U.S. Customs and Border Protection (CBP) announced a Notice of Proposed Rulemaking (NPRM) that would impose new data collection requirements on low-value shipments, also known as de minimis shipments. If adopted, the rule would create a new, alternative process for entering low-value shipments. The new process would require the submission of advance data such as origin, destination, and contents of the shipment.

De Minimis Background

The concept of de minimis shipments into the United States stems from customs regulations aimed at simplifying the importation of low-value goods. The term “de minimis” refers to shipments that fall below a certain value threshold, allowing them to enter the country with minimal duties or taxes.

Historically, the threshold was set at $200 but was raised to $800 in 2016 under the Trade Facilitation and Trade Enforcement Act (TFTEA). This change was designed to reduce administrative burdens on CBP and facilitate faster processing of e-commerce shipments, which were rapidly increasing in volume. Over the last decade, the number of shipments claiming the de minimis exemption has increased significantly, from approximately 140 million a year to over one billion a year.

Today, CBP processes over 4 million de minimis shipments into the U.S. each day. Current regulations require very little information about these shipments, making it increasingly difficult for CBP to identify and intercept high-risk shipments. The U.S. Congress and the Biden Administration have called for de minimis reforms.

The Proposed Rule

The rule proposes the establishment of an enhanced entry process that would require the […]