APHIS Issues Final Rule Increasing AQI Fees
The Animal and Plant Health Inspection Service is moving forward with changes to its Agricultural Quarantine and Inspection (AQI) fees, and will soon publish a final rule in the Federal Register to implement fee increases for certain transportation modes and a new fee for treatment services, it said (here). The final rule will also remove caps on fees for vessels and railcars, and increase the caps on fees for trucks with transponders. According to APHIS' publication schedule, the new fees will take effect on Dec. 28, though the agency will allow for a staged implementation of the treatment fee over the next five years, it said in the final rule (here).
The final rule builds off a controversial proposal published in April 2014 (see 14042321). The National Customs Brokers & Forwarders Association of America, among other industry groups, criticized the proposed new fees as "exorbitant' and "unfair," in comments submitted to the agency (see 14072920). In response to the comments, APHIS made minor adjustments to several of the proposed fee increases. APHIS also recently issued a final rule increasing its fees for overtime services it performs at ports of entry (see 1510010017).
According to a Q&A (here) posted alongside the final rule, the fee increases are necessary to cover program costs. Recent shortfalls have made it necessary for CBP to cover the difference, relying "more heavily on appropriated, taxpayer funds that could be available for other important functions and initiatives," said APHIS. The Government Accountability Office recommended an increase in AQI fees in 2013 (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.
Fees 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 will adjust fees as follows:
| AQI Service | Current | Proposed Rule | Final Rule |
|---|---|---|---|
| Air passenger | $5 | $4 | $3.96 |
| Commercial aircraft | $70.75 | $225 | $225 |
| Commercial maritime cargo vessel | $496 | $825 | $825 |
| Commercial truck | $5.25 | $8 | $7.55 |
| Commercial truck transponder | $105 | $320 | $301.67 |
| Commercial cargo railcar | $7.75 | $2 | $2 |
| Sea passenger | No fee | $2 | $1.75 |
| Treatments | No fee | $375 | $237 |
New treatment fees. To avoid negatively impacting small businesses, APHIS said in the final rule that it will stage implementation of the new $237 treatment fee as follows: first year, $47, second year, $95, third year, $142, fourth year, $190, and fifth year, $237.
International Trade Today will provide an update on the effective date of the changes once the final rule is published in the Federal Register.