252
in appropriations Acts, to pay the costs of such cus-
toms revenue functions in the amount of such insuffi-
ciency, and shall be available for no other purpose. 
The provisions of the first and second sentences of this 
paragraph specifying the purposes for which amounts 
in the Customs User Fee Account may be made avail-
able shall not be superseded except by a provision of 
law which specifically modifies or supersedes such 
provisions.’’. 
(b) REIMBURSEMENT
OF
APPROPRIATIONS
FROM 
COBRA FEES.—Section 13031(f)(3) of the Consolidated 
Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 
58c(f)(3)) is amended by adding at the end the following: 
‘‘(E) Nothing in this paragraph shall be construed to 
preclude the use of appropriated funds, from sources other 
than the fees collected under subsection (a), to pay the costs 
set forth in clauses (i), (ii), and (iii) of subparagraph (A).’’. 
(c) SENSE OF CONGRESS; EFFECTIVE PERIOD FOR 
COLLECTING FEES; STANDARD FOR SETTING FEES.—
(1) SENSE OF CONGRESS.—The Congress finds 
that—
(A) the fees set forth in paragraphs (1) 
through (8) of subsection (a) of section 13031 of 
the Consolidated Omnibus Budget Reconciliation 
Act of 1985 have been reasonably related to the
253
costs of providing customs services in connection 
with the activities or items for which the fees 
have been charged under such paragraphs; and 
(B) the fees collected under such paragraphs 
have not exceeded, in the aggregate, the amounts 
paid for the costs described in subsection 
(f)(3)(A) incurred in providing customs services 
in connection with the activities or items for 
which the fees were charged under such para-
graphs. 
(2) EFFECTIVE PERIOD; STANDARD FOR SETTING 
FEES.—Section 13031(j)(3) of the Consolidated Om-
nibus Budget Reconciliation Act of 1985 is amended 
to read as follows: 
‘‘(3)(A) Fees may not be charged under paragraphs (9) 
and (10) of subsection (a) after September 30, 2013. 
‘‘(B)(i) Subject to clause (ii), Fees may not be charged 
under paragraphs (1) through (8) of subsection (a) after 
September 30, 2013. 
‘‘(ii) In fiscal year 2006 and in each succeeding fiscal 
year for which fees under paragraphs (1) through (8) of 
subsection (a) are authorized—
‘‘(I) the Secretary of the Treasury shall charge 
fees under each such paragraph in amounts that are 
reasonably related to the costs of providing customs
254
services in connection with the activity or item for 
which the fee is charged under such paragraph, except 
that in no case may the fee charged under any such 
paragraph exceed by more than 10 percent the 
amount otherwise prescribed by such paragraph; 
‘‘(II) the amount of fees collected under such 
paragraphs may not exceed, in the aggregate, the 
amounts paid in that fiscal year for the costs de-
scribed in subsection (f)(3)(A) incurred in providing 
customs services in connection with the activity or 
item for which the fees are charged under such para-
graphs; 
‘‘(III) a fee may not be collected under any such 
paragraph except to the extent such fee will be ex-
pended to pay the costs described in subsection 
(f)(3)(A) incurred in providing customs services in 
connection with the activity or item for which the fee 
is charged under such paragraph; and 
‘‘(IV) any fee collected under any such para-
graph shall be available for expenditure only to pay 
the costs described in subsection (f)(3)(A) incurred in 
providing customs services in connection with the ac-
tivity or item for which the fee is charged under such 
paragraph.’’.
255
(d) CLERICAL AMENDMENTS.—Section 13031 of the 
Consolidated Omnibus Budget Reconciliation Act of 1985 
is amended—
(1) in subsection (a)(5)(B), by striking ‘‘$1.75’’ 
and inserting ‘‘$1.75.’’; 
(2) in subsection (b)—
(A) in paragraph (1)(A), by aligning clause 
(iii) with clause (ii); 
(B) in paragraph (7), by striking ‘‘para-
graphs’’ and inserting ‘‘paragraph’’; and 
(C) in paragraph (9), by aligning subpara-
graph (B) with subparagraph (A); and 
(3) in subsection (e)(2), by aligning subpara-
graph (B) with subparagraph (A). 
(e) STUDY OF ALL FEES COLLECTED BY DEPARTMENT 
OF HOMELAND SECURITY.—The Secretary of the Treasury 
shall conduct a study of all the fees collected by the Depart-
ment of Homeland Security, and shall submit to the Con-
gress, not later than September 30, 2005, a report con-
taining the recommendations of the Secretary on—
(1) what fees should be eliminated; 
(2) what the rate of fees retained should be; and 
(3) any other recommendations with respect to 
the fees that the Secretary considers appropriate.
Union Calendar No. 226
108TH CONGRESS 
1ST SESSION 
H. R. 2896
[Report No. 108–393] 
A BILL 
To amend the Internal Revenue Code of 1986 to 
remove impediments in such Code and make our 
manufacturing, service, and high-technology busi-
nesses and workers more competitive and produc-
tive both at home and abroad. 
NOVEMBER 21, 2003
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed