CBP recently sent the two Notices of Proposed Rulemaking below, which are now open to a 60-day comment period until March 17th, 2025.
- January 13th, 2025- CSMS # 63715212 – CBP Issues Notice of Proposed Rulemaking to Enhance Enforcement as to Low-Value Shipments
- January 17th, 2025- CSMS # 63789491 – CBP Proposes New Rule to Strengthen Enforcement and Limit Duty Exemption for Low-Value Shipments
The most significant proposed change is that cargo subject to Section 301, 201, and 232 tariffs (China Tariffs) will no longer be allowed to be cleared under Section 321. This means that essentially all products from China will not qualify for the de minimis exemption from duty and tax. This leaves other entry types, such as Type 01 or Type 11, as options to clear de minimis cargo imports from China.
Under the proposed rule, shippers would have two choices for importing cargo valued at $800 or less:
1. The Enhanced Entry Process (New)
This optional process builds upon the Type 86 entry test, requiring more detailed electronic data but offering faster clearance. Specifically, it requires:
– A Clearance Tracing Identification Number to track shipments
– The country where the goods were when the shipment was created
– The 10-digit tariff classification code (with some possible waivers)
– At least one of these: Product URL, product picture, product identifier, or security screening report
– When applicable: seller information, purchaser details, product description, and marketplace information
– Any required partner government agency data
The enhanced entry data must be submitted before:
– Vessel cargo: 24 hours before loading
– Air cargo: At departure or 4 hours before arrival, depending on origin
– Rail cargo: 2 hours before arrival
– Truck cargo: 30-60 minutes before arrival
2. The Basic Entry Process (Current Manifest Clearance process)
This process maintains essentially the same as the existing Manifest Clearance process but adds new required data elements:
– The name/address of the person claiming the duty exemption
– The final delivery address, if different from the exemption claimant
– HTS code
Important Changes for Different Types of Shipments Below
For Bona-Fide Gifts:
– Must use the basic entry process
– Cannot use the enhanced entry process
– Maintains the $100 value limit ($200 from certain island possessions)
For Mail Shipments:
– Can now use the enhanced entry process
– Must submit data by the time the goods leave the origin country
– Cannot use the basic entry process
For Partner Government Agency (PGA) Shipments:
– Can only use the enhanced entry process
– Must include all required PGA documentation
– Cannot use the basic entry process
New HTS Waiver Program
The proposal creates an HTS waiver privilege that would allow qualified parties to skip providing detailed tariff classifications if they:
– Demonstrate strong internal controls
– Show ability to identify PGA requirements
– Maintain proper classification procedures
– Participate in compliance reviews
These changes reflect CBP's effort to:
- Get better advance information about shipments
- Speed up legitimate trade
- Better identify high-risk packages
- Adapt to modern e-commerce
- Take advantage of new technology
The CBP proposal maintains flexibility by keeping a more straightforward option (Basic Entry Process) available while creating a new path (Enhanced Entry Process) that uses technology to balance security and efficiency. This represents the most significant update to these procedures since introducing the Type 86 entry test while addressing the massive growth in small shipments driven by e-commerce.
