Summary: This report focuses on the U.S. Customs Service's efforts to collect the fee for use of harbors and ports--the harbor maintenance fee. Cargo importers, exporters, domestic shippers of cargo between ports in the United States, foreign trade zone users, and passenger vessel operators are to pay the fee on the basis of the value of cargo and passenger fees. Collections from the fee are mainly used to pay the U.S. Army Corps of Engineers to improve and maintain ports and harbors. GAO found that Customs' controls over collecting the fee have not been fully effective and that the data needed for controlling collections are deficient. If these parties do not pay the fee, their nonpayment stands little chance of being detected, and a risk of substantial revenue loss exists. Customs recognizes the benefits of better enforcement of fee collection requirements and has scheduled audits, plans to hire more staff to do matching and auditing, and is looking at improving its systems for detecting and billing nonpayers. According to agency officials, however, these actions are dependent on funding. The law now restricts Customs from using fee revenue to pay for activities associated with collecting the fee. Legislation has been introduced to allow fee revenue to help pay for the costs associated with collecting the fee. GAO supports such a measure.
