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The CBP are tightening e-commerce enforcement on low-value imports coming into the U.S. Recently, multiple customs brokers have had actions taken against them by the CBP for not filing proper and correct entries. In particular, entries for small, low-dollar imports that are duty-free. Penalties for not complying with filing requirements include suspension from CBP’s Entry Type 86 Program. The crackdown has started with e-commerce shipments coming into the U.S. by air into the Los Angeles International Airport (LAX). Low-value cargo coming into the LAX airport from countries like China and India are moving to CBP warehouses for review. Customs have also recently seized parcels of a weight-loss drug coming through e-commerce to Chicago O’Hare International Airport.
The CBP is cracking down on low-value e-commerce imports to prevent shippers from exploiting the de minimis rule. De minimis is the minimal value of imported goods exempt from duties and a formal customs declaration. In 2016, the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) rose in value from $200 to $800. The CBP changed the amount to accommodate the growing trend of e-commerce shipments into the U.S. Online purchases were typically low-value, meaning that it wasn’t worth the costs of CBP to collect the duties. An effect was that importers and retailers transported millions of smaller packages to the U.S. at a lower cost.
Imports below the de minimis threshold surged from approximately 134 million in 2015 to over 1 billion in 2023. While this was good for e-commerce, it allowed malicious players to bring drugs and illegal items to the U.S. CBP has started acting to police the importations by suspending shippers from the Entry Type 86 program. Entry Type 86 is the CBP initiative that streamlines the import of de minimis cargo. This program allows self-entry filers and brokers to transfer shipment data electronically, resulting in faster customs clearance. In response to the potential for bad actors to bring illegal goods to the U.S., the CBP has become strict in ensuring compliance with Entry Type 86 requirements.
Shippers and customs brokers are affected by tightening regulations for low-value e-commerce Importations. With CBP increasing their inspections of Entry Type 86 imports, the time for certain airfreight imports may soon increase. This could be bad for importers and customers who must wait longer for their goods. The supply chain for shippers is also affected if their freight is on hold at customs. Customs brokers must be careful to comply with CBP filing and classification requirements. Adhering includes providing accurate data and not rushing when filing entries. Customs has recently suspended a significant logistics provider from being able to file Type 86 entries due to undisclosed reasons.
To prevent delays and holdups in your supply chain, shippers must find trustworthy customs brokers. A broker acts as an intermediary between the shipper and U.S. customs and ensures the clearance of an import. They do this by declaring the goods correctly, providing documents, and make sure the importer pays the duties. With customs providing greater enforcement, this is increasingly important. A1 Worldwide Logistics has customs brokering, freight forwarding, and other services for your supply chain. Speak to an expert at 305-425-9513 to ensure the success of your shipment.
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