U.S. Port Security Fee Scheme

Tuesday, July 23, 2002
During a meeting of the Conference Committee that is attempting to draft a unified U.S. port and maritime security bill, it was proposed that a Port Security Fee be assessed to fund various port security initiatives. Fees on international cargo shipments would, under the scheme floated by Senator Hollings (D-SC), be $15 per regular TEU $20 per TEU containing HazMat $4 per vehicle $4 per passenger $.30 per metric ton of crude oil $.45 per metric ton of petroleum product $.50 per metric ton of chemical product $.60 per metric ton of liquid gases (LNG/LPG) $.02 per metric ton of dry bulk cargo $1 per metric ton of other cargo. Based on calendar year 2000 data, this would collect approximately $692 million each year. The monies, to be collected by the Customs Service, would be deposited in a new Port Security Trust Fund. Half the monies would be allocated to ports for security enhancements. Of the remainder, 25 percent would be set aside for discretionary grants for protection of miscellaneous maritime assets and for shipper security programs and the other 25 percent would be available to generic security programs at the Maritime Administration, TSA, Customs, and the Coast Guard. These generic programs would include credentialing, Sea Marshals, AIS implementation, R&D on seaport security technology, and cargo screening equipment. Source: HK Law

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