[Federal Register Volume 88, Number 240 (Friday, December 15, 2023)]
[Notices]
[Pages 86912-86915]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-27626]


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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection


Mobile Collections & Receipts (MCR): Implementation of Phase Two

AGENCY: U.S. Customs and Border Protection; U.S Department of Homeland 
Security.

ACTION: General notice.

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SUMMARY: U.S. Customs and Border Protection (CBP) is conducting a test 
to allow for the payment of certain commercial vessel taxes and fees 
with electronic methods, including credit cards. Payment can be made 
through the existing Mobile Collections & Receipts (MCR) system's 
payment portal at eCBP (https://e.cbp.dhs.gov) or at the ports of entry 
for any commercial vessel arriving at a maritime port of entry. 
Participation in the test is voluntary. CBP will continue to accept 
payments by cash or check at the ports of entry. This notice describes 
the test and invites public comment on any aspect of the test.

DATES: The test will begin no earlier than January 16, 2024 and will 
continue for two years. Comments concerning this notice and all aspects 
of the test may be submitted at any time during the test to the address 
set forth below.

ADDRESSES: Written comments concerning any aspect of the test should be 
submitted to the CBP Revenue Modernization Office at 
<a href="/cdn-cgi/l/email-protection#9deff8ebf0f2f9ddfeffedb3f9f5eeb3faf2eb"><span class="__cf_email__" data-cfemail="94e6f1e2f9fbf0d4f7f6e4baf0fce7baf3fbe2">[email protected]</span></a>. In the subject line of your email please indicate 
``Comment on Mobile Collections & Receipts Test.''

FOR FURTHER INFORMATION CONTACT: Clint Kiehl, Rev Mod Program Manager, 
Office of Finance, U.S. Customs and Border Protection, via email at 
<a href="/cdn-cgi/l/email-protection#77141b1e19031819591c1e121f1b3714150759131f0459101801"><span class="__cf_email__" data-cfemail="b1d2ddd8dfc5dedf9fdad8d4d9ddf1d2d3c19fd5d9c29fd6dec7">[email protected]</span></a> or by telephone at (317) 677-4579.

SUPPLEMENTARY INFORMATION:

I. Background

A. Mobile Collections & Receipts (MCR) System

    U.S. Customs and Border Protection (CBP) is committed to 
modernizing the payment and processing of various taxes and fees paid 
by the public. In furtherance of this goal, CBP developed the Mobile 
Collections & Receipts (MCR) system.\1\ The MCR system calculates the 
amount of taxes and fees due based on information pulled from other CBP 
databases electronically or entered by an authorized CBP employee. The 
MCR system then automatically populates an electronic receipt, which is 
a single, combined electronic equivalent of two separate paper forms--
CBP Form 368 Collection Receipt (CBP Form 368) and CBP Form 1002 
Certificate of Payment of Tonnage Tax (CBP Form 1002). This notice 
refers to this electronic receipt as the electronic Form 368/1002. The 
MCR system sends the electronic Form 368/1002 via email to the entity 
responsible for payment.
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    \1\ For more information on the Mobile Collections and Receipts 
initiative, visit: https://www.cbp.gov/trade/priority-issues/revenue/revenue-modernization/automation-368-and-1002-receipts.
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    The MCR system also allows the public to pay applicable taxes and 
fees through electronic methods, such as online or through Europay, 
Mastercard and Visa (EMV) card readers, which enables contactless 
payments through various methods, including credit cards and digital 
wallets. For online payment, MCR's public-facing payment website is 
located at the eCBP portal (https://e.cbp.dhs.gov), which directs the 
entity making the payment to complete the transaction on Pay.gov.\2\ 
Currently, the MCR system, through eCBP and its interface with Pay.gov, 
allows the

[[Page 86913]]

public to make payments related to the Customs Broker License Exam and 
Triennial Status Report, with additional fees to be added in the 
future.
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    \2\ Pay.gov is a website managed by the Department of the 
Treasury that enables entities to make online payments to the 
federal government using various forms of payment.
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    The MCR system largely replaced what is a paper-based, manual, and 
burdensome process for the calculation and processing of payments. 
Under the manual process, CBP officers (CBPOs) and other authorized CBP 
employees are required to manually calculate the amount due for a 
particular transaction, manually complete a paper version of CBP Forms 
368 and 1002 (if applicable), and manually enter the payment 
information in CBP's systems after collecting payment.\3\ See, e.g., 
sections 4.23 and 24.2 of title 19 of the Code of Federal Regulations 
(19 CFR 4.23, 24.2). Since the implementation of MCR for the 
calculation and processing of certain maritime fees, maritime ports 
have adopted MCR and generally no longer use the manual method.
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    \3\ For additional details on the paper-based process for 
commercial vessel taxes and fees, see the notice published in the 
Federal Register (82 FR 58008) on December 8, 2017, announcing the 
2017 MCR Pilot.
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B. Phase One of the MCR Test

    Phase One of the MCR test, the Mobile Collections and Receipts 
(MCR) Pilot, was announced on December 8, 2017, in the Federal Register 
(82 FR 58008) (2017 MCR Pilot). The 2017 MCR Pilot allowed for the 
electronic payment of and receipt generation for certain commercial 
vessel taxes and fees through the MCR system. 82 FR at 58008. 
Specifically, the 2017 MCR Pilot permitted online payment and developed 
electronic receipts for the following taxes and fees: regular and 
special tonnage tax; light money; Consolidated Omnibus Budget 
Reconciliation Act (COBRA) user fees, including the prepayment of the 
annual COBRA fee; Agriculture Quarantine and Inspection (AQI) Fees; and 
navigation fees. See 82 FR at 58010. However, when CBP began operating 
the MCR system and issuing electronic receipts, CBP was unable to begin 
accepting online payments for these specified commercial vessel taxes 
and fees.
    The 2017 MCR Pilot was limited to commercial vessels arriving at 
one of four designated ports of entry: Los Angeles-Long Beach, 
California; New Orleans, Louisiana; Gulfport, Mississippi; and, Mobile, 
Alabama. See 82 FR at 58010. Any entity responsible for the payment of 
the taxes and fees for vessels arriving at one of the four designated 
ports of entry could participate in the 2017 MCR Pilot by providing the 
processing CBPO or other authorized CBP employee with an email address. 
82 FR at 58009. The MCR system generated an electronic version of Forms 
368 and 1002 and sent an electronic copy via email to the entity 
responsible for payment. 82 FR 58009. The 2017 MCR Pilot Notice was 
also the first time that CBP announced the implementation of the MCR 
system in the Federal Register and described the electronic receipt 
process, including the creation and issuance of electronic versions of 
Forms 368 and 1002, and the use of electronic devices that CBP 
employees could use to access the MCR system outside the port office. 
See 82 FR at 58009.
    CBP is now able to accept online payments and is implementing Phase 
Two of the MCR test, which will authorize entities to pay commercial 
vessel taxes and fees online, in order to allow these entities to fully 
benefit from the efficiencies of the MCR system.

C. Purpose of the MCR Test: Phase Two

    CBP regulations currently restrict the payment methods available 
for various taxes and fees. For example, in general, CBP will accept 
payment of Customs duties, taxes, fees, interest, and other charges 
with cash or check only. See 19 CFR 24.1 and 24.2. Payment with a 
credit or charge card is limited to non-commercial entries. 19 CFR 
24.1(a)(7). Additionally, a CBPO who collects payment for an amount 
over $100 in the form of a government check, personal check, traveler's 
check, or money order must obtain the approval and signature of the 
CBPO in charge in order to accept the payment. See 19 CFR 24.1(b)(2).
    Phase Two of the MCR test will allow CBP to test the feasibility of 
accepting electronic payment options for five categories of commercial 
vessel taxes and fees that cannot be paid electronically under CBP's 
current regulations. The five categories of commercial vessel taxes and 
fees are: tonnage tax (regular and special) and light money (19 CFR 
4.20), Consolidated Omnibus Budget Reconciliation Act (COBRA) user fees 
(19 CFR 24.22(b)), Agriculture Quarantine and Inspection (AQI) fees (7 
CFR 354.3(b)), and navigation fees (19 CFR 4.98). By CBP's allowing for 
electronic payments of these commercial vessel taxes and fees, vessel 
owners/operators and vessel agents will be able to take full advantage 
of the MCR system. This will provide numerous benefits for CBP and the 
trade. For example, the MCR system reduces the number of mistakes in 
the calculation of taxes and fees due because the MCR system can 
implement any changes to the fee calculations quickly and efficiently 
for all ports. Additionally, the MCR system eliminates the need for CBP 
employees to manually enter information into CBP's systems or to 
perform other tasks necessary to maintain the security or inventory of 
the paper versions of CBP Forms 368 and 1002. This enables CBP 
employees to spend less time on administrative tasks and more time 
focusing on higher priority mission support activities.

II. MCR Test: Phase Two

    Phase Two of the MCR test will allow for the electronic payment of 
certain vessel maritime taxes and fees for commercial vessels. Payment 
through electronic methods will be voluntary and CBP will continue to 
accept cash or check payments consistent with current requirements and 
practice. The collection of payments under Phase Two will operate 
largely the same as described in the initial 2017 MCR Pilot, except 
that Phase Two will allow for electronic payments for vessels arriving 
at any maritime port of entry (as opposed to the four ports of entry 
designated in the 2017 MCR Pilot) and will include online payments and 
using an EMV card reader at the port. Details of Phase Two of the MCR 
test are provided below.

A. Participation in the Test

    Any commercial vessel agent or other entity responsible for payment 
of commercial vessel taxes and fees may participate in the test. No 
application is required to participate. However, in order to receive 
notification emails from the MCR system, a commercial vessel agent or 
other entity submitting payment must register an email address with the 
CBPO or other authorized CBP employee processing the vessel arrival in 
the MCR system. When a commercial vessel arrives at a port of entry, 
the vessel's agent or other entity wishing to receive email 
notifications or receive the electronic Form 368/1002 will be able to 
confirm any email addresses with an authorized CBP employee and provide 
additional email addresses for receipt of electronic receipts.

B. Eligible Taxes and Fees

    Phase Two allows for the electronic payment of the following 
commercial vessel taxes and fees: tonnage tax (regular and special) and 
light money (19 CFR 4.20), Consolidated Omnibus Budget Reconciliation 
Act (COBRA) user fees (19 CFR 24.22(b)), Agriculture Quarantine and 
Inspection (AQI) fees (7 CFR 354.3(b)), and navigation fees (19 CFR 
4.98).
    Additionally, CBPOs and other authorized CBP employees, at the time 
of inspection, will have the option to

[[Page 86914]]

add applicable non-commercial fees and taxes for which credit or charge 
cards have been authorized by the Commissioner of CBP pursuant to 19 
CFR 24.1(a)(7) to the vessel's overall transaction. Such non-commercial 
fees and taxes are not part of Phase Two of the MCR test.\4\ However, 
for the convenience of the vessel owner/agent and CBP, all taxes and 
fees, whether authorized for electronic payment by this MCR test or by 
current regulations, can be combined for purposes of making a single 
payment and receipt.
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    \4\ Examples of non-commercial fees that may be applicable to a 
particular vessel include duties for passenger or crew baggage, 
excise taxes imposed on crew and passengers, and immigration fees 
applicable to crew and passengers, such as fees for port of entry 
parole of crewmembers. A complete list of the eligible fees will be 
available at the MCR website (https://www.cbp.gov/trade/priority-issues/revenue/revenue-modernization).
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    CBP may further expand the MCR test in the future to allow for the 
electronic payment of additional commercial taxes and fees. Any 
expansion of Phase Two of the MCR test will be announced in the Federal 
Register.

C. Electronic Payment Process at the Ports of Entry

    The MCR system will automatically identify the commercial vessels 
that are due to arrive at the designated ports of entry. The CBPO or 
other authorized CBP employee will use the MCR system to then determine 
whether the arrival information submitted to CBP through approved 
electronic data interchange systems is sufficient to calculate the 
applicable maritime taxes and fees due for each commercial vessel. If 
there is not sufficient information, the CBPO or other authorized CBP 
employee can obtain the necessary information at the time of inspection 
or payment.
    Once the CBPO has sufficient information, the vessel agent or 
carrier will be asked whether the agent or carrier wants to pay online 
or with the EMV card reader, which accepts various forms of payment, 
including credit cards and digital wallet payments at the point of 
collection. If online payment is selected, CBP will send a notification 
email to the relevant carrier or vessel agent at the email address they 
registered with eCBP. The notification email will state that the 
applicable taxes and fees have been calculated for a specific 
commercial vessel and payment can now be made on the eCBP payment 
portal. The entity responsible for payment will then have the 
opportunity to log on to the MCR system's customer-facing eCBP payment 
portal, review the calculated amount of taxes and fees due, and, 
through eCBP's interface with Pay.gov, submit payment online through 
Pay.gov with a credit or debit card, or any other payment option 
available on Pay.gov at the time of payment. Alternatively, the entity 
responsible for payment may pay using an EMV card reader. Additionally, 
for test participants who make payment online, through the EMV card 
reader, or by check or money order, CBPOs will not be required to 
obtain the signature of the CBPO in charge, as is otherwise required 
for payments over $100 made with a government check, personal check, 
traveler's check, or money order pursuant to 19 CFR 24.1(b)(2).
    After payment is accepted, the MCR system will send an electronic 
Form 368/1002 to the email address/addresses provided by the entity 
that made the payment. Electronic payments will be accepted up to the 
time the vessel is cleared by CBP. Payments required for CBP clearance 
must be made before clearance is granted. In all situations, CBPOs and 
other authorized CBP employees will have the ability to review, amend, 
or add data as needed to accurately calculate applicable taxes and fees 
prior to entering or clearing a vessel.
    Payment though electronic methods, including credit cards, is 
voluntary. Throughout the test, commercial vessel agents and other 
entities responsible for payment for commercial vessel taxes and fees 
will continue to be able to pay by cash or check in accordance with 
current requirements. CBP will provide the electronic Form 368/1002 as 
a receipt for all payments made by test participants, regardless of 
whether payment was made in person by cash or check, online, or in-
person using a card reader. However, the port office will provide paper 
copies of electronic Form 368/1002 upon request.
    This test will not affect the amount of taxes and fees due or the 
requirement that all applicable fees must be paid prior to CBP issuing 
a clearance certificate. Additionally, vessel operators will continue 
to be required to present paper copies of Forms 368 and 1002 as proof 
of payment at subsequent ports and entries. This means that vessel 
owners/operators must print out the electronic Form 368/1002 to present 
it to CBP.

D. Eligible Ports of Entry

    Phase Two of the MCR test allows for electronic payments for 
commercial vessels arriving at any of the U.S. maritime ports of entry.

E. Duration of the Test

    The test will begin no earlier than January 16, 2024 and will 
continue for two years.

III. Privacy

    CBP will ensure that all Privacy Act requirements and applicable 
policies are adhered to during the implementation of this test.

IV. Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) of 1995 (44 U.S.C. 3507(d)) 
requires that CBP consider the impact of paperwork and other 
information collection burdens imposed on the public. An agency may not 
conduct, and a person is not required to respond to, a collection of 
information unless the collection of information displays a valid 
control number assigned by the Office of Management and Budget. There 
is no information collection associated with this test, so the 
provisions of the PRA do not apply.

V. Authorization for the Test

    This test is being conducted in accordance with 19 CFR 101.9(a), 
which authorizes the Commissioner to impose requirements different from 
those specified in the CBP regulations for the purposes of conducting a 
test program or procedure designed to evaluate the effectiveness of new 
technology or operational procedures regarding the processing of 
passengers, vessels, or merchandise. Consequently, the regulatory 
provisions set forth in chapter 1 of title 19 of the CFR will be 
suspended to the extent that they conflict with the terms of this test. 
Such regulatory suspension will remain in effect for the duration of 
this test and will only apply to test participants; the regulatory 
provisions remain in effect for all non-test participants.
    As explained above, for participants in this test, CBP will waive 
the requirements to pay commercial vessel taxes and fees with cash or 
check, as required by 19 CFR 24.1, at the time of arrival or when the 
applicable service is provided, if the participant has paid all 
applicable taxes and fees electronically pursuant the procedures of 
this test and prior to the time the vessel is cleared by CBP. The test 
also permits CBPOs to process the payment of over $100 made by check, 
money order, online, or through the EMV card reader without

[[Page 86915]]

obtaining authorization from the CBP officer in charge.

Jeffrey Caine,
CBP Chief Financial Officer and Assistant Commissioner, Office of 
Finance, U.S. Customs and Border Protection.
[FR Doc. 2023-27626 Filed 12-14-23; 8:45 am]
BILLING CODE 9111-14-P


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