[Federal Register Volume 59, Number 223 (Monday, November 21, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-28588]
[[Page Unknown]]
[Federal Register: November 21, 1994]
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DEPARTMENT OF THE TREASURY
Customs Service
[T.D. 94-91]
User Fee Protests
AGENCY: U.S. Customs Service; Department of the Treasury.
ACTION: Notice.
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SUMMARY: The Customs Service is providing guidance to the public on
procedures which should be followed when filing protests concerning the
calculation, collection and demand for payment for user fees and other
issues. This notice is intended to clarify procedures which should be
followed by parties filing protests and provide information on the
treatment Customs will give protests once they have been received.
FOR FURTHER INFORMATION CONTACT: David Kahne, Program Manager, User Fee
Task Force, U.S. Customs Service (202) 927-0159.
SUPPLEMENTARY INFORMATION: At the present time, there exists a certain
level of confusion regarding the filing and processing of protests
concerning the calculation, collection and demand for payment resulting
from audit findings of Consolidated Omnibus Budget Reconciliation Act
(COBRA) user fees, the Merchandise Processing Fee (MPF), and the Harbor
Maintenance Fees (HMF). Protests concerning these user fees are being
received at various Customs locations throughout the United States, and
requests for guidance have been received from the public and Customs
field managers as to where these protests should be filed and how
Customs will process them.
Customs intends to amend Part 174 of Title 19, Code of Federal
Regulations, to provide specific procedures for the filing of user fee-
related protests. In the meantime, this notice is published to provide
flexibility in the filing of protests, accommodate the public's desire
for local accountability, and provide guidance as to Customs preference
regarding where protests should be filed. In addition, Customs seeks to
comply with the Court of International Trade decision rendered in
Norfolk and Western Railway Co. v. United States, et al., CIT Slip Op.
94-16 (Feb. 1, 1994), which held that user fee-related protests may be
filed, in accordance with Sec. 24.73, Customs Regulations (19 CFR
24.73) at Customs headquarters. Accordingly, while Customs will
continue to accept user fee-related protests at headquarters, Customs
feels it serves the convenience of the public as well as that of the
government to show a level of flexibility on this issue and also accept
protests filed in locations more convenient to the public. To this end,
it is suggested that the guidelines below be followed.
I. Protests Concerning the Constitutionality of the Harbor
Maintenance Fee on Exports
A. Place of Filing
Protests concerning the constitutionality of the Harbor Maintenance
Fee (HMF) on exports should be sent to the U.S. Customs Service,
National Finance Center, at the following address: Director, National
Finance Center, U.S. Customs Service, 6026 Lakeside Blvd.,
Indianapolis, IN 46278, Attn: Revenue Branch, HMF Protest Team.
Only protests which specifically concern the constitutionality of
the HMF should be sent to this address. HMF protests which do not
concern the constitutionality of the fee, and protests relating to user
fees other than the HMF, are not covered by this procedure. See below
for additional guidance.
B. Form of Protests
HMF constitutionality protests may be filed on Customs Form 19, or
in letter form, or in the form of statements of protest affixed or
appended to Customs Form 349, Quarterly Summary Report. Each protest
should reference an Employer Identification Number (EIN), Internal
Revenue Service (IRS) number, Customs-assigned number, or Social
Security Number (SSN).
C. Time of Filing
Protests which concern the constitutionality of the HMF on exports
should be filed in accordance with 19 U.S.C. 1514 within 90 days after
the date on which each quarterly payment is due.
HMF payments are due within 31 days following the end of each
calendar quarter.
Example: A protest filed for the calendar quarter ending March 31
would be due no later than July 30 (end of quarter: March 31; HMF
payment due within 31 days: no later than May 1; protest due within 90
days of payment date: no later than July 30).
D. Level of Specificity
User fee-related protests should be of a level of specificity and
detail equivalent to that required by Sec. 174.13, Customs Regulations
(19 CFR 174.13). Details of the circumstances surrounding the
calculation, collection, or demands for payment, as well as amounts of
fees due and dates paid, should be included.
Protests received by the Customs Service which do not conform to
the required level of specificity will be considered incomplete, and
notices will be sent to protestants which describe the additional
information required. Such protests will be held until 30 days
following the date of the notice that the protest is incomplete, or
until expiration of the 90-day period within which such protests may be
filed (90 days from the dates that the fee payments are due), whichever
is longer. During this time, protestants may submit the additional
information. If the requested additional information is not received
prior to the expiration of this period, protests will be denied on the
grounds that they are incomplete.
II. Other User Fee-Related Protests, Including Other HMF Protests
A. Place of Filing
1. Protests of user fee collections, calculations or demands for
payment:
a. Such protests should be filed with the district director of the
district in which the protested fee collections, calculations, or
demands for payment took place, or
b. The Director, National Finance Center (NFC), if the protest
concerns an action initiated by the NFC.
2. Protests of demands for payment for non- or underpayment of fees
resulting from audits conducted by the U.S. Government should be filed
with the district director from whom the notice of audit findings was
received. The notice will contain instructions for the filing of
protests.
B. Form of Protests
User fee-related protests may be filed on Customs Form 19, or in
letter form. Each protest should reference an Employer Identification
Number (EIN), Internal Revenue Service (IRS) number, Customs-assigned
number, or Social Security Number (SSN).
C. Time of Filing
1. Protests of user fee collections or calculations shall be filed
in accordance with 19 U.S.C. 1514 within 90 days after the date on
which the first notice of the collection or calculation is mailed, or
within 90 days of liquidation or reliquidation, if applicable.
2. Protests of demands for payment resulting from findings by
auditors of the U.S. Government of non- or underpayment of user fees
should be filed in accordance with 19 U.S.C. 1514 within 90 days after
the date of mailing of the demand for payment, or within 90 days of
liquidation or reliquidation, if applicable.
D. Level of Specificity
User fee-related protests should be of a level of specificity and
detail equivalent to that required by Sec. 174.13, Customs Regulations
(19 CFR 174.13). Details of the circumstances surrounding the
calculation, collection, or demands for payment, as well as amounts of
fees due and dates paid, should be included.
Protests received by the Customs Service which do not conform to
the required level of specificity will be considered incomplete, and
notices will be sent to protestants which describe the additional
information required. Such protests will be held until 30 days
following the date of the notice that the protest is incomplete, or
until expiration of the 90-day period within which such protests may be
filed (90 days from the dates that the fee payments are due), whichever
is longer. During this time, protestants may submit the additional
information. If this information is not received prior to the
expiration of this period, protests will be denied on the grounds that
they are incomplete.
E. Applications for Further Review
Applications for further review (AFRs) should be filed with the
same Customs manager (district director or Director, NFC) with whom a
user fee protest would be filed. AFRs should be filed within the same
time period permitted for the filing of protests, i.e. within 90 days
after the date on which the first notice of the collection or
calculation is mailed, or within 90 days of liquidation or
reliquidation, if applicable.
If a decision is made to deny a protest in whole or in part, copies
of the AFR and the protest will be forwarded by the Customs manager
directly to the Office of Regulations and Rulings for review.
III. Protests Already Filed
User fee-related protests of all types which have already been
received by the Customs Service will be dealt with in accordance with
the procedures outlined above, regardless of where they were originally
filed. Timeliness of protests already received will be determined by
the dates on which they were received by the offices to which they were
originally sent.
Approved: November 15, 1994.
Samuel H. Banks,
Assistant Commissioner, Commercial Operations.
[FR Doc. 94-28588 Filed 11-18-94; 8:45 am]
BILLING CODE 4820-02-P
