CBP Proposes New Informal Entry Procedures, Formalization of Entry Type 13
CBP issued a proposed rule Oct. 7 that would create a framework for low-value imports after the end of de minimis, modifying informal entry filing requirements -- including by requiring more data and setting tighter time frames -- and formally establishing new informal Entry Type 13 for merchandise entering through the mail. Comments are due by Dec. 7.
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Under the proposed rule, consignees that are not an owner or purchaser would have to appoint a customs broker to act as the importer of record for entries that are valued at or under $2,500. But the proposal also appears to exclude from that requirement entries under $800 that qualify for 19 U.S.C. 1321.
That restriction would also apply to Entry Type 13. Owners, purchasers and licensed customs brokers would have a right to make entry, but consignees would have to "obtain the services of a licensed broker who will act as the importer of record for the mail entry, consistent with the proposed requirements for informal entries."
CBP also proposed that entry for merchandise valued at or under $2,500 for which an Entry Type 11 or Entry Type 13 is required must be filed upon or prior to the date of importation. The time of entry for informal mail entries would be the time specified for informal entries generally and the duty rate for mail would be based on the “rate or rates in effect when the preparation of the entry is completed.”
The proposal would require electronic filing for Entry Type 11, where filers currently have the option to make an entry on paper or electronically — most are already filed electronically. CBP also proposed requiring the submission of data identifying the Final Deliver-to Party, if it's distinct from the ultimate consignee on the entry summary.
CBP proposed to remove the $250 limit on eligibility for informal entry for products classified in subchapters III and IV of Chapter 99 to allow products valued at or under $2,500 that are subject to additional tariffs under sections 301, 122, 338 or other authorities to be informally entered.
CBP also proposed to require electronic entry filing for mail shipments arriving to the U.S. under Entry Type 13. "In practice, this new proposed entry type 13 for mail will largely mirror the data and process for the entry type 11, as modified by this proposed rulemaking, including the time of filing requirement discussed above and the additional requirements specific to mail discussed below."
The proposed rule would require additional data for an Entry Type 13 informal mail entry, including the identity and address of the party that causes the goods to be shipped. The additional data would be filed by the importer of record or broker. Under the proposal, mail shipments valued at $2,500 or less also would need a tracking number matching that which was provided by the party with the right to make entry.
CBP said the effect of the proposed requirements means the U.S. Postal Service and CBP would have to move quickly to identify and dispose of mail articles where entries haven't been timely filed to avoid the cost of storing unentered shipments.
As a result, CBP is proposing to deem mail articles voluntarily abandoned if no entry is filed within 15 days. "Such deemed abandoned articles will then be processed in accordance with USPS requirements and procedures, which may entail destruction or return of the shipment to the sender."
The proposed rule includes new bonding requirements for informal shipments under both entry types. Such shipments wouldn't be released from CBP custody unless a single transaction bond or continuous bond was transmitted.
Defaulting on a bond for informal entries would result in a claim for liquidated damages in an amount equal to the value of the merchandise, or $1,000, whichever is greater. If the merchandise is restricted, prohibited or alcoholic beverages, the claim for damages would be equal to three times the value of the merchandise, or $1,000, whichever is greater.