APHIS Proposes New Fees for Agricultural Inspection and Treatment, Includes CBP Services
The Animal and Plant Health Inspection Service is proposing the first changes to Agricultural Quarantine inspection (AQI) fees for imports in nearly a decade. In two proposed rules that have yet to be published in the Federal Register, APHIS is amending its general fee rates (here) as well as the rates charged by APHIS and CBP officers for overtime (here). The proposed rule on general AQI fees for the first time adds a $375 fee for each treatment conducted under the AQI program, including those conducted by private companies, and removes annual caps on fees for vessels and railcars. APHIS says the fee increases are necessary to cover AQI costs, which have increasingly been shouldered by CBP digging into its budget. Comments will be due 60 days from the proposed rules’ eventual publication in the Federal Register.
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According to the proposed rules, fees charged by APHIS and CBP for AQI services haven’t changed since 2005. However, due to changes in the cost of providing AQI services, “revenue from fees charged has been insufficient to cover all costs and compelled [the Department of Homeland Security] to use appropriated funds that should be available for other important homeland security functions and initiatives,” APHIS said in a questions and answers document posted at the same time as the proposed rules (here). “Other than minor adjustments for inflation from FY 2000 to FY 2010, the fees have not changed, even though CBP has hired hundreds of additional inspectors to meet the increasing need caused by a large increase in arriving international passenger and cargo traffic,” it said.
A Government Accountability Office (GAO) report from March 2013 urged APHIS to increase AQI fees to cover the higher costs (see 13030601}. At the time the report was issued, AQI fees covered 62 percent of the costs of the AQI program, leaving $325 million to be covered by CBP, it said. AQI services are provided by a combination of APHIS and CBP personnel. But fee collections were distributed so that APHIS’ portion of the program is fully funded, while CBP was left with the tab for whatever fees didn’t cover.
Fees Would Triple for Air Cargo, Double for Ocean; New Fees for Treatment Services
In order to collect enough fees to cover the costs of AQI services, APHIS is proposing to adjust fees, end certain exemptions, and add new fees. Specifically, APHIS is proposing the following changes to AQI fees:
- Adjust fees for AQI services for commercial vessels, commercial trucks, commercial railroad cars, commercial aircraft, and international air passengers.
- Add a new fee to be charged for international commercial sea (cruise vessel) passengers.
- Add a new fee for conducting and monitoring treatments.
- Remove the caps for vessels and railcars.
- Adjust the caps on fees for trucks with transponders.
APHIS is proposing new fee rates as follows:
| AQI Service | Current | Proposed |
|---|---|---|
| Air passenger | $5 | $4 |
| Commercial aircraft | $70.75 | $225 |
| Commercial maritime cargo vessel | $496 | $825 |
| Commercial truck | $5.25 | $8 |
| Commercial truck transponder | $105 | $320 |
| Commercial cargo railcar | $7.75 | $2 |
| Sea passenger | No fee | $2 |
| Treatments | No fee | $375 |
New treatment fees. APHIS says the proposed $375 fee for treatment services would be applied to each treatment performed. If the treatment isn’t successful and has to be reapplied, each subsequent treatment would be subject to the $375 fee as well. Large shipments that have to be broken up and undergo multiple treatments would be charged for each treatment, but smaller shipments could also be consolidated and be charged only for one treatment. APHIS says that although most treatment services are provided by private companies, those companies would still have to collect the new AQI fees and remit them to APHIS.
Hourly Overtime Fee Rates Would Increase 2014-18
A concurrently-issued proposed rule from APHIS would also raise the fees charged by APHIS and CBP for AQI services starting on the date of any final rule and extending through FY 2018. Although no fee rates would be set for any years beyond FY 2018, fee rates in effect for that year would continue for subsequent years unless APHIS sets new AQI fees. For inspection, laboratory testing, certification, or quarantine services performed by APHIS and CBP, APHIS is proposing the following hourly fee rates:
| Hours | Current | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 |
|---|---|---|---|---|---|---|
| Mon-Sat, Holidays | $51 | $74 | $74 | $75 | $75 | $75 |
| Sundays | $67 | $98 | $98 | $99 | $99 | $100 |
The APHIS proposed rule would also increase hourly fee rates for commercial aircraft for inspection or quarantine services provided outside of the regularly established hours of service, as follows:
| Hours | Current | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 |
|---|---|---|---|---|---|---|
| Mon Sat, Holidays | $41 | $64 | $64 | $64 | $65 | $65 |
| Sundays | $55 | $84 | $85 | $85 | $86 | $86 |
According to the proposed rule, any overtime fee increases would only apply starting on the effective date of any final rule.
Comments Requested on Future Fee Adjustments
In its proposed rule on general fee increases, APHIS asked for input on how it should update AQI user fees going forward. “Currently there is no established schedule for updating the fees, which has led to long gaps between updates and substantial increases in fees when updates are made,” it said. APHIS is particularly interested in comments on whether fees should be updated more frequently, such as every two years, and whether updates should be made through a formal rulemaking or another type of notice-and-comment process. APHIS is also asking for comments on whether fees should be phased when there is an economic hardship because of sharp increases in fees due to long gaps between updates.
International Trade Today will provide an update on the due date of comments on these proposed rules once they are published in the Federal Register.