[Federal Register Volume 74, Number 225 (Tuesday, November 24, 2009)]
[Rules and Regulations]
[Pages 61267-61270]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-28132]


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DEPARTMENT OF HOMELAND SECURITY

Bureau of Customs and Border Protection

DEPARTMENT OF THE TREASURY

19 CFR Part 24

[CBP Dec. 09-44; 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: Final rule.

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SUMMARY: This document amends title 19 of the Code of Federal 
Regulations by

[[Page 61268]]

prescribing an alternative procedure by which payers of the quarterly 
harbor maintenance fee (HMF) may submit 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. These changes are intended to provide the trade with expanded 
electronic payment/refund options and to modernize and enhance CBP's 
port use fee collection efforts. This document also clarifies the 
regulations to reflect that both HMF supplemental payments and refund 
requests must be accompanied by the requisite CBP Form 350 (HMF Amended 
Quarterly Summary Report) and CBP Form 349 (HMF Quarterly Summary 
Report). This clarification is necessary to remove any ambiguity as to 
what forms are required in conjunction with such payments.

DATES: Effective Date: December 24, 2009.

FOR FURTHER INFORMATION CONTACT: Kim Cochenour, Office of Finance, 
Revenue Division, Collections, Refunds and Analysis Branch, (317) 614-
4598 or at [email protected].

SUPPLEMENTARY INFORMATION:

Background

    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.
    The HMF implementing regulations are set forth in Sec.  24.24 of 
title 19 of the Code of Federal Regulations (19 CFR 24.24).
    On August 5, 2008, CBP published in the Federal Register (73 FR 
45364) a proposal to amend title 19 of the Code of Federal Regulations 
(19 CFR) by prescribing an alternative procedure 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 would also continue to accept quarterly HMF payments 
or refund requests via mail. The proposal also required that each HMF 
quarterly payment, whether paper or electronic, be accompanied by a CBP 
Form 349 (HMF Quarterly Summary Report). The proposed amendments were 
intended to provide the trade with an expanded electronic payment/
refund option for quarterly HMFs and to modernize and enhance CBP's 
port use fee collection efforts.
    CBP solicited public comment on the proposed amendments in the 
August 5, 2008, Federal Register document. CBP received no comments.

Conclusion

    After further review of the matter, and in light of the fact that 
no comments were submitted in response to CBP's solicitation of public 
comment, CBP has determined to adopt as final, with minor technical 
changes and clarifications, the proposed rule published in the Federal 
Register (73 FR 45364) on August 5, 2008. Specifically, CBP is making 
technical changes to Sec. Sec.  24.24(e)(2)(ii) and (h)(3) that replace 
references to ``Customs'' with the term ``CBP'' and, in the ``For 
Further Information Contact'' section of this document, is identifying 
a new CBP contact to whom questions regarding HMF may be directed. In 
addition, this document restructures the regulatory text in Sec. Sec.  
24.24(c)(8)(i), (e)(1)(ii), (e)(2)(iii), (e)(3)(ii), (e)(4)(iii), 
(e)(4)(iv)(A), and (g) to clarify CBP's preference that certain 
payments and refund requests be made electronically and, in the 
alternative, via mail to a CBP address located on Forms.CBP.gov. By 
removing references to a specific CBP address and referring to a Web 
site which is updated regularly, CBP will avoid having to amend these 
regulations in the event the mailing address is changed. Sections 24.24 
(e)(1)(ii), (e)(2)(iii), (e)(3)(ii), and (e)(4)(iii) are also clarified 
to state that each CBP Form 349 or 350 that is mailed to CBP must be 
accompanied by a single payment. Lastly, CBP is of the view that a 
clarification of the proposed amendments to Sec. Sec.  24.24(c)(8)(i) 
and (e)(4)(iii) in 73 FR 45364 is necessary to reflect that both CBP 
Form 350 and CBP Form 349 are required to be submitted to CBP with 
supplemental payments and refund requests. This clarification is 
necessary to remove any ambiguity as to what forms are required in 
conjunction with such payments and to reconcile the proposed new 
language with the existing text in paragraph (e)(4)(iii) which requires 
that both forms be submitted in such instances.

The Regulatory Flexibility Act and Executive Order 12866

    Because these amendments implement an alternative procedure that 
provides an expanded electronic payment/refund option for quarterly HMF 
payments 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 
amendments will not have a significant economic impact on a substantial 
number of small entities. Further, these 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

0
For the reasons set forth in the preamble, part 24 of title 19 of the 
CFR (19 CFR Part 24) is 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 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.).
* * * * *
0
2. In Sec.  24.24:
0
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'';
0
b. Paragraph (c)(8)(i) is revised;
0
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

[[Page 61269]]

``Customs'' and adding in its place the term ``CBP'';
0
d. The introductory text to paragraph (d)(3) is amended by removing the 
word ``shall'' and adding in its place the word ``will'';
0
e. Paragraph (e)(1)(ii) is revised;
0
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'';
0
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''; in the third sentence, by removing the word ``shall'' and 
adding in its place the word ``must''; and in the fourth 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''.
0
h. Paragraph (e)(2)(iii) is revised;
0
i. Paragraph (e)(3)(ii) is revised;
0
j. Paragraph (e)(4)(i) is amended by removing the fourth and fifth 
sentences;
0
k. Paragraph (e)(4)(ii) is amended by removing the word ``Customs'' 
each place it appears and adding in its place the term ``CBP'';
0
l. Paragraph (e)(4)(iii) is amended by: removing the word ``Customs'' 
each place it appears and adding in its place the term ``CBP''; and 
adding three new sentences after the last sentence;
0
m. The introductory text to paragraph (e)(4)(iv) is amended by removing 
the word ``Customs'' and adding in its place the term ``CBP'';
0
n. Paragraph (e)(4)(iv)(A) is amended by adding two new sentences after 
the last sentence;
0
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'';
0
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'';
0
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'';
0
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'';
0
s. Paragraph (g) is amended: in the first, second, 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 by 
revising the third and fourth sentences;
0
t. Paragraph (h)(1) is amended by removing the word ``shall'' each 
place it appears and adding in its place the word ``will'';
0
u. Paragraph (h)(2) is amended by removing the word ``shall'' each 
place it appears and adding in its place the word ``must''; and
0
v. Paragraph (h)(3) is amended by: removing the word ``shall'' each 
place it appears and adding in its place the word ``will''; and 
removing the word ``Customs'' and adding in its place the term ``CBP''.
    The revisions and additions 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 request may be made by 
electronically submitting to CBP the Harbor Maintenance Fee Amended 
Quarterly Summary Report (CBP Form 350), as well as the Harbor 
Maintenance Fee Quarterly Summary Report (CBP Form 349) for the quarter 
covering the payment to which the refund request relates, using the 
Automated Clearinghouse (ACH) via an Internet account established by 
the payer and located at http://www.pay.gov. In the alternative, the 
requisite forms may be mailed to the Office of Finance, Revenue 
Division, Customs and Border Protection, using the current address 
posted at Forms.CBP.gov. Upon request by CBP, the party requesting the 
refund must also submit to CBP, via mail, 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 submitted electronically 
to CBP using the Automated Clearinghouse (ACH) via an Internet account 
established by the payer and located at http://www.pay.gov or, 
alternatively, mailed with a single check or money order payable to 
U.S. Customs and Border Protection to the Office of Finance, Revenue 
Division, Customs and Border Protection, using the current address 
posted at Forms.CBP.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 submitted electronically to CBP using the Automated 
Clearinghouse (ACH) via an Internet account established by the payer 
and located at http://www.pay.gov or, alternatively, mailed with a 
single check or money order payable to U.S. Customs and Border 
Protection to the Office of Finance, Revenue Division, Customs and 
Border Protection, using the current address posted at Forms.CBP.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) * * *

[[Page 61270]]

    (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 submitted electronically to CBP using 
the Automated Clearinghouse (ACH) via an Internet account established 
by the payer and located at http://www.pay.gov or, alternatively, 
mailed with a single check or money order payable to U.S. Customs and 
Border Protection to the Office of Finance, Revenue Division, Customs 
and Border Protection, using the current address posted at 
Forms.CBP.gov.
    (4) * * *
    (iii) * * * Supplemental payments and HMF refund requests, 
accompanied by the requisite CBP Forms 350 and 349 and, if applicable, 
supporting documentation, 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 or, alternatively, 
mailed to the Office of Finance, Revenue Division, Customs and Border 
Protection, using the current address posted at Forms.CBP.gov. If a 
supplemental payment is mailed, a single check or money order payable 
to U.S. Customs and Border Protection must be attached to each CBP Form 
350. 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.
    (iv) * * *
    (A) * * * Refund requests must either 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 or, 
alternatively, mailed to the Office of Finance, Revenue Division, 
Customs and Border Protection, using the current address posted at 
Forms.CBP.gov. Approved HMF refund payments will be made using the ACH 
to those payers who are enrolled in the ACH refund program; all others 
will receive HMF refund payments via mail.
* * * * *
    (g) * * * The affected parties must advise the Director, Revenue 
Division, U.S. Customs and Border Protection, at the current address 
posted at Forms.CBP.gov, of the name, address, email and telephone 
number of a responsible officer who is able to verify any records 
required to be maintained under this paragraph. The Director, Revenue 
Division, must be promptly notified of any changes in the identifying 
information submitted. * * *
* * * * *

Jayson P. Ahern,
Acting Commissioner, U.S. Customs and Border Protection.
    Approved: November 19, 2009.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. E9-28132 Filed 11-23-09; 8:45 am]
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