[Federal Register Volume 73, Number 151 (Tuesday, August 5, 2008)]
[Proposed Rules]
[Pages 45364-45368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-17967]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 24

[Docket No. USCBP 2007-0111]
RIN 1505-AB97


Electronic Payment and Refund of Quarterly Harbor Maintenance 
Fees

AGENCIES: Customs and Border Protection, Department of Homeland 
Security; Department of the Treasury.

ACTION: Notice of proposed rulemaking.

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SUMMARY: This document proposes to amend title 19 of the Code of 
Federal Regulations by prescribing alternative procedures by which 
payers of the quarterly harbor maintenance fee (HMF) may submit their 
payments or refund requests to Customs and Border Protection (CBP) 
electronically via an Internet account established by the payer and 
located at http://www.pay.gov. CBP will continue to accept quarterly 
HMF payments or refund requests via mail. It is also proposed to 
clarify the regulations to state that each HMF quarterly payment, 
whether paper or electronic, must be accompanied by a CBP Form 349 (HMF 
Quarterly Summary Report). The changes proposed in this document are 
intended to provide the trade with expanded electronic payment/refund 
options for quarterly HMFs and to modernize and enhance CBP's port use 
fee collection efforts.

DATES: Comments must be received on or before October 6, 2008.

ADDRESSES: You may submit comments, identified by docket number, by one 
of the following methods:
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments via docket number USCBP 
2007-0111.
     Mail: Trade and Commercial Regulations Branch, Regulations 
and Rulings, U.S. Customs and Border Protection, 1300 Pennsylvania 
Avenue, NW., (Mint Annex), Washington, DC 20229.
    Instructions: All submissions received must include the agency name 
and docket number for this rulemaking. All comments received will be 
posted without change to http://www.regulations.gov, including any 
personal information provided. For detailed instructions on submitting 
comments and additional information on the rulemaking process, see the 
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION 
section of this document.
    Docket: For access to the docket to read background documents or 
comments received, go to http://www.regulations.gov. Submitted comments 
may also be inspected during regular business days between the hours of 
9 a.m. and 4:30 p.m. at the Trade and Commercial Regulations Branch, 
Regulations and Rulings, U.S. Customs and Border Protection, 799 9th 
Street, NW., 5th Floor, Washington, DC. Arrangements to inspect 
submitted comments should be made in advance by calling Joseph Clark at 
(202) 572-8768.

[[Page 45365]]


FOR FURTHER INFORMATION CONTACT: Deborah Thompson, Office of Finance, 
Revenue Division, Collections, Refunds and Analysis Branch, (317) 614-
4511.

SUPPLEMENTARY INFORMATION:

Public Participation

    Interested persons are invited to participate in this rulemaking by 
submitting written data, views, or arguments on all aspects of the 
proposed rule. Customs and Border Protection (CBP) also invites 
comments that relate to the economic, environmental, or federalism 
effects that might result from this proposed rule. If appropriate to a 
specific comment, the commenter should reference the specific portion 
of the proposed rule, explain the reason for any recommended change, 
and include data, information, or authority that support such 
recommended change.

Background

Harbor Maintenance Fee (HMF)

    The harbor maintenance fee (HMF) was created by the Water Resources 
Development Act of 1986 (Pub. L.99-622, 26 U.S.C. 4461 et seq.). The 
purpose of the fee is to require those who benefit from the maintenance 
of U.S. ports and harbors to share in the associated costs of such 
maintenance. The HMF is assessed based on 0.125 percent of the value of 
commercial cargo loaded or unloaded at certain identified ports or, in 
the case of passengers, on the value of the actual charge paid for the 
transportation.

Existing HMF Regulations

    The HMF implementing regulations are set forth in Sec.  24.24 of 
title 19 of the Code of Federal Regulations (19 CFR 24.24). Section 
24.24(e) sets forth the procedures applicable to HMF collections, 
supplemental payments, and refunds. Generally, this provision requires 
accumulated HMFs to be paid on a quarterly basis by mailing a check or 
money order to a specified CBP address, accompanied by a CBP Form 349 
(HMF Quarterly Summary Report). See 19 CFR 24.24(e)(1)(ii), (2)(iii), 
and (3)(ii). A supplemental HMF payment or refund request must be 
accompanied by a CBP Form 350 (HMF Amended Quarterly Summary Report), 
along with a copy of the CBP Form 349. See 19 CFR 24.24(e)(4)(i) and 
(iii). Section 24.24(f) provides that all quarterly payments required 
by this section be received no later than 31 days after the close of 
the quarter being paid.

Proposed Amendments to the HMF Regulations

    Most of the changes proposed in this document affect 19 CFR 
24.24(e) which, as noted above, sets forth the procedures applicable to 
HMF payments and refunds. Specifically, this document proposes new 
alternative procedures that would permit the electronic payment of 
quarterly HMFs using the Automated Clearinghouse (ACH) via an Internet 
account established by the payer and located at http://www.pay.gov. 
Requests for HMF refunds may also be made through http://www.pay.gov. 
Approved HMF refund payments will be made via ACH to those payers who 
are enrolled in the ACH refund program; all others will receive refund 
payments via mail. As these proposed electronic procedures are 
voluntary, CBP will continue to accept HMF payments and refund requests 
sent via mail.
    Pay.gov is a secure Internet payment platform provided by the 
Financial Management Service (FMS) for payments to federal agencies. 
CBP has migrated payment of certain fees and taxes to the pay.gov 
platform through the use of ACH debit transactions. CBP will distribute 
a user-guide to HMF payers that provides information regarding account 
set-up and related issues.
    This document also proposes to clarify 19 CFR 24.24(e) to require 
that, for both paper and electronic payments of the quarterly HMF, a 
CBP Form 349 must accompany each HMF payment. All three provisions of 
the existing HMF payment regulations set forth at 19 CFR 
24.24(e)(1)(ii), (2)(iii), and (3)(ii) require the payer to pay all 
fees for which he is liable for the quarter by mailing a check or money 
order payable to CBP and a Harbor Maintenance Fee Quarterly Summary 
Report, Customs Form 349. Based on the existing terms of these 
provisions, a payer is required to remit a single quarterly payment to 
CBP accompanied by a single CBP Form 349. In practice, however, CBP has 
received HMF payments by methods that do not follow the regulations. 
For example, CBP has received several HMF payments from a single payer 
for a quarter or, in the alternative, a single HMF payment that is 
accompanied by several CBP Form 349s. In a purely paper environment, 
CBP was able to process these submissions. In the context of an 
electronic paperless environment, however, it is proposed to require 
that a single CBP Form be submitted with each HMF payment to support 
the transactional requirements of http://www.pay.gov and to promote 
consistency and harmonization of HMF collection procedures.
    These proposed changes, other than those involving non-substantive 
editorial changes, are discussed below in more detail.

Explanation of Amendments

    It is proposed to amend 19 CFR 24.24 to set forth alternative 
expanded procedures for the electronic payment and refund of quarterly 
HMFs. It is also proposed to amend this section to require that each 
HMF quarterly payment or refund request, whether paper or electronic, 
be accompanied by a CBP Form 349 or 350, as appropriate.

Section 24.24(c)(8)(i)

    Section 24.24(c) describes the types of commercial cargo that are 
exempt from the HMF. Within this provision, paragraph (c)(8)(i) 
specifies donated cargo that is certified by CBP as intended for use in 
humanitarian or development assistance overseas, including contiguous 
countries, as exempt from the HMF. The existing regulations direct that 
a request for a refund made pursuant to this provision should be made 
on a CBP Form 350 and sent to the Office of Finance located at CBP 
Headquarters in Washington, DC, along with a CBP Form 349 for each 
quarter for which a refund is requested and supporting evidence that 
establishes that the entity donating the cargo is a nonprofit 
organization or cooperative and that the cargo was intended for 
humanitarian or development assistance overseas.
    It is proposed to amend this provision to clarify that HMF refund 
requests must be submitted to CBP on a Harbor Maintenance Fee Amended 
Quarterly Summary Report, CBP Form 350, and to provide that the form 
may either be mailed to the Office of Finance, Revenue Division, 
Customs and Border Protection, 6650 Telecom Drive, Indianapolis, 
Indiana 46278, or it may be submitted electronically to CBP via an 
Internet account established by the payer and located at http://www.pay.gov. Upon request by CBP, the party requesting the refund must 
also submit to CBP, via mail, the Harbor Maintenance Fee Quarterly 
Summary Report, CBP Form 349, for the quarter covering the payment to 
which the refund request relates as well as any supporting 
documentation deemed necessary by CBP to certify that the entity 
donating the cargo is a nonprofit organization or cooperative and that 
the cargo was intended for humanitarian or development assistance 
overseas (including contiguous countries). Approved HMF refund payments 
will

[[Page 45366]]

be made via ACH to those payers who are enrolled in the ACH refund 
program; all others will receive HMF refund payments via mail.

Section 24.24(e)

    Section 24.24(e) sets forth the procedures applicable to HMF 
collections, supplemental payments and refunds. Section 24.24(e)(1)(ii) 
prescribes the method by which the shipper whose name appears on the 
Vessel Operation Report must pay the HMF for domestic vessel movements. 
Specifically, this provision directs that the shipper pay the 
accumulated fees on a quarterly basis by mailing a check or money order 
to CBP along with the CBP Form 349.
    It is proposed to amend this provision to state that the shipper 
may submit the quarterly HMF payments to CBP either electronically 
using ACH via an Internet account established by the payer and located 
at http://www.pay.gov or by check or money order to the address 
specified therein. It is also proposed to clarify this provision to 
state that each HMF quarterly payment, whether paper or electronic, 
must be accompanied by a CBP Form 349.
    Several other provisions within Sec.  24.24(e) currently require 
the payer to submit HMF payments or refund requests on a quarterly 
basis by mailing a check or money order to CBP along with the CBP Form 
349 or 350, as applicable.
    In Sec. Sec.  24.24(e)(2)(iii), 24.24(e)(3)(ii), and 
24.24(e)(4)(iii), it is proposed to make changes similar to those 
described above to reflect that a payer may submit quarterly HMF 
payments to CBP either electronically using ACH via an Internet account 
established by the payer and located at http://www.pay.gov or by check 
or money order to the address specified therein and that each HMF 
payment, whether paper or electronic, must be accompanied by a CBP Form 
349. Similarly, it is proposed that each HMF refund request must be 
submitted on a CBP Form 350 and may either be submitted to CBP 
electronically via an Internet account established by the payer and 
located at http://www.pay.gov or via mail. Upon request by CBP, the 
party requesting the refund must submit to CBP, via mail, the CBP Form 
349 for the quarter covering the payment to which the refund request 
relates as well as any supporting documentation deemed necessary by 
CBP. Approved HMF refund payments will be made via ACH to those payers 
who are enrolled in the ACH refund program; all others will receive HMF 
refund payments via mail.
    Section 24.24(e)(4)(iv)(B)(4) provides that a protest may be filed 
for any payment not approved for a refund in a Revised Report/
Certification within 90 days of the issuance of that report. As the 
Miscellaneous Trade and Technical Corrections Act of 2004 (Pub. L.108-
429, 118 Stat. 2593) extended the time to file and amend a protest from 
90 days to 180 days, it is proposed to amend this provision 
accordingly.

Section 24.24(g)

    Section 24.24(g) sets forth the recordkeeping requirements 
applicable to this section. This provision directs the parties 
responsible for the maintenance of records to provide certain contact 
information to the Director, Accounting Services in Accounts 
Receivable. It is proposed to amend this provision to reflect that this 
information be provided to the Director, Revenue Division.

The Regulatory Flexibility Act and Executive Order 12866

    Because these proposed amendments implement alternative procedures 
that provide expanded electronic payment/refund options for quarterly 
HMFs and do not require small entities to change their business 
practices, pursuant to the provisions of the Regulatory Flexibility 
Act, 5 U.S.C. 601 et seq., it is certified that, if adopted, the 
proposed amendments will not have a significant economic impact on a 
substantial number of small entities. Further, these proposed 
amendments do not meet the criteria for a ``significant regulatory 
action'' as specified in E.O. 12866.

Paperwork Reduction Act

    The collections of information in the current regulations have 
already been approved by the Office of Management and Budget (OMB) in 
accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507) 
and assigned OMB control number 1651-0055 (harbor maintenance fee). 
This rule does not involve any material change to the existing approved 
information collection. An agency may not conduct or sponsor, and a 
person is not required to respond to, a collection of information 
unless the collection of information displays a valid control number 
assigned by OMB.

Signing Authority

    This document is being issued in accordance with 19 CFR 0.1(a)(1).

List of Subjects in 19 CFR Part 24

    Accounting, Claims, Customs duties and inspection, Exports, 
Imports, Interest, Reporting and recordkeeping requirements, Taxes, 
User fees, Wages.

Amendments to the Regulations

    For the reasons set forth in the preamble, part 24 of title 19 of 
the CFR (19 CFR part 24) is proposed to be amended as set forth below.

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 3(i), Harmonized Tariff Schedule of the United States), 1505, 
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 9701; Public Law 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
    2. In Sec.  24.24:
    a. The introductory text to paragraph (c)(8) is amended by removing 
the words ``the U.S. Customs Service'' and adding in their place the 
term ``CBP'';
    b. Paragraph (c)(8)(i) is revised;
    c. Paragraph (c)(8)(ii) is amended by: Removing the word ``shall'' 
each place it appears and adding in its place the word ``must''; and 
removing the word ``Customs'' and adding in its place the term ``CBP'';
    d. The introductory text to paragraph (d)(3) is amended by removing 
the word ``shall'' and adding in its place the word ``will'';
    e. Paragraph (e)(1)(ii) is revised;
    f. Paragraph (e)(2)(i) is amended: In the second sentence, by 
removing the words ``U.S. Customs'' and adding in their place the term 
``CBP''; and in the third sentence, by removing the word ``shall'' and 
adding in its place the word ``will'';
    g. Paragraph (e)(2)(ii) is amended: In the first sentence, by 
removing the word ``shall'' and adding in its place the word ``must'', 
and by removing the word ``Customs'' and adding in its place the term 
``CBP''; in the second sentence, by removing the language ``U.S. 
Customs Entry Summary Form (Customs'' and adding in its place ``CBP 
Entry Summary Form (CBP''; and in the third sentence, by removing the 
word ``shall'' and adding in its place the word ``must'';
    h. Paragraph (e)(2)(iii) is revised;
    i. Paragraph (e)(3)(ii) is revised;
    j. Paragraph (e)(4)(i) is amended by removing the fourth and fifth 
sentences;
    k. Paragraph (e)(4)(ii) is amended by removing the word ``Customs'' 
each place it appears and adding in its place the term ``CBP'';
    l. Paragraph (e)(4)(iii) is amended by: Removing the word 
``Customs'' each place it appears and adding in its place

[[Page 45367]]

the term ``CBP''; and adding after the last sentence the following 
language, ``Supplemental payments, accompanied by the requisite CBP 
Form 349, must either be mailed to the Office of Finance, Revenue 
Division, Customs and Border Protection, 6650 Telecom Drive, 
Indianapolis, Indiana 46278, with a check or money order payable to 
U.S. Customs and Border Protection, or submitted electronically to CBP 
using the Automated Clearinghouse (ACH) via an Internet account 
established by the payer and located at http://www.pay.gov. HMF refund 
requests must be submitted to CBP on a Harbor Maintenance Fee Amended 
Quarterly Summary Report, CBP Form 350, and must either be mailed to 
the above address or submitted electronically to CBP via an Internet 
account established by the payer and located at http://www.pay.gov. 
Upon request by CBP, the party requesting the refund must also submit 
to CBP, via mail, the CBP Form 349 for the quarter covering the payment 
to which the refund request relates as well as any supporting 
documentation deemed necessary by CBP. Approved HMF refund payments 
will be made via ACH to those payers who are enrolled in the ACH refund 
program; all others will receive HMF refund payments via mail.'';
    m. The introductory text to paragraph (e)(4)(iv) is amended by 
removing the word ``Customs'' and adding in its place the term ``CBP'';
    n. Paragraph (e)(4)(iv)(A) is amended by adding after the last 
sentence the following language, ``Refund requests must either be 
mailed to the Office of Finance, Revenue Division, Customs and Border 
Protection, 6650 Telecom Drive, Indianapolis, Indiana 46278, or 
submitted electronically to CBP via an Internet account established by 
the payer and located at http://www.pay.gov. Approved HMF refund 
payments will be made using the Automated Clearinghouse (ACH) to those 
payers who are enrolled in the ACH refund program; all others will 
receive HMF refund payments via mail.'';
    o. Paragraphs (e)(4)(iv)(B)(1), (2), and (3) are amended by 
removing the word ``Customs'' each place it appears and adding in its 
place the term ``CBP'';
    p. Paragraph (e)(4)(iv)(B)(4) is amended by: Removing the word 
``Customs'' and adding in its place the term ``CBP''; and removing the 
number ``90'' each place it appears and adding in its place the number 
``180'';
    q. Paragraph (e)(4)(iv)(B)(5) is amended: In the second sentence, 
by removing the words ``by Customs'' and adding in their place the 
words ``by CBP'', and by removing the words ``and Customs'' and adding 
in their place the words ``and CBP's''; and in the fourth and fifth 
sentences, by removing the word ``Customs'' each place it appears and 
adding in its place the term ``CBP'';
    r. Paragraph (e)(4)(iv)(C) is amended by removing the word 
``Customs'' each place it appears and adding in its place the term 
``CBP'';
    s. Paragraph (g) is amended: In the first, second, fourth, and 
fifth sentences, by removing the word ``shall'' each place it appears 
and adding in its place the word ``must'', and by removing the word 
``Customs'' each place it appears and adding in its place the term 
``CBP''; and in the third sentence, by removing the language ``shall 
advise the Director, Accounting Services--Accounts Receivable, P.O. Box 
68903, Indianapolis, Indiana 46268, of the name, address, and telephone 
number of a responsible officer who shall be'' and adding in its place 
the language, ``must advise the Director, Revenue Division, 6650 
Telecom Drive, Indianapolis, Indiana, 46278, of the name, address, e-
mail and telephone number of a responsible office who is'';
    t. Paragraph (h)(1) is amended by removing the word ``shall'' each 
place it appears and adding in its place the word ``will'';
    u. Paragraph (h)(2) is amended by removing the word ``shall'' each 
place it appears and adding in its place the word ``must''; and
    v. Paragraph (h)(3) is amended by removing the word ``shall'' each 
place it appears and adding in its place the word ``will''.
    The revisions to Sec.  24.24 read as follows:


Sec.  24.24  Harbor maintenance fee.

* * * * *
    (c) * * *
    (8) * * *
    (i) The donated cargo is required to be certified as intended for 
use in humanitarian or development assistance overseas by CBP. 
Subsequent to payment of the fee, a refund may be requested by 
submitting to CBP a Harbor Maintenance Fee Amended Quarterly Summary 
Report, CBP Form 350. The CBP Form 350 must either be mailed to the 
Office of Finance, Revenue Division, Customs and Border Protection, 
6650 Telecom Drive, Indianapolis, Indiana 46278, or submitted 
electronically to CBP using the Automated Clearinghouse (ACH) via an 
Internet account established by the payer and located at http://www.pay.gov. Upon request by CBP, the party requesting the refund must 
also submit to CBP, via mail, the Harbor Maintenance Fee Quarterly 
Summary Report, CBP Form 349, for the quarter covering the payment to 
which the refund request relates as well as any supporting 
documentation deemed necessary by CBP to certify that the entity 
donating the cargo is a nonprofit organization or cooperative and that 
the cargo was intended for humanitarian or development assistance 
overseas (including contiguous countries). A description of the cargo 
listed in the shipping documents and a brief summary of the intended 
use of the goods, if such use in not reflected in the documents, are 
acceptable evidence for certification purposes. Approved HMF refund 
payments will be made via ACH to those payers who are enrolled in the 
ACH refund program; all others will receive HMF refund payments via 
mail.* * *
* * * * *
    (e) * * *
    (1) * * *
    (ii) Fee payment. The shipper whose name appears on the Vessel 
Operation Report must pay all accumulated fees for which he is liable 
on a quarterly basis in accordance with paragraph (f) of this section 
by submitting to CBP a Harbor Maintenance Fee Quarterly Summary Report, 
CBP Form 349. The CBP Form 349 must either be mailed to the Office of 
Finance, Revenue Division, Customs and Border Protection, 6650 Telecom 
Drive, Indianapolis, Indiana 46278, with a check or money order payable 
to U.S. Customs and Border Protection, or the CBP Form 349 and payment 
must be submitted electronically to CBP using the Automated 
Clearinghouse (ACH) via an Internet account established by the payer 
and located at http://www.pay.gov.
    (2) * * *
    (iii) Foreign Trade Zones. In cases where imported cargo is 
unloaded from a commercial vessel at a port within the definition of 
this section and admitted into a foreign trade zone, the applicant for 
admission (the person or corporation responsible for bringing 
merchandise into the zone) who becomes liable for the fee at the time 
of unloading pursuant to paragraph (e)(3)(i) of this section, must pay 
all fees for which he is liable on a quarterly basis in accordance with 
paragraph (f) of this section by submitting to CBP a Harbor Maintenance 
Fee Quarterly Summary Report, CBP Form 349. The CBP Form 349 must 
either be mailed to the Office of Finance, Revenue Division, Customs 
and Border Protection, 6650 Telecom Drive, Indianapolis, Indiana 46278, 
with a check or money order payable to U.S. Customs and Border 
Protection, or the

[[Page 45368]]

CBP Form 349 and payment must be submitted electronically to CBP using 
the Automated Clearinghouse (ACH) via an Internet account established 
by the payer and located at http://www.pay.gov. Fees must be paid for 
all shipments unloaded and admitted to the zone, or in the case of 
direct deliveries under Sec. Sec.  146.39 and 146.40 of this chapter, 
unloaded and received in the zone under the bond of the foreign trade 
zone operator.
    (3) * * *
    (ii) Fee payment. The operator of the passenger-carrying vessel 
must pay the accumulated fees for which he is liable on a quarterly 
basis in accordance with paragraph (f) of this section by submitting to 
CBP a Harbor Maintenance Fee Quarterly Summary Report, CBP Form 349. 
The CBP Form 349 must either be mailed to the Office of Finance, 
Revenue Division, Customs and Border Protection, 6650 Telecom Drive, 
Indianapolis, Indiana 46278, with a check or money order payable to 
U.S. Customs and Border Protection, or the CBP Form 349 and payment 
must be submitted electronically to CBP using the Automated 
Clearinghouse (ACH) via an Internet account established by the payer 
and located at http://www.pay.gov.
* * * * *

Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: July 31, 2008.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E8-17967 Filed 8-4-08; 8:45 am]
BILLING CODE 9111-14-P