EP 1165-2-1
30 Jul 99
construction, maintenance, or operation since 1977. Although
legislated as a "tax" for enforcement purposes, the HMF is viewed by
the Administration as a fee to recover the costs of port and harbor
maintenance by the Corps of Engineers. In keeping with this view, the
implementing regulations have made "Federal expenditure" synonymous
with Corps of Engineer expenditure. The fee went into effect on 1
April 1987, and is administered by the U.S. Customs Service
(Department of the Treasury). The fee, 0.04 percent of the value of
the commercial cargo loaded or unloaded at a port subject to the fee,
was increased to 0.125 percent under Section 11214 of the Omnibus
Budget Reconciliation Act of 1990 (Public Law 101-580). The fee is
paid by the shipper in the case of exports and domestic ocean cargo,
and by the receiver in the case of imports. There are a number of
exemptions to the law, mostly pertaining to certain shipments to and
from Alaska, Hawaii, and U.S. possessions and the U.S. mainland. The
responsibility for administering the regulations is with the U.S.
Customs Service. Inquiries from outside the Corps should be referred
to the Director, Users Fee Task Force, U.S. Customs Service, 1301
Constitution Avenue N.W., Washington, D.C. 20229. The March 31, 1998
decision by the Supreme Court in U.S. Shoe Corporation vs. The United
States, found the HMF unconstitutional as applied to exports.
Collection of the ad velorum tax on exports was halted on April 25,
1998 although collections continue on imports and domestic cargo.
f. Harbor Maintenance Trust Fund. Section 1403 of WRDA 1986
established in the U.S. Treasury a trust fund to be known as the
Harbor Maintenance Trust Fund consisting of such amounts as may be
collected by the Harbor Maintenance Fee, transferred to the trust fund
by the St. Lawrence Seaway Development Corporation, or appropriated by
Congress. Section 210 of WRDA 1986 authorizes to be appropriated out
of the Harbor Maintenance Trust Fund such sums as may be necessary to
pay 100 percent of the eligible operations and maintenance costs of
the U.S. portion of the Saint Lawrence Seaway, and not more than 100
percent of the eligible O&M costs assigned to commercial navigation
of all harbors and inland harbors within the United States. The WRDA
1990 (Public Law 101-640) increased this authorization to 100 percent
of the eligible Corps of Engineers expenditures as well. The WRDA
1996 added the costs of construction of dredged material disposal
facilities for O&M of Federal navigation projects, the Federal O&M
costs of disposal facilities, dredging and disposal costs of
contaminated sediments in or affecting the maintenance of Federal
channels, and mitigating for the impact of Federal O&M activities as
eligible costs for the Harbor Maintenance Trust Fund.
g. Port or Harbor Dues. Section 208 of WRDA 1986 permits
non-Federal sponsors of Federal navigation projects to recover the
non-Federal sponsor's share of the cost of construction, operation and
maintenance, and provisions for emergency response services. The
decision to levy dues, as well as establishment of the dues, is the
responsibility of the sponsor. There are some requirements and
restrictions on the dues that may be levied, and on what vessels are
subject to the dues. A process of public participation is required
prior to establishment of the schedule of dues. The non-Federal
sponsor must submit specific information, including the proposal for
collection of dues, to the Secretary of the Army. The Secretary must
then transmit the required information for publication in the Federal
Register. The role of the Secretary is to assure that the public
involvement process allows opportunity for public review and input.
The responsibility of the Corps under Section 208 is to assure that
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