CBP Aiming for Release of Section 321 Rules by End of Year, Smith Says

CBP is aiming to release rules for entry filings of goods valued under the $800 de minimis threshold "before the end of the calendar year," said Brenda Smith, executive assistant commissioner for the CBP Office of Trade, on Sept. 12 during the National Customs Brokers & Forwarders Association of America conference in Washington. CBP knows "it's a big deal" to customs brokers "whether we require the classification on all small packages," she said. It's a "thorny issue," but "I think we are close to having kind of the final conversations," so "look forward to that in the next couple months."

CBP hoped to get a "solid recommendation" from the Commercial Customs Operations Advisory Committee (COAC) on whether to require 10-digit Harmonized Tariff Schedule (HTS) information and other data for Section 321 entries and make the "Solomon's decision," she said. "We are still working that," Smith said. There was some disagreement within the COAC over what level of information should be required for such entries.(see 1708230042). A CBP official said during the same conference that agency is considering allowing for continued clearance in the Automated Manifest System while providing new capabilities for Section 321 in the Automated Broker Interface (see 1709120025).

The increase to the de minimis threshold in the Trade Enforcement and Trade Facilitation Act "caught us a little bit by surprise," Smith said. "We know that has changed a lot of your business," she said. Since that increase took effect, CBP has been monitoring the subsequent shifts in shipping practices, she said. "We think what we're seeing is explosive growth in the under $200 area and some growth, but not a lot, in the $200 to $800," she said. CBP issued an interim rule on the de minimis increase last year (see 1608250029).

Smith indicated some changes may be coming on how the government enforces the prohibition on imports suspected of involving forced labor. "We're thinking through how does the forced labor regime link up with, on other compliance issues, detention and seizure regimes," she said. When the statute on the forced labor prohibitions was written, customs had its own investigative arm, said Troy Riley, executive director-Commercial Targeting and Enforcement in the CBP Office of Trade. Now, though, two agencies -- CBP and Immigration and Customs Enforcement (ICE) -- enforce that statute, he said. "Is that the right way?" and do those agencies align well for that purpose, Riley asked. "I think the answer might be no."

CBP's e-commerce strategic plan is in the final stages of internal review, said Alexander Amdur, director of the Antidumping and Countervailing Duty Policy and Programs Division. Education will be a major part of the plan, which will be released publicly once the review is completed, he said. The plan will include help for small importers and internal changes that will help ports deal with surging volumes of shipments, CBP said in June (see 1706210070).