Automated Entry for de Minimis Imports a Top Priority for NCBFAA Under New Administration

CBP under the Trump administration should start by addressing several open issues related to imports of goods below the de minimis threshold, the National Customs Brokers & Forwarders Association of America said in a letter (here). The NCBFAA wrote to Department of Homeland Security Secretary John Kelly and Steven Mnuchin, the nominee to head the Treasury Department, on Jan. 20 with a list of priorities. The trade group raised concerns about the lack of targeting on goods that are below the de minimis level, which increased to $800 from $200 last year (see 1608250029). Imports below the de minimis level, known as Section 321 releases, can receive faster CBP processing.

The increase to the de minimis level "means that a vastly broader range and quantity of products can qualify to enter without providing important data through ACE to CBP," the NCBFAA said. As a result, more goods can avoid review through CBP's Automated Targeting System, it said. "CBP recognizes that this is an untenable situation, but has not yet taken steps to remedy this oversight, partly because of the absence of adequate funding," it said. Another problem is that "a number of health and safety federal agencies reject the conclusion that low value goods can also be imported without being scrutinized by their inspectors," it said. CBP sought and received comments on how it and partner government agencies (PGAs) should adjust policies in light of the de minimis changes (see 1605160030).

Treasury and DHS should set aside resources to incorporate de minimis within the ACE and the International Trade Data System processes, the association said. That's necessary so "that sufficient information is provided for de minimis imports to undergo targeting through ACE/ITDS and, if necessary, be interdicted. Further, we ask that your departments use your best efforts to resolve the issue of how federal agencies should appropriately be incorporated in this task." There has been industry anxiety over the increased use of Section 321 clearance (see 1605160030).

The group also complained of shifting goals as part of ACE. "As CBP worked to meet the deadline of implementing 'core ACE' -- what constitutes core has eroded and been re-defined, with important functional elements of ACE now left incomplete," it said. Despite some major holes in ACE, "CBP has determined that it does not have the funding to meet its obligations to the trade community," the NCBFAA said. Among major components still missing in ACE are "House bill of lading release, currency conversion and port neutrality for all PGAs," it said. CBP didn't comment.

The government should also build on long-discussed efforts to increase professionalism of customs brokers. "To the extent that our activities fall under this regulatory framework, we ask that your departments exercise leadership in bringing this work to a mutually satisfactory and expeditious conclusion," it said. The departments should also work to make certain that trade facilitation initiatives, such as the Centers of Excellence and Expertise and the Trusted Trader Program, don't only benefit large corporations, the NCBFAA said.