NCBFAA Requests MPF Waived on Section 321 Entries

Given that the merchandise processing fee (MPF) for informal entries filed for release on goods valued below the de minimis level are minimal, CBP should waive the fees for such entries, the National Customs Brokers & Forwarders Association of America said in comments to the agency. CBP requested input 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 (see 1608250029). "The NCBFAA believes that qualifying merchandise should be afforded the duty and tax exemptions but entered via ACE and [International Trade Data System] entry procedures thereby assuring the proper data collection and adherence to CBP and Partner Government Agency import requirements," it said.

The regulations allow for the Treasury Department to "disregard discrepancies in collection of taxes and duties to avoid expense and inconveniences to the Government disproportionate to the amount of revenue that would otherwise be collected," the NCBFAA said. Since the MPF for the low-value shipments at issue would never go above $2, CBP should waive the fee, it said. "The effort and inconvenience required to collect and track the payment of these minimal fees exceeds the revenue being collected." CBP's proposal indicated that other small costs, such as duties and harbor maintenance fees, could be waived under the informal entry procedure, the NCBFAA said. "We would likewise suggest that this same consideration be given to other small fees which might otherwise be assessed on these low value shipments and result in the collection of minimal revenues. (One such example is the cotton fee.)"

Several issues within the legislative requirements for qualifying for de minimis entry exemptions weren't addressed in the proposal, the NCBFAA said. Specifically, value definition, daily entry limits and divisions of orders weren't discussed "in any manner," the trade group said. CBP also didn't mention whether goods under the Section 321 exemption "are also exempt from the regulatory requirements imposed on imported merchandise by other government agencies," it said. "We submit that exemption from duty does not distinguish these shipments from other imported merchandise but this issue should be specifically addressed."

There are security and enforcement implications too, NCBFAA said. "As the value of goods potentially subject to the exemption has quadrupled and the pool of imports potentially subject to this exemption has similarly been increased, the NCBFAA believes the impact of this change will be significant," the trade group said. The agency "must establish an entry solution within ACE to allow for enforcement of the trade laws and risk based targeting of inbound shipments," it said. The NCBFAA also echoed a call for CBP to issue regulations that the entry of all goods into the U.S. falls under "customs business" (see 1609270014).

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