Proposed Rule Bans 301 Goods from de Minimis, Requires HTS for All Entries
No goods subject to special trade remedies would be able to enter de minimis -- which primarily affects goods subject to Section 301 tariffs -- under a proposed rule released by CBP Jan. 17.
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Because CBP needs to know the classification to determine if goods could enter duty-free under this regime, CBP is proposing to require a 10-digit HTS code on all packages -- including those cleared off manifest, in addition to packages in the "enhanced entry" stream the agency described in an earlier proposed rule that would replace the Type 86 process.
The government said because the revenue from these tariffs is projected to be between $5.9 billion and $7.8 billion in 2025, it "anticipates that the amount of additional revenue to be collected under the proposed exception would substantially outweigh the expense and inconvenience to the U.S. Government of collecting the duties."
The agency acknowledged that applying this new regime to international mail would be challenging. "While CBP has included international mail in the scope of this proposed rulemaking, CBP seeks public comments that address the operational feasibility in the international mail environment," the notice said.