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B-196342 1 (1980-04-15)

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B-196342


DATE:   April 15, 1980


OF: (Customs  Service Recovery-off-Preclearance (Including
     TECS)  Cost Under UserjCharge Statute,) 31 U.S.C.5 483a

Where  Customs Service receives no advantage from
conducting passenger preclearance activity on foreign
soil vis a vis conducting passenger clearance activi-
ties v7tihTnTEe United States and preclearance activity
was  initiated at airlines request, results in substantial,
cost savings to airlines and permits airlines to better
use  their resources, record supports determination
that airlines are primary beneficiaries of preclearance
service.  Therefore, under authority of 31 U.S.C.§ 483a,
Customs  may  continue to assess user charge against
airlines and recover that portion of its costs (including
TECS)  that are increased by its conducting passenger
preclearance  on foreign soil.


   As  directed in the Conference Report (H.R. Rep. No. 96-471, p. 6) ac-
companying the Treasury, Postal Service and General Government Appro-
priation Act, 1980, Pub. L. No. 96-74, September 29, 1979, 93 Stat. 559
the  -ssistant-Secretary (Enforcement and Operations), Department of the9 0
Treasy-'requested  our views on a dispute between the -LSSCustomAegvice
(Customs) and the airlines as to what portion, if any, of the cost of the
                                     s  sern (TECS) should be included in
fees assessed airlines using Customs preclearance services provided at some
foreign airports. For the reasons explained below, we believe Customs is
legally entitled to charge airlines wishing such services the indicated pre -
clearance costs, including the special TECS installations costs.

                          Background        LL

    The U.S. Federal Inspection Service (FIS) conducts preclearance
inspections of passengers, crew members and their baggage at certain
foreign international airports prior to their boarding of a flight bound
for the United States. Preclearance services are provided for both U.S.
and foreign carriers. Generally the inspection is of regularly scheduled
flights, but chartered commercial flights are also inspected whenever
resources permit.  A preclearance inspection is basically the same
inspection an individual would experience if he arrived at a U.S. port


   [3  C S 93OF Ttj UNITED STATES
                       WAASHINGTON. 0. C. 20546
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