The Biden-Harris administration has announced new actions to crack down on the abuse of the de minimis exemption (Section 321 and Entry Type 86), which allows duty-free entry of shipments valued under USD800.
Over the past decade, the number of de minimis shipments entering the U.S. have increased from 140 million to over one billion annually, further straining enforcement efforts. The surge in these shipments, particularly from China-founded ecommerce platforms, has made it difficult to enforce U.S. trade laws, health and safety regulations, and prevent the entry of illegal items like synthetic drugs.
To address this, the administration plans to issue new rules to improve oversight and strengthen enforcement. One proposed rule would exclude from the de minimis exemption shipments containing products covered by tariffs under Sections 201, 301, and 232, which already apply to around 40% of U.S. imports, including 70% of textiles and apparel from China. This aims to close loopholes that foreign companies may use to circumvent tariffs and other trade enforcement actions, helping protect U.S. workers and businesses.
In addition to the proposed tariff rules, the White House announced plans for a new rule requiring more detailed information for de minimis shipments. This would include the 10-digit tariff classification number and details of the person claiming the de minimis exemption. The increased data collection is designed to help improve visibility into these shipments, allowing U.S. Customs and Border Protection (CBP) to more effectively target and block illegal or unsafe products while expediting the clearance of lawful goods.
Driving comprehensive customs clearance and trade compliance
Navigating compliance complexities like Section 321 and Entry Type 86 demands precision. Technology can offer powerful solutions; however, it is important to consider the risks of adopting a multi-tech stack approach. It is hard to drive accuracy and enhance productivity if you are handcuffed to a complex maze of disparate, costly, or worse – unsecure – systems across your global logistics business.
Consolidating various functionalities onto a single platform is a powerful way to streamline operations, ensure compliance, and boost overall efficiency. Enter CargoWise International Ecommerce, a single platform solution designed to enhance cross-border ecommerce fulfilment in three key ways:
1. Advanced validation tools for data accuracy and compliance
Brokers and forwarders face challenges in validating large volumes of data received from ecommerce platforms and other sources. Manual validation processes are time-consuming and prone to errors, especially when handling such high volumes of transactions.
CargoWise provides advanced tools to automate and streamline data validation, allowing brokers to quickly and accurately handle large volumes of data. This automation reduces manual effort and improves the accuracy of compliance filings, ensuring data is verified before submission to CBP and other regulatory bodies.
For example, CargoWise has recently expanded its Denied Party Screening (DPS) to include screening for high-volume low-value (HVLV) parties, in addition to screening organizations.
By screening HVLV parties such as shippers, last-mile carriers, and even individual consumers, businesses can reduce their exposure to potential fines, legal penalties, and reputational damage that could arise from inadvertently trading with sanctioned or restricted entities.
Additionally, screening free-text entries like names and addresses ensures that no gaps are left in the compliance process. This comprehensive approach helps businesses maintain regulatory standards, safeguard their operations, and protect global supply chains from illicit activities.
2. Unified data source for compliance filings
Managing compliance filings such as Section 321 declarations, AMS, ACAS and other security filings across different platforms can lead to discrepancies and errors. When data moves between systems, there is an increased risk of inconsistencies that can result in compliance issues and delays.
CargoWise integrates with various platforms and consolidates data into a single source for compliance filings. This unified approach minimizes errors caused by data discrepancies and enhances compliance by using consistent, validated information for all filings.
3. Synchronized updates across filings
Using multiple systems for different compliance filings can lead to data integrity issues. Changes made in one system may not reflect accurately in others, potentially causing errors in tariffs, classifications, or other critical details required for compliance.
CargoWise synchronizes updates across all security filings and declarations. When adjustments are made to tariffs or other details within CargoWise, these changes automatically propagate across all relevant compliance filings. This synchronization ensures that filings are consistently updated with the latest information, reducing the risk of discrepancies, and helping ensure compliance with regulatory requirements.
As global customs regulations evolve, managing shipment data on a unified system becomes crucial for compliance and security. CargoWise empowers forwarders to capitalize on ecommerce growth opportunities while efficiently managing operations and staying ahead of regulatory changes.
Looking for faster, safer, and more reliable cross-border ecommerce fulfilment?
CargoWise International Ecommerce can help you efficiently manage the entire international ecommerce supply chain from origin country shipper to consumer’s doorstep in the destination country.