The executive at CBP responsible for the two pilot programs collecting data for Section 321 and Entry Type 86 told an audience of brokers that issuing a notice of proposed rulemaking on required data submissions for de minimis shipments is "of the highest priority at CBP right now." He repeated for emphasis, "The highest priority. From the commissioner down, it has been: 'When are we going to get the NPRM?'"
321 de minimis
De minimis is a policy described in Section 321, 19 USC 1321. It allows the import of articles duty and tax free, provided their aggregate fair retail value does not exceed $800 in the country from which the articles are imported. Additionally, the articles must be imported by only one person on one day. The previous de minimis threshold was $200, but the Trade Facilitation and Trade Enforcement Act increased it to $800.
CBP released a series of frequently asked questions on de minimis as a follow up to a webinar the agency held in April on the subject (see 2304060046). The FAQs cover general information on Section 321, as well as questions on entry type 86 and CBP’s Section 321 data pilot.
The ability to import low-value packages without paying duties is a benefit to consumers and businesses, the U.S. Chamber of Commerce and other trade groups that use de minimis are arguing, as they lobby against bipartisan efforts to curtail de minimis eligibility.
CBP and the Commercial Customs Operations Advisory Committee, or COAC, have "several issues where the COAC and CBP have agreed to disagree," in a customs modernization proposal, said Flexport's Caroline Dale (see 2306050069), but the lengthy work to come to consensus is just the start.
CBP's upcoming regulatory changes around de minimis shipments will combine the best of the Section 321 data pilot and the best of the entry type 86 test, adding together "clearance speed of the entry type 86," CBP's E-Commerce and Small Business Branch Chief Christine Hogue said on a May 18 webinar discussion hosted by the World Trade Center Miami.
NEW ORLEANS -- Much-anticipated customs modernization legislation likely won’t be introduced for at least another few months, but the National Customs Brokers & Forwarders Association of America’s legislative adviser isn’t worried about running out of time for Congress to pass it into law before the presidential election cycle, she said during a panel discussion April 26.
The CBP executive whose directorate covers trade remedies, intellectual property enforcement and e-commerce said that small-value shipments coming to the U.S. are not slipping through uninspected, just because there are no duties owed. Brandon Lord, executive director of the Trade Policy and Programs Directorate, said in an interview with International Trade Today at the CBP Trade Facilitation and Cargo Security Summit: "There's a misconception that we don't target or screen de minimis -- it's not true. People throw around the phrase 'loophole.' It's not a loophole. De minimis is not a loophole."
When most people think of counterfeits in the U.S., they think of luxury fashion -- purses and watches -- but CBP also is concerned about safety issues from counterfeit medicines, sunscreen, baby formula and poorly made electronics whose lithium-ion batteries can cause fires.
Almost half of de minimis shipments last year were covered either by the Type 86 entry test or the Section 321 data pilot program, CBP said, but that doesn't mean that the government has a good grasp on what merchandise is entering in small packages.
Despite the success of its Section 321 data pilot, which has taught CBP lessons on the types of data on de minimis shipments it may find helpful and reduced hiccups for industry participants providing the additional data, CBP still has “quite a bit we can learn,” CBP’s Christopher Mabelitini said during a webinar April 12. In addition to expanding the number of participants covered by the pilot, CBP is looking to increase the universe of data and transactions.