CBP Increases Duty Exemption Limit for Informal Entries

For many of us, contact with U.S. Customs and Border Protection is limited to the process of “passing through Customs” when returning from travel abroad. Anyone filling out CBP form 6059B has been required to provide information regarding certain of their activities while traveling as well as items they obtained outside the country and are bringing into the United States. As long as the total value of the goods purchased on their sojourns is below a specified limit, no duties or taxes are imposed.

A similar exemption applies for informal commercial entries valued below the threshold.

CBP recently announced an increase in the duty-free limit, from $200 to $800, for qualifying articles imported by an individual on any single day. This change, mandated by the

Trade Facilitation and Trade Enforcement Act of 2015, was effective on August 26, 2016 and is available here.

Individuals can claim the exemption by providing oral or written declarations regarding the merchandise and its value. The process for commercial shipments is to present the bill of lading or cargo manifest in which each bill of lading is listed.

Alcohol, and most tobacco products, are excluded from this benefit. Instead, the existing personal exemption limits (no more than one liter of alcohol, 200 cigarettes and 100 cigars) remain in effect for returning travelers. No such exemptions apply to other informal commercial entries of these items; instead, they are subject to regular duty rates and excise tax.

Although the new provision was effective upon Federal Register publication, it was issued as an interrim final rule with a request for public comments; these are due by September 26, 2016.