The U.S. Customs and Border Protection (CBP) has issued two Notices of Proposed Rule Making (NPRM) aimed at strengthening information collection for low value shipments, also known as de minimis shipments, and making merchandise ineligible due to trade or national security actions. These initiatives seek to enhance the agency’s ability to identify and intercept high-risk goods entering the country.
With over four million de minimis shipments entering the U.S. daily, CBP has expressed the need for improved methods to detect shipments that may contain illegal drugs such as illicit fentanyl, counterfeit or pirated merchandise, items threatening public safety, or other forms of contraband.
The first proposed rule, titled Entry-Level Visibility System (ELVS), outlines a shift to a fully electronic system for low-value shipment processing. The rule would require additional data elements to be submitted before a shipment’s arrival to verify its eligibility for duty- and tax-free entry. CBP stated that this enhanced data collection will reduce the workload on officers managing large shipment volumes, enabling more accurate targeting of high-risk goods.
Under the second proposed rule, certain goods subject to Section 232, 201, and 301 tariffs would be ineligible for duty-free treatment under the de minimis exemption even if merchandise is accorded an exclusion. Additionally, this rule supports the ELVS requirement to include the 10-digit Harmonized Tariff Schedule of the United States (HTSUS) classification for the imported low-value goods.
While these proposed rules were part of a broader effort by the Biden-Harris Administration and are currently on hold due to the Trump Administration regulatory freeze, it is important to review to understand the proposed changes and prepare for the comment period.
If you have any questions about these proposed rules, reach out to Mohawk Global Trade Advisors.