By Canadian Trucking Alliance

(TORONTO, Oct. 10, 2024) -- Many members have voiced their concerns to the Canadian Trucking Alliance (CTA) regarding a recent announcement by U.S. Customs and Border Protection (CBP) pertaining to an increase to the U.S. customs transponder and customs user fees on October 1^st, 2024, related to the funding of the U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) program.

Under the new fee schedule, the cost to purchase an annual commercial truck transponder has increased from $402.61 USD to $752.91 USD. Of the $752.91 total, $130.85 is dedicated to the Customs COBRA User Fee and $622.00 is allocated to the Agriculture Quarantine Inspection (AQI) Fee, which is used to protect the U.S. from the potential impacts from invasive pests and diseases being transported across our border through cross-border trade. These changes represent a near 80 percent increase year-over-year for the annual user fee. The total Single Crossing Fee for Commercial Trucks will also be increasing to $19.60 USD.

Although substantial increases to these user fees have occurred in the past, including most recently in 2017, this latest increase is occurring during a particularly problematic time for Canadian fleets who move the bulk of Canada-U.S. freight, and who are dealing with unsettled market conditions, while trying to balance increasing operating costs. 

Furthermore, the APHIS program will continue to increase the AQI user fees a total of five times between January 1, 2024, and October 1, 2027, as follows (these fees do not account for COBRA fee increases which are calculated annually):

Both U.S. agencies have cited that the increases are to account for inflation, the need for additional staffing resources to facilitate inspections and timely release at the border, along with an overall increase in the volume of goods that are being processed, amongst other considerations.

“Although the Alliance understands that governments are not immune to rising costs and the impacts of inflation on government programs, the most effective way for the industry and the supply chain to adjust to these changes are when fee increases are gradually phased-in and introduced based on a predictable schedule. This latest increase could force further conversations between trucking service providers and members of the supply chain because these costs simply can’t be absorbed by our sector”, says Stephen Laskowski, president, Canadian Trucking Alliance.