[Federal Register Volume 87, Number 146 (Monday, August 1, 2022)]
[Notices]
[Pages 46973-46975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-16533]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

[CBP Dec. 22-17]


COBRA Fees To Be Adjusted for Inflation in Fiscal Year 2023

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 
corresponding limitations established by the Consolidated Omnibus 
Budget Reconciliation Act (COBRA) for Fiscal Year 2023 in accordance 
with the Fixing America's Surface Transportation Act (FAST Act) as 
implemented by the CBP regulations.

DATES: The adjusted amounts of customs COBRA user fees and their 
corresponding limitations set forth in this notice for Fiscal Year 2023 
are required as of October 1, 2022.

FOR FURTHER INFORMATION CONTACT: Tina Ghiladi, Senior Advisor, 
International Travel & Trade, Office of Finance, 202-344-3722, 
[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. Adjustments of COBRA User Fees and Corresponding Limitations for 
Inflation

    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 the 
Secretary of the Treasury (Secretary) to adjust certain customs COBRA 
user fees and corresponding limitations to reflect certain increases in 
inflation.
    Sections 24.22 and 24.23 of title 19 of the Code of Federal 
Regulations (19 CFR 24.22 and 24.23) describe the procedures that 
implement the requirements of the FAST Act. Specifically, paragraph (k) 
in section 24.22 (19 CFR 24.22(k)) 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.

B. Determination of Whether an Adjustment Is Necessary for Fiscal Year 
2023

    In accordance with 19 CFR 24.22, CBP must determine annually 
whether the fees and limitations must be adjusted to reflect inflation. 
For Fiscal Year 2023, CBP is making this determination by comparing the 
average of the Consumer Price Index--All Urban Consumers, U.S. All 
items, 1982-1984 (CPI-U) for the current year (June 2021-May 2022) with

[[Page 46974]]

the average of the CPI-U for the comparison year (June 2020-May 2021) 
to determine the change in inflation, if any. If there is an increase 
in the CPI-U 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 section 24.22, CBP has determined that the 
increase in the CPI-U between the most recent June to May twelve-month 
period (June 2021-May 2022) and the comparison year (June 2020-May 
2021) is 6.87 \1\ percent. As the increase in the CPI-U is greater than 
one (1) percent, the customs COBRA user fees and corresponding 
limitations must be adjusted for Fiscal Year 2023.
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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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C. Determination of the Adjusted Fees and Limitations

    Using the methodology set forth in section 24.22(k)(2) of the CBP 
regulations (19 CFR 24.22(k)), CBP has determined that the factor by 
which the base fees and limitations will be adjusted is 18.629 percent 
(base fees and limitations can be found in Appendices A and B to part 
24 of title 19). In reaching this determination, CBP calculated the 
values for each variable found in paragraph (k) of 19 CFR 24.22 as 
follows:
     The arithmetic average of the CPI-U for June 2021-May 
2022, referred to as (A) in the CBP regulations, is 279.974;
     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 (June 2020-May 2021), referred to as (C), is 261.992;
     The difference between the arithmetic averages of the CPI-
U of the comparison year (June 2020-May 2021) and the current year 
(June 2021-May 2022), referred to as (D), is 17.982;
     This difference rounded to the nearest whole number, 
referred to as (E), is 18;
     The percentage change in the arithmetic averages of the 
CPI-U of the comparison year (June 2020-May 2021) and the current year 
(June 2021-May 2022), referred to as (F), is 6.87 percent;
     The difference in the arithmetic average of the CPI-U 
between the current year (June 2021-May 2022) and the base year (Fiscal 
Year 2014), referred to as (G), is 43.966; and
     Lastly, the percentage change in the CPI-U from the base 
year (Fiscal Year 2014) to the current year (June 2021-May 2022), 
referred to as (H), is 18.629 percent.

D. Announcement of New Fees and Limitations

    The adjusted amounts of customs COBRA user fees and their 
corresponding limitations for Fiscal Year 2023 as adjusted by 18.629 
percent set forth below are required as of October 1, 2022. Table 1 
provides the fees and limitations found in 19 CFR 24.22 as adjusted for 
Fiscal Year 2023, and Table 2 provides the fees and limitations found 
in 19 CFR 24.23 as adjusted for Fiscal Year 2023.
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    \2\ The Commercial Truck Arrival Fee is the CBP fee only; it 
does not include the United States Department of Agriculture (USDA) 
Animal and Plant Health Inspection Service (APHIS) Agricultural and 
Quarantine Inspection (AQI) Services Fee (currently $7.55) that is 
collected by CBP on behalf of USDA to make a total Single Crossing 
Fee of $14.05. See 7 CFR 354.3(c) and 19 CFR 24.22(c)(1). Once 
eighteen Single Crossing Fees have been paid and used for a vehicle 
identification number (VIN)/vehicle in a Decal and Transponder 
Online Procurement System (DTOPS) account within a calendar year, 
the payment required for the nineteenth (and subsequent) single-
crossing is only the AQI fee (currently $7.55) and no longer 
includes CBP's $6.50 Commercial Truck Arrival fee (for the remainder 
of that calendar year).
    \3\ The Commercial Truck Arrival fee is adjusted down from $6.52 
to the nearest lower nickel. See 82 FR 50523 (November 1, 2017).
    \4\ The Commercial Truck Calendar Year Prepayment Fee is the CBP 
fee only; it does not include the AQI Commercial Truck with 
Transponder Fee (currently $301.67) that is collected by CBP on 
behalf of APHIS to make the total Commercial Vehicle Transponder 
Annual User Fee of $420.30.

     Table 1--Customs COBRA User Fees and Limitations Found in 19 CFR 24.22 as Adjusted for Fiscal Year 2023
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                                                                                                     New fee/
                                                                                                    limitation
                                                                      Customs COBRA user fee/       adjusted in
         19 U.S.C. 58c                     19 CFR 24.22                     limitation              accordance
                                                                                                   with the FAST
                                                                                                        Act
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(a)(1).........................  (b)(1)(i)......................  Fee: Commercial Vessel Arrival         $518.41
                                                                   Fee.
(b)(5)(A)......................  (b)(1)(ii).....................  Limitation: Calendar Year             7,064.34
                                                                   Maximum for Commercial Vessel
                                                                   Arrival Fees.
(a)(8).........................  (b)(2)(i)......................  Fee: Barges and Other Bulk              130.49
                                                                   Carriers Arrival Fee.
(b)(6).........................  (b)(2)(ii).....................  Limitation: Calendar Year             1,779.43
                                                                   Maximum for Barges and Other
                                                                   Bulk Carriers Arrival Fees.
(a)(2).........................  (c)(1).........................  Fee: Commercial Truck Arrival             6.50
                                                                   Fee 2 3.
(b)(2).........................  (c)(2) and (3).................  Limitation: Commercial Truck            118.63
                                                                   Calendar Year Prepayment Fee
                                                                   \4\.
(a)(3).........................  (d)(1).........................  Fee: Railroad Car Arrival Fee.            9.79
(b)(3).........................  (d)(2) and (3).................  Limitation: Railroad Car                118.63
                                                                   Calendar Year Prepayment Fee.
(a)(4).........................  (e)(1) and (2).................  Fee and Limitation: Private              32.62
                                                                   Vessel or Private Aircraft
                                                                   First Arrival/Calendar Year
                                                                   Prepayment Fee.
(a)(6).........................  (f)............................  Fee: Dutiable Mail Fee........            6.52
(a)(5)(A)......................  (g)(1)(i)......................  Fee: Commercial Vessel or                 6.52
                                                                   Commercial Aircraft Passenger
                                                                   Arrival Fee.
(a)(5)(B)......................  (g)(1)(ii).....................  Fee: Commercial Vessel                    2.29
                                                                   Passenger Arrival Fee (from
                                                                   one of the territories and
                                                                   possessions of the United
                                                                   States).
(a)(7).........................  (h)............................  Fee: Customs Broker Permit              163.71
                                                                   User Fee.
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[[Page 46975]]


     Table 2--Customs COBRA User Fees and Limitations Found in 19 CFR 24.23 as Adjusted for Fiscal Year 2023
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                                                                                                     New fee/
                                                                                                    limitation
                                                                      Customs COBRA user fee/       adjusted in
         19 U.S.C. 58c                     19 CFR 24.23                     limitation              accordance
                                                                                                   with the FAST
                                                                                                        Act
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(b)(9)(A)(ii)..................  (b)(1)(i)(A)...................  Fee: Express Consignment                 $1.19
                                                                   Carrier/Centralized Hub
                                                                   Facility Fee, Per Individual
                                                                   Waybill/Bill of Lading Fee.
(b)(9)(B)(i)...................  (b)(4)(ii) \5\.................  Limitation: Minimum Express               0.42
                                                                   Consignment Carrier/
                                                                   Centralized Hub Facility Fee
                                                                   \6\.
(b)(9)(B)(i)...................  (b)(4)(ii) \7\.................  Limitation: Maximum Express               1.19
                                                                   Consignment Carrier/
                                                                   Centralized Hub Facility Fee.
(a)(9)(B)(i); (b)(8)(A)(i).....  (b)(1)(i)(B) \8\...............  Limitation: Minimum                      29.66
                                                                   Merchandise Processing Fee
                                                                   \9\.
(a)(9)(B)(i); (b)(8)(A)(i).....  (b)(1)(i)(B) \10\..............  Limitation: Maximum                     575.35
                                                                   Merchandise Processing Fee
                                                                   \11\ \12\.
(b)(8)(A)(ii)..................  (b)(1)(ii).....................  Fee: Surcharge for Manual                 3.56
                                                                   Entry or Release.
(a)(10)(C)(i)..................  (b)(2)(i)......................  Fee: Informal Entry or                    2.37
                                                                   Release; Automated and Not
                                                                   Prepared by CBP Personnel.
(a)(10)(C)(ii).................  (b)(2)(ii).....................  Fee: Informal Entry or                    7.12
                                                                   Release; Manual and Not
                                                                   Prepared by CBP Personnel.
(a)(10)(C)(iii)................  (b)(2)(iii)....................  Fee: Informal Entry or                   10.68
                                                                   Release; Manual; Prepared by
                                                                   CBP Personnel.
(b)(9)(A)(ii)..................  (b)(4).........................  Fee: Express Consignment                  1.19
                                                                   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 2023, will also be maintained for the public's convenience 
on the CBP website at www.cbp.gov.
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    \5\ Appendix B of part 24 inadvertently included a reference to 
paragraph (b)(1)(i)(B)(2) of section 24.23. However, the reference 
should have been to paragraph (b)(4)(ii). CBP intends to publish a 
future document in the Federal Register to make several technical 
corrections to part 24 of title 19 of the CFR, including corrections 
to Appendix B of part 24. The technical corrections will also 
address the inadvertent errors specified in footnotes 7, 8, and 10 
below.
    \6\ Although the minimum limitation is published, the fee 
charged is the fee required by 19 U.S.C. 58c(b)(9)(A)(ii).
    \7\ Appendix B of part 24 inadvertently included a reference to 
paragraph (b)(1)(i)(B)(2) of section 24.23. However, the reference 
should have been to paragraph (b)(4)(ii).
    \8\ Appendix B of part 24 inadvertently included a reference to 
paragraph (b)(1)(i)(B)(1) of section 24.23. However, the reference 
should have been to paragraph (b)(1)(i)(B).
    \9\ Only the limitation is increasing; the ad valorem rate of 
0.3464 percent remains the same. See 82 FR 50523 (November 1, 2017).
    \10\ Appendix B of part 24 inadvertently included a reference to 
paragraph (b)(1)(i)(B)(1) of section 24.23. However, the reference 
should have been to paragraph (b)(1)(i)(B).
    \11\ Only the limitation is increasing; the ad valorem rate of 
0.3464 percent remains the same. See 82 FR 50523 (November 1, 2017).
    \12\ For monthly pipeline entries, see https://www.cbp.gov/trade/entry-summary/pipeline-monthly-entry-processing/pipeline-line-qa.
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    Chris Magnus, the Commissioner of CBP, having reviewed and approved 
this document, is delegating the authority to electronically sign this 
document to Robert F. Altneu, who is the Director of the Regulations 
and Disclosure Law Division for CBP, for purposes of publication in the 
Federal Register.

Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings, 
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2022-16533 Filed 7-28-22; 4:15 pm]
BILLING CODE 9111-14-P