US to Appeal CIT Decision Finding CBP Can't Collect Certain Fees If No Customs Inspection
The U.S. will appeal a March Court of International Trade decision finding that CBP isn't entitled to Customs Passenger Processing Fees paid by individual passengers that cancel their tickets and never actually travel to the U.S. (see 2503180018). The trade…
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court sided with Southwest Airlines in the spat, finding that the statute, 19 U.S.C. Section 58c(a), doesn't allow CBP to collect the fees where the customer doesn't travel to the U.S. and no customs inspection services are performed. The court also said CBP's guidance letters requiring airlines to pay the fees, when collected by the passenger but the passenger doesn't fly, can't usurp the agency's lack of an interest in the fees, according to the statute (Southwest Airlines Co. v. United States, CIT # 22-00141).