Harbor Maintenance Fees for FTZ Shipments

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Issue 72, November 19, 2008

Imported cargo unloaded from a commercial vessel at a US port and admitted into a Foreign Trade Zone (FTZ) becomes liable for a Harbor Maintenance Fee (HMF) at the time of unloading. The fee is not paid immediately, but rather the applicant for admission (i.e. “the person or corporation responsible for bringing merchandise into the zone,) shall pay all HMF fees on a quarterly basis, by check or money order to US Customs & Border Protection via submission of a HMF Quarterly Summary Sheet (Customs Form 349). Fees shall be paid for all shipments unloaded and admitted to the FTZ including direct deliveries received in the zone under the bond of the FTZ operator. Below are additional details.

• The HMF, also known as the “port use fee” is due only when the unloading occurs at one of the 173 U.S. ports listed in 19CFR24.24 (b).
• The HMF is 0.125% of the entered value of the goods, (i.e. $1.25 per $1,000.00 entered value.)
• There are exemptions in 19CFR24.24 that are not subject to the HMF. These include situations like goods imported to mainland US from Alaska or Hawaii, ferries engaged between points with the US, in-bond shipment destined for direct exportation, US government agency vessels, and similar non-commercial events.
• All importers shall maintain and make available for five (5) years from the date of fee calculations all the documentation necessary for Customs to verify the accuracy of HMF fee computations and to determine compliance under the law.
• Importers whose total value of shipments during a quarter is less than $10,000 do not have to pay HMF for that quarter under the “De Minimus” provisions. They must still file the Customs Form CBP349.
• A refund request must be received by Customs within one year of the date that the Importer paid Customs.
• All quarterly payments must be received no later than 31 days after the close of the quarter being paid. Quarterly periods end on the last of March, June, September, and December.
  

CBP Form 379:
The Quarterly Customs Form is in three parts. The first is the header information asking for the Importer’s name, address and IRS number. The middle section is the place to enter the Foreign Trade Zone data, such as the quarterly total value of shipments, exemptions, and “HMF Due.” The third section offers fields to help account for and calculate any exemptions. The form is available on the U.S. Customs web site at: http://forms.cbp.gov/pdf/CBP_Form_349.pdf

The regulations that list the ports, (24.24(b), the exemptions 24.24(c) and the rules 24.24 (e) are accessible on the following web site:

http://edocket.access.gpo.gov/cfr_2008/aprqtr/pdf/19cfr24.24.pdf

Sincerely,

Ron Reuben
DGF Regulatory and Customs Compliance Consultant
LCB, CCS