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CBP Should End One Shipment Per Day Limit for Section 321 Entries, Manufacturers Say

CBP should remove from its regulations a limit of "one shipment per day" for imports under $800, the National Association of Manufacturers said in comments to the agency about rules considered onerous (see 1712120024). That shipment limit goes against "modern business practices where manufacturers may need to import commodities, component[s] or other goods on a 'just in time' basis," NAM said. "Manufacturers recommend that CBP eliminate the one shipment per day provision to be consistent with the" Trade Facilitation and Trade Enforcement Act, which raised the dollar value of the de minimis threshold.

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The agency should also revise regulations requiring a secondary declaration from an owner, importer or consignee, or agent with knowledge of the claim "for imports valued over $2,500 claiming to be free of duty under HTSUS 9801.00.10," NAM said. "This provision provides no additional security to the facts of the entry beyond what is already codified in the regulations as the importer of record’s responsibility," the group said. CBP should also allow for blanket approvals of multiple unassembled or disassembled entries within a calendar year. Updates to CBP's language on invoicing is needed because "several portions of the CBP’s regulations impose invoice and related requirements that are redundant, unnecessary and burdensome to manufacturers," the group said.

Improved support from CBP and the partner government agencies on data requirements is also needed. For example, CBP's list of HTS codes includes some ambiguities and "clearly defined parameters" would provide more direction, NAM said. There also is some inconsistency between CBP's HTS information and PGA policies, it said. "CBP and the PGAs should review the PGA/HTS code correlation list on a regular basis to ensure that accurately reflects the PGAs’ actual regulatory requirements." UPS also submitted a list of regulations that could be removed or changed. The Express Association of America recently submitted a similar list to the Treasury Department (see 1708250031).

CBP's definition of "customs business" is also due for an update, the American Association of Exporters and Importers said in a filing. Some importers use a "shared service model to perform customs work" to "centralize customs knowledge and ensure a standard rate of compliance across their entire organization," AAEI said. "The 'customs business' definition and the corporate compliance activity definition and related rulings are difficult to differentiate what specific activities can be performed by a shared service. We believe the definition of corporate compliance activity can be clarified to include 'customs activities' including documentation, responses, and audits prepared for a related business entity."

Airlines for America said in its comments that "the existing regulation for a single entry for split shipments" doesn't "reflect the operations today of express carriers and should be revised accordingly." CBP should also allow for expedited release of items under the de minimis value threshold, it said. The Department of Homeland Security should lead a government effort to improve risk assessment processes and "develop appropriate procedures" for expedited release of low value shipments, the group said. Also, "CBP should allow the electronic filing of Section 321 entries via the ACE automated broker system, and not limit such entry filing to the manifest system."