Customs brokers, forwarders blast US harbour tax hike bill

A US bill to raise the Harbour Maintenance Tax (HMT) to help pay for transportation infrastructure has been slammed by the National Customs Brokers and Forwarders Association of America (NCBFAA).

"Higher value products would bear a disproportionate brunt of the increased tax," NCBFAA president Mary Jo Muoio told Oregon Democratic Congressman Peter DeFazio, chairman of the House Transportation and Infrastructure Subcommittee on Highways and Transit.

"This misalignment between the fees paid and the services for which they are charged would further undermine the legitimacy of this so-called 'user fee'," Ms Muoio told him in a letter.

American Shipper reported formal opposition comes two months after the MOVEMENT Act was introduced to raise an estimated US$2.5 billion to $2.7 billion each year for freight-related infrastructure in and around land and seaport cities.

At present, the Harbour Maintenance Tax is levied on ocean imports and domestic cargo and is computed at 0.125 per cent of the cargo's value.

The bill would assess a 0.4375 per cent tax based on the value of goods and set up a separate goods movement account within the Harbour Maintenance Trust Fund for landside projects. Ninety per cent of the money would have to be allocated to transportation improvements, seven per cent would go to mitigate the environmental impact of freight transport and three per cent would cover cargo security needs.

Ms Muoio said the trust fund already enjoys a $5 billion surplus and pulls in almost $1.3 billion per year. Trade advocates complain that not enough of the money is released each year to deal with a growing backlog of dredging needs to make ports more competitive.

The report added that The NCBFAA supports infrastructure investment, but not on top of other cargo fees and at a time when companies are struggling with the economic downturn.

(Source: www.schednet.com)