The bill was rushed to the White House for Bush's signature after Senate voted Tuesday night to extend the Merchandise Processing Fee for six months. The House approved the measure last week.
Customs officials were worried they would not be able to operate at full strength at ports of entry without passing the legislation because the customs user fee law included in the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 goes into a revolving account that Customs uses to pay overtime.
The legislation also covers the Merchandise Processing Fee, which can range from $25 to $485 depending on the value of the goods, and provides about $1 billion to the general treasury every year. Many trade groups have opposed the fees since they were introduced in the mid-1980s, but others feel they should be recycled to Customs to help the agency modernize its computer systems and underwrite its processing services.
Customs had notified the trade industry of contingency plans to allow entries to be processed without the fee, and many brokers furiously tried to reprogram their programs to file through the Automated Broker Interface. Entries can be processed as usual now, but the last-minute uncertainty about the legislation's passage forced Customs to delay many entries dated for Oct. 1, said Jon Kent, Washington legislative representative for the National Customs Brokers and Forwarders Association of America.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now