Details of the Senate-Passed Miscellaneous Trade and Technical Corrections Act

As the House and Senate have passed different versions of H.R. 1047, the next step is expected to be a House-Senate conference to resolve differences between the two versions of the bill. If the conference version of the bill is passed by both the House and Senate, it would then be sent to the President for enactment.

This is Part V of a multi-part series of summaries on the Senate-passed version of H.R. 1047 (H.R. 1047) and focuses on (1) the time frame for the deposit of estimated duties and fees, (2) regulations for periodic payment; and (3) the reimbursements and payments to U.S. Customs and Border Protection (CBP) for the processing of goods entered at express consignment carrier facilities, centralized hub facilities, etc. See future issues for additional summaries.

12 Days to Deposit Estimated Duties and Fees

H.R. 1047 would amend the provisions on the deposit of estimated duties and fees in 19 USC 1505(a) in order to require (unless the entry is subject to a periodic payment referred to in this subsection or the merchandise is entered for warehouse or transportation, or under bond) the importer of record to deposit with CBP estimated duties and fees at time of entry, or at such later time as may be prescribed by regulation (but not later than 12 working days after entry or release).

(19 USC 1505(a) currently states that the deposit of estimated duties and fees must be not later than 10 working days after entry or release.)

CBP sources state that this amendment would be interpreted as only providing a legal basis for CBP to accept electronic ACH payment on the 12th day. It would not change the 10-day period for the payment of entries.

Regulations for Periodic Payment of Estimated Duties and Fees

H.R. 1047 would also amend 19 USC 1505(a) in order to require, as soon as a periodic payment module of the Automated Commercial Environment (ACE) is developed, but no later than October 1, 2004, the promulgation of regulations permitting a participating importer of record to deposit estimated duties and fees for entries of merchandise (other than merchandise entered for warehouse, transportation, or under bond) no later than 15 working days following the month in which the merchandise is entered or released, whichever comes first.

(19 USC 1505(a) currently does not mention the promulgation of regulations, and states that no later than the above October 1, 2004 timeframe, a participating importer of record, or the importer's filer, may deposit estimated duties and fees (without an exclusion for merchandise entered for warehouse, transportation, or under bond) no later than the 15th day of the month following the month in which the merchandise is entered or released, whichever comes first.)

Reimbursements and Payments to CBP for Goods Processed at an Express Consignment Carrier Facility, Centralized Hub Facility, Etc.

H.R. 1047 would amend the provision for the reimbursement and payment to CBP under 19 USC 58c(b)(9)(A) for the processing of letters, documents, records, shipments, merchandise, or any other item (except items entered for transportation and exportation or immediate exportation) at small airports and other facilities, express consignment carrier facilities, or centralized hub facilities so that it applies to items valued at $2,000 or less (rather than the current threshold of less than $2,000).

Application of MPF to Formal Entries Processed at Express Consignment Carrier and Centralized Hub Facilities

H.R. 1047 would amend 19 USC 58c(b)(9)(A)(ii) regarding the payment to CBP for the processing of letters, documents, etc. (see above list) at express consignment carrier facilities or centralized hub facilities in order to state that the following fees would apply:

$.66 per individual airway bill or bill of lading; and

if the merchandise is formally entered, the fee provided for in 19 USC 58c(a)(9), if applicable. (19 USC 58c(a)(9) provides for the merchandise processing fee (MPF) for formal entries.)

(Current 19 USC 58c(b)(9)(A)(ii) does not state formal entries are subject to the MPF.)

H.R. 1047 would also make a conforming change to 19 USC 58c(b)(9)(B)(ii) to reflect the above revisions.

(See ITT's Online Archives or 03/11/04, 03/12/04, 03/18/04, and 03/19/04 news, 04031105, 04031215, 04031820, and 04031910, for Parts I-IV of this series of summaries on the Senate-passed version of H.R. 1047.)

H.R. 1047 as passed by the Senate available at

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h1047eas.txt.pdf.