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U.S. International Port Security Service Fee Proposed

Maritime Activity Reports, Inc.

April 5, 2004

Senator Hollings (D-SC) introduced a bill (S. 2279) to amend title 46, United States Code, with respect to maritime transportation security, and for other purposes. The measure, if enacted, would, among other things, impose an international port security service fee on commercial maritime transportation entities that utilize the U.S. maritime transportation system and benefit from the security of the system. While the official text of the bill has not been released, it is clear that Senator Hollings is attempting to craft a user fee proposal that will survive a challenge that it is actually a tax. Only time will tell if this effort succeeds. One should not be surprised if the Senate Commerce Committee fast-tracks this bill. (HK Law).

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