CBP SPACE Act Could Raise Import Fees to Fund Port Upgrades, Effective in 180 Days

The CBP SPACE Act is essentially a major funding overhaul for U.S. Customs and Border Protection (CBP) infrastructure at seaports. The core change is giving CBP the green light to adjust (read: potentially raise) the Merchandise Processing Fees (MPF) currently paid by importers. The money collected from these fees, which used to be mainly for salaries and general expenses, can now be explicitly used to cover “capital costs”—think big-ticket items like new inspection equipment, facility construction, and maintenance at seaports of entry (SEC. 2).

The Cost of Entry: Who Pays for the New Port Gear?

This is the part that hits the wallet. The bill grants the Secretary of the Treasury and the CBP Commissioner the authority to set the MPF rates high enough to "properly fund necessary equipment upgrades and the construction, improvement, and maintenance of facilities" (SEC. 2). While this sounds great for modernizing our ports—which absolutely need it—it means the cost of those upgrades is being directly passed on to importers through higher user fees. Since importers rarely absorb these costs, they are typically passed down the supply chain, meaning consumers and businesses relying on imported goods (which is almost everyone) will ultimately pay more for everything from electronics to clothing to raw materials. This change kicks in 180 days after the Act becomes law.

No More Free Offices at the Docks

There’s another interesting provision that actually helps port authorities. The bill explicitly prohibits the CBP Commissioner from forcing a seaport to provide or maintain administrative offices, training rooms, or recreational areas for CBP inspection staff (SEC. 3). For years, ports have often been required to foot the bill for these spaces. This change means that if CBP needs a new breakroom or a dedicated training facility, they can’t just demand the port build and maintain it; they’ll have to use their newly authorized MPF funds for those needs, keeping the ports focused on actual shipping operations.

Following the Money: New Transparency Rules

To keep things accountable, the Act requires the CBP Commissioner to submit an annual report to key Congressional committees (like House Ways and Means and Senate Finance). This report must detail exactly how much money was collected from the MPF in the previous year, how much of that money was specifically used to improve seaport inspection facilities, and what major building or equipment needs still require funding (SEC. 4). This mandated transparency is a positive step, ensuring that if the fees go up, there’s a clear paper trail showing exactly where that money went and what infrastructure projects it funded. It gives Congress—and the public—the tools to track whether those potentially higher import fees are actually being used for the intended port modernization.