CBP proposes changes to minimum entry process

U.S. Customs and Border Protection (CBP) issued a notice of proposed rulemaking on January 13, 2025, to update the de minimis transportation rule. The public can comment on the proposed rule until March 17, 2025.

CBP outlined three reasons for updating the de minimis rule. First, individuals and entities are exploiting loopholes found in the old system. U.S. Customs and Border Protection (CBP) is aware of individuals importing multiple shipments at less than the de minimis threshold to evade duties and taxes; small businesses having employees pick up de minimis packages on behalf of the business; second, due to the 2016 minimum threshold The limit threshold is set at $800, and the number of packages imported every day is too high for CBP to effectively monitor. Finally, the technology available to CBP and other customs authorities around the world is much more advanced than when the rule was originally written. The proposed changes are designed to address each of these concerns.

If the proposed rule is implemented, CBP would require more information about the importer and replace “ultimate consignee” with the name of the actual owner or buyer. This will allow CBP to link together all packages for each individual or entity. If an importer carries multiple packages over the $800 threshold in a single day, none of those packages will qualify for the minimum duty-free treatment. Focusing only on the actual owner of the goods also prevents businesses from taking advantage of the $800 limit by sending packages to multiple employees.

CBP also proposes to separate de minimis entries into two distinct systems: enhanced entries and basic entries. Entries currently entering the Type 86 program will now undergo the enhanced entry process, and CBP will close the Type 86 entry program when the new rules take effect. Enhanced input will require:

• Customs clearance tracking identification number
• Shipping country/region
• HTS code (exemption for filers with the ability and history to classify goods in accordance with PGA requirements)
• The marketplace’s product listing URL, product images, SKU or product code and/or foreign security scan reports, such as X-rays
• Seller name and address
• PGA data (if required)
• Market name and website

According to CBP, the basic entry process will be “very similar” to the current process for clearing goods through manifests.

The Husch Blackwell trading team will continue to monitor these developments closely and will provide updates with the latest information. If you have any questions or concerns, please feel free to contact us.