Aggregate Value Limits for Section 321 Entries Apply to Retailers, Not Individual Customers, CBP Says

The aggregate value limit of $800 per day for informal entry and duty-free treatment for commercial shipments covers retailers, rather than end-purchasers, CBP said in a July 19 ruling, HQ H275530. The ruling followed a request from Arkel about the company's ability to ship bike parts under the de minimis value to be stocked by retail stores in the U.S. Section 321 allows for importations under the de minimis value to enter duty free and with less processing by the government.

As described by Arkel, the products are imported from Asia to Quebec, Canada, and then shipped to U.S. bike shops. The company proposed that its merchandise, "not to exceed $800 and shipped to U.S. retail resellers, qualify for informal entry procedures, duty free, under Section 321." CBP previously ruled that while commercial shipments are allowed under Section 321, the aggregate value limit applies to the retailer and not to the end-customer. "Therefore, if the aggregate value of the parcels received by the bicycle shops, on a given day, does not exceed $800, the bicycle products may be entered duty free," CBP said.

Section 321 imports "made by one person on one day, valued at not over $800, may be entered under informal entry procedures free of duty and tax, unless there is reason to believe that the shipment is one of several lots covered by a single order or contract and that it was sent separately for the express purpose of securing free entry or for avoiding compliance with any pertinent law or regulation," CBP said. "Consolidated shipments addressed to one consignee shall be treated" as "one importation," the agency said.