Compliance News / Supply Chain News / Risk & Compliance / Economic Development / Ocean / Ports

Ocean Cargo Bound for Canada: HMF Avoided, New Fee at Port Metro Vancouver

Harbor maintenance fee avoided for U.S. bound ocean cargo en route via Canada.

A tax on ocean bound cargo entering the U.S. through Canadian and Mexican ports of entry has been avoided. The Water Resources Reform and Development Act originally contained language proposing a tax on cargo entering the U.S. through Canadian ports. However, the June 10th final ruling omitted the tax portion of the law.

A Harbor Maintenance Fee (HMF) of 0.125 percent would have been incurred for these shipments, equivalent to the amount applicable to cargo arriving at U.S. ports of entry. The tax would have been collected by U.S. Customs and Border Protection upon entry into the U.S. This is the third time the proposed legislation has been defeated.

Terminals at Port Metro Vancouver Announce Reservation Fee

Port Metro Vancouver is implementing a reservation fee similar to Pier Pass in LA. Several container terminals at Port Metro Vancouver, including TSI Terminal Systems Inc. (TSI) and DP World (Canada), have announced a $50 daytime reservation fee to offset operational costs associated with capacity issues. Terminals will partially offset the fee as they subsidize a portion of it by one quarter to one half, as determined by the terminal.

Daytime gate reservation fees and night gate operations go into effect July 2, 2014. Truck day gates are operational Monday through Friday from 8:00 a.m. to 4:30 p.m., and night gates are open from 4:30 p.m. to 1:00 a.m. The fees and hours are applicable to TSI’s Vanterm and Deltaport terminals and DP World’s Centerm terminal.

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