COAC's de Minimis Group Calls for Treating Low-Value Postal Shipments Same as Other Modes
As CBP winds down the Commercial Customs Operations Advisory Committee in its current iteration (see 2507010077), the COAC's de minimis working group offered proposed recommendations to CBP to bolster entry processing in ACE amid the end of the de minimis exemption on Aug. 29. These recommendations include treating postal shipments similarly to how CBP handles low-value shipments via other transportation modes.
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The proposed recommendations -- the last from the working group in its current form as CBP plans to restructure the COAC (see 2507010077) -- were provided ahead of COAC's Sept. 17 meeting. The De Minimis Working Group is affiliated with COAC's Secure Trade Lanes Subcommittee.
The recommendations are as follows:
- To expand CBP's ACE system to increase the number of lines and file size per entry that can be transmitted, amid the elimination of U.S. import de minimis processes.
- To expand CBP's ACE system to increase the number of entries on an ACH statement beyond the current 2,000 entry limitation.
- To pursue the authority to exercise jurisdiction over postal low-value imports, similar to the authority it exercises over all other modes of transportation. For example, low-value postal imports are currently not subject to: i. entry requirements similar to non-postal low-value shipments; ii. accurate accounting of FDA and Consumer Product Safety Commission-regulated goods, and other partner government agencies; and importer of record obligations.
- To publish guidance documents clarifying what goods are ineligible for import using low-value postal procedures.
- To issue regulations required by section 904 of Trade Facilitation and Trade Enforcement Act of 2015 that expands eligibility of HTS 9801.00.10 to include foreign goods returned with a value under $2,500.00.
- To modify CBP's duty-free return regulations and guidance (Section 9801) to align with the Trade Facilitation and Trade Enforcement Act. The regulations should be revised to clarify that claims for duty-free status of returning goods valued under $2,500.00 do not require proof of their original entry into the United States. The revised regulations should clarify that proof of export for the purposes of 9801.00.10 may be demonstrated by the importer providing, upon request by CBP, a) Commercial Invoice, b) Airway bill, waybill, or bill of lading, c) Electronic Export information (EEI) or filing exemption, d) Copy of the import declaration into the foreign country or e) similar documentation showing the product was previously exported from the U.S.
- To allow importers the option to pay the estimated duties, taxes and fees online through Pay.gov before the time of presentation (rather than by check) without requiring a bond.
- To issue clear guidance on what constitutes and what does not constitute a “bona fide gift” in accordance with 19 CFR §10.152 and the requisite mechanism for clearing “bona fide gifts” across all modes of transportation, including postal.
- To provide guidance to the trade for Manifest/Entry data requirements for B2B2C (Business-to-Business-to-Consumer) imports.
- To clearly define each required party type (deliver to, shipper, sold to, etc.). CBP should refrain from using the term “consignee” in any guidance documents, as this term has many different interpretations.