CBP posted a draft version of the CBP and Trade Automated Interface Requirements that includes the coming Entry Type 86 that will be used for Section 321 shipments under the de minimis value threshold. "The Entry Type 86 (Section 321) CATAIR will be available for testing in the CERTIFICATION environment starting in June 2019," CBP said in a CSMS message. The new entry type will require a 10-digit Harmonized Tariff Schedule number, and will give filers of low value entries a way to comply with partner government agency requirements (see 1802130035).
The question of how de minimis should fit within the new NAFTA is being grappled with in Congress (see 1902280005) and partner countries (see 1903080033), panelists said March 8 during the International Trade Update at the Georgetown University law school. There was significant pushback from Canada over increasing the value threshold, mostly due to the country's value-added taxes rather than the customs duty collections, said Christine McDaniel, senior research fellow at George Mason University's Mercatus Center.
The American Association of Exporters and Importers is working on proposed legislation that is meant to improve and allow for a more modern customs process, the group said in comments on CBP's request for input on creating a new customs framework (see 1812200003). The proposal, which the AAEI refers to as "Mod Act 2," has been under development for more than a year. The legislation "seeks to take the process of accounting for imported goods and the collection of Customs duties thereon in a new and more modern direction," the trade group said.
The exemption from Section 301 tariffs for goods entered as Section 321 de minimis shipments amounts to a "loophole" that blunts the intended effects of the tariffs, said Michael Stumo, CEO of the Coalition for a Prosperous America, in a Nov. 20 post on the conservative website LifeZette. "It’s a rather strange decision by CBP," Stumo said. "The administration had imposed a tariff on thousands of products that fall within the Section 301 list. But CBP then decided that, as long as an importer brings in less than $800 worth of an item on a particular day, no duties will be collected." Stumo alleged that there's no "statutory or regulatory foundation for the decision, and it contradicts the administration’s goal of changing China’s behavior."
CBP will require advance electronic manifest filing for all commercial trucks with Section 321 shipments starting Jan. 1, the agency said in a Nov. 5 CSMS message. The growth in e-commerce "combined with the increase in the De Minimis value, has resulted in a significant growth in shipments being manifested and released under Section 321," CBP said. "The lack of an electronic manifest eliminates CBP’s ability to conduct a risk assessment or perform advance targeting within the Automated Targeting System (ATS), results in slower processing times and longer wait times."
PALM SPRINGS, Calif. -- CBP’s revised Form 5106 importer ID requirements are currently getting “final approvals” from the Office of Management and Budget and should be coming “sooner rather than later,” said John Leonard, executive director for CBP Trade Policy and Programs, on Oct. 19. The majority of brokers don’t have to be too worried about the changes, seeing that most compliant brokers are already meeting the revised requirements anyway, Leonard said, speaking at the Western Cargo Conference.
Merchandise imported in bulk and then stored in a foreign-trade zone prior to sale is not eligible for the Section 321 exemptions when the goods are withdrawn upon consumer sales, CBP said in a Sept. 18 ruling. CBP's ruling, HQ H282601, was in response to a ruling request from Sandler Travis lawyer Robert DeCamp on behalf of the American Apparel and Footwear Association. CBP's analysis in this ruling is similar to another ruling on de minimis shipments and FTZs (see 1807180022). There are efforts underway to change the treatment of such goods, on Capitol Hill (see 1808150007) and in CBP's regulations through the Commercial Customs Operations Advisory Committee (see 1810040019).
CBP is "conducting integration testing to prove compatibility of a blockchain platform with multiple partner systems," according to an update from the emerging technologies working group ahead of the Oct. 3 Commercial Customs Operations Advisory Committee (COAC) meeting. CBP began an initial "proof of concept" in September as the agency considers the potential for the distributed ledger technology (see 1808200040). "Portions of the NAFTA / CAFTA import process, specifically verification of intellectual property and relationships between licensees and licensors, have been identified as good candidates for improvement if a transition to a more digitized, decentralized system is undertaken," it said.