U.S. Customs and Border Protection (CBP) has recently issued two proposed amendments to the regulations governing the clearance of “de minimis” shipments. Under Section 321 of the Tariff Act, good valued at $800 or less (and gifts under $100) per shipment may enter the U.S. without payment of customs duties.
The first proposed amendment, titled “Entry of Low-Value Shipments” (ELVS), would establish a dual-track entry process for de minimis shipments. This proposal would create an “enhanced” entry process that should allow faster clearance of de minimis shipments. Additional data elements would be required to utilize the enhanced process, and the right to file such an entry would be extended to express couriers and carriers. This new “enhanced” entry process would replace the Type 86 entry. Importers would still be permitted to use the existing process of release from manifest (renamed the “basic” entry process). The proposal maintains CBP’s existing policy to deny the de minimis exemption to merchandise subject to antidumping and countervailing duties. Comments on this proposal are currently due March 17, 2025.
The second proposed amendment, titled “Trade and National Security Actions and Low Value Shipments,” would make merchandise subject to trade or national security actions (Section 201, 232, or 301 tariffs) ineligible for the de minimis exemption, including merchandise subject to an exclusion granted by the relevant agency. However, goods that are not subject at all to a tariff action would continue to be eligible for the Section 321 de minimis exemption. Importantly, the rule would also modify the first proposal by requiring the 10-digit HTSUS classification for merchandise imported under the basic entry process (release from manifest) so that CBP can determine whether the merchandise is subject to Section 201, 232, or 301 tariffs. Comments on this second proposed amendment are currently due March 24, 2025.
Please note the Trump administration has placed a temporary pause on issuing new Federal regulations, and thus the deadline for comments will likely be extended, or the proposed rules might be withdrawn. Stakeholders are encouraged to monitor developments. Please feel free to contact one of our attorneys for additional information on how these the proposed amendments may impact current business models.