In a second Notice of Proposed Rulemaking (NPRM) due to be published on January 21, 2025, US Customs and Border Protection (CBP) outlines its intent to further restrict Section 321 with two major changes and opens a comment period to the trade through March 21, 2025.
The proposal, if approved, will prevent merchandise subject to any trade remedy tariff from being entered into the United States under the Section 321 program, forcing importers to file a formal entry and pay duty for the same. This would include:
Section 301 tariffs currently in place on a broad range of Chinese made goods, with assessments ranging from 7.5%-100% currently
o This includes those that are covered by any remaining exclusions that are in place through May 2025, although duties won’t be collected as long as the exclusions remain in place.
Section 201 tariffs on certain solar cells at 14.25% currently
Section 232 tariffs on aluminum and steel mill articles at 10% and 20% currently
The NPRM also proposes to require an enhancement to the Basic Entry Process that was the subject of last week’s proposed rule, which is presently known as the carrier manifest Section 321 clearance. The current proposal will require the full 10-digit tariff number for each unique product on the shipment to enable Section 321 clearance off the manifest.
CBP is also seeking comments from interested parties to determine how to handle international mail shipments due to the complexities of current handling practices and will issue a future notice outlining any potential changes at a later date.
Interested parties are asked to submit comments via the Federal eRulemaking Porta at https://www.regulations.gov using the instructions for docket number USCBP-2025-0003.
We will continue to follow this rulemaking process and keep you informed as it progresses.