Customs to test launch electronic payment for commercial vessel fees

The pilot program will give participants the option to pay the taxes and fees online upon or prior to vessel arrival at the ports of Los Angeles/Long Beach; New Orleans; Gulfport, Miss.; and Mobile, Ala.    A pilot test to automate calculations of commercial vessel fees and taxes and generate receipts, which started in April 2017, will expand to electronic payment of taxes and fees imposed on commercial vessels at four ports of entry in fiscal year 2018, U.S. Customs and Border Protection (CBP) said.
   The pilot program introduced the Mobile Collections and Receipt (MCR) application in fiscal year 2017. In fiscal years 2018-2019, it will incrementally develop and release an interface with Pay.gov and the Automated Commercial Environment (ACE) to give participants the option to pay taxes and fees online upon or prior to the vessel arrival at the ports of Los Angeles and Long Beach; New Orleans; Gulfport, Miss.; and Mobile, Ala. 
   The first phase of the pilot introduced an electronic replacement of paper CBP Form 368. CBP has worked closely with the test ports and has developed “an agile, incremental launch plan to ensure smooth implementation and adoption of the MCR’s new functionality,” the agency said.
   Any commercial vessel agent or other entity responsible for payment of commercial vessel taxes and fees at the designated ports of entry may participate in the pilot, according to CBP. No application is required to participate, but in order to receive notification emails from Customs’ MCR application, a commercial vessel agent or other party submitting payment must create an MCR profile and maintain a valid email address as part of the profile.
   CBP collects various maritime taxes and fees regarding commercial vessels that enter ports of entry, proceed coast-wise, or utilize certain customs services at a port, including tonnage taxes, agriculture quarantine and inspection user fees, and navigation fees. CBP regulations require payment of these taxes and fees by cash or check and specify a paper-based payment process that occurs either onboard the vessel or at the port office.
   However, Customs is working to reduce cash and check payments of maritime taxes and fees by allowing for electronic payments and automating the collection and receipt process, and the forthcoming pilot is being used toward that end.
   Participation in the pilot program will not affect the amount of taxes and fees due, the clearance process, or the proof of documentation required to be presented, CBP said.
   The pilot also uses portable electronic devices that authorized CBP employees will use to view commercial vessel arrival data, automatically calculate applicable fees, electronically process payments, and send receipts via email.
   If the pilot is successful, CBP said it may be expanded to additional ports, extended for an additional period of time, and/or expanded to include additional maritime fees.

CLARIFICATION: Details about the timing, as well as purpose of CBP’s expanded pilot to include the electronic payment of taxes and fees imposed on commercial vessels have been clarified in this article.