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Posted 12/09/2008 Service Increases Inspection Fees, Sets New Requirements for Wildlife Trade December 9, 2008 The U.S. Fish and Wildlife Service is increasing inspection fees for import and export of wildlife, and wildlife products, in order to recover more of the costs of inspecting shipments from those who use these services. The Service is also adding new fees for certain types of shipments and eliminating some exemptions from import/export license and inspection fee requirements. The changes are documented in a final rule that was published today in the Federal Register. The Service will implement the new fees and requirements on January 8, 2009. “These changes will ensure that those who benefit from wildlife trade pay a fair share of the costs of regulating that trade,” said Service Director H. Dale Hall. “The new fee system will help us maintain vital inspection services and treat importers and exporters more equitably.” Most imports and exports of wildlife and wildlife products must be declared and cleared by Service wildlife inspectors. Individuals or companies engaged in commercial wildlife trade must be licensed by the Service and pay inspection fees for their shipments. The current fee structure dates back to 1996 and does not cover the costs of providing inspections. Without a fee increase, the Service will be forced to cut back on inspection services. Under the new fee schedule, commercial importers and exporters will see fees rise gradually over the next four years, allowing them to gradually adjust to increased costs through 2012. The flat rate “base” inspection fee for a commercial shipment inspected at a designated port during normal business hours will increase from $55 to $87 in 2009. This fee will rise incrementally each year thereafter until it reaches $93 in 2012. The Service first outlined these changes in a proposed rule seeking public comment in February 2008; a public meeting was held in April. The Service received 72 comments from industry representatives, trade councils, and other groups. The 2009 base inspection fee for all shipments imported or exported at other ports will be $136. This fee will also increase by small amounts each year, rising to $145 in 2012. All importers and exporters using ports where Service inspectors are not stationed will also pay travel, transportation, and per diem costs associated with inspection of their shipments. The Service will now charge special “premium” fees for shipments consisting of live wildlife or protected species. Businesses dealing in such wildlife will pay the new premium fees in addition to the appropriate base inspection fee. Premium fees, however, will also apply to some non-commercial imports and exports involving live specimens or protected species. Importers and exporters will pay premium fees for shipments moving by air, ocean, rail or truck cargo at designated ports and for any import or export of live or protected wildlife at other ports. “In the past, businesses paid most of the inspection fees we collected. But many of the more complex and time-consuming inspections our officers conduct involve live wildlife or protected species imported and exported for non-commercial purposes. We’re no longer going to ask businesses to subsidize these other inspections,” said Service Law Enforcement Chief Benito Perez. A separate $37 premium fee will be charged for imports or exports of species protected under Federal law when a permit is required. Such wildlife includes federally listed endangered or threatened species, migratory birds, marine mammals, injurious species, and wildlife protected under the Convention on International Trade in Endangered Species. If a shipment contains both live wildlife and species protected under Federal law, the importer or exporter will pay two premium fees. Premium fees will increase each year over the remaining years covered by the fee schedule, rising from $37 in 2009 to $93 in 2012. The Service is also removing some exemptions that waived license and/or fee requirements for specific businesses. Under the new rules, circuses and animal shows and those dealing in furs from certain captive-bred species must obtain a Service import/export license and pay inspection fees. Exports of captive-bred bison, emu, and ostrich meat and aquacultured sturgeon food items will no longer be exempt from inspection fees. The mission of the U.S. Fish and Wildlife Service is working with others to conserve, protect and enhance fish, wildlife, plants and their habitats for the continuing benefit of the American people. We are both a leader and trusted partner in fish and wildlife conservation, known for our scientific excellence, stewardship of lands and natural resources, dedicated professionals and commitment to public service. For more information on our work and the people who make it happen, visit www.fws.gov. - - - - - - - Questions and Answers: CHANGES TO INSPECTION FEES AND IMPORT/EXPORT LICENSE AND FEE PROGRAM The U.S. Fish and Wildlife Service is changing its inspection fees and import/export license and fee requirements. The Service has outlined these changes in detail in a final rule, which was published in the Federal Register on December 9, 2008. These changes will go into effect on January 8, 2009. They will affect businesses engaged in commercial wildlife trade. Some changes will also affect individuals and organizations that import or export wildlife for non-commercial purposes. Q - What changes are being made? A - The Service is increasing import/export inspection fees for businesses and streamlining the way some fees are charged. The Service is adding new fees for shipments that contain live wildlife or protected species. These fees will apply to some non-commercial imports and exports as well as to commercial shipments. The new fees will go into effect on January 8, 2009. The new fee schedule will cover at least the next four years. Each fee will go up slightly each year through 2012. Importers and exporters will be able to plan ahead for fee increases during this period. The Service is also removing some exemptions to import/export license and fee requirements. Changes to Inspection Fees Q - Why is the Service changing its inspection fees? A - Current fees date to 1996 and do not cover the costs of providing inspections. Without a fee increase, we will be forced to cut back on inspection services. Q - Who will pay inspection fees? A -
Q - What fees will I pay as a commercial importer/exporter?
In addition to the base inspection fees above, you will pay a “premium fee” if your shipment contains live wildlife or protected species (see “Premium Fees” below). Premium fees apply at all ports. If you need your shipment cleared outside of normal business hours, you must pay overtime in addition to our other fees. Overtime charges are the same at all ports. Q - Will I have to pay fees if I import or export wildlife for other (i.e., non-commercial) purposes? A - If you import or export your non-commercial shipment at a designated port (or one that functions as designated for the type of wildlife involved), you will not pay a base inspection fee. You will pay the base inspection fee of $136 if you import or export your non-commercial shipment at either a Service-staffed non-designated port or an unstaffed, non-designated port. (This fee will rise to $145 by 2012.) You will pay overtime charges if inspectors clear your shipment outside of normal business hours. You will also be responsible for paying travel and per diem costs if an inspector travels to a non-staffed, non-designated port to inspect your shipment, as is currently the case. (We will no longer charge for inspector salary and benefits since these costs are included in the base inspection fee.) Your shipment may also be subject to the new premium fees depending on what you are importing or exporting and how your wildlife is being shipped (see “Premium Fees” below). Premium Fees Q - What is a premium fee? A - The Service will charge a new “premium fee” for imports or exports that consist of live wildlife or protected species. Premium fees will apply to commercial shipments and to some non-commercial imports and exports. Q - What is a “protected species?” A - Protected species are species that require permits under Federal law or international treaty. Examples include:
Q - Why has the Service introduced premium fees? A - Inspecting shipments of live wildlife and protected species requires more knowledge, time, and equipment, all of which translate into higher costs. Handling live wildlife, for example, requires inspectors to use an array of personal safety equipment; additional compliance issues that must be addressed include humane transport. Inspecting shipments of protected species involves additional document review or such time-consuming tasks as verifying permits with foreign governments. Recordkeeping for the Service is also more complex, including maintenance of CITES documents, annual reporting requirements, and extensive data quality control. It’s reasonable to ask those who import or export such shipments to cover the additional costs involved in inspecting them. Q - How much is the premium fee? A - In 2009, the premium fee for live wildlife and the premium fee for protected species will both be $37. (If your shipment contains both live and protected wildlife, you will pay two premium fees of $37 each, for at total of $74). Premium fees will increase each year, rising to $93 in 2012. Increases accommodate both inflation and the goal of 100 percent cost recovery. Q - Who will pay premium fees? A - All commercial importers and exporters will pay these fees whenever their shipments consist of live specimens or protected wildlife. If you import or export live or protected wildlife for non-commercial purposes, you will pay a premium fee under the following circumstances:
Some examples of groups or individuals involved in non-commercial import/export transactions who might be subject to premium fees include:
Changes to License and Fee Exemptions Q - What changes in import/export license requirements are being made? A - The Service will now require two new types of businesses – circuses and certain captive-bred fur dealers – to obtain an import/export license and pay commercial inspection fees. These businesses were previously exempt from these requirements. Q - How will these changes affect circuses and animal shows? A - Circuses, animal shows and similar groups that import and export wildlife for commercial entertainment will need to hold a Service import/export license and pay all relevant inspection fees (including the port-based basic inspection fee and appropriate premium fees). Q - Why is the Service changing requirements for circuses and animal shows? A - Although circuses and animal shows do not import and export wildlife for resale, their imports and exports stimulate business through ticket sales and other promotions. Since the purpose of the import or export is commercial, the Service has concluded that these businesses should be licensed and should pay inspection fees. Q - How will these changes affect companies trading in captive-bred furs? A - The Service is eliminating the license and fee exemption that formerly applied to businesses that exclusively import or export furs from captive-bred chinchilla, fisher, fox, marten, mink, muskrat and nutria. These businesses will need to be licensed and will pay inspection fees. Q - Why is the Service changing requirements for companies dealing in these captive-bred furs? A - Import/export records show that very few businesses deal only in these products. U.S. laws and regulations do not generally exempt captive-bred specimens from Service requirements. Most of those claiming the exemption are importers of foreign-sourced furs, and existence of the exemption has created a monetary incentive for global traders to falsely declare furs as captive-bred. Service inspectors must still inspect and clear these shipments. In the past, the costs of doing so were borne by other businesses or by U.S. taxpayers (through appropriated funds for the inspection program). The Service questions the fairness of requiring other entities to subsidize inspections for these businesses. Q - What changes in fee exemptions are being made? A - The Service is removing exemptions provided in policy that waived inspection fees for U.S. export shipments of bison, ostrich, and emu meat from U.S. ranching operations and aquacultured sturgeon products, including caviar. Q - Why is the Service removing fee exemptions for these U.S. wildlife commodities? A - The Service does not routinely exempt captive-bred, aquacultured or U.S.-origin wildlife products from inspection fees. These shipments must still be examined and cleared by inspectors. In the past, the costs of doing so were borne by other businesses that pay fees or by U.S. taxpayers (through appropriated funds for the inspection program). The Service questions the fairness of requiring other entities to subsidize inspections for these businesses. Other Questions Q - What authority does the Service have for charging inspection fees? A - The Endangered Species Act (15 USC 1540(f)) specifically authorizes the Service to charge reasonable fees for processing applications and performing inspections of wildlife imports and exports. The Independent Offices Appropriations Act of 1952 (31 USC 9701) or so called “User Fee” statute, mandates that services provided by Federal agencies are to be “self-sustaining to the extent possible.” Federal user fee policy outlined in Office of Management and Budget Circular No. A-25 provides that user fees will recover the full cost of providing services from those who benefit from them. Q - How did the Service calculate the new inspection fees? A - The Service goal was to recover 100 percent of the costs of providing inspection services to the wildlife trade community by 2012. To set appropriate fees, the Service started with wildlife inspector salaries and benefits and the appropriate portion of managers’ salaries and benefits. Also included were the costs of vehicle operation and maintenance, equipment purchase and replacement, data entry and computer support for our electronic filing system, communications costs, office supplies, uniforms, administrative support and office space. The Service factored inflation in to adjust fees each year over the period covered by the fee schedule. |