CBP Issues Proposed Changes to De Minimis Import Process
On January 14, 2025, U.S. Customs and Border Protection (CBP) issued a proposal to alter its regulations regarding de minimis imports. Section 321(a)(2) of the Tariff Act of 1930 currently authorizes duty exemptions, as well as weaker reporting requirements, for certain import shipments with an aggregate value of $800 or less and qualifying bona fide gifts. As noted in Wiley’s previous client alert, the de minimis duty exemption has increasingly come under scrutiny as the amount of goods entering the United States under the exemption has increased. While 140 million shipments utilized the exemption in 2013, there were over 1 billion such shipments in 2023. Policymakers have expressed significant alarm over the potential for the exemption to facilitate unlawful shipments of narcotics (including fentanyl), dangerous merchandise, counterfeits, and products made with forced labor.
Currently, goods can be entered under the de minimis exemption rule by presenting the bill of lading or a manifest listing each bill of lading. Under this process, only minimal information is required for the goods to be entered, including the country of origin of the merchandise; shipper name, address and country; ultimate consignee name and address; a specific description of the merchandise; quantity; shipping weight; and value. The proposed rules contemplate modifying certain of these information requirements, as well as adding additional information requirements.
Under CBP’s proposed rules, there will be two methods for entering de minimis shipments: the “basic entry process” and the “enhanced entry process.” 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. Under CBP’s proposal, the “basic entry process” will be required for bona fide gifts, and will be available for all other low-value shipments unless they are 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. Additionally, for all shipments made under the enhanced entry process, the following additional data would be required to be transmitted for all shipments:
- A clearance tracing identification number (i.e., bill of lading number or other unique identification number used to associate the merchandise on the individual bill of lading with the eligible imported merchandise);
- The country of shipment;
- 10-digit HTSUS classifications for the merchandise seeking to be entered (this requirement may be waived by CBP upon successful waiver application);
- One or more of the following: (1) the URL to the marketplace’s product listing; (2) product picture; (3) product identifier; and/or (4) shipment x-ray or other security screening report number verifying completion of foreign security scanning of the shipment;
- Seller and purchaser names and addresses;
- Advertised retail product description;
- Marketplace name and website or phone number; and
- Any other data and documents required by other government agencies.
Under the proposed rules, as under current law, shipments of merchandise subject to certain specialized duties (e.g., antidumping duties, excise taxes) will not be eligible for the basic or enhanced entry processes, even if the shipments otherwise meet de minimis requirements. It should be noted that the proposed rules do not implement all of the changes described in the Biden Administration’s September 13, 2024 announcement regarding de minimis shipments, in particular a proposal to deny de minimis treatment for goods subject to Section 201 or 301 of the Trade Act of 1974 or Section 232 of the Trade Expansion Act of 1962. It is possible these additional proposals may still be addressed in separate rules.
Comments on CBP’s proposed rules must be received by March 17, 2025. Interested persons may want to comment on the enhanced information requirements for importing goods under the de minimis exemption, the deadlines for filing under the enhanced entry process, and the practicability of the new information requirements.
Wiley has robust International Trade, Trade Policy, and Customs practices with extensive experience helping clients navigate de minimis rules and broader trade issues. For more information about the implications of the new de minimis rulemaking, please contact one of the listed attorneys.
