DESCRIPTION OF THE 

REVENUE RAISING PROVISIONS OF PROPOSED LEGISLATION 

IMPLEMENTING THE UNITED STATES - PERU 

TRADE PROMOTION AGREEMENT 

Scheduled for Markup 

by the 

SENATE COMMITTEE ON FINANCE 

on October 4, 2007 

Prepared by the Staff 

of the 

JOINT COMMITTEE ON TAXATION 

October 2, 2007 

JCX-92-07
i 

CONTENTS 

Page

INTRODUCTION .......................................................................................................................... 1 

A. Extension of Customs User Fees .................................................................................... 2 

B. Modifications to Corporate Estimated Tax Payments .................................................... 3 
1 

INTRODUCTION 

The Senate Committee on Finance has scheduled a markup on October 4, 2007. This 

document,1 prepared by the staff of the Joint Committee on Taxation, provides a description of 

the revenue raising provisions of proposed legislation implementing the United States - Peru 

trade promotion agreement. 

 1

 This document may be cited as follows: Joint Committee on Taxation, Description of the 

Revenue Raising Provisions of Proposed Legislation Implementing the United States - Peru Trade 

Promotion Agreement, (JCX-92-07), October 2, 2007. This document can also be found on the web at 

www.house.gov/jct. 
2 

A. Extension of Customs User Fees 

Present Law

Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 

(“COBRA”)2

 authorized the Secretary of the Treasury to collect certain service fees. Section 

412 of the Homeland Security Act of 20023

 authorized the Secretary of the Treasury to delegate 

such authority to the Secretary of Homeland Security. Provided for under 19 U.S.C. 58c, these 

fees include: processing fees for air and sea passengers, commercial trucks, rail cars, private 

aircraft and vessels, commercial vessels, dutiable mail packages, barges and bulk carriers, 

merchandise, and Customs broker permits. COBRA was amended on several occasions. The 

current authorization for the collection of the passenger and conveyance processing fees is 

through October 7, 2014. The current authorization for the collection of the merchandise 

processing fees is through October 21, 2014.4

 

Description of Proposal

The proposal extends the passenger and conveyance processing fees and the merchandise 

processing fees authorized under COBRA through December 13, 2014. 

Effective Date

The proposal is effective on the date of enactment. 

 2

 Pub. L. No. 99-272. 

3

 Pub. L No. 107-296. 

4

 For fiscal years after September 30, 2005, the Secretary is to charge fees in amounts that are 

reasonably related to the costs of providing customs services in connection with the activity or item for 

which the fee is charged. 
3 

B. Modifications to Corporate Estimated Tax Payments 

Present Law

In general, corporations are required to make quarterly estimated tax payments of their 

income tax liability. For a corporation whose taxable year is a calendar year, these estimated tax 

payments must be made by April 15, June 15, September 15, and December 15. 

Under present law, in the case of a corporation with assets of at least $1 billion, the 

payments due in July, August, and September, 2012, shall be increased to 115.0 percent of the 

payment otherwise due and the next required payment shall be reduced accordingly. 

Description of Proposal 

The proposal increases the otherwise applicable percentage (115.00 percent) by 0.75 

percentage points. 

Effective Date

The proposal is effective on the date of enactment.