COBRA FEES.

SEC. 892. COBRA FEES.(a) Use of Merchandise Processing Fee.—Section 13031(f) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)) is amended—(1) in paragraph (1), by aligning subparagraph (B) with subparagraph (A); and(2) in paragraph (2), by striking “commercial operations” and all that follows through “processing.” and inserting “customs revenue functions as defined in section 415 of the Homeland Security Act of 2002 (other than functions performed by the Office of International Affairs referred to in section 415(8) of that Act), and for automation (including the Automation Commercial Environment computer system), and for no other purpose. To the extent that funds in the Customs User Fee Account are insufficient to pay the costs of such customs revenue functions, customs duties in an amount equal to the amount of such insufficiency shall be available, to the extent 118 STAT. 1645 provided for in appropriations Acts, to pay the costs of such customs revenue functions in the amount of such insufficiency, and shall be available for no other purpose. The provisions of the first and second sentences of this paragraph specifying the purposes for which amounts in the Customs User Fee Account may be made available shall not be superseded except by a provision of law which specifically modifies or supersedes such provisions.”.(b) Reimbursement of Appropriations From COBRA Fees.—Section 13031(f)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 (19 U.S.C. 58c(f)(3)) is amended by adding at the end the following: “(E) Nothing in this paragraph shall be construed to preclude the use of appropriated funds, from sources other than the fees collected under subsection (a), to pay the costs set forth in clauses (i), (ii), and (iii) of subparagraph (A).”.(c) Sense of Congress; Effective Period for Collecting Fees; Standard for Setting Fees.—(1) Sense of congress.—The Congress finds that—(A) the fees set forth in paragraphs (1) through (8) of subsection (a) of section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 have been reasonably related to the costs of providing customs services in connection with the activities or items for which the fees have been charged under such paragraphs; and(B) the fees collected under such paragraphs have not exceeded, in the aggregate, the amounts paid for the costs described in subsection (f)(3)(A) incurred in providing customs services in connection with the activities or items for which the fees were charged under such paragraphs.(2) Effective period; standard for setting fees.—Section 13031(j)(3) of the Consolidated Omnibus Budget Reconciliation Act of 1985 is amended to read as follows:“(3)(A) Fees may not be charged under paragraphs (9) and (10) of subsection (a) after September 30, 2014.“(B)(i) Subject to clause (ii), Fees may not be charged under paragraphs (1) through (8) of subsection (a) after September 30, 2014.“(ii) In fiscal year 2006 and in each succeeding fiscal year for which fees under paragraphs (1) through (8) of subsection (a) are authorized—“(I) the Secretary of the Treasury shall charge fees under each such paragraph in amounts that are reasonably related to the costs of providing customs services in connection with the activity or item for which the fee is charged under such paragraph, except that in no case may the fee charged under any such paragraph exceed by more than 10 percent the amount otherwise prescribed by such paragraph;“(II) the amount of fees collected under such paragraphs may not exceed, in the aggregate, the amounts paid in that fiscal year for the costs described in subsection (f)(3)(A) incurred in providing customs services in connection with the activity or item for which the fees are charged under such paragraphs;“(III) a fee may not be collected under any such paragraph except to the extent such fee will be expended to pay the costs described in subsection (f)(3)(A) incurred in providing 118 STAT. 1646 customs services in connection with the activity or item for which the fee is charged under such paragraph; and“(IV) any fee collected under any such paragraph shall be available for expenditure only to pay the costs described in subsection (f)(3)(A) incurred in providing customs services in connection with the activity or item for which the fee is charged under such paragraph.”.(d) Clerical Amendments.—Section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985 is amended—(1) in subsection (a)(5)(B), by striking “$1.75” and inserting “$1.75.”;(2) in subsection (b)—(A) in paragraph (1)(A), by aligning clause (iii) with clause (ii);(B) in paragraph (7), by striking “paragraphs” and inserting “paragraph”; and(C) in paragraph (9), by aligning subparagraph (B) with subparagraph (A); and(3) in subsection (e)(2), by aligning subparagraph (B) with subparagraph (A).(e) Study of All Fees Collected by Department of Homeland Security.—The Secretary of the Treasury shall conduct a study of all the fees collected by the Department of Homeland Security, and shall submit to the Congress, not later than September 30, 2005, a report containing the recommendations of the Secretary on—(1) what fees should be eliminated;(2) what the rate of fees retained should be; and(3) any other recommendations with respect to the fees that the Secretary considers appropriate.