Express Companies Call for Separate 'Section 321 Module' in ACE

CBP should develop a separate "Section 321 module" for brokers to allow for easier manifest release requests on low-value imports regulated by other agencies, the Express Association of America said in comments to CBP (here). The comments were in response to CBP's regulatory changes to the de minimis value threshold (see 1608250029), a provision of the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015. Among other questions, CBP sought information on how it should approach the "release from manifest" process, commonly known as a Section 321 procedure, for goods under the new $800 de minimis level when the manifest doesn't include information required by other agencies. Unlike express couriers, customs brokers currently cannot electronically designate Section 321 clearances via manifest (see 1605160030).

While imports below the de minimis threshold can receive faster processing by CBP, other agencies may require additional information. A "stand-alone" Section 321 module that matches the data set in the current automated air cargo data set would allow brokers to "request Section 321 manifest release for cargo regulated only by CBP, or by CBP and a Partner Government Agency [PGA] where reporting requirements have been satisfied using an alternative method," the EAA said. Brokers also would be able to request Section 321 release "simultaneously submitting data to one or more regulating PGA’s." The agency should also "ensure automated targeting and mass release capabilities are available to CBP at all ports of entry for Section 321s, regardless of the mode of transportation or method of data transmission to CBP, either through manifest or a newly developed [automated broker interface] process," it said.

The government must seek to apply the new $800 de minimis "as widely as possible," even as the number of products imported below the de minimis level will increase due to the higher threshold, it said. The government should "identify a list of products among those they regulate that are inherently higher risk and that would require informal entry and review by PGA personnel on a routine basis regardless of value," the association said. "All other shipments under $800 regulated by the PGA would be eligible for the simplified de minimis clearance process, with review of manifest information and periodic spot checks by CBP to ensure compliance with product safety laws."

CBP should also "promulgate regulations to 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 identification," Mary Jo Muoio, senior vice president of Geodis, said in comments (here). "To do otherwise is to invite the reality that virtually any truck driver crossing goods at our border can simply declare the goods to be valued at $800 or less, and drive across the border without the oversight of ACE targeting. Risk is not determined by value." An "ABI solution" allowing brokers to file information required by CBP and PGA data "should be considered an ACE development priority for the agency," Muoio said.

The Northern Border Customs Brokers Association pushed for ACE Cargo Release filing requirements for Section 321 goods. "The law, not regulations, says that an 'entry' is required, therefore CBP should require some type of electronic Section 321 entry," BCB International's Frank Schmitt, secretary at the NBCBA, said in comments (here). "The entry can be duty-free, but CBP and PGA’s would receive data for risk assessment and admissibility purposes. ACE Cargo Release is in place now. The only new programming that would be needed is a provision for duty-free status for Section 321 entries." Currently, "trucking companies and other carriers make the determination for admissibility of cargo under Section 321 by filing the truck eManifest," Schmitt said. "This practice raises questions about potential threats and security issues, and also circumvents CBP’s cargo targeting systems."

More clarity is needed on the de minimis issue in several areas, the American Association of Exporters and Importers said (here). For example, "the regulations mark shipments valued under $800 as not an entry -- neither informal nor formal -- but as a section shipment," the AAEI said. Elsewhere, CBP indicates "that shipments valued under $800 are not entries until the requirements of" Section 321 aren't met, the AAEI said. It's also worth considering "that most businesses involved in low-value" shipments "lack the capacity to comply with complex trade rules that were designed for large corporations and cargo shipping," the trade association said.