CBP Proposes New Regulations on De Minimis/LVS Shipments


Trade Update • Jan 13, 2025

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.S. Customs and Border Protection (CBP) has issued a Notice of Proposed Rulemaking (NPRM) titled Entry of Low-Value Shipments (ELVS) to enhance the collection of data for low-value shipments, commonly referred to as de minimis shipments. The proposal, part of a two-pronged NPRM initiative by the Biden Administration, seeks to address increasing vulnerabilities in this growing segment of international trade.

Addressing Challenges in the De Minimis Environment

On average, CBP processes more than 4 million low-value shipments daily. While the $800 duty- and tax-free threshold under Section 321 of the Tariff Act of 1930 has facilitated trade, it has also created opportunities for bad actors to exploit the system. The ELVS NPRM aims to modernize the data requirements for such shipments, empowering CBP to more effectively target high-risk shipments containing illicit drugs, counterfeit goods, and unsafe merchandise.

Key objectives of the ELVS NPRM include:

  • Improved Targeting: Collecting the data necessary for adequate targeting of violative shipments, such as synthetic opioids and counterfeit products.
  • Enhanced Supply Chain Visibility: Requiring new data elements to trace the origin, contents, and destinations of shipments.
  • Streamlined Processes: Implementing electronic entry systems to replace outdated manual processes, improving efficiency while maintaining security.
Enhanced Entry Requirements

Under the proposed Enhanced Entry Process, electronic transmission of specified data elements would be required alongside the individual bill of lading or equivalent document.

Key mandatory data elements include:

  • Clearance Tracing Identification Number (CTIN): A unique identifier for each shipment.
  • Country of Shipment: The country where the shipment originated.
  • 10-Digit HTSUS Classification: Required unless waived for filers with documented internal controls ensuring compliance.
  • Additional Information: At least one of the following must also be provided: the product’s URL, a product image, a product identifier, or a shipment security screening report number.

Where applicable, other required data elements include:

  • The name and address of the seller and purchaser.
  • Documentation required by partner government agencies (PGAs).
  • A detailed advertised retail product description.
  • The marketplace name, website, or phone number.

Data submissions must adhere to existing deadlines for advance cargo information, which vary by transportation mode. For example:

  • Vessel Shipments: 24 hours before cargo is laden at a foreign port.
  • Truck Shipments: 30-60 minutes before reaching the first U.S. port of arrival.
Other Key Provisions

The proposed rule introduces several changes to address longstanding challenges in the de minimis environment, including:

Clarification of De Minimis Eligibility

  • When the aggregate retail value of shipments imported by a single person on the same day exceeds $800, all shipments from that person on that day lose eligibility for duty- and tax-free entry.
  • The “one person” eligible for de minimis exemptions is defined as the owner or purchaser of the goods.

Revised Entry Processes

  • The current “release from manifest” process will be renamed the Basic Entry Process and will include additional data requirements, such as the name and address of the person claiming the exemption and, if different, the final deliver-to party. HTSUS classifications will not be required under this process.
  • Goods subject to PGA regulations or non-compliance with other laws will not qualify for the Basic Entry Process but may still be entered under the Enhanced Entry Process, provided they meet the additional requirements.

Port Directors’ Discretion

  • Port directors may grant duty- and tax-free entry to qualifying shipments but are not required to if statutory or regulatory issues arise.

Updated Shipment Definitions

  • A “shipment” will correspond to an individual bill of lading, also referred to as a house bill, individual air waybill, or simple bill.

Streamlined Manifest Requirements

  • The rule removes the requirement to segregate low-value shipments on advance manifests.
Anticipated Future Regulations

A second NPRM, expected soon, is likely to propose the exclusion of shipments containing goods subject to Section 301, 201, or 232 tariffs from de minimis eligibility. The administration has also advocated legislative reforms to codify CBP’s changes and exclude import-sensitive products like textiles and apparel from de minimis treatment.

Separately, the Consumer Product Safety Commission (CPSC) has recently published a final rule impacting de minimis imports that will implement electronic filing of Certificate of Compliance (CoC) information for imports of regulated consumer products and substances.

Call to Action for Importers

The NPRM underscores the increasing scrutiny on low-value shipments and the growing importance of supply chain transparency. Importers are urged to act now to ensure compliance with these forthcoming requirements.

This is a critical moment for supply chain and customs compliance. If you’re not prepared to meet these new requirements, you risk falling behind. Knowing your supply chain and compliance strategy has never been more important.

Public Participation

The public is invited to comment on the proposed rule within 60 days via the Federal e-Rulemaking Portal at www.regulations.gov under docket number USCBP-2025-0002.

For further details, visit www.cbp.gov.

Questions or concerns about if your imports are affected and how to stay compliant? Contact us today! gts@ghy.com, or call +1 (800) 667-0771.

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