CBP is opening up its Section 321 data pilot beyond the initial nine participants, and extending the pilot an additional two years, until August 2025, the agency said in a notice released Feb. 15. CBP also will allow submission of new, optional data elements as part of the pilot.
Two Democrats and a Republican are asking the CEO of Shein, a fast-fashion powerhouse, about its use of de minimis and its purchases of Xinjiang cotton. All products made in Xinjiang are barred from entry to the U.S., unless importers can prove they were not made with forced labor, but small packages imported directly by consumers escape CBP scrutiny.
CBP released a report Oct. 17 with detailed statistics on Section 321 de minimis shipments during fiscal years 2018 through 2021. The report shows a continuous rise in volume of shipments during the period, which ended Sept. 30, 2021, from about 400 million to about 770 million. The value of shipments declined during the latter years of the period, however, rising from about $30 million in 2018 to about $56 million in 2019 and $67 million in 2020, before falling to about $40 million in 2021. The report also contains statistics on seizures by type, by mode of transportation and by country of shipment, as well as whether refused shipments were abandoned or returned to sender.
As CBP moves toward collecting data from “non-traditional” parties earlier in the supply chain as part of its reimagined 21st Century Customs Framework, major questions include the standard to which that data will be held, as well as how CBP will enforce those standards on supply chain actors beyond the agency’s jurisdiction, CBP and industry officials said during a panel discussion July 18.
A panel of industry, trade group representatives and a customs broker disagreed on the proper approach to changing domestic de minimis policy, or even if it should be changed, but agreed that it's perverse that warehouses in Canada and Mexico are serving as way stations for small packages destined for U.S. consumers.
CBP should recognize imports of goods under the $800 de minimis threshold as entries, as a way to help prevent low value goods made with forced labor from coming into the U.S., the National Customs Brokers & Forwarders Association of America said in comments to DHS on implementing the Uyghur Forced Labor Prevention Act. "By treating the commercial de minimis exemption instead as an entry of merchandise, the Government can continue to promote the administrative ease that section 321 affords legitimate gift and personal use shipments, while also ensuring goods imported under the commercial de minimis exemption are eligible and admissible and pose no threat to our country’s economy, safety, health, or security and particularly are free of forced labor," the trade group said.
The U.S. Chamber of Commerce hopes to be able to support the House China package, since the trade group supported the U.S. Innovation and Competition Act, but said the House bill "continues to include numerous policies that would undermine U.S. competitiveness, and Members are being denied the opportunity to vote on amendments to address these issues." The Chamber said it will push during the conference process to get better bill.
Thirteen groups that represent business interests told House leaders that they strongly oppose the changes to de minimis in the trade title of the America Competes Act, the House answer to the Senate China bill that passed last year.