News / CBP unveils its proposed changes to rules on low-value imports

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The US Customs & Border Protection (CBP) agency yesterday unveiled its much-awaited proposals to amend de minimis, or Entry of Low -Value Shipments (ELVS), rules. 

While the de minimis level of $800 will not change, CBP is keen to ensure that more data on low-value shipments is received. It said: “Today’s rule-making update focuses on data entry.” 

“The information requirements for low-value shipments are less rigorous than those for other entry types, and often do not provide sufficient detail for CBP to accurately identify the merchandise in the shipment and the parties involved in its sale and purchase.

“Furthermore, novel and complex ecommerce business models have complicated and added to the traditional array of parties involved in the import transaction,” it explained. 

Noting it had made no changes to de minimis requirements since 1995, except to increase the amount from $200 to $800, CBP pointed out that there had been significant changes to the trade environment and big increases in volumes. 

“Trans-national criminal organisations and other bad actors perceive low-value shipments as less likely to be interdicted, because these types of shipments are not subject to the more extensive formal entry procedures,” it said. 

“This rule-making proposes data requirements that are tailored to capture the key parties in these modern trade transactions (eg, the seller, purchaser, final deliver-to party and marketplace), thus strengthening CBP’s enforcement posture.” 

Agency data shows that in 2015, some 139m shipments entered the US under the de minimis scheme. Following its increase to $800 in 2017, the number increased to 325m – and in 2023, CBP cleared more than a billion low-value shipments. 

“Currently, approximately 4m shipments are released each day free of duty and tax, pursuant to the administrative exemption. In fact, CBP estimates that over 90% of the number of shipments entering the United States are low-value shipments valued at $800 or less.” 

In a 90-page document on the amendments, CBP outlines a new enhanced entry process, in part based on the results of two trials – Section 321 Data Pilot and Entry Type 86 Test. It wants, among other things, to receive advance electronic data on shipments, enabling it to identify high-risk shipments in advance. 

The document also proposes revising “the current release from manifest process for entering low-value shipments (renamed as the ‘basic entry process’) to require additional data”. It also defines the “one person” for which the $800 exemption applies. 

And it proposes removing the requirement “to segregate shipments valued at $800 or less on an advance manifest, because, although the advance manifest is still required, it is the individual bill of lading that serves as the entry document”. 

It says: “Qualifying low-value shipments can be entered under two alternative processes to receive duty- and tax-free entry, either under the basic entry process or the enhanced entry process.” 

Much of the focus is on preventing the import of the drug fentanyl, although the CBP does note that it is “mostly smuggled though ports of entry at the south-west border, via privately owned and commercial vehicles and through pedestrian lanes, or smuggled into the United States through the mail or through express consignment carriers”. 

CBP has asked for any comments on the proposal to be made within 60 days. 

Yesterday, CBP also proposed a new regulation for railfreight – requiring the submission of export manifest data electronically, under the Automated Commercial Environment (ACE) scheme. 

It explained: “The proposed regulation would mandate the electronic transmission of rail export manifest information, identify the parties eligible to transmit information, and describe the time frames prior to departure of the train in which the information is due. This rule would enable CBP to address important cargo security concerns while providing efficiencies to the trade.” 

It added: “Current regulations are insufficient to adequately capture cargo data for rail shipments leaving the United States.” 

The CBP has asked for comment on this by 14 March.