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U.S. Customs and Border Protection (CBP) is proposing changes to what data elements it collects on low-cost shipments, including a new "enhanced entry process" designed to curb the flow of illegal drugs and counterfeit goods.
So-called "de minimis" exemptions allow any individual shipment valued under $800 to arrive duty-free with less scrutiny from CBP. Although the rule was initially introduced in the 1930s so that American tourists wouldn't have to pay duties on items they bought while abroad, Chinese e-commerce retailers like Shein and Temu have taken advantage of the exemptions to ship millions of online orders in smaller lots without paying tariffs, and in many cases, sneak counterfeit alternatives to brand name products through customs. Drug traffickers have also been known to use de minimis rules to smuggle fentanyl precursor chemicals or pill press parts into the U.S.
Read More: Biden Admin Pushes to Curb Flood of Duty-Free Imports from Temu, Shein
CBP's proposal would require de minimis shipments to include additional data to allow customs agents to easily and accurately verify the contents of each package. That would include the shipment's country of origin, a clearance tracing identification number that references a package's original bill of lading, a tariff classification number, and at least one other data element to verify the package's contents, such as the original URL to its online marketplace listing, a picture of the product itself, or a security screening number that confirms that it's been X-rayed by a foreign customs agency.
"Every day, the men and women of CBP interdict goods that threaten the health and safety of Americans, as well as the economic vitality of our country," CBP senior official Pete Flores said in a January 13 news release. "This proposed rule will help to give us some of the tools we need to address more of these threats.”
The proposal will next go through a 60-day public comment period, before the next presidential administration can review, finalize and implement the new rules. According to CBP, this is the first of two proposals designed to tighten de minimis exemptions, with the agency planning to release the second "in the coming days."
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