17.01.2014 Views

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 ...

SHOW MORE
SHOW LESS

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.

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

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!