Surcharge Opposed
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AAEI Opposes User Fee Surcharge

The American Association of Exporters and Importers sent a letter this month to key members of Congress and the Administration to express its Opposition to any increase in Customer user fees. The Clinton Administration's budget proposal for fiscal year 1999 calls for a surcharge by increasing Customs'
Merchandise Processing Fee (MPF) from 0.21 % of the value of imported cargo to 0.25% to cover the cost of funding further development of Customs' critical Automated Commercial Environment (ACE).

The CAO has rejected Customs' ACE architecture implementation plan and therefore, Congress has not released the necessary funds to further ACE development. While AAEI supports ACE funding:, it opposes doing so via any service fee increase.

NAAEI understands that when Customs satisfies Congressional expectations for an acceptable ACE implementation plan, Congress is prepared to make available the necessary funds. "It would be improper for Customs to circumvent Congressional oversight by instituting a surcharge on imports," according to a press release.

AAEI also stressed that a user fee for this purpose is legally questionable as it would be assessed equally on all parties benefiting from the financed service. Similarly the fee is vulnerable to challenge in the World Trade Organization, according to AAEI.