Importing into the United States - Indo-American Chamber Of ...
Importing into the United States - Indo-American Chamber Of ...
Importing into the United States - Indo-American Chamber Of ...
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36. USER FEES<br />
Customs user fees were established by <strong>the</strong><br />
Consolidated Omnibus Budget Reconciliation<br />
Act of 1985. This legislation was expanded in<br />
1986 to include a merchandise processing fee.<br />
Also in 1986, Congress enacted <strong>the</strong> Water<br />
Resources Development Act, which authorized<br />
<strong>the</strong> Customs Service to collect a harbor maintenance<br />
fee for <strong>the</strong> Army Corps of Engineers.<br />
Fur<strong>the</strong>r legislation has extended <strong>the</strong> User Fee<br />
Program until 2003.<br />
The merchandise processing fee (MPF) is<br />
0.21 percent ad valorem on formally-entered<br />
imported merchandise (generally entries<br />
valued over $2,000), subject to a minimum fee<br />
of $25 per entry and a maximum fee of $485<br />
per entry. On informal entries (those valued at<br />
less than $2,000), <strong>the</strong> MPFs are: $2 for automated<br />
entries, $6 for manual entries not prepared<br />
by Customs, and $9 for manual entries<br />
that are prepared by Customs.<br />
Effective January 1, 1994, goods imported<br />
directly from Canada that qualify under<br />
NAFTA to be marked as goods originating in<br />
Canada are exempt from <strong>the</strong> MPF. This applies<br />
to all MPF fees: formal, informal, manually prepared,<br />
or automated. Goods that do not qualify<br />
under NAFTA are subject to all applicable<br />
MPFs.<br />
Similarly, effective June 30, 1999, goods<br />
imported directly from Mexico are exempt<br />
from <strong>the</strong> MPF if <strong>the</strong> goods qualify under <strong>the</strong><br />
NAFTA to be marked as goods originating in<br />
Mexico.<br />
There is no immediate change to <strong>the</strong> MPF<br />
assessed on goods of Mexican origin. However,<br />
effective June 30, 1999, <strong>the</strong> MPF will cease to<br />
exist for goods which qualify to be marked as<br />
goods of Mexico under NAFTA.<br />
The harbor maintenance fee is an ad valorem<br />
fee assessed on port use associated with<br />
imports, admissions <strong>into</strong> foreign trades zones,<br />
domestic shipments, and passenger transportation.<br />
The fee is assessed only at ports that benefit<br />
from <strong>the</strong> expenditure of funds by <strong>the</strong> Army<br />
Corps of Engineers for maintaining and<br />
improving <strong>the</strong> port trade zones. The fee is 0.125<br />
percent of <strong>the</strong> value of <strong>the</strong> cargo and is paid<br />
quarterly, except for imports, which are paid at<br />
<strong>the</strong> time of entry. Customs deposits <strong>the</strong> harbor<br />
maintenance fee collections <strong>into</strong> <strong>the</strong> Harbor<br />
Maintenance Trust Fund. The funds are made<br />
available, subject to appropriation, to <strong>the</strong> Army<br />
Corps of Engineers for <strong>the</strong> improvement and<br />
maintenance of <strong>United</strong> <strong>States</strong> ports and harbors.<br />
70 U.S. CUSTOMS SERVICE