[Federal Register Volume 68, Number 142 (Thursday, July 24, 2003)]
[Rules and Regulations]
[Pages 43624-43630]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-18837]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Parts 24 and 111

[CBP Decision 03--13]
RIN 1515-AC81


User Fees

AGENCY: Customs and Border Protection, Department of Homeland Security.

ACTION: Final rule.

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SUMMARY: This document adopts as a final rule proposed amendments to 
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 amended regulations set 
forth the 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 and 
Border Protection administers certain user fees. Also, minor conforming 
changes are made to the regulations pertaining to customs brokers.

EFFECTIVE DATE: August 25, 2003.

FOR FURTHER INFORMATION CONTACT: Concerning user fees applicable to 
commercial vessel and aircraft

[[Page 43625]]

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

    On March 18, 2002, Customs and Border Protection (CBP; the bureau 
within the new Department of Homeland Security that includes the former 
U.S. Customs Service) published a notice of proposed rulemaking (NPRM) 
in the Federal Register (67 FR 11954) proposing to amend part 24 of the 
Customs Regulations pertaining to user fees (19 CFR part 24) and 
certain related sections of part 111 pertaining to customs brokers (19 
CFR part 111). The NPRM set forth the bases for the proposed changes to 
part 24 as follows: (1) Some proposed changes derived 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 
proposed change was 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 proposed changes were based on other 
statutory provisions that were not reflected in the regulations; (4) 
some proposed changes were designed to bring the regulations up to date 
with current administrative practices; and (5) one proposed change was 
a technical correction. The NPRM provided that the proposed changes to 
part 111 were designed to clarify administration of the annual user fee 
and the permit fees for customs brokers. The changes that were proposed 
are further discussed below.

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

The Fee Structure

    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 
CBP. Paragraph (b)(1) of section 2418 of the Act amended the fee 
structure set forth under section 58c(a)(5) applicable to passengers 
arriving in the United States on board commercial vessels or aircraft. 
Prior to the Act, only one fee applied to these covered passengers 
under section 58c(a)(5), as follows: $6.50 beginning on January 1, 
1994, and applying to passengers arriving from a place outside the 
customs territory of the United States and $5 beginning on October 1, 
1997, and applying to passengers arriving from a place outside the 
United States other than Canada, Mexico, a United States territory or 
possession, or an adjacent island. The amendment continued the $5 fee 
applicable to each passenger arriving in the United States aboard a 
commercial vessel or aircraft from a place outside the United States 
other than Canada, Mexico, a United States territory or possession, or 
an adjacent island. This fee, formerly provided for under section 
58c(a)(5)(B), is now provided for under section 58c(a)(5)(A). The 
amendment also imposed, under section 58c(a)(5)(B), a fee of $1.75 per 
passenger arriving aboard a commercial vessel (not a commercial 
aircraft) from Canada, Mexico, a United States territory or possession, 
or an adjacent island. 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.
    In the NPRM, CBP proposed to amend Sec.  24.22(g), Customs 
Regulations (19 CFR 24.22), to conform the regulations to the new fee 
structure of amended sections 58c(a)(5)(A) and (B).

Procedures for Payment of the New Fees

    The NPRM also proposed changes to the Customs Regulations relative 
to the fee payment procedure. Under the current 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 (Sec.  24.22(g)(3) in 
the current regulations). These parties must make payment of the 
collected fees to CBP no later than 31 days after the close of the 
calendar quarter in which the fees were required to be collected from 
the passengers (Sec.  24.22(g)(4) in the current regulations). Current 
Sec.  24.22(g)(4) also provides 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.
    The NPRM proposed to amend Sec.  24.22(g)(3) 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 CBP's 
consistent practice of treating infants as passengers for purposes of 
the passenger fees. Thus, CBP proposed to add 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).
    Because CBP, since enactment of the Act, has had to administer two 
fees rather than one, the NPRM also proposed to amend Sec.  24.22(g)(4) 
to require the following additional information in the statement 
required under that section: The total number of tickets for which fees 
were required to be collected, as well as 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 CBP to properly account 
for the fees now provided for under section 58c(a)(5).

Changes Based on the Tariff Suspension and Trade Act of 2000

    The NPRM proposed amendments to Sec. Sec.  24.22(b)(4)(iv) and 
24.22(g)(1) of the Customs Regulations to conform the regulations to a 
statutory amendment regarding ferries. Section 1457 of the Tariff 
Suspension and Trade Act of 2000 amended section 58c(b)(1)(A)(iii) 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). While this amendment was self-effectuating, 
effective on November 24, 2000, making ferries commencing operations on 
or after August 1, 1999, and operating south of 27 degrees latitude and 
east of 89 degrees longitude subject to the commercial vessel fee of 
section 58c(a)(1) (and Sec.  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), the NPRM proposed to set forth the statutory 
requirement in the Customs Regulations.

Changes Based on Other Statutory Provisions

    The NPRM also proposed to amend 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.

[[Page 43626]]

    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, if a vessel proceeds coastwise to one or 
more United States ports after its initial arrival from a place outside 
the United States, the applicable fee is charged only once for each 
passenger.
    The NPRM also proposed to amend Sec.  24.22(g) in order to reflect 
in Sec.  24.22(g)(1)(iii) the definition of the term ``adjacent 
islands'' set forth in 8 U.S.C. 1101(b)(5). Under section 
58c(b)(1)(A)(i)(I)(dd), the term ``adjacent islands'' is given meaning 
by reference to 8 U.S.C. 1101(b)(5).

Changes Regarding Administrative Practices

    The NPRM proposed to amend various provisions of the regulation to 
reflect current fee payment and other practices, including 
clarification of the proper addresses for the mailing of payments, 
requirements for obtaining and using the user fee decal, and use of 
electronic and credit card payment options. These amendments were 
proposed for the following sections of the regulation: Sec.  
24.22(b)(3) which concerns the procedure for prepayment of the fee for 
the arrival of commercial vessels (that is, vessels of 100 net tons or 
more as well as barges and other bulk carriers arriving from Canada or 
Mexico); Sec.  24.22(c)(3) which concerns the procedure for prepayment 
of the fee for the arrival of commercial vehicles; Sec.  24.22(d) which 
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; Sec.  24.22(e)(1) and (2), which concern, respectively, 
payment of the fee at the time of arrival of private vessels and 
private aircraft and prepayment of the fee; Sec.  22.24(g)(4) which 
covers the procedure for payment of fees for the arrival of passengers 
aboard commercial vessels and commercial aircraft; Sec.  24.22(h) which 
concerns the annual customs broker permit fee; and Sec.  24.22(i) which 
concerns procedures for remittance of, and for submitting information 
relative to, the fees provided for under Sec.  24.22.

Changes To Make a Technical Correction

    The NPRM proposed to correct several erroneous references to Sec.  
142.13(c) (19 CFR 142.13(c)) found 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.

Conforming Changes to Part 111

    Lastly, the NPRM proposed to amend certain sections of Part 111 of 
the Customs Regulations (19 CFR part 111) which pertains to customs 
brokers. Specifically, it was proposed to amend Sec. Sec.  111.19 and 
111.96 to conform to the change made to Sec.  24.22(h) referred to 
above and to clarify the payment procedure in connection with a 
national customs broker permit application. In Sec. Sec.  111.19 and 
111.96, there are references to the payment of the annual customs 
broker permit user fee referred to in Sec.  24.22(h).

Comments

    One comment was received in response to the NPRM.
    Comment: The commenter recommended the removal from the regulations 
of the exception found under Sec.  24.22(e)(3)(i) which excepts private 
vessels less than 30 feet in length (and not carrying any goods that 
must be declared to CBP) from the fee imposed on private vessels under 
Sec.  24.22(e)(1). The commenter based the recommendation on the 
grounds that the regulations require that all private vessels, 
regardless of tonnage or length, must report their arrival in the 
United States (see Sec.  123.1(c)) and thus these vessels, including 
those under 30 feet in length, should not be exempt from the fee.
    CBP response: CBP, at this time, is not adopting the commenter's 
recommendation to remove from the regulations the fee exception for 
private vessels of less than 30 feet in length. These vessels have been 
excepted from the fee because CBP incurred no processing costs in 
clearing them. Now, however, CBP requires the operators of these 
vessels to call when they arrive but does not inspect all of them. CBP 
will evaluate the matter and consider whether the exception should be 
retained, removed, or modified.

Conclusion

    Based on analysis of the comment received and further review of the 
matter, CBP believes that the proposed regulatory amendments should be 
adopted without change.

Executive Order 12866

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

Regulatory Flexibility Act

    This amendment to the Customs Regulations will conform the 
regulations to already enacted statutory provisions concerning the 
collection of fees and will enhance the efficiency of the fee payment 
and collection process to the advantage of the public. Thus, it is 
certified, pursuant to the provisions of the Regulatory Flexibility Act 
(5 U.S.C. 601 et seq.), that the regulatory amendments set forth in 
this document will not have a significant economic impact on a 
substantial number of small entities. Moreover, the new reporting 
requirements in this document impose an insignificant amount of 
additional annual burden on small businesses. Accordingly, the 
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). 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 collections of information in this final rule are in 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 CBP to track and 
account for the two passenger fees mandated in the Miscellaneous Trade 
and Technical Corrections Act of 1999. These collections of information 
are mandatory. The likely respondents and recordkeepers are small 
businesses or organizations.
    The estimated average annual burden associated with the collections 
of information in this final rule is four hours per respondent/
recordkeeper.
    Comments concerning the accuracy of this burden estimate and 
suggestions for reducing this burden should be directed to the OMB, 
Attention: Desk Officer for the Department of Homeland Security/Bureau 
of Customs and Border Protection, Office of Information and Regulatory 
Affairs, Washington, DC 20503. A copy should also be sent to the 
Regulations Branch, Office of

[[Page 43627]]

Regulations and Rulings, Customs and Border Protection, 1300 
Pennsylvania Avenue, NW., Washington, DC 20229.

Drafting Information

    The principal author of this document was Bill Conrad, Office of 
Regulations and Rulings, Customs and Border Protection. 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.

Amendments to the Regulations

0
For the reasons stated in the preamble, parts 24 and 111 of the Customs 
Regulations (19 CFR parts 24 and 111) are amended as follows:

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
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.
* * * * *

0
2. Section 24.22 of the regulations is amended by:
0
a. Revising paragraphs (b)(3), (b)(4)(iv), and (c)(3);
0
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'';
0
c. Revising paragraphs (e)(1) and (e)(2);
0
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 designated paragraphs (g)(3), (g)(4), 
and (g)(5), and, at the end of the last sentence of newly designated 
paragraph (g)(7), removing the words '', in accordance with the 
procedures set forth in paragraph (i)(2) of this section''; and
0
e. Revising paragraphs (h) and (i).
    The revisions read as follows:


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 CBP 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: Bureau of Customs and Border Protection, Decal Program 
Administrator, P.O. 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 
CBP's website (http://www.cbp.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, 
must be mailed to: Customs and Border Protection, 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).
    (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: Customs and Border Protection, 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).
* * * * *
    (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 CBP 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, 
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: Customs and Border Protection, 
Decal Program Administrator, P.O. 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 CBP's website (http://www.cbp.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

[[Page 43628]]

section, a fee of $5 must be collected and remitted to CBP 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 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 from SL         Fee status for arrival
    Place where journey originates (see    --------------------------------------------    from other than SL
                (g)(1)(iv))                                                            -------------------------
                                               Vessel               Aircraft               Vessel      Aircraft
----------------------------------------------------------------------------------------------------------------
SL........................................        $1.75  No fee.......................       No fee       No fee
Other than SL or U.S......................        $1.75  No fee.......................           $5           $5
U.S.*.....................................        $1.75  No fee.......................          N/A          N/A
U.S.**....................................        $1.75  No fee.......................           $5           $5
----------------------------------------------------------------------------------------------------------------

    (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/
CBP 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 CBP 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

[[Page 43629]]

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.
    (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 to 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 CBP, 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 to 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 CBP.
    (5) Quarterly payment and statement procedures. Payment to CBP 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: Customs and Border Protection, 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 CBP. 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 CBP, 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 Customs 
and Border Protection, 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 CBP 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 CBP 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

[[Page 43630]]

collected by CBP 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 CBP 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 
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 CBP 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.
* * * * *


0
3. Paragraphs (a), (c)(2), and (d) of Sec.  24.25 are amended 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

0
4. 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.


0
5. Section 111.19 is amended 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 Sec. Sec.  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.
* * * * *

0
6. Section 111.96 is amended by revising paragraph (b); 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.
* * * * *

    Dated: July 21, 2003.
Robert C. Bonner,
Commissioner, Customs and Border Protection.
    Approved: July 21, 2003.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 03-18837 Filed 7-23-03; 8:45 am]
BILLING CODE 4820-02-P