50656 Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

Modification and Clarification of the 

National Customs Automation 

Program Tests Regarding PostSummary Corrections and Periodic 

Monthly Statements 

AGENCY: U.S. Customs and Border 

Protection, Department of Homeland 

Security. 

ACTION: General notice. 

SUMMARY: This document announces 

U.S. Customs and Border Protection’s 

(CBP’s) modification and clarification to 

the National Customs Automation 

Program (NCAP) tests pertaining to the 

processing of post-summary correction 

(PSC) claims and periodic monthly 

statements (PMS). Except to the extent 

expressly announced or modified by 

this document, all aspects, rules, terms 

and conditions announced in previous 

notices regarding the PSC and PMS tests 

remain in effect. 

DATES: As of November 1, 2017, the 

modification and clarification to the 

PSC and PMS tests will be operational. 

ADDRESSES: Comments concerning this 

test program may be submitted via email 

to Monica Crockett at ESARinfoinbox@

dhs.gov with a subject line identifier 

reading, ‘‘Post-Summary Corrections 

and Periodic Monthly Statements.’’ 

FOR FURTHER INFORMATION CONTACT: For 

policy-related questions, contact Randy 

Mitchell, Director, Commercial 

Operations, Revenue and Entry, Trade 

Policy and Programs, Office of Trade, 

via email at Randy.Mitchell@

cbp.dhs.gov. For technical questions 

related to ABI transmissions, contact 

your assigned client representative. 

Interested parties without an assigned 

client representative should direct their 

questions to the Client Representative 

Branch at (703) 650–3500. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Post-Summary Correction (PSC) and 

Periodic Monthly Statement (PMS) Test 

Programs 

The National Customs Automation 

Program (NCAP) was established by 

Subtitle B of Title VI—Customs 

Modernization in the North American 

Free Trade Agreement (NAFTA) 

Implementation Act (Customs 

Modernization Act) (Pub. L. 103–182, 

107 Stat. 2057, 2170, December 8, 1993) 

(19 U.S.C. 1411). Through NCAP, the 

thrust of customs modernization was on 

trade compliance and the development 

of the Automated Commercial 

Environment (ACE), the planned 

successor to the Automated Commercial 

System (ACS) as the CBP-authorized 

electronic data interchange (EDI) 

system. ACE is an automated and 

electronic system for commercial trade 

processing which is intended to 

streamline business processes, facilitate 

growth in trade, ensure cargo security, 

and foster participation in global 

commerce, while ensuring compliance 

with U.S. laws and regulations and 

reducing costs for U.S. Customs and 

Border Protection (CBP) and all of its 

communities of interest. The ability to 

meet these objectives depends on 

successfully modernizing CBP’s 

business functions and the information 

technology that supports those 

functions. 

CBP’s modernization efforts are 

accomplished through phased releases 

of ACE component functionality 

designed to replace specific legacy ACS 

functions and add new functionality. 

Section 101.9(b) of title 19 of the Code 

of Federal Regulations (19 CFR 101.9(b)) 

provides for the testing of NCAP 

components. See T.D. 95–21, 60 FR 

14211 (March 16, 1995). A list of ACE 

tests is provided in Section III below. 

A. PSC Test Program 

On June 24, 2011, CBP published a 

notice in the Federal Register (76 FR 

37136) that announced a plan to 

conduct an NCAP test concerning new 

ACE capabilities allowing importers to 

file a PSC for certain entry summaries 

using the Automated Broker Interface 

(ABI). Importers and their brokers are 

also allowed to use ABI to file a PSC to 

those pre-liquidation ACE entry 

summaries that were accepted by CBP, 

fully paid, and under CBP control. On 

November 19, 2013, CBP published a 

notice in the Federal Register (78 FR 

69434) modifying and clarifying the 

terms and conditions of the PSC test. On 

December 12, 2016, CBP published 

another notice in the Federal Register 

(81 FR 89482) further modifying and 

clarifying the terms and conditions of 

the PSC test and expanding the list of 

entry types that could be corrected via 

a PSC. One of the entry types added was 

entry type 23 (Temporary Importation 

Bond (TIB)). 

Before the December 12, 2016 notice 

became effective, CBP published 

another notice on January 9, 2017, in the 

Federal Register (82 FR 2385), 

republishing the December 12th notice, 

and correcting and further clarifying the 

terms and conditions of the PSC test. 

Subsequently, on January 17, 2017, CBP 

published a notice in the Federal 

Register (82 FR 4901) delaying the 

effective date of the January 9th notice 

until further notice. Then, on June 8, 

2017, CBP published a notice in the 

Federal Register (82 FR 26699) 

announcing that the January 9th notice 

would become effective on July 8, 2017. 

Finally, on June 30, 2017, CBP 

published a notice in the Federal 

Register (82 FR 29910) delaying the 

effective date until further notice. 

B. PMS Test Program 

On February 4, 2004, CBP published 

a notice in the Federal Register (69 FR 

5362) that announced a plan to conduct 

an NCAP test concerning PMS which 

allows importers to deposit estimated 

duties, fees and taxes on a monthly 

basis. CBP modified and clarified the 

PMS test in seven subsequent Federal 

Register notices published on: 

September 8, 2004 (69 FR 54302); 

February 1, 2005 (70 FR 5199); August 

8, 2005 (70 FR 45736); September 22, 

2005 (70 FR 55623); January 20, 2006 

(71 FR 3315); June 2, 2006 (71 FR 

32114); and October 17, 2008 (73 FR 

61891). On December 12, 2016, CBP 

published a notice in the Federal 

Register announcing a modification to 

the PMS test. See 81 FR 89482. On 

January 9, 2017, CBP published a notice 

in the Federal Register (82 FR 2385), 

republishing the December 12, 2016 

notice with some corrections and 

further clarification. Subsequently, on 

January 17, 2017, CBP published a 

notice in the Federal Register (82 FR 

4901) delaying the effective date of the 

January 9th notice until further notice. 

On June 8, 2017, CBP published a notice 

in the Federal Register (82 FR 26699) 

announcing that the January 9th notice 

would become effective on July 8, 2017. 

Finally, on June 30, 2017, CBP 

published a notice in the Federal 

Register (82 FR 29910) delaying the 

effective date until further notice. 

II. Test Modifications and Clarification 

This document announces a 

modification and clarification of the 

PSC test, and a modification of the PMS 

test. The modifications and clarification 

are discussed separately below. Except 

to the extent expressly announced or 

modified by this document, all aspects, 

rules, terms, requirements, obligations 

and conditions announced in previous 

notices regarding the PSC and PMS tests 

remain in effect. 

A. Modification of the PSC Test 

This document announces that CBP is 

extending the deadline for filing a PSC. 

The new deadline requires a PSC to be 

transmitted within 300 days of the date 

of entry or 15 days prior to the 

scheduled liquidation date, whichever 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 50657 

date is earlier. Prior to this modification, 

a PSC had to be transmitted within 270 

days of the date of entry, but could not 

be filed within 20 days of the scheduled 

liquidation date. This change is being 

made to increase the amount of time a 

filer has to submit a PSC on entry 

summaries. 

B. Clarification of the PSC Test 

CBP announced in the December 12th 

notice that the types of entries that may 

be corrected by filing a PSC were 

expanded to additional entry types, one 

of them being entry type 23 (TIB). This 

notice clarifies that a PSC concerning a 

TIB may be filed only to correct data 

elements of a TIB that do not change a 

TIB entry to another entry type; in 

addition, this notice clarifies that a PSC 

may not change data elements that 

change another entry type to a TIB 

entry. For example, a PSC may correct 

the value declared on a TIB entry, but 

it may not change the classification of 

the article to a classification that is not 

entitled to be filed as a TIB entry, as that 

classification change would necessarily 

change a TIB entry to another entry 

type. 

C. Modification of the PMS Test 

The proposed modification, published 

in the January 9, 2017 notice, considers 

a PMS as paid, in the event the importer 

uses the Automated Clearing House 

(ACH) debit process, when CBP receives 

notification from the Treasury 

Department that funds are available and 

transferred to CBP from the financial 

institution designated by the importer 

for payment of the ACH debit 

authorization. This modification 

reverses the proposed modification 

because ACE cannot accommodate the 

proposed change at this time due to 

technical constraints. Therefore, CBP 

will continue to consider a PMS as paid 

when CBP transmits the debit 

authorization to the designated financial 

institution. See 69 FR 5362 (February 4, 

2004). 

III. Development of ACE Prototypes 

A chronological listing of Federal 

Register publications detailing ACE test 

developments is set forth below. 

• ACE Portal Accounts and 

Subsequent Revision Notices: 67 FR 

21800 (May 1, 2002); 69 FR 5360 and 69 

FR 5362 (February 4, 2004); 69 FR 

54302 (September 8, 2004); 70 FR 5199 

(February 1, 2005). 

• ACE System of Records Notice: 71 

FR 3109 (January 19, 2006). 

• Terms/Conditions for Access to the 

ACE Portal and Subsequent Revisions: 

72 FR 27632 (May 16, 2007); 73 FR 

38464 (July 7, 2008). 

• ACE Non-Portal Accounts and 

Related Notice: 70 FR 61466 (October 

24, 2005); 71 FR 15756 (March 29, 

2006). 

• ACE Entry Summary, Accounts and 

Revenue (ESAR I) Capabilities: 72 FR 

59105 (October 18, 2007). 

• ACE Entry Summary, Accounts and 

Revenue (ESAR II) Capabilities: 73 FR 

50337 (August 26, 2008); 74 FR 9826 

(March 6, 2009). 

• ACE Entry Summary, Accounts and 

Revenue (ESAR III) Capabilities: 74 FR 

69129 (December 30, 2009). 

• ACE Entry Summary, Accounts and 

Revenue (ESAR IV) Capabilities: 76 FR 

37136 (June 24, 2011). 

• Post-Entry Amendment (PEA) 

Processing Test: 76 FR 37136 (June 24, 

2011). 

• ACE Announcement of a New Start 

Date for the National Customs 

Automation Program Test of Automated 

Manifest Capabilities for Ocean and Rail 

Carriers: 76 FR 42721 (July 19, 2011). 

• ACE Simplified Entry: 76 FR 69755 

(November 9, 2011). 

• National Customs Automation 

Program (NCAP) Tests Concerning 

Automated Commercial Environment 

(ACE) Document Image System (DIS): 77 

FR 20835 (April 6, 2012). 

• National Customs Automation 

Program (NCAP) Tests Concerning 

Automated Commercial Environment 

(ACE) Simplified Entry: Modification of 

Participant Selection Criteria and 

Application Process: 77 FR 48527 

(August 14, 2012). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Regarding Reconciliation for Filing 

Certain Post-Importation Preferential 

Tariff Treatment Claims under Certain 

FTAs: 78 FR 27984 (May 13, 2013). 

• Modification of Two National 

Customs Automation Program (NCAP) 

Tests Concerning Automated 

Commercial Environment (ACE) 

Document Image System (DIS) and 

Simplified Entry (SE): 78 FR 44142 (July 

23, 2013). 

• Modification of Two National 

Customs Automation Program (NCAP) 

Tests Concerning Automated 

Commercial Environment (ACE) 

Document Image System (DIS) and 

Simplified Entry (SE); Correction: 78 FR 

53466 (August 29, 2013). 

• Modification of National Customs 

Automation Program Test Concerning 

Automated Commercial Environment 

(ACE) Cargo Release (formerly known as 

Simplified Entry): 78 FR 66039 

(November 4, 2013). 

• Post-Summary Corrections to Entry 

Summaries Filed in ACE Pursuant to the 

ESAR IV Test: Modifications and 

Clarifications: 78 FR 69434 (November 

19, 2013). 

• National Customs Automation 

Program (NCAP) Test Concerning the 

Submission of Certain Data Required by 

the Environmental Protection Agency 

and the Food Safety and Inspection 

Service Using the Partner Government 

Agency Message Set Through the 

Automated Commercial Environment 

(ACE): 78 FR 75931 (December 13, 

2013). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning Automated Commercial 

Environment (ACE) Cargo Release for 

Ocean and Rail Carriers: 79 FR 6210 

(February 3, 2014). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning Automated Commercial 

Environment (ACE) Cargo Release to 

Allow Importers and Brokers to Certify 

From ACE Entry Summary: 79 FR 24744 

(May 1, 2014). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning Automated Commercial 

Environment (ACE) Cargo Release for 

Truck Carriers: 79 FR 25142 (May 2, 

2014). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning Automated Commercial 

Environment (ACE) Document Image 

System: 79 FR 36083 (June 25, 2014). 

• Announcement of eBond Test: 79 

FR 70881 (November 28, 2014). 

• eBond Test Modifications and 

Clarifications: Continuous Bond 

Executed Prior to or Outside the eBond 

Test May Be Converted to an eBond by 

the Surety and Principal, Termination of 

an eBond by Filing Identification 

Number, and Email Address Correction: 

80 FR 899 (January 7, 2015). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning Automated Commercial 

Environment (ACE) Document Image 

System Relating to Animal and Plant 

Health Inspection Service (APHIS) 

Document Submissions: 80 FR 5126 

(January 30, 2015). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning the use of Partner 

Government Agency Message Set 

through the Automated Commercial 

Environment (ACE) for the Submission 

of Certain Data Required by the 

Environmental Protection Agency 

(EPA): 80 FR 6098 (February 4, 2015). 

• Announcement of Modification of 

ACE Cargo Release Test to Permit the 

Combined Filing of Cargo Release and 

Importer Security Filing (ISF) Data: 80 

FR 7487 (February 10, 2015). 


sradovich on DSK3GMQ082PROD with NOTICES
50658 Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 

• Modification of NCAP Test 

Concerning ACE Cargo Release for Type 

03 Entries and Advanced Capabilities 

for Truck Carriers: 80 FR 16414 (March 

27, 2015). 

• Automated Commercial 

Environment (ACE) Export Manifest for 

Air Cargo Test: 80 FR 39790 (July 10, 

2015). 

• National Customs Automation 

Program (NCAP) Concerning Remote 

Location Filing Entry Procedures in the 

Automated Commercial Environment 

(ACE) and the Use of the Document 

Image System for the Submission of 

Invoices and the Use of eBonds for the 

Transmission of Single Transaction 

Bonds: 80 FR 40079 (July 13, 2015). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning the Automated Commercial 

Environment (ACE) Partner Government 

Agency (PGA) Message Set Regarding 

Types of Transportation Modes and 

Certain Data Required by the National 

Highway Traffic Safety Administration 

(NHTSA): 80 FR 47938 (August 10, 

2015). 

• Automated Commercial 

Environment (ACE) Export Manifest for 

Vessel Cargo Test: 80 FR 50644 (August 

20, 2015). 

• Modification of National Customs 

Automation Program (NCAP) Test 

Concerning the Submission of Certain 

Data Required by the Food and Drug 

Administration (FDA) Using the Partner 

Government Agency Message Set 

through the Automated Commercial 

Environment (ACE): 80 FR 52051 

(August 27, 2015). 

• Automated Commercial 

Environment (ACE) Export Manifest for 

Rail Cargo Test: 80 FR 54305 

(September 9, 2015). 

• Modification of the National 

Customs Automation Program (NCAP) 

Test Concerning the Automated 

Commercial Environment (ACE) 

Document Image System (DIS) 

Regarding Future Updates and New 

Method of Submission of Accepted 

Documents: 80 FR 62082 (October 15, 

2015). 

• Modification of the National 

Customs Automation Program (NCAP) 

Test Concerning the Automated 

Commercial Environment (ACE) Cargo 

Release for Entry Type 52 and Certain 

Other Modes of Transportation: 80 FR 

63576 (October 20, 2015). 

• Modification of the National 

Customs Automation Program (NCAP) 

Test Concerning the Automated 

Commercial Environment (ACE) Entry 

Summary, Accounts and Revenue 

(ESAR) Test of Automated Entry 

Summary Types 51 and 52 and Certain 

Modes of Transportation: 80 FR 63815 

(October 21, 2015). 

• Modification of the National 

Customs Automation Program Test 

Concerning the Automated Commercial 

Environment Portal Account to 

Establish the Exporter Portal Account: 

80 FR 63817 (October 21, 2015). 

• Modification of National Customs 

Automation Program Test Concerning 

the Automated Commercial 

Environment Partner Government 

Agency Message Set Regarding the 

Toxic Substances Control Act 

Certification Required by the 

Environmental Protection Agency: 81 

FR 7133 (February 10, 2016). 

• Notice Announcing the Automated 

Commercial Environment (ACE) as the 

Sole CBP-Authorized Electronic Data 

Interchange (EDI) System for Processing 

Certain Electronic Entry and Entry 

Summary Filings: 81 FR 10264 

(February 29, 2016). 

• Modification of the National 

Customs Automation Program (NCAP); 

Test Concerning the Partner 

Government Agency Message Set for 

Certain Data Required by the 

Environmental Protection Agency 

(EPA): 81 FR 13399 (March 14, 2016). 

• Cessation of National Customs 

Automation Program (NCAP) Test 

Concerning the Submission of Certain 

Data Required by the Food and Drug 

Administration (FDA) Using the Partner 

Government Agency (PGA) Message Set 

Through the Automated Commercial 

Environment (ACE): 81 FR 18634 

(March 31, 2016). 

• Automated Commercial 

Environment (ACE); Announcement of 

National Customs Automation Program 

Test of the In-Transit Manifest Pilot 

Program: 81 FR 24837 (April 27, 2016). 

• Announcement of National 

Customs Automation Program (NCAP) 

Test Concerning the Submission 

through the Automated Commercial 

Environment (ACE) of Certain Import 

Data and Documents Required by the 

U.S. Fish and Wildlife Service: 81 FR 

27149 (May 5, 2016). 

• Notice Announcing the Automated 

Commercial Environment (ACE) as the 

Sole CBP-Authorized Electronic Data 

Interchange (EDI) System for Processing 

Certain Electronic Entry and Entry 

Summary Filings Accompanied by Food 

and Drug Administration (FDA) Data: 81 

FR 30320 (May 16, 2016). 

• Notice Announcing the Automated 

Commercial Environment (ACE) as the 

Sole CBP-Authorized Electronic Data 

Interchange (EDI) System for Processing 

Electronic Entry and Entry Summary 

Filings: 81 FR 32339 (May 23, 2016). 

• Notice Announcing the Automated 

Commercial Environment (ACE) Protest 

Module as the Sole CBP-Authorized 

Method for Filing Electronic Protests: 81 

FR 49685 (July 28, 2016). 

• Modification of the National 

Customs Automation Program (NCAP) 

Test Concerning the Automated 

Commercial Environment (ACE) Portal 

Accounts to Establish the Protest Filer 

Account and Clarification that the 

Terms and Conditions for Account 

Access Apply to all ACE Portal 

Accounts: 81 FR 52453 (August 8, 

2016). 

• National Customs Automation 

Program (NCAP) Test Concerning 

Electronic Filing of Protests in the 

Automated Commercial Environment 

(ACE): 81 FR 53497 (August 12, 2016). 

• Modification of the National 

Customs Automation Program (NCAP) 

Test Regarding Reconciliation and 

Transition of the Test from the 

Automated Commercial System (ACS) 

to the Automated Commercial 

Environment (ACE): 81 FR 89486 

(December 12, 2016). 

• Modification and Clarification of 

the National Customs Automation 

Program (NCAP) Test Regarding PostSummary Corrections and Periodic 

Monthly Statements: 81 FR 89482 

(December 12, 2016). 

• Effective Date for the Automated 

Commercial Environment (ACE) Being 

the Sole CBP-Authorized Electronic 

Data Interchange (EDI) System for 

Processing Electronic Drawback and 

Duty Deferral Entry and Entry Summary 

Filings: 81 FR 89486 (December 12, 

2016). 

• Electronic Notice of Liquidation: 81 

FR 89375 (December 12, 2016). 

• Modification and Clarification of 

the National Customs Automation 

Program Tests Regarding Post-Summary 

Corrections and Periodic Monthly 

Statements; Republication with 

Correction and Further Clarification: 82 

FR 2385 (January 9, 2017). 

• Delay of Effective Date for the 

Automated Commercial Environment 

(ACE) Becoming the Sole CBPAuthorized Electronic Data Interchange 

(EDI) System for Processing Electronic 

Drawback and Duty Deferral Entry and 

Entry Summary Filings: 82 FR 4900 

(January 17, 2017). 

• Delayed Effective Date for 

Modifications of the National Customs 

Automation Program Tests Regarding 

Reconciliation, Post-Summary 

Corrections, and Periodic Monthly 

Statements: 82 FR 4901 (January 17, 

2017). 

• Effective Date for the Automated 

Commercial Environment (ACE) 

Becoming the Sole CBP-Authorized 

Electronic Data Interchange (EDI) 

System for Processing Electronic 


sradovich on DSK3GMQ082PROD with NOTICES
Federal Register / Vol. 82, No. 210 / Wednesday, November 1, 2017 / Notices 50659 

1The figures provided in this notice may be 

rounded for publication purposes only. The 

calculations for the adjusted fees and limitations 

were made using unrounded figures, unless 

otherwise noted. 

Drawback and Duty Deferral Entry and 

Entry Summary Filings: 82 FR 26698 

(June 8, 2017). 

• Effective Date for Modifications of 

the National Customs Automation 

Program Tests Regarding Reconciliation, 

Post-Summary Corrections, and Periodic 

Monthly Statements: 82 FR 26699 (June 

8, 2017). 

• Delayed Effective Date for 

Modifications of the National Customs 

Automation Program Tests Regarding 

Reconciliation, Post-Summary 

Corrections, and Periodic Monthly 

Statements: 82 FR 29910 (June 30, 

2017). 

• Delay of Effective Date for the 

Automated Commercial Environment 

(ACE) Becoming the Sole CBPAuthorized Electronic Data Interchange 

(EDI) System for Processing Electronic 

Drawback and Duty Deferral Entry and 

Entry Summary Filings: 82 FR 29910 

(June 30, 2017). 

• Extension and Clarification of Test 

Program Regarding Electronic Foreign 

Trade Zone Admission Applications 

and Transition of Test from the 

Automated Commercial System to the 

Automated Commercial Environment: 

82 FR 38923 (August 16, 2017). 

• Automated Commercial 

Environment (ACE) Becoming the Sole 

CBP-Authorized Electronic Data 

Interchange (EDI) System for Processing 

Duty Deferral Entry and Entry Summary 

Filings: 82 FR 38924 (August 16, 2017). 

• Delay of Transition of Test Program 

Regarding Electronic Foreign Trade 

Zone Admission Applications from the 

Automated Commercial System to the 

Automated Commercial Environment: 

82 FR 43395 (September 15, 2017). 

Dated: October 26, 2017. 

Brenda B. Smith, 

Executive Assistant Commissioner, Office of 

Trade. 

[FR Doc. 2017–23747 Filed 10–31–17; 8:45 am] 

BILLING CODE 9111–14–P 

DEPARTMENT OF HOMELAND 

SECURITY 

U.S. Customs and Border Protection 

COBRA Fees To Be Adjusted for 

Inflation in Fiscal Year 2018 CBP Dec. 

17–17 

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 limitations established by the 

Consolidated Omnibus Budget 

Reconciliation Act (COBRA) for Fiscal 

Year 2018 in accordance with the Fixing 

America’s Surface Transportation Act 

(FAST Act) as implemented by CBP 

regulations published elsewhere in this 

issue of the Federal Register. 

DATES: The adjusted amounts of 

customs COBRA user fees and their 

corresponding limitations set forth in 

this notice for Fiscal Year 2018 are 

required as of January 1, 2018. 

FOR FURTHER INFORMATION CONTACT: 

Bruce Ingalls, Director—Revenue 

Division, 317–298–1107, bruce.ingalls@

cbp.dhs.gov; or Tina Ghiladi, Director— 

Fee Strategy, Communications, and 

Integration, 202–344–3722, 

tina.ghiladi@cbp.dhs.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

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 certain customs 

COBRA user fees and corresponding 

limitations to be adjusted by the 

Secretary of the Treasury (Secretary) to 

reflect certain increases in inflation. 

In a final rule, CBP Dec. 17–16, 

published elsewhere in this issue of the 

Federal Register, CBP amended §§ 24.22 

and 24.23 of title 19 of the Code of 

Federal Regulations (19 CFR 24.22 and 

24.23) to implement the requirements of 

the FAST Act. Specifically, CBP created 

a new paragraph (k) in section 24.22 (19 

CFR 24.22(k)) that 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. 

Determination of Whether an 

Adjustment Is Necessary for Fiscal Year 

2018 

In accordance with the amended 

regulations in 19 CFR 24.22, CBP 

determines whether the fees and 

limitations must be adjusted to reflect 

inflation. For fiscal year 2018, this is 

done by comparing the average of the 

Consumer Price Index—All Urban 

Consumers, U.S. All items, 1982–84 

(CPI–U) for the current year (June 2016– 

May 2017) with the average of the CPI– 

U for Fiscal Year 2014 to determine the 

change in inflation, if any. If there is an 

increase in the CPI 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 § 24.22, CBP has 

determined that the increase in the CPI 

between the most recent June to May 12- 

month period (June 2016–May 2017) 

and Fiscal Year 2014 is 2.542 percent. 

(19 CFR 24.22(k)). As the increase in the 

CPI is greater than one (1) percent, the 

customs COBRA user fees and 

corresponding limitations must be 

adjusted for Fiscal Year 2018. 

Determination of the Adjusted Fees and 

Limitations 

Using the methodology set forth in 

§ 24.22(k)(2) of the CBP regulations (19 

CFR 24.22(k)), CBP has determined that 

the factor by which the fees and 

limitations will be adjusted is 2.677 

percent. In reaching this determination, 

CBP calculated the values for each 

variable found in 19 CFR 24.22(k) as 

follows: 

• The arithmetic average of the CPI– 

U for June 2016–May 2017, referred to 

as (A) in the CBP regulations, is 

242.328 1

• 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, referred to as 

(C), is 236.009; 

• The difference between the 

arithmetic averages of the CPI–U of the 

comparison year (Fiscal Year 2014) and 

the current year (June 2016–May 2017), 

referred to as (D), is 6.320; 

• This difference rounded to the 

nearest whole number, referred to as (E), 

is 6; 

• The percentage change in the 

arithmetic averages of the CPI–U of the 

comparison year (Fiscal Year 2014) and 

the current year (June 2016–May 2017), 

referred to as (F), is 2.542 percent; 

• The difference in the arithmetic 

average of the CPI–U between the 

current year (June 2016–May 2017) and 

the base year (Fiscal Year 2014), referred 

to as (G), is 6.320; and 


sradovich on DSK3GMQ082PROD with NOTICES