Exxon Largely Exempt from HMF, MPF and ISF in Certain Scenarios, CBP Says
Exxon Mobil Upstream Services may not be subject to importer security filing, harbor maintenence and merchandise processing fee requirements when it transports underwater equipment for use in the U.S. Gulf of Mexico, CBP said in a Dec. 9 ruling (here). The company sought CBP input on various transport scenarios and on whether certain rules would apply. CBP weighed in on the ISF, HMF and MPF issues in this ruling, HQ H268702, but left remaining issues for the Entry Process and Tariff Classification Branches to handle, it said.
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Exxon plans to transport parts for a "subsea umbilical laying project" from Norway. In the first of two scenarios offered by Exxon, the cargo will go straight to the Gulf of Mexico for installation, said CBP. While CBP requires an HMF on cargo loaded or unloaded from a commercial vessel, such fees are only required for ports listed by the agency. "Neither the ports in Norway nor the [outer continental shelf] are ports specified" on the list, so no HMF would be necessary, said CBP. A MPF depends on whether the cargo is entered or released, said CBP. "If the subject cargo is not entered or released, the merchandise processing fee will not apply." Also, if the cargo is unloaded at the Gulf of Mexico "without first arriving within the limits of a port in the U.S., an ISF will not be required," said CBP.
Under the alternate scenario, the cargo will go to a U.S. port, either Mobile, Alabama or Gulfport, Mississippi, but won't be unloaded. In that case, an HMF still wouldn't be required because there's no "port use" if the cargo isn't unladen, said CBP. The company would be required to submit an ISF, because the goods qualify as "foreign cargo remaining onboard," the agency said. Whether an MPF is due would still be dependent on if the cargo is entered or released, said CBP.