from paying the fee by filing an application for a certificate of exemption from the Real Christmas Tree Board.

To stay informed on trade news and other important updates, stay connected with a customs broker.

The U.S. Department of Agriculture’s Animal and Plant Health Inspection Service (APHIS) is proposing to significantly increase the fees for its AQI program, which assures that cargo and passenger baggage entering the country is inspected for plant pests and potential sources of animal diseases that could affect U.S. agriculture, trade and commerce.

Fees for the AQI program were last updated in 2015 based on data from 2010 through 2012, making the fee structure almost a decade out of date. According to APHIS, the outdated fee structure, combined with recent changes in international travel and shipping, means that current fees do not generate enough revenue to cover the costs of the AQI services provided.

To develop the proposed rule, APHIS conducted a comprehensive review of the AQI program to determine the actual costs incurred by APHIS and CBP (who administer the program jointly) to deliver AQI services.

The updated cost model accounts for inflation, capital improvements, and additional staffing needs. For example, for 2017 through 2019, the AQI program ran an average annual deficit of over $166 million. From 2010 to 2021, agricultural cargo imports grew over 61% by volume, and AQI staffing dedicated to conveyance and cargo clearance was not able keep pace with this growth. Workload per frontline employee increased 25% by volume from 2010 to 2021.

At the same time, changes in the size of conveyances (ships, trains, trucks) and the amounts they transport have resulted in more work being done with less funding because APHIS fees are tied to the number of conveyance arrivals, not the volume of cargo contained within them.

Proposed fee changes

Fee Service Activity Current  Proposed
January 1, 2024 October 1, 2024 October 1, 2025 October 1, 2026 October 1, 2027
Commercial Vessel (per vessel arrival) $825 $3,219.29 $3,302.23 $3,386.23 $3,471.18 $3,557.18
Commercial Truck (per truck arrival)2 $7.29 $11.40 $12.40 $13.45 $14.50 $15.55
Commercial Rail (per railroad car arrival) $2.00 $5.81 $6.51 $7.23 $7.97 $8.72
Commercial Aircraft (per aircraft arrival) $225.00 $288.41 $309.00 $330.07 $351.64 $373.68
Air Passenger (per passenger arrival) $3.83 $4.29 $4.44 $4.60 $4.76 $4.93
Cruise Vessel Passenger (per passenger arrival) $1.68 $1.20 $1.25 $1.29 $1.34 $1.39
Treatments (per hour) $237 (per treatment) $232.97 $253.19 $273.90 $295.12 $316.83

 You can leave your feedback on the proposal by Oct. 10, 2023 by visiting www.regulations.gov.

To stay informed on trade news and other important updates, stay connected with a customs broker.

The U.S. Customs and Border Protection (CBP) has announced that annual user fee for the Customs Broker Permit held by customs brokers is due no later than Feb. 24, 2023.

The amount due for the 2023 calendar year is $163.71 (up from $153.19.)

The fee is assessed for each permit held by a broker, which includes individuals, partnerships, associations, and corporations. It reflects the rule changes that were announced back in October, which included the elimination of district permits and the transition to national permits, as well as adjustments made for inflation as part of the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Under the new rules, broker districts and the related district permits were eliminated in favor of a single national permit framework. The transition came into effect on Dec. 19, 2022.

To stay informed on important industry updates, stay connected with a customs broker.