c) Harbor Maintenance Fee (HMF

(3) Weekly Entries - In the case of weekly entries under 19 CFR 146.63(c), the $485 maximum and $25 minimum fees are applicable to the total amount covered by the entry summary, and not to the individual zone transfers under 19 CFR 146.63(c), since there is only one entry or release. However, a separate fee will be applied to any supplemental entries filed if actual removals from the zone will exceed the amount estimated for the weekly entry (See Section 9.8 FTZM).

(c) Harbor Maintenance Fee (HMF) - When imported cargo is unloaded from a commercial vessel at a qualifying U.S. port and admitted into a zone, the Applicant for admission of that cargo into the zone may be subject to the harbor maintenance fee as set forth in 19 CFR 24.24 (19 CFR 146.22(e)). It is important to note that the zone status of the merchandise is irrelevant to the application of the HMF.

(1) Amount of the Fee - Commercial cargo loaded or unloaded from a commercial vessel is subject to a port use fee, of .125 percent of its value (26 U.S.C. §4461 and 19 CFR 24.24(a)). The fee applies only if the cargo is loaded or unloaded at certain ports listed in 19 CFR 24.24(b)(1). Fees shall be paid for all shipments unloaded and admitted to the zone during the quarter, or in the case of direct deliveries as noted in 19 CFR 146.39 and 19 CFR 146.40, unloaded and received in the zone, under the bond of the Operator .

(2) Responsible Party - Users, not Operators (unless, they are also the Applicant for admission, i.e., subzone Operator), are subject to the fee, although Operators are encouraged to see that Users are aware of their responsibility to pay the fee. Users may also be subject to the fee for domestic shipment(s) (19 CFR 24.24(e)(1)).

(3) Domestic Vessel Movements – If merchandise is transferred from a zone for transport on a commercial vessel to another U.S. port, the fee is payable by the shipper (the person who pays the freight) on a quarterly basis in the manner specified in 19 CFR 24.24(e)(1), and reported on CBPF 349 (see sample in the Appendix to the FTZM), or on CBPF 350 (see sample in the Appendix to the FTZM), if applicable. Special intraport rules apply to domestic movements as specified in 19 CFR 24.24(d)(1), (2).

(4) Method of Payment – The fee shall be paid on a quarterly basis either electronically on www.pay.gov or by mailing a check or money order payable to CBP. Payment shall be accompanied by a CBPF 349 (Harbor Maintenance Fee Quarterly Summary Report) (see sample in the Appendix to the FTZM) covering the monthly aggregate fee. If the quarterly HMF payment is amended, it must be done on a CBPF 350 (Harbor Maintenance Fee Amended Quarterly Summary Report) (see sample in the Appendix to the FTZM). The forms are available on-line at pay.gov. If sending a check or money order, it should be sent to CBP, 6650 Telecom Drive, Suite 100, Indianapolis, IN 46278.

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(i) www.pay.gov is a secure web-based collection portal that will allow customers to complete HMF forms and make payments without mailing paper checks. Pay.gov requires that customers use ACH debit as their method of payment when making quarterly HMF payments (19 CFR 24.25). (ii) Information for setting up electronic payment can be obtained at hmf.dhs.gov.

(5) Time of Payment – Quarterly payments are due no later than 31 days after the close of the quarterly period ending on the last day of March, June, September, and December (19 CFR 24.24(f)).

(6) Recordkeeping – Each Applicant for admission responsible for payment of the fee must maintain records necessary for CBP to verify the accuracy of the fee computations and to otherwise determine compliance with the law. These records must be maintained for five years from the date of the fee calculation, and must be made available for inspection or other official use by CBP if requested (19 CFR 24.24(g)).

(7) Penalty for Late Payment – The penalty for failure to pay the harbor maintenance fee and file the summary sheet at the time specified is an amount equal to the liquidated damages assessable for late filing of an entry summary under 19 CFR 24.24(h)(1).

(8) Exemptions and Special Rules –

(i) Cargo first unloaded from aircraft, land vehicles, or otherwise not from a commercial vessel is exempt from the HMF.

(ii) Cargo first unloaded from a vessel at a port not listed in 19 CFR 24.24(b)(1) is also exempt from the HMF.

(iii) The HMF will not be assessed on any shipment entitled to be entered under the informal entry procedures of 19 CFR 143.21, nor collected in the quarterly submission (19 CFR 24.24(d)(3)(i)).

(iv) The HMF is not assessed on any import vessel movement or domestic shipment whose aggregate value does not exceed $1000, nor collected if the aggregate value of all shipments for which a HMF was assessed for the quarter does not exceed $10,00 (19 CFR 24.24(d)(3)(i); 19 CFR 24.24(d)(4)).

(v) Special rules applicable to intraport activities are set forth in 19 CFR 24.24(d)(1)(2).

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(vi) Other exemptions set forth in 19 CFR 24.24(c)

The Applicant for admission to the zone must advise the Director, Revenue Division, the name, address, EIN/IRS number, and telephone number of a responsible officer of the payer who will verify records required to be maintained as well as any changes to this information (19 CFR 24.24(g)). The address is:

U.S. Customs and Border Protection 6650 Telecom Drive Indianapolis, IN 46278

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