[Federal Register Volume 67, Number 52 (Monday, March 18, 2002)]
[Proposed Rules]
[Pages 11954-11961]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-6369]


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DEPARTMENT OF THE TREASURY

Customs Service

19 CFR Parts 24 and 111

RIN 1515-AC81


User Fees

AGENCY: Customs Service, Department of the Treasury

ACTION: Notice of proposed rulemaking.

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[[Page 11955]]

SUMMARY: This document proposes to amend the Customs Regulations to 
reflect various legislative amendments to 19 U.S.C. 58c, the Customs 
user fee statute, including those made by the Miscellaneous Trade and 
Technical Corrections Act of 1999 and the Tariff Suspension and Trade 
Act of 2000. The proposed regulations set forth the new fee structure 
for passengers arriving in the United States aboard commercial vessels 
and aircraft, provide for application of a fee to ferries in limited 
circumstances, and clarify how Customs administers certain user fees. 
Also, minor conforming changes are proposed to the regulations 
pertaining to customs brokers.

DATES: Written comments must be received on or before May 17, 2002.

ADDRESSES: Written comments may be submitted to and inspected at the 
Regulations Branch, Office of Regulations and Rulings, U.S. Customs 
Service, 1300 Pennsylvania Avenue, NW., 3rd Floor, Washington, DC 
20229.

FOR FURTHER INFORMATION CONTACT: Concerning user fees applicable to 
commercial vessel and aircraft passengers under Sec. 24.22(g): Edward 
Matthews at (202) 927-0552. Concerning the various fee payment and 
information submission procedures under Sec. 24.22: Robert T. Reiley at 
(202) 927-1504.

SUPPLEMENTARY INFORMATION:

Background

    This document proposes changes concerning user fees to parts 24 and 
111 of the Customs Regulations (19 CFR Parts 24 and 111). The changes 
to Part 24 involve Sec. 24.22 and have several bases: (1) Some changes 
derive from provisions of the Miscellaneous Trade and Technical 
Corrections Act of 1999 (Pub. L. 106-36, 113 Stat. 127), signed into 
law on June 25, 1999; (2) one change is based on a provision of the 
Tariff Suspension and Trade Act of 2000 (Pub. L. 106-476, 114 Stat. 
2101), signed into law on November 9, 2000; (3) some changes are based 
on other statutory provisions that have not previously been reflected 
in the regulations; (4) some changes are proposed to bring the 
regulations up to date with current administrative practices; (5) and 
one change is a technical correction. The changes to part 111 are 
intended to clarify administration of the annual user fee and the 
permit fees for customs brokers.

Proposed Changes Based on the Miscellaneous Trade and Technical 
Corrections Act of 1999

    Section 2418 of the Miscellaneous Trade and Technical Corrections 
Act of 1999 (the Act) amended section 13031 of the Consolidated Omnibus 
Budget Reconciliation Act of 1985, codified at 19 U.S.C. 58c (section 
58c), which established user fees for certain services performed by the 
Customs Service. These amendments to section 58c necessitate conforming 
amendments to the Customs Regulations.
    On July 27, 1999, Customs issued a general notice in the Federal 
Register (64 FR 40648) that announced the statutory changes made by the 
Act and pointed out that these self-effectuating changes became 
effective on July 25, 1999. The notice also announced several other 
related changes affecting Customs administration of user fees. The 
notice indicated that appropriate amendments to the Customs Regulations 
would be published in due course. This document, issued as a notice of 
proposed rulemaking because the proposed changes include some that are 
not derived from self-effectuating statutory amendments, invites public 
comment on the proposed changes.
Prior Law
    Under section 58c(a), Customs is authorized to collect specific 
fees charged for certain Customs inspectional services, including, in 
section 58c(a)(5), fees for passengers arriving in the United States 
aboard commercial vessels and aircraft. Under section 58c(d), the fees 
are collected from passengers by the companies that issue the ticket or 
travel document for transportation into the customs territory of the 
United States or that provide the actual transportation, and those 
companies remit the fees to Customs.
    Immediately prior to enactment of the Act, section 58c(a)(5)(A) 
provided for a fee of $6.50 per passenger arriving in the United States 
aboard a commercial vessel or commercial aircraft from a place outside 
the customs territory of the United States. However, this fee provision 
applied only to fiscal years 1994 (effective on January 1, 1994) 
through 1997. Thus, after fiscal year 1997, the $6.50 fee was no longer 
in effect.
    Immediately prior to enactment of the Act, section 58c(a)(5)(B), 
applicable to fiscal year 1998 and each following fiscal year, provided 
for a fee of $5 per passenger arriving in the United States aboard a 
commercial vessel or commercial aircraft from a place outside the 
United States other than a place referred to in section 
58c(b)(1)(A)(i), that is, Canada, Mexico, a territory or a possession 
of the United States, or any adjacent island. (Section 
24.22(g)(2)(i)(B) of the Customs Regulations (19 CFR 24.22(g)(2)(i)(B)) 
currently provides that the territories and possessions of the United 
States include American Samoa, Guam, the Northern Mariana Islands, 
Puerto Rico, and the U.S. Virgin Islands and that adjacent islands 
include all of the islands in the Caribbean Sea, the Bahamas, Bermuda, 
St. Pierre, Miquelon, and the Turks and Caicos Islands. However, this 
document includes discussion of a proposal to amend the provision 
concerning this list of adjacent islands.)
    The effect of these provisions was to impose a fee structure as 
follows: (1) A fee of $6.50 on commercial vessel and aircraft 
passengers arriving from locations outside the customs territory of the 
United States through September 30, 1997, then, (2) commencing on 
October 1, 1997, a fee of $5 per commercial vessel and aircraft 
passenger arriving from a place outside the United States except for a 
passenger arriving from Canada, Mexico, a U.S. territory or possession, 
or an adjacent island. Thus, beginning with fiscal year 1998, there was 
no fee applicable under section 58c(a)(5) for commercial vessel or 
aircraft passengers arriving from Canada, Mexico, United States 
territories or possessions, or adjacent islands. (For Puerto Rico, this 
represented no change because Puerto Rico is part of the customs 
territory of the United States and thus no fee applied to Puerto Rico 
under section 58c(a)(5)(A).)
    In addition, immediately prior to enactment of the Act, section 
58c(b)(1)(A) provided that no fee may be charged under section 58c(a) 
in the case of the arrival of a passenger whose journey either 
originated in Canada, Mexico, a United States territory or possession, 
or an adjacent island or originated in the United States and was 
limited to Canada, Mexico, a United States territory or possession, or 
an adjacent island. (This prohibition was suspended during the period 
from January 1, 1994, through September 30, 1997 (under section 
58c(b)(1)(C)).)
New Fee Structure
    Paragraph (b)(1) of section 2418 of the Act amended sections 
58c(a)(5)(A) and (B) to modify the above-discussed fee structure. The 
amendment accomplished two things: (1) It continued, in section 
58c(a)(5)(A), the $5 fee per passenger arriving in the United States 
aboard a commercial

[[Page 11956]]

vessel or aircraft from a place outside the United States other than 
Canada, Mexico, a United States territory or possession, or an adjacent 
island; and (2) it imposed, under section 58c(a)(5)(B), a fee of $1.75 
per passenger arriving aboard a commercial vessel (not commercial 
aircraft) from Canada, Mexico, a United States territory or possession, 
or an adjacent island. Thus, under the amended statute, no fee applies 
in the case of passengers arriving aboard commercial aircraft from 
Canada, Mexico, a United States territory or possession, or an adjacent 
island.
    Customs notes that the amendment of section 58c(b)(1)(A) enables 
collection of the $1.75 per passenger fee of amended section 
58c(a)(5)(B). The amendment excepted that fee from the fee exemption 
provided by section 58c(b)(1)(A) that otherwise precludes application 
of a fee under section 58c(a)(5) in connection with the arrival of any 
passenger whose journey originated in Canada, Mexico, a United States 
territory or possession, or an adjacent island or which originated in 
the United States and was limited to those named places.
    Customs proposes in this document to amend the Customs Regulations 
to conform to the new fee structure.
Procedures for Payment of the New Fees
    Prior to the Act, only one fee applied to covered passengers under 
section 58c(a)(5), that is, $5 prior to January 1, 1994, $6.50 
beginning on January 1, 1994, and $5 beginning on October 1, 1997. With 
the Act's amendment of section 58c(a)(5), there are now two passenger 
fees, that is, the $5.00 fee of section 58c(a)(5)(A) where applicable 
and the $1.75 fee of section 58c(a)(5)(B) where applicable. Thus, since 
enactment of the Act, Customs must administer and account for two fees 
rather than one. This new fee structure requires amendment of the 
Customs Regulations to conform the regulatory procedures to the new fee 
structure.
    Under the current Customs Regulations, it is the responsibility of 
the carriers, travel agents, tour wholesalers, or other parties issuing 
tickets or travel documents to collect the fee from all passengers who 
are subject to the fee (19 CFR 24.22(g)(3)). These parties must make 
payment of the collected fees to Customs no later than 31 days after 
the close of the calendar quarter in which the fees were required to be 
collected from the passengers (19 CFR 24.22(g)(4)). The regulation also 
provides (in Sec. 24.22(g)(4)) that the quarterly fee payment must be 
accompanied by a statement that includes the name, address, and 
taxpayer identification number of the party remitting the payment and 
the calendar quarter covered by the payment.
    This document proposes to amend Sec. 24.22(g)(3) (redesignated in 
the proposed regulation as Sec. 24.22(g)(4)) to make clear that the 
party responsible for collecting the fee must collect a fee when an 
infant travels without a ticket or travel document. This follows 
Customs consistent practice of treating infants as passengers for 
purposes of the passenger fees. In this regard, Customs proposes to 
clarify this by adding to Sec. 24.22(g)(1) a definition of the term 
``passenger'' making it clear that it includes infants even if the 
carrier does not charge for their transportation and even if the infant 
is carried by another passenger rather than occupying a seat.
    The document also proposes to amend Sec. 24.22(g)(4) (redesignated 
as Sec. 24.22(g)(5)) to require the following additional information in 
the statement: The total number of tickets for which fees were required 
to be collected, including the total number of infants traveling 
without a ticket or travel document for which fees were required to be 
collected; the total amount of fees collected and remitted; with 
respect to vessel fees, the total number of tickets and non-ticketed 
infants for which fees were required to be collected and the total 
amount of fees collected; and a breakdown of vessel fees collected and 
remitted under section 58c(a)(5)(A) (the $5 per passenger fee) and 
section 58c(a)(5)(B) (the $1.75 per passenger fee). This additional 
information is necessary to enable Customs to properly account for the 
fees now provided for under section 58c(a)(5).

The Tariff Suspension and Trade Act of 2000

    A recent amendment to section 58c was made by section 1457 of the 
Tariff Suspension and Trade Act of 2000. Under section 1457, section 
58c(b)(1)(A)(iii) was amended to provide an exception to the fee 
limitation relative to ferries. Prior to this amendment, ferries were 
excepted from application of the fees under section 58c(a). With this 
self-effectuating amendment (effective on November 24, 2000), ferries 
whose operations began on or after August 1, 1999, and who operate 
south of 27 degrees latitude and east of 89 degrees longitude are now 
subject to the commercial vessel fee of section 58c(a)(1) (19 CFR 
24.22(b)(1)) (provided the ferry is of 100 net tons or more) and the 
$1.75 commercial vessel passenger fee of section 58c(a)(5)(B) (proposed 
paragraph (g)(1)(ii) of 19 CFR 24.22). (Customs notes that the 
definition of ``ferry'' excludes vessels that provide transportation 
between places that are more than 300 miles apart. This requirement 
necessarily means that the $1.75 commercial vessel passenger fee would 
be applicable because a ferry operating within the specified 
coordinates will arrive in the United States from a place that 
qualifies as an adjacent island under paragraph (g)(1)(iii) of this 
section. See the definition of ``ferry'' in 19 U.S.C. 58c(c)(1) and 19 
CFR 24.22(a)(4).) This amendment necessitates conforming amendments to 
Secs. 24.22(b)(4)(iv) and 24.22(g)(1) of the Customs Regulations.

Proposed Changes Based on Other Statutory Provisions

    This document also proposes to include provisions in Sec. 24.22(g) 
to cover the fee exemption provision set forth in section 
58c(b)(1)(A)(iv) and the ``one-time only fee'' set forth in section 
58c(b)(4)(B). These two statutory provisions are not reflected in the 
current regulation.
    The fee exemption provision under section 58c(b)(1)(A)(iv) provides 
that no fee under section 58c(a)(5) applies to passengers arriving 
aboard commercial vessels traveling only between ports that are within 
the customs territory of the United States. The one-time only fee 
provision of section 58c(b)(4)(B) applies where a fee under section 
58c(a)(5) is applicable to passengers arriving aboard a commercial 
vessel and the voyage is a single voyage involving two or more United 
States ports (in other words, the vessel proceeds coastwise to one or 
more United States ports after its initial arrival from a place outside 
the United States). This provision ensures that in the described 
situation, the applicable fee is charged only once for each passenger.
    Finally, under section 58c(b)(1)(A)(i)(I)(dd), the term ``adjacent 
islands'' is given meaning by reference to the definition of that term 
found at 8 U.S.C. 1101(b)(5). The adjacent islands are set forth under 
Sec. 24.22(g)(2)(i)(B) of the current Customs Regulations. The document 
proposes to amend the regulation in order to bring it up to date with 
the language of 8 U.S.C. 1101(b)(5). (See proposed 
Sec. 24.22(g)(1)(iii).) All islands found in the current regulation are 
covered in the proposed regulation (although not explicitly in every 
case).

Proposed Changes Regarding Administrative Practices

    Section 24.22(b)(3) of the Customs Regulations concerns the 
procedure for prepayment of the fee for the arrival of commercial 
vessels (that is, vessels of

[[Page 11957]]

100 net tons or more as well as barges and other bulk carriers arriving 
from Canada or Mexico). Section 24.22(c)(3) concerns the procedure for 
prepayment of the fee for the arrival of commercial vehicles. Section 
24.22(d) concerns the fee for the arrival of railroad cars and 
includes, in paragraph (d)(3), procedures for prepayment of the fee 
and, in paragraph (d)(4)(ii), procedures for monthly statement filing 
and fee remittance. In Sec. 24.22(e), which concerns the fee for the 
arrival of private vessels and private aircraft, paragraph (e)(1) 
covers payment of the fee at the time of arrival and paragraph (e)(2) 
covers the procedure for prepayment of the fee. Section 22.24(g)(4) 
covers the procedure for payment of fees for the arrival of passengers 
aboard commercial vessels and commercial aircraft. Section 24.22(h) 
concerns the annual customs broker permit fee. Section 24.22(i) 
concerns procedures for remittance of, and for submitting information 
relative to, the fees provided for under Sec. 24.22.
    This document proposes to amend the above regulatory provisions to 
reflect current fee payment and other practices, including 
clarification of the proper addresses for the mailing of payments, 
requirements for the user fee decal, and use of electronic and credit 
card payment options.

Technical Correction

    Upon routine review of the Part 24 texts, Customs discovered 
erroneous references to Sec. 142.13(c) (19 CFR 142.13(c)) in paragraphs 
(a), (c)(2), and (d) of Sec. 24.25, which pertains to statement 
processing and automated clearinghouse procedures. Section 142.13(c) is 
currently reserved, and the reference in the above paragraphs of 
Sec. 24.25 should instead be to Sec. 142.13(b), which pertains to 
special classes of merchandise.
    This document proposes to correct these erroneous references.

Conforming Changes to Part 111

    Part 111 of the Customs Regulations (19 CFR part 111) pertains to 
customs brokers and includes, in Secs. 111.19 and 111.96, references to 
the payment of the annual customs broker permit user fee referred to in 
Sec. 24.22(h). This document proposes amendments to Secs. 111.19 and 
111.96 to conform to the change to Sec. 24.22(h) referred to above and 
to clarify the payment procedure in connection with a national permit 
application.

Comments

    Before adopting these proposed amendments as a final rule, 
consideration will be given to any written comments timely submitted to 
Customs including comments on the clarity of the proposed rule and how 
it may be made easier to understand. Comments submitted will be 
available for public inspection in accordance with the Freedom of 
Information Act (5 U.S.C. 552), Sec. 1.4 of the Treasury Department 
Regulations (31 CFR 1.4), and Sec. 103.11(b) of the Customs Regulations 
(19 CFR 103.11(b)) on regular business days between the hours of 9 a.m. 
and 4:30 p.m. at the Regulations Branch, Office of Regulations and 
Rulings, U.S. Customs Service, 1300 Pennsylvania Avenue, NW, 3rd Floor, 
Washington, DC.

Executive Order 12866

    This document does not meet the criteria for a ``significant 
regulatory action'' as specified in E.O. 12866.

Regulatory Flexibility Act

    Based on the supplementary information set forth above and because 
the proposed amendments to the Customs Regulations concern collection 
of fees that are mandated by statute, it is certified, pursuant to the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.), 
that the proposed amendments, if adopted, will not have a significant 
economic impact on a substantial number of small entities. Accordingly, 
the proposed amendments are not subject to the regulatory analysis or 
other requirements of 5 U.S.C. 603 and 604.

Paperwork Reduction Act

    The collections of information contained in Sec. 24.22 have 
previously been approved by the Office of Management and Budget (OMB) 
under OMB control number 1515-0154 (User Fees). This notice of proposed 
rulemaking (NPRM) contains additional collections of information that 
have been submitted to OMB for review in accordance with the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507). An agency may not conduct or 
sponsor, and a person is not required to respond to, a collection of 
information that lacks a valid control number.
    The additional collections of information in these proposed 
regulations are at Sec. 24.22(g)(5)(iv) and (v), pertaining to 
information required in the statement that must accompany a quarterly 
fee payment relative to passenger fees. This information is necessary 
to allow Customs to track and account for the two passenger fees 
mandated in the Miscellaneous Trade and Technical Corrections Act of 
1999. The estimated burden to the public resulting from the additional 
collections is as follows:
    Estimated total annual reporting and/or recordkeeping burden: 100 
hrs.
    Estimated average annual burden per respondent/recordkeeper: 4 hrs.
    Estimated number of respondents and/or recordkeepers: 25.
    Estimated annual frequency of responses: 4.
    Comments on the additional collections of information should be 
sent to the OMB, Attention: Desk Officer for the Department of the 
Treasury, Office of Information and Regulatory Affairs, Washington, DC 
20503. A copy should also be sent to Customs at the address set forth 
in the ``Address'' section of this document.
    Comments are invited on:
    (a) Whether the additional collection of information is necessary 
for the proper performance of the functions of the agency, including 
whether the information shall have practical utility;
    (b) The accuracy of the agency's estimate of the additional 
information collection burden;
    (c) Ways to enhance the quality, utility, and clarity of the 
additional information to be collected;
    (d) Ways to minimize the additional information collection burden 
on respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operations, 
maintenance, and purchase of services to provide the additional 
information.

Drafting Information

    The principal author of this document was Bill Conrad, Office of 
Regulations and Rulings, U.S. Customs Service. Other personnel 
contributed in its development.

List of Subjects

19 CFR Part 24

    Accounting, Claims, Customs duties and inspection, Fees, Financial 
and accounting procedures, Imports, Taxes, User fees.

19 CFR Part 111

    Administrative practice and procedure, Brokers, Customs duties and 
inspection, Imports, Licensing.

Proposed Amendments to the Regulations

    For the reasons stated in the preamble, parts 24 and 111 of the 
Customs Regulations (19 CFR parts 24 and 111) are proposed to be 
amended as follows:

[[Page 11958]]

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

    1. The authority citation for part 24 continues to read in part as 
follows:

    Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General 
Note 23, Harmonized Tariff Schedule of the United States), 1505, 
1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701.
* * * * *
    2. It is proposed to amend Sec. 24.22 by:
    a. Revising paragraphs (b)(3), (b)(4)(iv), and (c)(3);
    b. In paragraph (d), revising the second sentence of paragraph 
(d)(3), adding a new sentence at the end of paragraph (d)(4)(ii), and, 
in the last sentence of paragraph (d)(5), removing the words ``, in 
accordance with the procedures set forth in paragraph (i)(2) of this 
section''
    c. Revising paragraphs (e)(1) and (e)(2);
    d. In paragraph (g), revising paragraph (g)(1), redesignating 
paragraphs (g)(2) through (g)(7) as (g)(3) through (g)(8), adding new 
paragraph (g)(2), revising newly redesignated paragraphs (g)(3), 
(g)(4), and (g)(5), and, at the end of the last sentence of newly 
redesignated paragraph (g)(7), removing the words ``, in accordance 
with the procedures set forth in paragraph (i)(2) of this section'' and
    e. Revising paragraphs (h) and (i).
    The revisions read as follows:


Sec. 24.22   Fees for certain services.

* * * * *
    (b) * * *
    (3) Prepayment. The vessel operator, owner, or agent may at any 
time prepay the maximum calendar year amount specified in paragraph 
(b)(1)(ii) or (b)(2)(ii) of this section, or any remaining portion of 
that amount if individual arrival fees have already been paid on the 
vessel for that calendar year. Prepayment must be made at a Customs 
port office. When prepayment is for the remaining portion of a maximum 
calendar year amount, certified copies of receipts (Customs Form 368 or 
368A) issued for individual arrival fee payments during the calendar 
year must accompany the payment.
    (4) Exceptions. * * *
    (iv) A ferry except for a ferry that began operations on or after 
August 1, 1999, and operates south of 27 degrees latitude and east of 
89 degrees longitude.
    (c) * * *
    (3) Prepayment. The owner, agent, or person in charge of a 
commercial vehicle may at any time prepay a fee of $100 to cover all 
arrivals of that vehicle during a calendar year or any remaining 
portion of a calendar year. Prepayment must be made in accordance with 
the procedures set forth in this paragraph and paragraph (i) of this 
section. Prepayment may be sent by mail, with a properly completed 
Customs Form 339, Annual User Fee Decal Request, to the following 
address: U.S. Customs Service, Decal Program Administrator, PO Box 
382030, Pittsburgh, PA 15250-8030. Alternatively, the decal request and 
prepayment by credit card may be made via the Internet through the 
``Traveler Information'' links at Customs website (http://www.customs.gov). A third option, prepayment at the port, is subject to 
the port director's discretion to maintain user fee decal inventories. 
Once the prepayment has been made under this paragraph, a decal will be 
issued to be permanently affixed by adhesive to the lower left hand 
corner of the vehicle windshield or on the left wing window, and 
otherwise in accordance with the accompanying instructions, to show 
that the vehicle is exempt from payment of the fee for individual 
arrivals during the applicable calendar year or any remaining portion 
of that year.
    (d) * * *
    (3) Prepayment. * * * The prepayment, accompanied by a letter 
setting forth the railroad car number(s) covered by the payment, the 
calendar year to which the payment applies, a return address, and any 
additional information required under paragraph (i) of this section, 
shall be mailed to: U.S. Customs Service, National Finance Center, 
Collections Section, PO Box 68907, Indianapolis, IN 46268 (or, if for 
overnight delivery, to: the same addressee at 6026 Lakeside Blvd., 
Indianapolis, IN 46278).
    (4) Statement filing and payment procedures. * * *
    (ii) * * * Payment must be made in accordance with this paragraph 
and paragraph (i) of this section and must be sent by mail to the 
following address: U.S. Customs Service, National Finance Center, 
Collections Section, PO Box 68907, Indianapolis, IN 46268 (or, if for 
overnight delivery, to: the same addressee at 6026 Lakeside Blvd., 
Indianapolis, IN 46278).
* * * * *
    (e) Fee for arrival of a private vessel or private aircraft.
    (1) Fee. Except as provided in paragraph (e)(3) of this section, 
the master or other person in charge of a private vessel or private 
aircraft must, upon first arrival in any calendar year, proceed to 
Customs and tender the sum of $25 to cover services provided in 
connection with all arrivals of that vessel or aircraft during that 
calendar year. A properly completed Customs Form 339, Annual User Fee 
Decal Request, must accompany the payment. Upon payment of the annual 
fee, a decal will be issued to be permanently affixed by adhesive to 
the vessel or aircraft, and otherwise in accordance with accompanying 
instructions, as evidence that the fee has been paid. Except in the 
case of private aircraft, and aircraft landing at user fee airports 
authorized under 19 U.S.C. 58b, all overtime charges provided for in 
this part remain payable notwithstanding payment of the fee specified 
in this paragraph.
    (2) Prepayment. A private vessel or private aircraft owner or 
operator may, at any time during the calendar year, prepay the $25 
annual fee specified in paragraph (e)(1) of this section. Prepayment 
must be made in accordance with the procedures set forth in this 
paragraph and paragraph (i) of this section. Prepayment may be sent by 
mail, along with a properly completed Customs Form 339, Annual User Fee 
Decal Request, to the following address: U.S. Customs Service, Decal 
Program Administrator, PO Box 382030, Pittsburgh, PA 15250-8030. 
Alternatively, the decal request and prepayment by credit card may be 
made via the Internet through the ``Traveler Information'' links at 
Customs website (http://www.customs.gov). A third option, prepayment at 
the port, is subject to the port director's discretion to maintain user 
fee decal inventories.
* * * * *
    (g) Fees for arrival of passengers aboard commercial vessels and 
commercial aircraft.
    (1) Fees. (i) Subject to paragraphs (g)(1)(ii) and (g)(3) of this 
section, a fee of $5 must be collected and remitted to Customs for 
services provided in connection with the arrival of each passenger 
aboard a commercial vessel or commercial aircraft from a place outside 
the United States, other than Canada, Mexico, one of the territories 
and possessions of the United States, or one of the adjacent islands, 
in either of the following circumstances:
    (A) When the journey of the arriving passenger originates in a 
place outside the United States other than Canada, Mexico, one of the 
territories or possessions of the United States, or one of the adjacent 
islands; or
    (B) When the journey of the arriving passenger originates in the 
United States and is not limited to Canada, Mexico, territories and 
possessions of the United States, and adjacent islands.
    (ii) Subject to paragraph (g)(3) of this section, a fee of $1.75 
must be collected and remitted to Customs for services

[[Page 11959]]

provided in connection with the arrival of each passenger aboard a 
commercial vessel from Canada, Mexico, one of the territories and 
possessions of the United States, or one of the adjacent islands, 
regardless of whether the journey of the arriving passenger originates 
in a place outside the United States or in the United States.
    (iii) For purposes of this paragraph (g), the term ``territories 
and possessions of the United States'' includes American Samoa, Guam, 
the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands, 
and the term ``adjacent islands'' includes Saint Pierre, Miquelon, 
Cuba, the Dominican Republic, Haiti, Bermuda, the Bahamas, Barbados, 
Jamaica, the Windward and Leeward Islands, Trinidad, Martinique, and 
other British, French, and Netherlands territory or possessions in or 
bordering on the Caribbean Sea.
    (iv) For purposes of this paragraph (g), a journey, which may 
encompass multiple destinations and more than one mode of 
transportation, will be deemed to originate in the location where the 
person's travel begins under cover of a transaction which includes the 
issuance of a ticket or travel document for transportation into the 
customs territory of the United States.
    (v) For purposes of this paragraph (g), the term passenger means a 
natural person for whom transportation is provided and includes an 
infant whether a separate ticket or travel document is issued for the 
infant or the infant occupies a seat or is held or carried by another 
passenger.
    (vi) For purposes of paragraph (g)(1)(ii) of this section, the term 
``commercial vessel'' includes any ferry that began operations on or 
after August 1, 1999, and operates south of 27 degrees latitude and 
east of 89 degrees longitude.
    (vii) In the case of a commercial vessel making a single voyage 
involving two or more United States ports, the applicable fee 
prescribed under paragraph (g)(1)(i) or (g)(1)(ii) of this section is 
required to be charged only one time for each passenger.
    (2) Fee chart. The chart set forth below outlines the application 
of the fees specified in paragraphs (g)(1)(i) and (ii) of this section 
with reference to the place where the passenger's journey originates 
and with reference to the place from which the passenger arrives in the 
United States (that is, the last stop on the journey prior to arrival 
in the United States). In the chart:
    (i) SL stands for ``Specified Location'' and means Canada, Mexico, 
any territories and possessions of the United States, and any adjacent 
islands;
    (ii) The single asterisk (*) means that the journey originating in 
the United States is limited to travel to one or more Specified 
Locations;
    (iii) The double asterisk (**) means that the journey originating 
in the United States includes travel to at least one place other than a 
Specified Location; and
    (iv) N/A indicates that the facts presented in the chart preclude 
application of the fee.

----------------------------------------------------------------------------------------------------------------
                                                               Fee status for arrival    Fee status for arrival
                                                                      from SL:             from other than SL:
      Place where journey originates (see (g)(1)(iv)):       ---------------------------------------------------
                                                                 Vessel      Aircraft      Vessel      Aircraft
----------------------------------------------------------------------------------------------------------------
SL..........................................................        $1.75        (\1\)        (\1\)        (\1\)
Other than SL or U.S........................................        $1.75        (\1\)           $5          $5.
U.S.*.......................................................        $1.75        (\1\)          N/A         N/A.
U.S.**......................................................        $1.75        (\1\)           $5         $5.
----------------------------------------------------------------------------------------------------------------
\1\ No fee.

    (3) Exceptions. The fees specified in paragraph (g)(1) of this 
section will not apply to the following categories of arriving 
passengers:
    (i) Crew members and persons directly connected with the operation, 
navigation, ownership or business of the vessel or aircraft, provided 
that the crew member or other person is traveling for an official 
business purpose and not for pleasure;
    (ii) Diplomats and other persons in possession of a visa issued by 
the United States Department of State in class A-1, A-2, C-2, C-3, G-1 
through G-4, or NATO 1-6;
    (iii) Persons arriving as passengers on any aircraft used 
exclusively in the governmental service of the United States or a 
foreign government, including any agency or political subdivision of 
the United States or foreign government, so long as the aircraft is not 
carrying persons or merchandise for commercial purposes. Passengers on 
commercial aircraft under contract to the U.S. Department of Defense 
are exempted if they have been precleared abroad under the joint DOD/
Customs Military Inspection Program;
    (iv) Persons arriving on an aircraft due to an emergency or forced 
landing when the original destination of the aircraft was a foreign 
airport;
    (v) Persons who are in transit to a destination outside the United 
States and for whom Customs inspectional services are not provided;
    (vi) Persons departing from and returning to the same United States 
port as passengers on board the same vessel without having touched a 
foreign port or place; and
    (vii) Persons arriving as passengers on board a commercial vessel 
traveling only between ports that are within the customs territory of 
the United States.
    (4) Fee collection procedures. (i) Each air or sea carrier, travel 
agent, tour wholesaler, or other party issuing a ticket or travel 
document for transportation into the customs territory of the United 
States is responsible for collecting from the passenger the applicable 
fee specified in paragraph (g)(1) of this section, including the fee 
applicable to any infant traveling without a separate ticket or travel 
document. The fee must be separately identified with a notation 
``Federal inspection fees'' on the ticket or travel document issued to 
the passenger to indicate that the required fee has been collected. A 
fee relative to an infant traveling without a ticket or travel document 
may be identified instead with the notation on a receipt or other 
document issued for that purpose or to record the infant's travel. If 
the ticket or travel document, or a receipt or other document issued 
relative to an infant traveling without a ticket or travel document, is 
not so marked and was issued in a foreign country, the fee must be 
collected by the departing carrier upon departure of the passenger from 
the United States. If the fee is collected at the time of departure 
from the United States, the carrier making the collection must issue a 
receipt to the passenger. U.S.-based tour wholesalers who contract for 
passenger space and issue non-carrier tickets or travel documents must 
collect the fee in the same manner as a carrier.

[[Page 11960]]

    (ii) Collection of the fee under paragraph (g)(1)(i) of this 
section will include the following circumstances:
    (A) When a through ticket or travel document is issued covering (or 
a receipt or other document issued for an infant traveling without a 
ticket or travel document indicates that the infant's journey is 
covering) a journey into the customs territory of the United States 
which originates in and arrives from a place outside the United States 
other than Canada, Mexico, one of the territories and possessions of 
the United States, or an adjacent island;
    (B) When a return ticket or travel document is issued (or a receipt 
or other document that indicates an infant traveling without a return 
ticket or travel document is issued) in connection with a journey which 
originates in the United States, includes a stop in a place other than 
Canada, Mexico, one of the territories and possessions of the United 
States, or an adjacent island, and the return arrival in the United 
States is from a place other than one of these specified places; and
    (C) When a passenger on a journey in transit through the United 
States to a foreign destination arrives in the customs territory of the 
United States from a place other than Canada, Mexico, one of the 
territories and possessions of the United States, or an adjacent 
island, is processed by Customs, and the journey does not originate in 
one of these specified places.
    (iii) Collection of the fee under paragraph (g)(1)(ii) of this 
section will include the following circumstances:
    (A) When a through ticket or travel document is issued covering (or 
a receipt or other document issued for an infant traveling without a 
ticket or travel document indicates that the infant's journey is 
covering) a journey into the customs territory of the United States 
from Canada, Mexico, one of the territories and possessions of the 
United States, or an adjacent island;
    (B) When a return ticket or travel document is issued (or a receipt 
or other document that indicates an infant traveling without a return 
ticket or travel document is issued) in connection with a journey which 
originates in the United States and the return arrival in the United 
States is from Canada, Mexico, one of the territories and possessions 
of the United States, or an adjacent island; and
    (C) When a passenger on a journey in transit through the United 
States to a foreign destination arrives in the customs territory of the 
United States from Canada, Mexico, one of the territories and 
possessions of the United States, or an adjacent island and is 
processed by Customs.
    (5) Quarterly payment and statement procedures. Payment to Customs 
of the fees required to be collected under paragraph (g)(1) of this 
section must be made no later than 31 days after the close of the 
calendar quarter in which the fees were required to be collected from 
the passenger. Payment of the fees must be made, in accordance with the 
procedures set forth in this paragraph and paragraph (i) of this 
section, by the party required to collect the fee under paragraph 
(g)(4)(1) of this section. Each quarterly fee payment must be sent to 
the following address: U.S. Customs Service, National Finance Center, 
Collections Section, P.O. Box 68907, Indianapolis, IN 46268 (or, if for 
overnight delivery, to: the same addressee at 6026 Lakeside Blvd., 
Indianapolis, IN 46278). Overpayments and underpayments may be 
accounted for by an explanation with, and adjustment of, the next due 
quarterly payment to Customs. The quarterly payment must be accompanied 
by a statement that includes the following information:
    (i) The name and address of the party remitting payment;
    (ii) The taxpayer identification number of the party remitting 
payment;
    (iii) The calendar quarter covered by the payment;
    (iv) The total number of tickets for which fees were required to be 
collected, the total number of infants traveling without a ticket or 
travel document for which fees were required to be collected, and the 
total amount of fees collected and remitted; and
    (v) For commercial vessel passengers, the total number of tickets 
for which fees were required to be collected, the total number of 
infants traveling without a ticket or travel document for which fees 
were required to be collected, the total amount of fees collected and 
remitted to Customs, and a separate breakdown of the foregoing 
information relative to the $5 vessel passenger fee collected and 
remitted under paragraph (g)(1)(i) of this section and the $1.75 vessel 
passenger fee collected and remitted under paragraph (g)(1)(ii) of this 
section.
* * * * *
    (h) Annual customs broker permit fee. Customs brokers are subject 
to an annual fee for each district permit and for a national permit 
held by an individual, partnership, association, or corporation, as 
provided in Sec. 111.96(c) of this chapter. The annual fee for each 
district permit must be submitted to the port through which the broker 
was granted the permit. The annual fee for a national permit must be 
submitted to the port through which the broker's license is delivered.
    (i) Information submission and fee remittance procedures. In 
addition to any information specified elsewhere in this section, each 
payment made by mail must be accompanied by information identifying the 
person or organization remitting the fee, the type of fee being 
remitted (for example, railroad car, commercial truck, private vessel), 
and the time period to which the payment applies. All fee payments 
required under this section must be in the amounts prescribed and must 
be made in U.S. currency, or by check or money order payable to the 
United States Customs Service, in accordance with the provisions of 
Sec. 24.1 of this part. Authorization for making payments 
electronically can be obtained by writing to the National Finance 
Center, Collections Section, 6026 Lakeside Blvd., Indianapolis, IN 
46278. Where payment is made at a Customs port, credit cards will be 
accepted only where the port is equipped to accept credit cards for the 
type of payment being made. If payment is made by check or money order, 
the check or money order must be annotated with the appropriate class 
code. The applicable class codes and payment locations for each fee are 
as follows:
    (1) Fee under paragraph (b)(1) of this section (commercial vessels 
of 100 net tons or more other than barges and other bulk carriers from 
Canada or Mexico): class code 491. Payment location: port of arrival 
for each individual arrival (fee to be collected by Customs at the time 
of arrival) or prepayment at the port in accordance with paragraph 
(b)(3) of this section;
    (2) Fee under paragraph (b)(2) of this section (barges and other 
bulk carriers from Canada or Mexico): class code 498. Payment location: 
port of arrival for each individual arrival (fee to be collected by 
Customs at the time of arrival) or prepayment at the port in accordance 
with paragraph (b)(3) of this section;
    (3) Fee under paragraph (c) of this section (commercial vehicles): 
for each individual arrival, class code 492; for prepayment of the 
maximum calendar year fee, class code 902. Payment location: port of 
arrival for each individual arrival (fee to be collected by Customs at 
the time of arrival) or prepayment in accordance with paragraph (c)(3) 
of this section;
    (4) Fee under paragraph (d) of this section (railroad cars): for 
each individual arrival (under the monthly payment and statement filing

[[Page 11961]]

procedure), class code 493; for prepayment of the maximum calendar year 
fee, class code 903. Payment location: for individual arrivals (monthly 
payment and statement filing), see paragraph (d)(4)(ii) of this 
section; for prepayment, see paragraph (d)(3) of this section;
    (5) Fee under paragraph (e) of this section (private vessels and 
aircraft): for private vessels, class code 904; for private aircraft, 
class code 494. Payment location: port of arrival for each individual 
arrival (fee to be collected by Customs at the time of arrival) or 
prepayment in accordance with paragraph (e)(2) of this section;
    (6) Fee under paragraph (f) of this section (dutiable mail): class 
code 496. Payment location: see paragraph (f) of this section;
    (7) Fee under paragraph (g)(1)(i) of this section (the $5 fee for 
commercial vessel and commercial aircraft passengers): class code 495. 
Payment location: see paragraph (g)(5) of this section;
    (8) Fee under paragraph (g)(1)(ii) of this section (the $1.75 fee 
for commercial vessel passengers): class code 484. Payment location: 
see paragraph (g)(5) of this section; and
    (9) Fee under paragraph (h) of this section (customs broker 
permits): for district permits, class code 497; for national permits, 
class code 997. Payment location: see paragraph (h) of this section.
* * * * *
    3. It is proposed to amend Sec. 24.25 in paragraphs (a), (c)(2), 
and (d) by removing the reference ``Sec. 142.13(c)'' wherever it 
appears and adding, in its place, the reference ``Sec. 142.13(b)''.

PART 111--CUSTOMS BROKERS

    1. The authority citation for Part 111 continues to read in part as 
follows:

    Authority: 19 U.S.C. 66, 1202, (General Note 23, Harmonized 
Tariff Schedule of the United States), 1624, 1641.
* * * * *
    Section 111.96 also issued under 19 U.S.C. 58c; 31 U.S.C. 9701.
    2. It is proposed to amend Sec. 111.19 by revising paragraphs (c) 
and (f)(4) to read as follows:


Sec. 111.19  Permits.

* * * * *
    (c) Fees. Each application for a district permit under paragraph 
(b) of this section must be accompanied by the $100 and $125 fees 
specified in Secs. 111.96(b) and (c). In the case of an application for 
a national permit under paragraph (f) of this section, the $100 fee 
specified in Sec. 111.96(b) and the $125 fee specified in 
Sec. 111.96(c) must be paid at the port through which the applicant's 
license was delivered (see Sec. 111.15) prior to submission of the 
application. The $125 fee specified in Sec. 111.96(c) also must be paid 
in connection with the issuance of an initial district permit 
concurrently with the issuance of a license under paragraph (a) of this 
section.
* * * * *
    (f) National permit. * * *
    (4) Attach a receipt or other evidence showing that the fees 
specified in Sec. 111.96(b) and (c) have been paid in accordance with 
paragraph (c) of this section.
* * * * *
    3. It is proposed to amend Sec. 111.96 by revising paragraph (b); 
and in paragraph (c) by removing from the second sentence the words 
``or upon filing the application for the'' and adding in their place 
the words ``or in connection with the filing of an application for a''; 
and by removing from the same sentence the reference 
``Sec. 111.19(f)(4)'' and adding in its place ``Sec. 111.19(c)''. The 
revision reads as follows:


Sec. 111.96  Fees.

* * * * *
    (b) Permit fee. A fee of $100 must be paid in connection with each 
permit application under Sec. 111.19 to defray the costs of processing 
the application, including an application for reinstatement of a permit 
that was revoked by operation of law or otherwise.
* * * * *

Charles W. Winwood,
Acting Commissioner of Customs.
    Approved: March 13, 2002.
Timothy E. Skud,
Acting Deputy Assistant Secretary of the Treasury.
[FR Doc. 02-6369 Filed 3-15-02; 8:45 am]
BILLING CODE 4820-02-P