[Federal Register Volume 59, Number 223 (Monday, November 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28588]


[[Page Unknown]]

[Federal Register: November 21, 1994]


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DEPARTMENT OF THE TREASURY

Customs Service
[T.D. 94-91]

 

User Fee Protests

AGENCY: U.S. Customs Service; Department of the Treasury.

ACTION: Notice.

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SUMMARY: The Customs Service is providing guidance to the public on 
procedures which should be followed when filing protests concerning the 
calculation, collection and demand for payment for user fees and other 
issues. This notice is intended to clarify procedures which should be 
followed by parties filing protests and provide information on the 
treatment Customs will give protests once they have been received.

FOR FURTHER INFORMATION CONTACT: David Kahne, Program Manager, User Fee 
Task Force, U.S. Customs Service (202) 927-0159.

SUPPLEMENTARY INFORMATION: At the present time, there exists a certain 
level of confusion regarding the filing and processing of protests 
concerning the calculation, collection and demand for payment resulting 
from audit findings of Consolidated Omnibus Budget Reconciliation Act 
(COBRA) user fees, the Merchandise Processing Fee (MPF), and the Harbor 
Maintenance Fees (HMF). Protests concerning these user fees are being 
received at various Customs locations throughout the United States, and 
requests for guidance have been received from the public and Customs 
field managers as to where these protests should be filed and how 
Customs will process them.
    Customs intends to amend Part 174 of Title 19, Code of Federal 
Regulations, to provide specific procedures for the filing of user fee-
related protests. In the meantime, this notice is published to provide 
flexibility in the filing of protests, accommodate the public's desire 
for local accountability, and provide guidance as to Customs preference 
regarding where protests should be filed. In addition, Customs seeks to 
comply with the Court of International Trade decision rendered in 
Norfolk and Western Railway Co. v. United States, et al., CIT Slip Op. 
94-16 (Feb. 1, 1994), which held that user fee-related protests may be 
filed, in accordance with Sec. 24.73, Customs Regulations (19 CFR 
24.73) at Customs headquarters. Accordingly, while Customs will 
continue to accept user fee-related protests at headquarters, Customs 
feels it serves the convenience of the public as well as that of the 
government to show a level of flexibility on this issue and also accept 
protests filed in locations more convenient to the public. To this end, 
it is suggested that the guidelines below be followed.

I. Protests Concerning the Constitutionality of the Harbor 
Maintenance Fee on Exports

A. Place of Filing

    Protests concerning the constitutionality of the Harbor Maintenance 
Fee (HMF) on exports should be sent to the U.S. Customs Service, 
National Finance Center, at the following address: Director, National 
Finance Center, U.S. Customs Service, 6026 Lakeside Blvd., 
Indianapolis, IN 46278, Attn: Revenue Branch, HMF Protest Team.
    Only protests which specifically concern the constitutionality of 
the HMF should be sent to this address. HMF protests which do not 
concern the constitutionality of the fee, and protests relating to user 
fees other than the HMF, are not covered by this procedure. See below 
for additional guidance.

B. Form of Protests

    HMF constitutionality protests may be filed on Customs Form 19, or 
in letter form, or in the form of statements of protest affixed or 
appended to Customs Form 349, Quarterly Summary Report. Each protest 
should reference an Employer Identification Number (EIN), Internal 
Revenue Service (IRS) number, Customs-assigned number, or Social 
Security Number (SSN).

C. Time of Filing

    Protests which concern the constitutionality of the HMF on exports 
should be filed in accordance with 19 U.S.C. 1514 within 90 days after 
the date on which each quarterly payment is due.
    HMF payments are due within 31 days following the end of each 
calendar quarter.
    Example: A protest filed for the calendar quarter ending March 31 
would be due no later than July 30 (end of quarter: March 31; HMF 
payment due within 31 days: no later than May 1; protest due within 90 
days of payment date: no later than July 30).

D. Level of Specificity

    User fee-related protests should be of a level of specificity and 
detail equivalent to that required by Sec. 174.13, Customs Regulations 
(19 CFR 174.13). Details of the circumstances surrounding the 
calculation, collection, or demands for payment, as well as amounts of 
fees due and dates paid, should be included.
    Protests received by the Customs Service which do not conform to 
the required level of specificity will be considered incomplete, and 
notices will be sent to protestants which describe the additional 
information required. Such protests will be held until 30 days 
following the date of the notice that the protest is incomplete, or 
until expiration of the 90-day period within which such protests may be 
filed (90 days from the dates that the fee payments are due), whichever 
is longer. During this time, protestants may submit the additional 
information. If the requested additional information is not received 
prior to the expiration of this period, protests will be denied on the 
grounds that they are incomplete.

II. Other User Fee-Related Protests, Including Other HMF Protests

A. Place of Filing

    1. Protests of user fee collections, calculations or demands for 
payment:
    a. Such protests should be filed with the district director of the 
district in which the protested fee collections, calculations, or 
demands for payment took place, or
    b. The Director, National Finance Center (NFC), if the protest 
concerns an action initiated by the NFC.
    2. Protests of demands for payment for non- or underpayment of fees 
resulting from audits conducted by the U.S. Government should be filed 
with the district director from whom the notice of audit findings was 
received. The notice will contain instructions for the filing of 
protests.

B. Form of Protests

    User fee-related protests may be filed on Customs Form 19, or in 
letter form. Each protest should reference an Employer Identification 
Number (EIN), Internal Revenue Service (IRS) number, Customs-assigned 
number, or Social Security Number (SSN).

C. Time of Filing

    1. Protests of user fee collections or calculations shall be filed 
in accordance with 19 U.S.C. 1514 within 90 days after the date on 
which the first notice of the collection or calculation is mailed, or 
within 90 days of liquidation or reliquidation, if applicable.
    2. Protests of demands for payment resulting from findings by 
auditors of the U.S. Government of non- or underpayment of user fees 
should be filed in accordance with 19 U.S.C. 1514 within 90 days after 
the date of mailing of the demand for payment, or within 90 days of 
liquidation or reliquidation, if applicable.

D. Level of Specificity

    User fee-related protests should be of a level of specificity and 
detail equivalent to that required by Sec. 174.13, Customs Regulations 
(19 CFR 174.13). Details of the circumstances surrounding the 
calculation, collection, or demands for payment, as well as amounts of 
fees due and dates paid, should be included.
    Protests received by the Customs Service which do not conform to 
the required level of specificity will be considered incomplete, and 
notices will be sent to protestants which describe the additional 
information required. Such protests will be held until 30 days 
following the date of the notice that the protest is incomplete, or 
until expiration of the 90-day period within which such protests may be 
filed (90 days from the dates that the fee payments are due), whichever 
is longer. During this time, protestants may submit the additional 
information. If this information is not received prior to the 
expiration of this period, protests will be denied on the grounds that 
they are incomplete.

E. Applications for Further Review

    Applications for further review (AFRs) should be filed with the 
same Customs manager (district director or Director, NFC) with whom a 
user fee protest would be filed. AFRs should be filed within the same 
time period permitted for the filing of protests, i.e. within 90 days 
after the date on which the first notice of the collection or 
calculation is mailed, or within 90 days of liquidation or 
reliquidation, if applicable.
    If a decision is made to deny a protest in whole or in part, copies 
of the AFR and the protest will be forwarded by the Customs manager 
directly to the Office of Regulations and Rulings for review.

III. Protests Already Filed

    User fee-related protests of all types which have already been 
received by the Customs Service will be dealt with in accordance with 
the procedures outlined above, regardless of where they were originally 
filed. Timeliness of protests already received will be determined by 
the dates on which they were received by the offices to which they were 
originally sent.

    Approved: November 15, 1994.
Samuel H. Banks,
Assistant Commissioner, Commercial Operations.
[FR Doc. 94-28588 Filed 11-18-94; 8:45 am]
BILLING CODE 4820-02-P