A retailer that is charging a Hazmat fee has no obligation to remit any of such fee to any government agency. It is only intended to cover their cost of compliance and recording keeping (yes, that IS required in some instances), and the amount they charge is entirely up to them. I worked for a supply company that even waived any Hazmat fees to some of their bigger customers, and that is entirely legal. There is no requirement by government to collect any Hazmat fee in any amount. That's why sometimes there are retailers that will offer reduced Hazmat fees such a Ballistic Products and their $9.99 special they run at times.