The association has called on the U.S. Customs and Border Protection to promulgate rules that require importers of low value goods to bear the same data requirements as shippers of goods over the de minimis level.
The National Customs Brokers and Forwarders Association of America (NCBFAA) is urging U.S Customs and Border Protection (CBP) to consider goods coming to the United States under the de minimis rule to be scrutinized as heavily as those of higher value.
The Obama Adminstration in March signed into law the Trade Facilitation and Trade Enforcement Act (TFTEA), legislation that, among other things, raised the de minimis level for U.S. imports from $200 to $800. Imported goods valued at less than $800 are now considered duty free.
But the NCBFAA, in a letter to CBP and the U.S. Department of Treasury, urged the government to “develop regulations that mandate that all goods entered into the United States are considered ‘customs business,’ thus requiring either the direct involvement of the actual importer or a licensed customs broker who is bound under TFTEA to validate an importer’s identity.”
Members of the association voiced similar concerns at the annual Government Affairs Conference in Washington, D.C. earlier in September. The association is concerned that raising the de minimis will greatly increase the number of importers over which there would be little scrutiny.
The de minimis level was raised after more than 20 years at the $200 level based on years of lobbying from small businesses, who claimed it did not reflect the current evolution of the global e-commerce market and was not commensurate with similar duty free status for low value goods in other countries.
The NCBFAA members also argued that the higher de minimis level made it easier for importers to avoid paying duty on higher value goods by splitting shipments of components in such a way as to qualify for de minimis treatment. For instance, instead of bringing in a good with two components worth $1,500, the importer could bring in the components separately at $750 each and pay zero duty.
Of course, such practices would exist at any de minimis threshold, but the higher level creates more of an incentive to take such action, the association members argued.
In its letter Thursday, the NCBFAA called on CBP to promulgate rules that require importers of low value goods to bear the same data requirements as shippers of goods over the de minimis level.
“For supply chain security, which includes physical safety issues, the protection of intellectual property rights, and the control of goods subject to trade protection measures such as anti-dumping or countervailing duty orders, CBP must establish an entry solution within ACE (CBP’s Automated Commercial Environment single window) to allow for enforcement of the trade laws and risk based targeting of inbound shipments,” the letter said. “Duty free does not mean data free.”
NCBFAA urges CBP to create regulations on low-value, duty-free shipments
