A "back to basics" webinar on de minimis presented by CBP, which was watched by more than 1,900 in the trade community, didn't elaborate on the suspensions of customs brokers from Type 86, though CBP official Felicia Pullam said the agency has heard "a lot of concern in the trade community about this enforcement."
CBP's Acting Commissioner Troy Miller said the agency "has suspended multiple customs brokers from participating in the Entry Type 86 Test after determining that their entries posed an unacceptable compliance risk," and that it will continue to take action against those who "abdicate their customs compliance responsibilities." The statement also said: “Any broker that has been suspended will be considered for reinstatement if it demonstrates to CBP that it has developed and implemented a remedial action plan."
The subcommittee that covers intellectual property issues under the House Judiciary Committee questioned how Congress should address the escalating volume of de minimis packages -- and the opportunities those shipments provide for sending counterfeits and goods made with forced labor, but the CBP witness responsible for de minimis and IP declined to back any of the ideas that were bandied about.
FORT LAUDERDALE -- While CBP's Entry Type 86 pilot has allowed customs brokers to handle low value shipments, the agency also is seeing filers "abusing" the test by filing unverified data and pricing out other brokers who can't compete with the low fees the bad actors are charging, said CBP acting Commissioner Troy Miller in remarks at the National Customs Brokers & Forwarders Association of America annual conference April 17.
PHILADELPHIA -- When CBP ran an audit to estimate how many packages that enter under de minimis violate Customs laws, it found about 9% did, either through misclassification, insufficient documentation, or more serious violations, like smuggling narcotics.
CBP has “cleared” its long-awaited proposed rule on low value shipments, and the proposal will now go to the Office of Management and Budget for review, acting Commissioner Troy Miller said at a Commercial Customs Operations Advisory Committee meeting March 6. If OMB declares the rule “significant,” the proposal will then go for interagency review prior to publication in the Federal Register, Miller said.
The shorter time frame for filing type 86 entries announced by CBP Jan. 12 is likely intended to allow the agency to target de minimis shipments in advance and give it more time to complete its targeting processes, said customs brokers asked about the policy change.
The Treasury Department published its fall 2023 regulatory agenda for CBP. The agenda includes a new mention of a proposed rule to amend CBP’s regulations on the entry of “certain low-value shipments not exceeding $800 that are eligible for an administrative exemption from duty and tax.”
The CBP executive whose directorate covers trade remedies, intellectual property enforcement and e-commerce said that small-value shipments coming to the U.S. are not slipping through uninspected, just because there are no duties owed. Brandon Lord, executive director of the Trade Policy and Programs Directorate, said in an interview with International Trade Today at the CBP Trade Facilitation and Cargo Security Summit: "There's a misconception that we don't target or screen de minimis -- it's not true. People throw around the phrase 'loophole.' It's not a loophole. De minimis is not a loophole."
CBP plans to propose some new requirements for importing low-value shipments, Craig Clark of the Office of the Commissioner, Office of Trade Relations, said during the virtual Advisory Committee on Supply Chain Competitiveness (ACSCC) meeting Jan. 28. “We are taking steps to integrate the results of both the [Section] 321 data pilot and the Entry Type 86 test into a new Section 321 data collection process through a notice of proposed rulemaking,” he said. “Included in that NPRM is a requirement for mandatory security data elements for all Section 321 shipments, and that is going to be agnostic to the mode of transportation and will include international mail as well as additional mandatory data elements if an entry is filed,” he said.