[Federal Register Volume 82, Number 210 (Wednesday, November 1, 2017)]
[Notices]
[Pages 50659-50660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-23876]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


COBRA Fees To Be Adjusted for Inflation in Fiscal Year 2018 CBP 
Dec. 17-17

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

ACTION: General notice.

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SUMMARY: This document announces that U.S. Customs and Border 
Protection (CBP) is adjusting certain customs user fees and limitations 
established by the Consolidated Omnibus Budget Reconciliation Act 
(COBRA) for Fiscal Year 2018 in accordance with the Fixing America's 
Surface Transportation Act (FAST Act) as implemented by CBP regulations 
published elsewhere in this issue of the Federal Register.

DATES: The adjusted amounts of customs COBRA user fees and their 
corresponding limitations set forth in this notice for Fiscal Year 2018 
are required as of January 1, 2018.

FOR FURTHER INFORMATION CONTACT: Bruce Ingalls, Director--Revenue 
Division, 317-298-1107, [email protected]; or Tina Ghiladi, 
Director--Fee Strategy, Communications, and Integration, 202-344-3722, 
[email protected].

SUPPLEMENTARY INFORMATION:

Background

    On December 4, 2015, the Fixing America's Surface Transportation 
Act (FAST Act, Pub. L. 114-94) was signed into law. Section 32201 of 
the FAST Act amended section 13031 of the Consolidated Omnibus Budget 
Reconciliation Act (COBRA) of 1985 (19 U.S.C. 58c) by requiring certain 
customs COBRA user fees and corresponding limitations to be adjusted by 
the Secretary of the Treasury (Secretary) to reflect certain increases 
in inflation.
    In a final rule, CBP Dec. 17-16, published elsewhere in this issue 
of the Federal Register, CBP amended Sec. Sec.  24.22 and 24.23 of 
title 19 of the Code of Federal Regulations (19 CFR 24.22 and 24.23) to 
implement the requirements of the FAST Act. Specifically, CBP created a 
new paragraph (k) in section 24.22 (19 CFR 24.22(k)) that sets forth 
the methodology to determine the change in inflation as well as the 
factor by which the fees and limitations will be adjusted, if 
necessary. The fees and limitations subject to adjustment, which are 
set forth in Appendix A and Appendix B of part 24, include the 
commercial vessel arrival fees, commercial truck arrival fees, railroad 
car arrival fees, private vessel arrival fees, private aircraft arrival 
fees, commercial aircraft and vessel passenger arrival fees, dutiable 
mail fees, customs broker permit user fees, barges and other bulk 
carriers arrival fees, and merchandise processing fees as well as the 
corresponding limitations.

Determination of Whether an Adjustment Is Necessary for Fiscal Year 
2018

    In accordance with the amended regulations in 19 CFR 24.22, CBP 
determines whether the fees and limitations must be adjusted to reflect 
inflation. For fiscal year 2018, this is done by comparing the average 
of the Consumer Price Index--All Urban Consumers, U.S. All items, 1982-
84 (CPI-U) for the current year (June 2016-May 2017) with the average 
of the CPI-U for Fiscal Year 2014 to determine the change in inflation, 
if any. If there is an increase in the CPI of greater than one (1) 
percent, CBP must adjust the customs COBRA user fees and corresponding 
limitations using the methodology set forth in 19 CFR 24.22(k). 
Following the steps provided in paragraph (k)(2) of Sec.  24.22, CBP 
has determined that the increase in the CPI between the most recent 
June to May 12-month period (June 2016-May 2017) and Fiscal Year 2014 
is 2.542 percent. (19 CFR 24.22(k)). As the increase in the CPI is 
greater than one (1) percent, the customs COBRA user fees and 
corresponding limitations must be adjusted for Fiscal Year 2018.

Determination of the Adjusted Fees and Limitations

    Using the methodology set forth in Sec.  24.22(k)(2) of the CBP 
regulations (19 CFR 24.22(k)), CBP has determined that the factor by 
which the fees and limitations will be adjusted is 2.677 percent. In 
reaching this determination, CBP calculated the values for each 
variable found in 19 CFR 24.22(k) as follows:
     The arithmetic average of the CPI-U for June 2016-May 
2017, referred to as (A) in the CBP regulations, is 242.328 \1\
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    \1\ The figures provided in this notice may be rounded for 
publication purposes only. The calculations for the adjusted fees 
and limitations were made using unrounded figures, unless otherwise 
noted.
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     The arithmetic average of the CPI-U for Fiscal Year 2014, 
referred to as (B), is 236.009;
     The arithmetic average of the CPI-U for the comparison 
year, referred to as (C), is 236.009;
     The difference between the arithmetic averages of the CPI-
U of the comparison year (Fiscal Year 2014) and the current year (June 
2016-May 2017), referred to as (D), is 6.320;
     This difference rounded to the nearest whole number, 
referred to as (E), is 6;
     The percentage change in the arithmetic averages of the 
CPI-U of the comparison year (Fiscal Year 2014) and the current year 
(June 2016-May 2017), referred to as (F), is 2.542 percent;
     The difference in the arithmetic average of the CPI-U 
between the current year (June 2016-May 2017) and the base year (Fiscal 
Year 2014), referred to as (G), is 6.320; and

[[Page 50660]]

     Lastly, the percentage change in the CPI-U from the base 
year (Fiscal Year 2014) to the current year (June 2016-May 2017), 
referred to as (H), is 2.677 percent.

Announcement of New Fees and Limitations

    The adjusted amounts of customs COBRA user fees and their 
corresponding limitations for Fiscal Year 2018 as adjusted by 2.677 
percent set forth below are required as of January 1, 2018. Table 1 
provides the fees and limitations found in 19 CFR 24.22 as adjusted for 
Fiscal Year 2018 and Table 2 provides the fees and limitations found in 
19 CFR 24.23 as adjusted for Fiscal Year 2018.

     Table 1--Customs COBRA User Fees and Limitations Found in 19 CFR 24.22 as Adjusted for Fiscal Year 2018
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                                                                                                    New fee/
                                                                                                   limitation
            19 U.S.C. 58c                    19 CFR 24.22           Customs COBRA user fee/       adjusted in
                                                                          limitation            accordance with
                                                                                                  the FAST Act
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(a)(1)...............................  (b)(1)(i)...............  Fee: Commercial Vessel                  $448.70
                                                                  Arrival Fee.
(b)(5)(A)............................  (b)(1)(ii)..............  Limitation: Calendar Year              6,114.46
                                                                  Maximum for Commercial
                                                                  Vessel Arrival Fees.
(a)(8)...............................  (b)(2)(i)...............  Fee: Barges and Other Bulk               112.95
                                                                  Carriers Arrival Fee.
(b)(6)...............................  (b)(2)(ii)..............  Limitation: Calendar Year              1,540.17
                                                                  Maximum for Barges and
                                                                  Other Bulk Carriers Arrival
                                                                  Fees.
(a)(2)...............................  (c)(1)..................  Fee: Commercial Truck                      5.65
                                                                  Arrival Fee.
(b)(2)...............................  (c)(2) and (3)..........  Limitation: Commercial Truck             102.68
                                                                  Calendar Year Prepayment
                                                                  Fee.
(a)(3)...............................  (d)(1)..................  Fee: Railroad Car Arrival                  8.47
                                                                  Fee.
(b)(3)...............................  (d)(2) and (3)..........  Limitation: Railroad Car                 102.68
                                                                  Calendar Year Prepayment
                                                                  Fee.
(a)(4)...............................  (e)(1) and (2)..........  Fee and Limitation: Private               28.24
                                                                  Vessel or Private Aircraft
                                                                  First Arrival/Calendar Year
                                                                  Prepayment Fee.
(a)(6)...............................  (f).....................  Fee: Dutiable Mail Fee......               5.65
(a)(5)(A)............................  (g)(1)(i)...............  Fee: Commercial Vessel or                  5.65
                                                                  Commercial Aircraft
                                                                  Passenger Arrival Fee.
(a)(5)(B)............................  (g)(1)(ii)..............  Fee: Commercial Vessel                     1.98
                                                                  Passenger Arrival Fee (from
                                                                  one of the territories and
                                                                  possessions of the United
                                                                  States).
(a)(7)...............................  (h).....................  Fee: Customs Broker Permit               141.70
                                                                  User Fee.
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     Table 2--Customs COBRA User Fees and Limitations Found in 19 CFR 24.23 as Adjusted for Fiscal Year 2018
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                                                                                                    New fee/
                                                                                                   limitation
            19 U.S.C. 58c                    19 CFR 24.23           Customs COBRA user fee/       adjusted in
                                                                          limitation            accordance with
                                                                                                  the FAST Act
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(b)(9)(A)(ii)........................  (b)(1)(i)(A)............  Fee: Express Consignment                  $1.03
                                                                  Carrier/Centralized Hub
                                                                  Facility Fee, Per
                                                                  Individual Waybill/Bill of
                                                                  Lading Fee.
(b)(9)(B)(i).........................  (b)(1)(i)(B)(2).........  Limitation: Minimum Express                0.36
                                                                  Consignment Carrier/
                                                                  Centralized Hub Facility
                                                                  Fee.
(b)(9)(B)(i).........................  (b)(1)(i)(B)(2).........  Limitation: Maximum Express                1.03
                                                                  Consignment Carrier/
                                                                  Centralized Hub Facility
                                                                  Fee.
(a)(9)(B)(i); (b)(8)(A)(i)...........  (b)(1)(i)(B)(1).........  Limitation: Minimum                       25.67
                                                                  Merchandise Processing Fee.
(a)(9)(B)(i); (b)(8)(A)(i)...........  (b)(1)(i)(B)(1).........  Limitation: Maximum                      497.99
                                                                  Merchandise Processing Fee.
(b)(8)(A)(ii)........................  (b)(1)(ii)..............  Fee: Surcharge for Manual                  3.08
                                                                  Entry or Release.
(a)(10)(C)(i)........................  (b)(2)(i)...............  Fee: Informal Entry or                     2.05
                                                                  Release; Automated and Not
                                                                  Prepared by CBP Personnel.
(a)(10)(C)(ii).......................  (b)(2)(ii)..............  Fee: Informal Entry or                     6.16
                                                                  Release; Manual and Not
                                                                  Prepared by CBP Personnel.
(a)(10)(C)(iii)......................  (b)(2)(iii).............  Fee: Informal Entry or                     9.24
                                                                  Release; Automated or
                                                                  Manual; Prepared by CBP
                                                                  Personnel.
(b)(9)(A)(ii)........................  (b)(4)..................  Fee: Express Consignment                   1.03
                                                                  Carrier/Centralized Hub
                                                                  Facility Fee, Per
                                                                  Individual Waybill/Bill of
                                                                  Lading Fee.
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    Tables 1 and 2 setting forth the adjusted fees and limitations for 
Fiscal Year 2018 will also be maintained for the public's convenience 
on the CBP Web site at www.cbp.gov.

    Dated: October 30, 2017.
Kevin K. McAleenan,
Acting Commissioner, U.S. Customs and Border Protection.
[FR Doc. 2017-23876 Filed 10-31-17; 8:45 am]
 BILLING CODE 9111-14-P