Details of the House- and Senate-Passed Conference Version of Miscellaneous Trade Bill (Part VIII)

This is Part VIII of a multi-part series of summaries on the conference version of H.R. 1047 and highlights various amendments regarding the deposit of estimated duties and fees, periodic payment of estimated duties and fees, payments for goods processed at express consignment carrier and centralized hub facilities, and a study and report on U.S. Customs and Border Protection (CBP) user fees.

12 Working Days to Deposit Estimated Duties and Fees

The conference version 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 indicates 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.

Periodic Payment of Estimated Duties and Fees

The conference version would also amend 19 USC 1505(a) in order to state that as soon as a periodic payment module of the Automated Commercial Environment (ACE) is developed, but no later than October 1, 2004, regulations shall be promulgated, after testing the module, 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 states that as soon as an ACE periodic payment module is developed, but no later than October 1, 2004, a participating importer of record, or the importer's filer, may deposit estimated duties and fees for entries of merchandise 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.

The conference version would also 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 entered at an express consignment carrier facility, a centralized hub facility, or a small airport or other facility, (except such items entered for transportation and exportation or immediate exportation at these facilities) so that the provision 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 or Centralized Hub Facilities

The conference version would amend 19 USC 58c(b)(9)(A)(ii) regarding the payment to CBP for the processing of letters, merchandise, 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.)

Study and Report on Customs User Fees

The conference version would amend section 336 of the Trade Act of 2002 (Public Law (P.L.) 107-210), which provides for a study and report relating to Customs user fees, in order to:

state that the study covers the extent to which the amount of each customs user fee imposed under 19 USC 58c(a) "approximates the cost of services provided by CBP relating to the fee so imposed" (rather than "is commensurate with the level of services provided by CBP relating to the fee so imposed"); and

provide an extension of the due date for the report on the results of the study;

provide a more complete description of the government bodies to whom the report may be disclosed (e.g., committees or members of Congress and CBP, but not the public).

See ITT's Online Archives or 10/19/04, 10/20/04, 10/22/04, 11/01/04, 11/02/04, 11/30/04, and 12/01/04 news, 04101905, 04102005, 04102225, 04110115, 04110225, 04113020, and 04120105 for Parts I-VII.

Legislative text of the Conference version of H.R. 1047 available at http://waysandmeans.house.gov/media/pdf/hr1047/HR1047confreptlegtext.pdf.

Joint explanatory statement of the conference committee regarding H.R. 1047 available at

http://waysandmeans.house.gov/media/pdf/hr1047/hr1047confreptexplanstatement.pdf.