CBP User Fees Increase

The following is a news release issued by US Customs and Border Protection on 29 January 2007.

On October 22, 2004 the President signed the American Jobs Creation Act of 2004 (Pub. L. 108-357). Section 892 of the Act amended Title 19 United States Code 58c to renew the fees provided under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), which would have otherwise expired March 1, 2005, and to allow the Secretary of the Treasury to increase such fees by an amount not to exceed 10 percent in the period beginning fiscal year 2006 through the period for which the fees are authorized by law. It is noted that the law specifically mentions the Secretary of the Treasury, even though U.S. Customs and Border Protection (CBP) is now a component agency of the Department of Homeland Security.

Regulations concerning user fees, among other customs revenue functions, were retained by the Secretary of the Treasury pursuant to Treasury Department Order No. 100-16.

CBP is increasing the fees by the amounts authorized so that they more accurately reflect the actual costs of providing the services for which they are charged. On April 24, 2006, CBP published a Notice of Proposed Rulemaking in the Federal Register (71 FR 20922) proposing to amend the regulations in accordance with the current statutory provisions by increasing the fees for: (1) customs services provided in connection with the arrival of certain commercial vessels, commercial trucks, railroad cars, private aircraft and private vessels, passengers aboard commercial aircraft and commercial vessels, and barges or other bulk carrier arrivals, (2) each item of dutiable mail for which a customs officer prepares documentation, and (3) annual customs brokers permits. The comment period ended on May 24, 2006.

CBP published Final Rule 72 FR 3730 on January 26, 2007 advising of the fee increases. The new fee rates will be effective on April 1, 2007.

The summary of new fee rates is found on the CBP web site, at:

http://www.customs.gov/xp/cgov/import/carriers/fees_increase/

The Administrative Monetary Penalty System (AMPS)

This booklet provides tips to traders regarding AMPS. The information isn’t new; it was available previously on the AMPS section of the CBSA web site, and has now been made into a pamphlet.

It will be available in print after 22 February 2007; the electronic version is found on the CBSA web site, at:

http://www.cbsa-asfc.gc.ca/E/pub/cp/bsf5013/README.html

HS Tariff Changes

Significant changes to the Harmonized Tariff Schedule affecting imports to both Canada and the United States become effective in January, 2007. These changes affect 83 chapters and more than 240 headings of the Tariff.

The most extensive changes affect imports of such commodities as electronics, industrial machines, components, chemicals and wood products.

Be sure to contact the team at Royal Customs Brokers well in advance of importing new items to ensure that the correct tariff is applied.

NAFTA CERTIFICATES OF ORIGIN

Now is the time to ensure that all of your suppliers of goods made in USA or Mexico complete and forward your blanket NAFTA Certificates of Origin for the period 1/01/2007 to 31/12/2007.

Blank Forms are available on this website. If suppliers require assisstance they can contact Elaine McDermott at 905-871-7961 or toll free at 800-565-6441.

If you are shipping to the United States from Canada, contact Angela Wilson at 716-362-1235 or toll free at 866-566-8145.

As in the past, Royal Customs Brokers will claim the duty free treatment of goods under NAFTA at the time of release. However, if no NAFTA Certificate of Origin is on hand when the entry is due to be transmitted to Customs, we must pay the applicable duty subject to refund claim upon production of the required certificate.

Let’s avoid the hassle and expense of claims for duty refund, encourage your suppliers to provide either blanket certificates or a seperate certificate with each shipment.

Happy New Year

We wish all our valued clients, suppliers and associates a Happy and Prosperous 2007!