CBP proposes new data requirements for low-value shipment imports

U.S. Customs and Border Protection announced a major regulatory change on January 14, 2025 that will overhaul how low-value shipments enter the United States, marking the first significant update to these processes since 1995.

The proposed rule would establish new electronic filing requirements for shipments valued at $800 or less that qualify for duty-free entry under the administrative exemption, also known as de minimis shipments. According to CBP statistics, these shipments have increased from 139 million in fiscal year 2015 to over one billion in 2023, with approximately 4 million packages now entering daily under this exemption.

Under the proposed regulations, importers would have two options for entering low-value shipments. The first option, termed the "basic entry process," maintains similar requirements to the current system but adds new data fields. The second option, called the "enhanced entry process," requires advance electronic filing with additional supply chain information.

According to the notice published in the Federal Register, the enhanced entry process would require importers to submit several new data elements before arrival, including:

• A clearance tracing identification number linking to the individual bill of lading
• The country where goods were located when prepared for U.S. export
• Ten-digit classification codes from the Harmonized Tariff Schedule
• Product identifiers or marketplace listing information
• Names and addresses of sellers, purchasers and final delivery recipients

The proposed rule specifies timing requirements that vary by transportation mode. For ocean cargo, data must be transmitted 24 hours before vessel loading. Air shipments from North America require filing by aircraft departure, while other air cargo needs four-hour advance filing. Rail shipments need two-hour advance notice, and truck cargo requires 30-60 minute advance filing.

CBP records indicate that in fiscal year 2023, the agency processed over one billion low-value shipments valued at $800 or less. The Federal Register notice explains that under current regulations, these shipments provide minimal advance data compared to formal entries, creating challenges for identifying high-risk cargo.

For shipments requiring review by partner government agencies like the FDA or USDA, the enhanced entry process would become mandatory. According to the proposed rule text, shipments subject to partner agency fees would not qualify for either the basic or enhanced entry processes and would instead require formal entry.

The regulations would maintain the existing exemption framework established by the Tariff Act of 1930, as amended. Low-value shipments must still meet core eligibility criteria - the goods must be valued at $800 or less, imported by one person on one day, and cannot be part of a larger order split into separate shipments.

Trade data shows that when multiple shipments from one importer exceed $800 in aggregate daily value, all shipments become ineligible for duty-free treatment that day. The proposed rule clarifies that the "one person" eligible for the exemption must be the owner or purchaser of the merchandise.

Companies demonstrating strong compliance programs could apply for a waiver of certain data requirements. According to the Federal Register notice, applicants would need to document their ability to properly classify goods, identify items requiring government agency review, and determine eligibility for duty-free entry.

The Department of the Treasury delegated authority for these regulations to the Department of Homeland Security, which further delegated implementation to CBP. The public has until March 17, 2025 to submit comments through the Federal eRulemaking Portal.

For enforcement purposes, CBP retains discretion to require formal entry for any shipment. Since 2015, seizures of inadmissible cargo have predominantly involved low-value shipments, with CBP data showing they represented 87 percent of seizures in fiscal year 2023.

The Federal Register notice indicates CBP will continue testing elements of these requirements through its Section 321 Data Pilot program, which allows participants to transmit optional data elements. Changes to that pilot program will be announced separately from this rulemaking.

New customs rule challenges Asian e-commerce giants' duty-free import model

According to trade data from CBP, companies like Temu and Shein have leveraged the administrative exemption to ship products directly from overseas manufacturers to U.S. consumers without incurring duties. Federal records indicate these platforms often split larger orders into multiple shipments to maintain values below the $800 threshold.

The proposed regulations directly address this practice. The Federal Register notice states that merchandise covered by a single order cannot be forwarded in separate lots to obtain duty-free entry. CBP's new requirements for advanced electronic data would make it easier to identify and track related shipments.

Industry analysis shows these platforms currently provide minimal shipment data compared to traditional importers. Under the enhanced entry process, they would need to submit detailed information about sellers, purchasers, and marketplace listings before goods arrive in the United States.

Trade statistics reveal the stakes involved. Chinese-founded e-commerce platforms accounted for a significant portion of the growth in de minimis shipments, which increased from 139 million in fiscal year 2015 to over one billion in 2023. CBP data shows approximately 4 million such packages now enter daily.

The mandatory electronic filing requirements would also affect the platforms' rapid delivery promises. According to the proposed rule, air shipments from Asia would require data submission four hours before arrival, while ocean cargo needs 24-hour advance filing. This marks a departure from current practices where minimal advance information is required.

For shipments requiring partner government agency review, like those containing cosmetics or electronics, the platforms would need to use the enhanced entry process or formal entry procedures. Federal records indicate many of these products currently enter through the basic manifest process with limited oversight.

Economic data demonstrates how the duty-free exemption has provided these platforms with significant cost advantages. National trade statistics show that comparable goods imported through traditional retail channels often incur duties ranging from 15-32% of their value.

The proposed regulations establish new verification requirements for the "one person, one day" value limit. CBP's notice specifies that when multiple shipments to one person exceed $800 in aggregate daily value, all shipments become ineligible for duty-free treatment that day. This could affect platforms that currently process multiple daily orders from individual customers.

International trade experts note that these changes align with broader scrutiny of e-commerce imports. According to CBP enforcement data, low-value shipments represented 87% of cargo seizures in fiscal year 2023, highlighting concerns about product safety and intellectual property rights.

The platforms would need to significantly enhance their data collection and transmission capabilities to comply with the new requirements. The Federal Register notice outlines extensive technical specifications for electronic filing through CBP-approved systems.

Customs records indicate that verifying shipment eligibility for duty-free treatment would become more complex under the new rules. The platforms would need to demonstrate that goods are not part of larger orders split to evade duties and that daily per-person value limits are not exceeded.