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The US Customs and Border Protection is eyeing changes to the de minimis (low-value shipments) import process
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The change involves requiring additional shipment information to enable the CBP to better interdict illegal shipments
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Current regulations only require importers to provide minimal information to the CBP for low-value shipments compared to other types of cargo
The US Customs and Border Protection (CBP) is proposing changes to the de minimis (low-value shipments) import process, including requiring additional shipment information.
The changes will help CBP verify eligibility for duty- and tax-free entry by creating a fully electronic process for filers to transmit entry data before a shipment’s arrival, the agency said in a statement.
CBP said the changes are expected to enhance supply chain visibility and enable it to better interdict illegal shipments across US ports of entry.
The de minimis exemption allows many goods valued at or less than $800 (per person, per day) to enter the US exempt from duty and import taxes and the standard customs formalities. The CBP processes more than four million de minimis shipments daily. Current regulations, however, only require importers to provide minimal information to the CBP for the shipments compared to other types of cargo.
According to US-based wiley law firm, de minimis shipments under CBP’s proposed rules will enter via the basic entry process or the enhanced entry process.
It explained: “The basic entry process maintains the existing entry process for de minimis shipments with certain slight modifications to the data required to be provided to CBP, such as requiring the name and address of the person claiming an administrative exemption and the final person to whom the merchandise is delivered.”
The basic entry process “will be required for bona fide gifts, and will be available for all other low-value shipments unless shipped through international/U.S. mail, or are goods regulated by agencies other than CBP (such as pharmaceuticals).
“The enhanced entry process, which will be optional for goods other than mail importations and products regulated by other agencies, would require the submission of data to CBP about the contents, origin, and destination of the shipments prior to the arrival of the goods in the United States. The required time frame to file for an enhanced entry would vary by mode (e.g. air, ocean, land) of transportation by which the goods arrive to the United States.”
The review of the de minimis rule comes amid the US’ strained trading relationship with China, top source of low-value, high-volume shipments to the US, a situation some see as a route to circumvent trade restrictions and tariffs.
CBP senior official Pete Flores noted the urgent need for statutory updates. He said the bulk of low-value shipments coupled with the lack of actionable data inhibits the agency’s ability to identify high-risk shipments that may contain dangerous drugs like fentanyl, merchandise that pose a risk to public safety; counterfeit or pirated goods; or other contraband.
The proposed rule is part of a larger effort to address vulnerabilities and prevent the exploitation of the growing segment of global trade to smuggle deadly goods to the US, CBP said.
It will allow the agency to target high-risk shipments more effectively, including those that contain counterfeit goods, synthetic opioids, or the pill press parts used to make drugs like fentanyl.
This should reduce the burden for CBP officers who process large volumes of shipments, leading to more accurate targeting. CBP said its resources will then be better focused on accurately identifying violative shipments.
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