CBP Considering Advance Data Submission Requirements for Low-Value Shipments

CBP will begin testing advance data collections for low-value entries that may be eligible for Section 321 exemptions, the agency said in a notice. "Participants will electronically transmit certain data elements pertaining to these shipments to CBP in advance of arrival," CBP said. "CBP is conducting this test to determine the feasibility of requiring advance data from different types of parties and requiring additional data that is generally not required under current regulations in order to effectively identify and target high-risk shipments in the ecommerce environment."

There's too little information provided to CBP on Section 321 shipments, which are valued at $800 or less, the agency said. "CBP faces significant challenges in targeting Section 321 shipments, while still maintaining the clearance speeds the private sector has come to expect," CBP said. "This is because CBP does not receive adequate advance information in order to effectively and efficiently assess the security risk of the approximately 1.8 million Section 321 shipments that arrive each day." While CBP does get some data on the shipments, it "often does not adequately identify the entity causing the shipment to cross the border, the final recipient, or the contents of the package."

The test will look at whether online marketplaces can transmit data to CBP to improve the agency's processing of the shipments, it said. "CBP will test the feasibility of using the additional data elements, transmitted by multiple entities for a single shipment, to segment risk," it said. "For example, CBP may compare a picture of the product (transmitted by an online marketplace) to an x-ray image of the package (transmitted by the carrier) to determine if the picture of the product and x-ray image match. In sum, the pilot will enable CBP to determine if requiring additional data and involving non-regulated entities will enable CBP to address the threats and complexities resulting from the vast increase in Section 321 shipments, while facilitating cross-border e-commerce."

Within this voluntary pilot, participants can send the requested data "through an existing point-to-point connection with CBP," the agency said. "Alternatively, participants may authorize a carrier or broker participating in the pilot and who has an existing point-to-point connection with CBP to transmit the information on their behalf." CBP said it will base risk assessments for each shipment on multiple transmissions coming at different stages in the supply chain. CBP is expected to also begin testing a new entry type too for low-value shipments, called Type 86, and agency officials previously mentioned that there would be another pilot around the same time (see 1906270021).

All of the participants will submit data electronically about:

• Originator Code of the Participant (assigned by CBP)
• Participant Filer Type (e.g., carrier or online marketplace)
• One or more of the following: Shipment Tracking Number, House Bill Number, Master Bill Number
• Mode of Transportation (e.g., air, truck, or rail).

Participating carriers will also send:

• Shipment Initiator Name and Address (e.g., the entity that causes the movement of a shipment, which may be a seller, shipper, or manufacturer, but not a foreign consolidator)
• Final Deliver to Party Name and Address (e.g., the final entity to receive the shipment once it arrives in the United States, which may be a final purchaser or a warehouse, but not a domestic deconsolidator)
• Enhanced Product Description (e.g., a description of a product shipped to the United States more detailed than the description on the manifest, which should, if applicable, reflect the advertised retail description of the product as listed on an online marketplace)
• Shipment Security Scan (air carriers only) (e.g., verification that a foreign security scan for the shipment has been completed such as an x-ray image or other security screening report)
• Known Carrier Customer Flag (e.g., an indicator that identifies a shipper as a repeat customer that has consistently paid all required fees and does not have any known trade violations).

Online marketplace participants will send:

• Seller Name and Address (e.g., an international or domestic company that sells products on marketplaces and other websites), and, if applicable, Shipment Initiator Name and Address
• Final Deliver to Party Name and Address
• Known Marketplace Seller Flag (e.g., an indicator provided by a marketplace that identifies a seller as an entity vetted by the marketplace and has no known trade violations)
• Marketplace Seller Account Number/Seller ID (e.g., the unique identifier a marketplace assigns to sellers)
• Buyer Name and Address, if applicable (e.g., the purchaser of a good from an online marketplace. This entity is not always the same as the final deliver to party.)
• Product Picture (e.g., picture of the product presented on an online marketplace), Link to Product Listing (e.g., an active and direct link to the listing of a specific product on an online marketplace), or Enhanced Product Description
• Listed Price on Marketplace (e.g., the retail price of a product that a seller lists while advertising on an online marketplace. For auction marketplaces, this price is the price of final sale.)

The pilot is set to begin on Aug. 23 and will "operate in all ports of entry utilized by the participants for Section 321 shipments." It won't include mail shipments arriving by ocean or shipments destined for a Foreign-Trade Zone, CBP said. The test is initially limited to nine participants and CBP will accept applications at any time, "including after the pilot commences, until CBP has identified a sufficient number of eligible participants," it said. "Specifically, CBP is looking for pilot participants to include one or more carriers and one or more online marketplaces." One potential benefit for participation is expedited "clearances for low-risk Section 321 shipments when sufficient test data has been received prior to the shipment’s arrival," the agency said.

(Federal Register 07/23/19)