Customs User Fees To Be Adjusted for Inflation in Fiscal Year 2025

AGENCY:

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

ACTION:

General notice.

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 2025 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 2025 are required as of October 1, 2024.

FOR FURTHER INFORMATION CONTACT:

Kari Deppe, Assistant Director—User Fee and Reimbursable Controls Branch, Office of Finance, 317-294-2144, UserFeeNotices@cbp.dhs.gov.

SUPPLEMENTARY INFORMATION:

I. Background

A. Adjustments of Customs 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 2025

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 2025, 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 2023-May 2024) with the average of the CPI-U for the comparison year (June 2022-May 2023) 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 2023-May 2024) and the comparison year (June 2022-May 2023) is 3.35 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 2025.

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 30.849 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 2023-May 2024, referred to as (A) in the CBP regulations, is 308.815;
• 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 2022-May 2023), referred to as (C), is 298.952;
• The difference between the arithmetic averages of the CPI-U of the comparison year (June 2022-May 2023) and the current year (June 2023-May 2024), referred to as (D), is 9.863;
• This difference rounded to the nearest whole number, referred to as (E), is 10;
• The percentage change in the arithmetic averages of the CPI-U of the comparison year (June 2022-May 2023) and the current year (June 2023-May 2024), referred to as (F), is 3.35 percent;
• The difference in the arithmetic average of the CPI-U between the current year (June 2023-May 2024) and the base year (Fiscal Year 2014), referred to as (G), is 72.806; and
• Lastly, the percentage change in the CPI-U from the base year (Fiscal Year 2014) to the current year (June 2023-May 2024), referred to as (H), is 30.849 percent.

D. Announcement of New Fees and Limitations

The adjusted amounts of customs COBRA user fees and their corresponding limitations for Fiscal Year 2025, as adjusted by 30.849 percent, and set forth below, are required as of October 1, 2024.

Table 1 provides the fees and limitations found in 19 CFR 24.22 as adjusted for Fiscal Year 2025, and Table 2 provides the fees and limitations found in 19 CFR 24.23 as adjusted for Fiscal Year 2025.

Tables 1 and 2, setting forth the adjusted fees and limitations for Fiscal Year 2025, will also be maintained for the public's convenience on the CBP website at www.cbp.gov.

Troy A. Miller, Senior Official Performing the Duties of the Commissioner, having reviewed and approved this document, has delegated the authority to electronically sign this document to the Director (or Acting Director, if applicable) of the Regulations and Disclosure Law Division of CBP, for purposes of publication in the Federal Register .