CBP Investigates Section 321 Type 86 De Minimis Shipments Reporting

Brokers are currently administering Harmonized Tariff Schedule codes for de minimis shipments in the Section 321 Type 86 test.

De Minimis value: Items imported into the United States that value under $800 and are not subject to duty.

SECTION 321 TYPE 86 SHIPMENTS

Entry Type 86 was created in 2019 to enhance import safety and provide greater visibility into low value shipments. However, Customs Border Protection (CBP) does not believe the government has enough understanding of the small shipment contents.

Section 321 Type 86: Classifies imports to the United States with a de minimus value of less than $800 and does not require importers to file for formal entry of these particular goods or pay duties or taxes for these goods.

Last year, it was reported that 25% of inspected de minimis shipments were a violation and another 25% of the packages were set aside to be inspected by CBP but were mistakenly released. When this happens, the packages must be seized, costing time and money for import specialists, property custodians, and paralegals.

CBP considers different options and resources for further inspections:

1. Brokers perform internal analyses to notify of any non-compliant shipments.
2. Foreign Trade Zones could offer similar services as warehouses do for imported goods. This decision would be determined by Congress and Commerce Department, which CBP encourages comments to these parties on the matter.
3. CBP is also seeking a new technology or an algorithm that analyzes the shipments and flags those that potentially violate health and safety regulations, making them eligible for further inspection.

CBP plans to adjust the current rules and regulations regarding de minimis shipments but needs additional resources for inspections in non-compliant cases.

Green Worldwide Shipping will continue to monitor CBP progress on this initiative and will provide updates as they become available.