NEWS FLASH

Proposal to Increase Harbor Maintenance Fee 350%

Jun 15, 2009
 

The recently introduced Making Opportunities Via Efficient and More Effective National Transportation (MOVEMENT) Act of 2009 (HR 2355)[1][1] proposes to raise the Harbor Maintenance Fee (HMF) from 01.25% to 0.4375%. 

If enacted into law, the effect of this fee increase could be significant.  For example, for imported merchandise valued at $500,000, the HMF would jump from about $625 to $2187.50. 

There is currently no cap on the amount of HMF payable and the new legislation does not propose to create one.First proposed in 2008, the current legislation seeks to increase the rate of the HMF and expand its application. 

Since the mid-1980’s, HMF has been assessed on merchandise arriving via ocean carrier at 0.125% of the cargos value unloaded at most U.S. ports.  If passed, the Act would increase the fee to 0.4375%. 

In addition, goods arriving after unloading at a foreign port (in Mexico or Canada) would be assessed a fee of 0.3125% when entered into the U.S. (Goods originating in Canada or Mexico are exempt.)  This could cause foreign goods arriving at in-land and land-border ports which were previously exempt from the HMF to be subject to the increased fee structure.

The Act is intended to establish a National Goods Movement Improvement Fund to provide funding for infrastructure projects that will improve the movement of goods, mitigate environmental damage caused by the movement of goods, and enhance the security of transported goods. 

The Act, with 11 co-sponsors, is pending before the House Transportation and Infrastructure Committee, Subcommittee on Coast Guard and Maritime Transportation Referral and the Subcommittee on Highways and Transit Referral, as well as the House Ways and Means Committee.

Importers concerned with the potential impact of these increased fees on their businesses are urged to contact their Congressional delegates to express their opposition to the proposed legislation.

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