Export to
US thru $800 De Minimis Duty Free Suspended from 29 Aug 2025 – Frequently Asked
Questions
Key Points from the FAQ
1. Executive Order 14324
·
Effective
Aug 29, 2025, suspends duty-free de minimis treatment (≤ $800)
for all countries.
·
All
shipments, regardless of value, are now subject to duties and admissibility rules.
2. Postal vs. Non-Postal Shipments
·
Non-postal
shipments: Must be
entered in ACE by qualified party; normal duties/taxes apply.
·
Postal
shipments:
o
Duties
based on IEEPA tariffs, either:
§ Ad valorem (percentage of value), or
§ Specific duty ($80–$200 per item).
o
Carriers
remit duties monthly; CBP does not file individual entries.
·
From
Feb 28, 2026, only ad valorem duty will apply.
3. CBP Form 5106 (Importer ID)
·
Required
to create a CBP importer account before obtaining a bond.
·
Submit
via email (bondquestions@cbp.dhs.gov).
·
Even
with a 5106 & bond, parties must confirm ability to collect data & pay duty
via Pay.gov to qualify as third parties.
4. Bonds
·
Bonds
(Form 301) must be obtained through a certified surety company using importer ID.
·
CBP
does not set bond fees.
5. Exemptions
·
Not
subject to duty:
letters, flats (non-merchandise), U.S. military mail (APO/FPO/DPO).
·
Not
allowed under Section 321:
o
AD/CVD
goods, quota goods, alcohol, tobacco, IRS-taxed items, certain PGA-controlled items.
6. $800 Daily Limit (Section 321 Rule)
·
Still
applies when Entry Type 86 is used:
o
Limit
= $800 per person per day.
o
Example:
4×$200 shipments = allowed; 1×$900 shipment = none qualify.
·
CBP
looks at the consignee/ultimate consignee as the “person.”
·
Splitting
shipments from one order to claim exemption is not allowed.
7. Entry Type 86 (ET86)
·
Voluntary
pilot for de minimis entries with PGA data.
·
Key
facts:
o
Requires
POA if broker files.
o
Country
of origin is mandatory.
o
No
bond required.
o
Not
subject to duties/taxes/fees (unless CBP reclassifies shipment).
o
Customer
returns allowed within $800 limit.
o
Over
450 filers are already participating.
8. Section 321 Data Pilot
·
Pilot
collects expanded data (seller ID, marketplace info, security scan reports).
·
Participants:
Amazon, eBay, FedEx, UPS, DHL, Shein, etc.
·
Supports
future trade facilitation and compliance.
9. De Minimis Warning Messages (ACE)
·
ACE
sends warnings if shipments may exceed $800 daily limit.
·
Only
one type of warning (“may be ineligible”).
·
Sent
to:
o
Entry
filer (for ET86)
o
Manifest
filer (for release from manifest)
·
Day
= 0000–2359 EST.
·
Final
determination made upon actual arrival of shipment.
Practical Implications
·
Importers/carriers
must prepare for duties on all shipments starting Aug 29, 2025.
·
Postal
shipments face a
simplified duty collection process, but at higher flat rates in some cases.
·
Brokers
and carriers must
track consignees carefully to enforce the $800/day limit.
·
Entry
Type 86 remains voluntary
but will be central to e-commerce compliance.
·
CBP
is using ACE warnings
to help prevent accidental violations, but responsibility lies with the importer/carrier.
[ABS News Service/23.08.2025]
This page was created to answer questions to E-Commerce email
inquiries to assist customers in having a better understanding of e-commerce processes
and trade activities.
Executive Order 14324
What does Executive Order 14324, “Suspending Duty-Free De Minimis
Treatment for All Countries” do?
Effective August 29, 2025, this Executive Order suspends duty-free
treatment for low-value shipments (valued at or under $800) from all countries,
that would otherwise qualify for duty-free de minimis treatment under 19 U.S.C.
1321(a)(2)(C). Beginning on such date, these shipments will no longer be eligible
for this treatment and will be subject to all relevant admissibility requirements
as well as the assessment of specified duties.
What is the difference between how postal shipments and non-postal
shipments are treated?
Non-postal shipments will be subject to all applicable duties,
taxes, and fees and must be filed using an appropriate entry type in the Automated
Commercial Environment (ACE) by a party qualified to make entry - unless another
entry type is appropriate.
Postal shipments will be subject to International Emergency
Economic Powers Act (IEEPA) tariffs, which can be assessed using one of two methods:
i.
Ad
valorem duty: A duty equal
to the effective IEEPA tariff for the country of origin of the product, based on
the value of the product.
ii.
Specific
duty: A flat duty ranging
from $80 per item to $200 per item, depending on the effective IEEPA tariff rate
applicable to the country of origin of the product.
No entry will be prepared for such postal shipments by CBP,
and the duties owed will be remitted by a carrier or other qualified party on a
monthly basis.
Can carriers or qualified parties mix duty methodologies for
international mail shipments?
No. As of August 29, 2025, and until February 28, 2026, carriers
or other qualified parties must apply the same duty collection methodology to all
postal shipments throughout a duty remittance period. The duty collection methodology
may be changed once per calendar month, providing at least 24 hours of notice to
CBP. Effective February 28, 2026, only the ad valorem duty methodology
may be used.
Where can I find guidance on the payment of duty on international
mail shipments?
What is the CBP Form 5016?
CBP 5106 is the “Create/Update Importer Identification Form,”
is used to register an entity wishing to do business with CBP. The entity will be
assigned an identification number that will be either an Internal Revenue Service
(IRS) Employer Identification Number (EIN), a Social Security Number (SSN), or a
CBP-Assigned Number (CAN), in accordance with 19 C.F.R. § 24.5(b)-(c). Any entity
can begin conducting business with CBP and establish a bond only after this form
has been processed and the entity has been assigned a CBP importer account.
What is the process for submitting the CBP Form 5106?
Qualified parties can find the CBP Form 5106 online at: CBP
Form 5106 online at: CBP Form 5106 - Create/Update Importer Identity Form.
If I have a 5106 on file with CBP and already have a bond, am
I automatically qualified as a third party to transmit data and duty payment to
CBP on international mail shipments?
No. Even if a party already has a CBP Importer Account/CBP 5106
on file with CBP and an existing bond, the party must still confirm that can collect
the required data elements and pay duty via Pay.gov. Notification should be sent
to CBP at: cbpdm@cbp.dhs.gov.
CBP will then review and approve that party’s ability to serve as a qualified third
party.
How would a qualified party obtain a bond?
A CBP single transaction or continuous bond (CBP Form 301 or
its electronic equivalent) may be obtained from a surety company. CBP cannot recommend
any particular surety. Please visit the U.S. Department of the Treasury, Bureau
of the Fiscal Service website and research the List of Certified Surety Companies
to find a company. Sureties will charge a fee for their services, and CBP does not
know or control those rates.
To obtain a bond, you must provide the surety with the CBP importer
account identification number assigned to you when the CBP Form 5106 was processed.
It is essential to ensuring this form has been processed when working with the surety
to obtain a bond.
Is all international mail subject to duty?
No. Letters and flats (P and G format post items) which do not
contain merchandise are not subject to duty.
Is military mail subject to tariffs described in the Executive
Order?
No. Shipments sent to the U.S. from U.S. military addresses
abroad, including Army Post Office (APO), Fleet Post Office (FPO) or Diplomatic
Post Office (DPO) addresses, originate and remain in the domestical mail stream
of the U.S. Postal Service, and are not subject to U.S. duty. Please note, that
shipments to these addresses from the U.S. may be subject to duty in the destination
country. Information on shipping to military and diplomatic addresses from the U.S.
can be found at: https://www.usps.com/ship/apo-fpo-dpo.htm
General Questions
What goods are not permitted to be entered under Section 321?
Section 321 does not allow:
What is the responsibility of the importer?
Pursuant to the Customs Modernization Act, it is the responsibility
of the importer to use “reasonable care” to “enter,” “classify” and “value” the
goods and provide any other information necessary to enable CBP to properly assess
duties, collect accurate statistics, and determine whether all other applicable
legal requirements are met.
Can a company qualify as the "one person"?
Yes.
If products are exempt from PGA excise taxes, like personal
use quantities of alcohol, can they be imported under section 321?
Merchandise subject to a tax imposed under the Internal Revenue
Code that is collected by other agencies on imported goods is not allowed to be
entered under Section 321.
In the case of certain personal or household articles accompanying
persons arriving in the United States, those may be imported under Section 321.
Is there a limit to the number of Entry Type 86 entries a filer
has filed or can file?
There is no limit on the number of Entry Type 86 entries a broker
can file. However, the regulation does limit the use of Section 321 (including Entry
Type 86) to shipments imported by “one person on one day” having an aggregate fair
retail value in the country of shipment of $800 or less.
Shipments with an aggregate value up to $800 per day per person
are allowed.
Examples:
Can one person import more than one shipment a day?
Under Section 321, one person may import multiple shipments
on one day so long as the aggregate fair market value of the shipments does not
exceed $800. If any single shipment imported that day breaches the $800 ceiling,
then none of the shipments imported that day may be entered under Section 321.
Can carriers be subject to penalties if they are unable to limit
customers from exceeding the $800 threshold per day?
When a shipment exceeds the $800 threshold, none of the shipments
imported on that day by a known ultimate consignee, often a purchaser, are eligible
for entry under Section 321. The shipments must instead be entered as a Type 11
informal or Type 01 formal entry.
We note that, if a carrier is affecting entry for a de minimis
shipment by clearing a shipment off the manifest, they are subject to the standard
of reasonable care. 19 C.F.R. § 143.26(b).
Can you provide additional clarification about power of attorney
requirements?
Customs brokers must be duly designated to enter qualifying
shipments through a valid power of attorney and must comply with all other applicable
broker statutory and regulatory requirements. The broker can have a POA with the
consignee on whose behalf the broker is affecting entry. Generally, this is the
carrier or freight forwarder, not the final deliver-to party/consumer. This means
that for purposes of an ET86, a broker may execute a POA with Consignee A (usually
the nominal consignee/carrier), file as the IOR, and on the entry, name Consignee
B (usually the ultimate consignee/consumer) to whom the $800 ceiling applies. This
is because the carrier has the right to make entry for the shipment, but the consumer
is the named “imported by one person on one day” party for purposes of 19 U.S.C.
§1321(a)(2)/19 C.F.R. § 10.151. Note that the consumer also has the right to make
entry but is rarely involved in/aware of the import transaction.
In the informal entry context, since the term “consignee” encompasses
nominal consignees, their financial interest in the imported article/import transaction
does not have to equate to that of an owner or purchaser. In this context, a POA
with the online marketplace from which the product was purchased would also be acceptable
to CBP.
Can a manifest clearance be cancelled and re-entered under entry
type "01"?
Yes.
What are the regulatory requirements for express consignment
operators?
19 C.F.R. Part 128, Subpart C sets forth requirements and procedures
for the clearance of imported merchandise carried by express consignment operators
and carriers, including couriers, under special procedures.
From a compliance viewpoint, are Section 321 shipments any worse
than other entry types?
De minimis shipments pose the same risks as all other commercial
cargo.
Can a corporation claim de minimis, if a shipment is going to
a domestic warehouse or fulfillment center?
Yes, a corporation may be considered the importing “person”
for unsold merchandise up to an aggregate fair retail value of $800 per day. Please
refer to CBP's Administrative Ruling Related to Domestic Warehouses and Fulfillment Centers One Pager.
Is the recent data requirement of the zip code (China Made)
for the creation of the MID, which went into effect in March, applicable for de
minimis shipments?
A MID is not a required data element for de minimis shipments.
However, the expansion of the Section 321 Data Pilot has included it as an optional
element.
Can the ultimate consignee receiving the shipment be considered
the importing “person”?
Yes, if they are identified on the bill of lading/manifest.
Is it permitted to split a shipment into smaller batches to
claim the de minimis exemption?
No, the exemption will not be granted in any case in which merchandise
covered by a single order or contract is forwarded in separate lots to secure the
benefit.
How is CBP monitoring/reviewing de minimis shipments for anti-forced
labor compliance?
CBP monitors/reviews shipments the same regardless of value.
Does the $800 threshold apply per port?
No, the Section 321 monetary threshold applies to one person
per day regardless of the port of arrival.
Is an ISF bond required when filing de minimis shipments?
Yes, ISF requirements for ocean freight remain the same for
de minimis shipments.
Can goods subject to antidumping and countervailing duties (AD/CVD)
enter via de minimis?
U.S. Customs and Border Protection has a ministerial role in
AD/CVD and enforces the instructions of the U.S. Commerce Department(Commerce).
Commerce’s instructions specifically direct CBP to assess AD/CVD on all entries
for consumption of subject merchandise, without any exceptions. The AD/CVD statutes
specifically apply to “all entries, or withdrawals from warehouse, for consumption
of merchandise subject to a [AD/CVD] order on or after the date of publication of
such order”, without any mention of the de minimis exemption. See 19 USC 1671h (CVD);
19 USC 1673g (AD).In addition, CBP has the authority to
deny Section 321 entry and require a formal entry for any goods claiming de minimis
exemptions, regardless of the value of the goods, under 19 C.F.R. § 143.22.
Are goods made with forced labor entering
the U.S. as de minimis shipments?
CBP enforces the provisions of the UFLPA regardless of the value
of the goods. Goods entered pursuant to Section 321 are thus not exempt from CBP’s
enforcement procedures.
Is merchandise classifiable under Chapter 98 of the Harmonized
Tariff Schedule of the United States (HTSUS), and customer returns, eligible for
entry under the ACE Entry Type 86?
Chapter 98:
All merchandise classifiable under a Chapter 98, HTSUS, subheading must also be
classified under an appropriate Chapter 1-97, HTSUS, subheading. The filing of a
type 86 entry accords eligible merchandise a duty exemption pursuant to 19 U.S.C.§
1321(a)(2)(C), such that the duty-free provisions of Chapter 98 are not applicable.
Consequently, merchandise classifiable under a Chapter 98, HTSUS, subheading may
be accorded duty-free treatment under Chapter 98 utilizing a distinct and appropriate
entry type. Merchandise claiming a duty exemption under 19 U.S.C.§ 1321(a)(2)(C)
must report the Chapter 1-97, HTSUS, subheading on the type 86 entry instead.
Customer Returns:
Filing a type 86 entry for customer returns is permitted. The aggregate fair retail
value in the country of shipment for such merchandise is included within the $800
limit applicable to the consignee named on the type 86 entry. A company accepting
returns cannot list the foreign sender as the consignee. The company receiving the
return would be the consignee and thus must pay close attention to the aggregate
threshold of $800 for the administrative exemption. Eligibility for entry under
the ACE Entry Type 86 Test for such merchandise is subject to all other requirements
specified in the test and CBP Regulations.
Are de minimis shipments required to pay the cotton fee?
Entries of cotton that qualify for informal entry (including
de minimis entries) are not subject to the cotton fee because, under 7 CFR 1205.510(b)(4),
“Any entry of cotton that qualifies for informal entry according to regulations
issued by the Customs Service will not be subject to the assessment.” Further, “cotton”
is defined in 7 CFR 1205.500(q) to include both cotton and “products derived thereof.”
Entry Type 86
Are there plans to allow de minimis entries to declare PGA data?
The Entry Type 86 Test allows for submission of de minimis entries
subject to partner government agency (PGA) data requirements.
Does an Entry Type 86 entry obligate (go onto) an importer's
continuous importer bond (C1)?
Entry Type 86 does not require an importation and entry bond.
Can goods from China valued at or below $800 but subject to
Section 301 be cleared under Entry Type 86?
Yes.
Is country of origin a required data element for Entry Type
86?
“Country of origin” is a required data element for Entry Type
86.
Do Entry Type 86 entries require a power of attorney from the
consignee?
Yes, for purposes of this test customs brokers must be authorized
to conduct customs business on behalf of the owner, purchaser, or consignee of eligible
shipments through a valid power of attorney.
Will ACE Manifest requirements still be required on Entry Type
86 (e.g., scac codes)?
All manifest requirements remain the same.
Which party is responsible for correcting Entry Type 86 entries?
The party who filed the data is responsible for correcting the
data for purposes of Entry Type 86.
When will Entry Type 86 become mandatory?
Entry Type 86 Test is a voluntary pilot program. More information
can be found at 84 FR 40079.
Can foreign vendors self-file Entry Type 86?
Yes. A foreign seller/vendor may be a nominal consignee arranging
for shipment, or they may be the owner of the imported merchandise if it arrives
to the U.S. unsold.
As an owner, they can self-file. As a consignee, they need to
get a broker to file on their behalf as the IOR.
Does CBP require specific software to transmit Entry Type 86
entries?
ET86 shipments are transmitted in ACE the same as other entry
types.
How many entry filers are using Entry Type 86?
Over 450 filers are participating in the Entry Type 86 Test.
How is the PGA data transmitted through Entry Type 86?
Any PGA data reporting requirements would be satisfied by the
PGA Message Set and the filing of any supporting documentation via the Document
Image System (DIS).
Who can file an Entry Type 86 entry?
Under the Entry Type 86 Test, the owner, purchaser, or a licensed
Customs broker is required to file the entry.
If a party has three different filer codes, does the exemption
apply to each filer code?
No, the exemption is not based on the filer code.
Can you hold cargo in a FTZ until customer purchases from ecommerce
site, then file Entry Type 86?
A shipment may not be admitted into an FTZ, in order to be broken
down into smaller shipments, because the value of the shipment is assessed at the
time of importation, not entry. Moreover, 19 U.S.C. § 1321 specifically prohibits
a shipment from being broken down in an effort to obtain duty free treatment. Additionally,
retail trade is prohibited from occurring within an FTZ.
Are entries subject to Section 301 and 232 allowed under Entry
Type 86?
Yes.
Is entry type 86 filing mandatory?
No, Entry Type 86 is a voluntary test. The release from manifest
process will continue to be an option for filing entry on de minimis shipments.
Will Entry Type 86 have an associated entry number?
Yes, Entry Type 86 will have an entry number.
Will an IOR number be required for Entry Type 86?
Providing an IOR number is conditional for Entry Type 86, subject
to applicable Partner Government Agency (PGA) requirements.
Is a power of attorney required for brokers to file Entry Type
86?
Yes, for purposes of this test customs brokers must be authorized
to conduct customs business on behalf of the owner, purchaser, or consignee of eligible
shipments through a valid power of attorney.
Is filling an Entry Type 86 considered customs business?
Yes, filing an Entry Type 86 is considered customs business
due to the classification of the merchandise within a shipment at the 10-digit level
of the Harmonized Tariff Schedule if the United States.
Do duties, taxes, and fees, apply to Entry Type 86?
No. Shipments qualifying for Entry Type 86 are not subject to
duties, taxes and fees. If the shipment requires fee collection (e.g. agricultural
fees), filers must file a Type 01 Consumption or Type 11 Informal entry.
How is the value of de minimis determined?
To qualify for Entry Type 86, the goods must have an aggregate
fair retail value of $800 or less in the country of shipment.
Is there a bond requirement for Entry Type 86?
There is no bond requirement for Entry Type 86. However, if
CBP determines a shipment does not qualify for de minimis treatment and requires
formal entry, a bond will be required to file a Type 01 Consumption Entry.
Can Entry Type 86 be filed at any commercial port of entry?
Yes. Brokers filing an Entry Type 86 on behalf of others must
possess the proper permit.
Section 321 Data Pilot
Is the seller information, including seller ID, referenced in
the Section 321 Data Pilot the same as MID?
No, the MID is the manufacturer identification code used to
identify the manufacturer of the merchandise. The seller may or may not be the manufacturer.
The Marketplace Seller Account Number/Seller ID as requested by the Section 321
Data Pilot is a unique identifier a marketplace assigns to sellers.
What is a "security scan" as referenced in the Data
Pilot?
The shipment security scan under the Section 321 Data Pilot
allows air carriers to submit verification that a foreign security scan for the
shipment has been completed (such as an x-ray image or other security screening
report).
What is the relationship between 321 Data Pilot and the Import
Security Filing (ISF) and Air Cargo Advance Screening (ACAS)?
The Section 321 Data Pilot does not replace ISF or ACAS filings.
All existing Trade Act of 2002 requirements and all manifest requirements continue
to apply.
Is the Section 321 Data Pilot open to air shipments?
It is open to all modes of transportation.
What are the benefits of participating in the expanded Section
321 Pilot Program?
Participating in the data pilot expansion will:
·
Allow
additional companies the opportunity to develop processes for gathering the data
from various sources in the supply chain to transmit a single and complete filing.
·
Assist
CBP in identifying future trade facilitation benefits.
·
Continue
to explore different and new technology that becomes available and can be incorporated
into future regulation.
Who would provide the PGA data for a broker to clear Entry Type
86 entries that are already sold to an end consumer?
The party that hired the broker would provide the information.
Who is participating in the Section 321 Data Pilot?
The following companies have been approved to participate in
the Section 321 Data Pilot:
·
eBay
·
Amazon
·
Zulily
·
FedEx
·
UPS
·
DHL
·
Box
C Logistics
·
XB Fulfillment
·
SafePackage
·
Baja
Fulfillment
·
Grand
CHB Customs Broker
·
Shein
·
E-Freight
Technology, Inc.
·
Tacna
CBP is soliciting additional participants for the data pilot. Please see 88 FR 10140 for additional details.
De Minimis Warning Messages
What is the Automated Commercial Environment (ACE) warning message?
The warning is an electronic message issued through Automated
Commercial Environment (ACE) warning the manifest or entry type 86 (ET86) filer
that a particular shipment may exceed the $800 aggregate value limit for merchandise
imported by one person on one day and exempted from the payment of duty pursuant
to the administrative exemption set forth in 19 U.S.C. § 1321(a)(2)(C) (the “de
minimis duty exemption”), in the event that the merchandise in fact arrives on the
estimated date. The warning is issued in advance of the actual arrival date of the
shipment to facilitate selection of a different entry process and avoid the possibility
of the shipment being ineligible for the exemption if it arrives on the estimated
date. Alternatively, if a shipment is rerouted to arrive on a different date, it
may be eligible for the de minimis duty exemption.
The final determination of eligibility for the de minimis duty
exemption will be made upon the date of importation, which is the date of actual
arrival. See 19 C.F.R. § 101.1. If a shipment is ineligible for the exemption, another
appropriate entry type must be filed to secure release of the merchandise from U.S.
Customs and Border Protection (CBP) custody. For example, a formal type 01, informal
type 11 entry, or immediate transportation may be filed, and all associated requirements,
including a bond as applicable, must be met for the selected entry process.
Will there be two different types of warning messages regarding
de minimis eligibility?
There will only be one warning message stating that the shipment
“may” be ineligible. Please see CSMS # 63361789 - Section 321- Does not Exceed
$800 Aggregated shipments (Warning) Release 2 Deployed in CERT December 11, 2024,
for technical language that will be transmitted in ACE.
Which parties (e.g., shipper, importer, consignee, carrier,
broker, postal operator) will CBP provide a warning message to?
If a party is filing a “release from manifest entry” is filed
for clearance, the filer will receive the notification from CBP.
If an ET86 is filed, the entry and manifest filer will be notified.
In the event an owner or purchaser self-files, that party would
receive notice if they have access to ACE.
How will CBP notify parties that do not have
ACE access?
Messages will only be sent through ACE. Brokers will receive
messages, if applicable, through the Automated Broker Interface (ABI) and carriers
will receive messages through Automated Manifest System (AMS). Parties who do not
have ACE access will not receive either an warning or ineligibility
message. Guidance on how to obtain ACE access is available at: www.cbp.gov/trade/automated/getting-started/portal-applying.
How is “person” defined for the purpose of enforcing the $800
per person, per day, limitation?
For a particular shipment to qualify for the de minimis duty
exemption authorized under 19 U.S.C. § 1321(a)(2)(C), the fair retail value in the
country of shipment of the imported articles in such shipment cannot exceed $800
when aggregated with all other articles imported by the same “person” on the same
day and exempted from the payment of duty pursuant to the de minimis exemption.
For purposes of the Entry Type 86 Test, the consignee that is reported on the entry
filing is the “person” who may qualify the shipment for the exemption. (See 89 Fed.
Reg. 2630, 2633; Jan. 16, 2024). CBP has addressed this question in the Entry Type
86 Guidance (CBP Publication No. 3564-0224).
For “release from manifest” entries, the “person” who may qualify
the shipment for the de minimis duty exemption authorized under 19 U.S.C. § 1321(a)(2)(C)
may be the owner or purchaser of the merchandise in the shipment or the named consignee.
Often, the “person” is the ultimate consignee taking final delivery of the shipment.
CBP will look at either the owner or purchaser of the shipment to determine who
is the “person.” However, if the owner or purchaser of the merchandise is not provided
to CBP, then CBP will default to the consignee as the “person” who qualifies the
shipment. See Headquarters Ruling (HQ) H290219 (July 28, 2020).
Will businesses with different locations be considered a single
person or multiple persons for the purpose of enforcing the $800 per person, per
day, limitation?
If a business with different locations is the owner or purchaser
of the imported merchandise and is identified to CBP, the business would be considered
the one person per day regardless of different locations. In situations where merchandise
has not been sold to a U.S. consumer at the time of importation, and the consignee
and ultimate consignee are distinct entities, then CBP will consider the ultimate
consignee (such as the domestic warehouse or fulfillment
center) to be the “one person” to whom the daily $800
aggregate value limit applies.
Will shipments sent “To the attention of”
individuals at a corporate entity qualify for Entry Type 86?
Please see response Question #3 above which explains how CBP
will determine to whom the $800 daily limit applies for ET86 and release from manifest
entries. If the person at a corporate entity to whom the shipment is sent “In the
care of” or “To the attention of” is the owner, purchaser, or consignee of the imported
merchandise, then such individual may be the “person” to qualify the shipment for
the exemption provided the daily aggregate value is not exceeded for such individual.
Does the person who may qualify for the de minimis duty exemption
vary by mode of transportation?
The mode of transportation for an arriving shipment does not
affect how CBP determines who qualifies the shipment for the administrative exemption
under 19 U.S.C. § 1321(a)(2)(C).
Will the parties who receive the warning notification differ
depending on the type of entry (e.g., Entry Type 86, postal entry, or manifest release)
and the mode of transportation?
CBP will enforce the $800 per day per person limit across all
modes of transportation. Postal entries will not be affected by the ACE update for
warnings.
The trade parties who will be notified will differ depending
on the type of release requested, whether release from manifest serves as the entry
or whether an Entry Type 86 is filed. For release from manifest entries, the party
filing the bill of lading or manifest will receive the warning message. For ET86
entries, the party making entry will receive the message in addition to the party
who filed the bill of lading associated with the entry.
When does the “day” start for the purpose of enforcing the $800
per person, per day, limitation?
ACE system time is 0000 to 2359 Eastern Standard Time (EST).
The day is 24hours.
What is the definition of “arrival” for purposes of the warning
message?
CBP Regulations define “date of importation” as follows: “in
the case of merchandise imported otherwise than by vessel, the date on which the
merchandise arrives within the Customs territory of the United States,” and “[i]n the case of merchandise imported by vessel, … the date on
which the vessel arrives within the limits of a port in the United States with intent
then and there to unlade such merchandise.” 19 C.F.R. § 101.1 (“Date of importation”).
Thus, for Shipment A to be imported by the same “one person”
on the same “one day” as Shipment B for purposes of the de minimis duty exemption,
the date on which the imported merchandise (which is owned or purchased by, or is
ultimately consigned to, the same person or legal entity) in Shipments A and B arrives
within the Customs territory or port limits (as applicable) must be the same (in
EST, regardless of the time zone in which the port of arrival is situated).
The estimated date of arrival for a shipment, for purposes of
a warning message, is provided to CBP as part of the manifest data. The date of
actual arrival, for purposes of determining actual eligibility for the exemption,
is recorded in ACE when a CBP employee manually arrives the conveyance and manifests
the goods in ACE, or for vessel shipments, when the carrier or NVOCC arrives the
conveyance and manifests the goods electronically to CBP.
The actual ineligibility notices are contemplated as part of
a future deployment, the functionality in ACE will include the warning messages.
What is the specific action and official system of record that
triggers the date and time for the warning message by mode (truck, air, air express,
ocean)?
For both release from manifest and ET86 entries, the system
of record is ACE regardless of the conveyance or mode of transportation for the
arriving shipment. The specific action which triggers the warning message is:
1. The filing of a bill of lading or manifest,
for release from manifest entries. The deadline for such a filing varies by mode
of transportation:
o Vessel. The
filing must generally be received by CBP 24 hours before the cargo is laden aboard
the vessel at the foreign port. 19 CFR 4.7(b)(2)
and 4.7a(c)(4)(xv)(A).
§ OR: “[n]o later than the presentation of the permit to unlade (CBP
Form 3171, or electronic equivalent), for those vessels that will arrive less than
24 hours after sailing from the foreign port of lading).” 19 C.F.R. § 4.7a(c)(4)(xv)(B).
Another deadline is specified in 19 C.F.R. § 4.7(b)(4).
o Air. The filing must be received
by CBP either: (1) no later than the time of the departure of the aircraft for the
United States, in the case of aircraft that depart for the United States from any
foreign port or place in North America, including locations in Mexico, Central America,
South America (from north of the Equator only), the Caribbean, and Bermuda; or (2)
no later than four hours prior to the arrival of the aircraft in the United States,
in the case of aircraft that depart for the United States from any foreign area
other than those specified in 19 CFR 122.48a(b)(1). 19 CFR 122.48a(b)(1)-(2).
o Rail. The filing must be received
by CBP no later than two hours prior to the cargo reaching the first port of arrival
in the United States. 19 CFR 123.91(a).
o Truck. The filing must be received
by CBP no later than either 30 minutes or one hour prior to the carrier's reaching
the first port of arrival in the United States, or such lesser time as authorized,
based upon the CBP-approved system employed to present the information. 19 CFR 123.92(a).
2. The filing of the entry, for ET86 entries.
For warning message purposes, how will the “$800 per day” be
calculated in the Automated Commercial Environment (ACE)?
For “release from manifest” entries, CBP will use the value
provided pursuant to 19 C.F.R. § 143.23(k)(7) to determine eligibility for the de
minimis duty exemption.
For ET86 entries, CBP will use the value submitted as part of
the entry filing. 89 Fed. Reg. 2630, 2633 (Jan. 16, 2024). The warning message will
be based on the aggregated total value of merchandise reported as potentially arriving
on a certain day, with the same person identified as qualifying the shipments for
the de minimis duty exemption, and functions to caution filers that the $800 daily
limit may be exceeded if the shipment arrives on the reported day. However, eligibility
for the exemption will only be established upon the actual arrival date.
If arriving on the same day, shipments’ values will be aggregated
based on the identity of the person identified as qualifying the shipments for the
de minimis duty exemption – that is, the owner, purchaser or consignee – in determining
whether the $800 value limit is reached.
When will CBP transmit a warning message to the party(ies) that a shipment might not qualify for the de minimis duty
exemption?
CBP will transmit the warning message to the party(ies) upon receiving the manifest or bill of lading filed for
a release from manifest entry, or upon receipt of the entry filing for ET86 entries.
CBP will use any updates to the manifest or ET86 to transmit
warning messages before arrival. CBP will use the most current data on all submissions
for purposes of issuing the warning messages. Any updates to the manifest or entry
should be submitted by regulatory timelines prior to arrival.
Can a shipment’s value be corrected after a warning message
and after manifest has been submitted?
Yes, value can be corrected, even after an
warning message has been issued and the manifest or ET86 has been filed. CBP does
not make a determination as to whether a shipment is eligible for the de minimis
duty exemption until the actual arrival of the merchandise.
Will CBP take any action based on the issuance of the warning
message?
A warning message is not a determination of noncompliance with
an applicable statute or regulation, it is merely a warning
that a shipment may be ineligible for the de minimis duty exemption.