COBRA Fees To Be Adjusted for Inflation

COBRA Fees To Be Adjusted for Inflation and collected as of October 1, 2021
A notice by the U.S. Customs Service and Border Protection (CBP) dated July 29, 2021, announced that CBP will adjust certain customs user fees and corresponding limitations established by the Consolidated Omnibus Budget Reconciliation Act (COBRA) for Fiscal Year (FY) 2022, in accordance with the Fixing America’s Surface Transportation Act (FAST Act) as implemented by the CBP regulations. Adjusted amounts of customs COBRA user fees and their corresponding limitations set forth in the notice will take effect for FY 2022 and will be required as of October 1, 2021.

The General Notice may be accessed at the following link, refer to Table 2:
https://www.federalregister.gov/documents/2021/07/29/2021-16237/cobra-fees-to-be-adjusted-for-inflation-in-fiscal-year-2022

The Merchandise Processing Fee (MPF) ad valorem rate of 0.3464% will not change. The MPF minimum and maximum for formal entries (class code 499) will change. The minimum will change from $27.23 to $27.75, and the maximum will change from $528.33 to $538.40.

Other fees that are changing include:

• The fee for informal entry or release (class code 311) will change to $2.22.
• Surcharge for manual entry or release will change to $3.33.
• The dutiable mail fee (class code 496) will change to $6.11.

The express consignment carrier/centralized hub facility fee will change to $1.11 per individual waybill/bill of lading. An individual air waybill is a bill at the lowest level and it is not a Master Bill of lading or other consolidated documents in accordance with 82 FR 500523.

The complete and full list of fees that are changing, can be found in the General Notice by using the above highlighted link.

TMF (Pierpass Fee) at ports of LA/LB to Increase on 8/1/21
The West Coast MTO Agreement (WCMTOA) announced that on August 1, 2021, the Traffic Mitigation Fee (TMF) also known as the Pier Pass fee at the ports of Los Angeles and Long Beach will increase by 2.2%. The TMF helps offset the cost of operating extended gate hours. Labor costs are the largest single component of extended gate costs.

Please contact your Western Overseas representative with any questions about the above fees.