In a Federal Register notice published on January 14th, CBP outlined its Notice of Proposed Rulemaking (NPRM) to amend the regulations governing entry of low value shipments under the Section 321 provision. Currently, under this provision, eligible shipments valued at less than $800 USD per person, per day may be entered into the United States without duty or tax implications. The NPRM modifies existing methods of entry, establishes additional parameters and timelines, while allowing CBP to collect additional data to perform efficient screening of incoming cargo. The NPRM is open to the public for comment through March 17, 2025.
Within the proposal, the existing manifest clearance will remain and become the “Basic Entry process”. It will be modified to include additional elements such as the name and address of the person claiming the entry exemption under the Section 321 provisions which is further defined to be the owner or buyer of the merchandise, as well as the name and address of the final deliver-to party if different.
Basic Entry Elements:
1. Individual bill of lading (house bill or equivalent)
2. Country of origin of merchandise
3. Shipper name, address and country
4. Name and address of person/entity claiming the S321 exemption
5. Specific description of merchandise
6. Manifested quantity or merchandise
7. Shipment weight
8. Fair retail value in the country of shipment, in US dollars
9. Name and address of final deliver-to party
The NPRM proposes to formalize Entry Type 86 into the Customs Regulations and implement additional reporting elements, creating what will then be known as the Enhanced Entry process and it will remain voluntary. It retains the benefit of expedited clearance for eligible shipments subject to PGA requirements and allowing for duty- and tax-free entry.
Enhanced Entry Elements:
1. The 9 elements required for Basic Entry,
2. Clearance Tracing Identification Number (CTIN)
3. Country of shipment (country where shipment was created for export)
4. 10-digit HTS number, unless entity is subject to an approved waiver privilege
5. One of the following:
a. URL to the marketplace’s product listing
b. Product literature
c. Product identification (sku, etc.)
d. Shipment x-ray or other security screening report confirming completion of foreign security screening of the shipment
6. Seller name and address
7. Purchaser name and address
8. PGA data or documents as required
9. Advertised retail product description
10. Marketplace name and website or phone number
The proposal also establishes submission deadlines for both entry types across all modes of transport.
· Vesel cargo – 24 hours before laden aboard the vessel at the foreign port
· Air Cargo – either
o The time of departure when from any foreign port within North America, Mexico, Central America and parts of South America north of the Equator.
o Four hours prior to arrival for all other ports.
· Rail – 2 hours prior to the cargo reaching the first US port
· Truck = 30 minutes to one hour prior to the carrier’s arrival at the port
Shipments arriving at the port that have not met the specified timeframe will be held for additional action upon arrival which may include inspection and documentation review.
CBP further clarifies the person or entity eligible for the administrative exemption to be the owner or purchaser of the merchandise imported on one day. They also clarify who is authorized to make entry and will include a cross reference to identify any agents making such entry.
In addition, there are other noteworthy changes that are proposed :
· When multiple low-value shipments are imported by one person on the same day, and the aggregate fair retail value for all shipments exceeds $800 USD, CBP proposes to make all ineligible for the exemption and require an Informal or Formal entry as appropriate.
· Merchandise that is not exempt from payment of PGA duties, fees or taxes are ineligible for either low value clearance option.
· Articles that are subject to antidumping and/or countervailing duties remain ineligible for Section 321 treatment under the new rule.
· This NPRM also makes mention to CBP’s consideration of supplementary actions that may be forthcoming to prevent goods subject to trade actions from Section 321 treatment (i.e. Section 301 Tariffs on China-made products).
The full text of the NPRM can be found at Federal Register :: Entry of Low-Value Shipments
Comments are due by March 17, 2025 and must be submitted via the Federal eRulemaking Portal: https://www.regulations.gov. Interested parties are asked to follow the instructions for submitting comments via docket number USCBP-2025-0002.
We will continue to monitor this and provide updates as they become available. Any questions may be directed to [email protected].