The U.S. Customs De Minimis exemption for low shipments is evolving, but it's far from dead. Learn what’s changing and how to navigate the complexities with ease.
What Questions I Will Answer in this blog
What are the Key Details of U.S. Customs De Minimis TODAY?
What are the new data requirements for Section 321 compliance?
Section 321 becomes two lanes: What are Enhanced entries and Basic entries?
New data elements: Is the 21 Data Pilot now standard?
How does Chinese-origin impact De Minimis eligibility?
What steps can importers take to adapt and thrive?
Introduction
The future of De Minimis—a vital tool for importers—was confirmed this week. While Section 321 remains, it’s becoming more intricate due to new data requirements and exclusions for many Chinese-origin goods. These changes will impact compliance, but opportunities remain for those prepared to adapt.
"De Minimis isn’t going away—it’s evolving. Importers who align their processes with the new requirements will continue to thrive."— Arne Mielken, Managing Director, Customs Manager Ltd
Abbreviations I Use in this Blog
To simplify your reading, here are the abbreviations I’ll use:
De Minimis: An exemption allowing goods valued under $800 to enter the US duty-free.
CBP: US Customs and Border Protection.
AD/CVD: Anti-Dumping and Countervailing Duties.
TRQs: Tariff Rate Quotas.
301, 201, 232 Tariffs: Trade remedy tariffs addressing unfair practices, global imbalances, and national security concerns.
The U.S. Customs De Minimis refers to the minimum monetary threshold below which goods imported into the United States are exempt from customs duties, taxes, and certain formal customs entry procedures. This threshold is intended to facilitate trade and reduce administrative burdens for low-value shipments.
What are the Key Details of U.S. Customs De Minimis TODAY?
Current Threshold
The De Minimis threshold under Section 321 of the Tariff Act of 1930 is $800 USD per shipment, as amended in 2016.
Shipments valued at $800 or less can generally enter the U.S. duty-free and without the need for a formal customs entry.
Applicability
Applies to goods imported for personal or business use.
The exemption can be used only once per person or entity per day.
Excluded Items
Certain items are not eligible for De Minimis treatment, even if they fall below the $800 threshold, including:
Goods subject to quota restrictions.
Alcoholic beverages and tobacco products.
Goods that require inspection or licensing (e.g., certain food items or pharmaceuticals).
What Are the New Data Requirements for Section 321 Compliance?
CBP has introduced stricter data requirements to enhance the enforcement of Section 321. These include:
Comprehensive Data Submission: Importers must provide accurate master data, including product descriptions, country of origin, and valuation details.
Collaboration with Carriers: Ensure your carrier partners understand the new rules to avoid delays or non-compliance.
CBP has tested these data points with selected carriers for over five years.
This is a continuation of existing practices for compliant importers. However, those lagging in data management must act now to meet these requirements.
Section 321 becomes two lanes: What are Enhanced entries and Basic entries?
The future of Section 321 introduces a dual-lane approach, offering Enhanced Entries and Basic Entries, tailored to different compliance needs.
Enhanced Entries require detailed data submissions, including product descriptions, values, harmonized system (HS) codes, and country of origin. These are designed for elevated scrutiny and transparency, especially for higher-risk goods or frequent importers. Items with PGA requirements must use the enhanced entry process.
On the other hand, Basic Entries maintain simplified data requirements but are limited to lower-risk, routine shipments.
This bifurcation enables compliant importers to benefit from streamlined processes while equipping Customs authorities with robust tools to target non-compliance effectively.
The choice of lane will depend on the nature of your shipments, compliance practices, and data preparedness.