Area Port of New Orleans
SUBJECT: U.S. Customs and Border Protection (CBP) Tonnage Tax Modernization – Interim Final Rule
This notice is to inform the trade community of significant amendments to U.S. Customs and Border Protection (CBP) regulations concerning tonnage taxes, as outlined in a recent interim final rule on Tonnage Tax Modernization.
Key Changes Effective October 1, 2025:
- Standardized Tonnage Year:
- Effective October 1, 2025, all tonnage years will be based on the government fiscal year, running from October 1 to September 30. This change specifically amends the definition of a tonnage year in 19 CFR 4.20(b).
- This change eliminates vessel-specific tonnage years, meaning CBP will no longer calculate a unique tonnage year for each vessel based on when it first enters the United States. This aims to reduce confusion and errors regarding when a tonnage year starts or ends.
- Vessels that were just paid up in September, or are not yet paid up, will begin a new tonnage year from scratch on October 1, 2025. While some vessels may initially be disadvantaged, CBP's economic analysis (detailed in the Federal Register) indicates long-term benefits for all vessels due to reduced errors.
- CBP User Fees Alignment (Future Initiative):
- Currently, CBP User Fees remain on a calendar year basis.
- CBP is working on a separate initiative to align the CBP User Fee with the government fiscal year as well. This future alignment will further help reduce errors and confusion, especially since User Fee rate changes occur on a fiscal year basis.
- In summary:
- Tonnage Year = Fiscal Year (effective 10/01/2025)
- CBP User Fee = Calendar Year (remains the same, for now)
- 2-cent vs. 6-cent Rate Guidance:
- The guidance in 19 CFR 4.20(a)(1)-(4) outlining scenarios for charging either the 2-cent or 6-cent rate has not materially changed.
- However, the language has been modified to provide greater clarity and reduce ambiguity.
- Elimination of CBP Form 1002:
- CBP is eliminating the CBP Form 1002, "Certificate of Payment of Tonnage Tax."
- This form was deemed redundant because CBP already provides tonnage tax payment information via the Mobile Collections and Receipt (MCR) application or CBP Form 368.
- Regulatory language has been amended to state that the MCR/368 receipt issued will now serve as the "certificate of payment" of tonnage tax, fulfilling the role previously held by CBP Form 1002. This rule also permits CBP to issue a single electronic receipt for the payment of tonnage taxes and light money.
- CBP will no longer issue CBP Form 1002, and vessel masters, operators, or agents will not be required to maintain or present it as proof of tonnage payment certification. The MCR receipt or CBP Form 368 will serve as the equivalent.
Benefits of Modernization:
These amendments are designed to simplify the tonnage tax process, decrease the number of errors in assessing tonnage taxes, and simplify the tracking of tonnage tax payments.
For further information regarding this interim final rule, please refer to the official publication (19 CFR 4.20(b), 31 U.S.C. 1102).
If you have additional questions, please contact Port Director James Welch at (504) 670-2267, james.j.welch@cbp.dhs.gov or Chief Denise Emmer at (504) 670-2052, denise.emmer@cbp.dhs.gov.
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