US Customs clamp down on eCommerce shipments

The rise of eCommerce demand for air cargo from China has been particularly profound on North American routes, driven by platforms like Shein and Temu, and the US’ generous ‘de minimis’ allowance which exempts qualifying consignments from duties and formal entry requirements.

Air cargo yields out of China and Hong Kong at the beginning of this year were up 45% compared to pre-pandemic 2019, whilst yields across the rest of the world were just 15% higher.

Online cross-border consumer orders reached a scale, where they have been filling the equivalent of 90 Boeing 747 freighters out of Southern China every day.

However, that eCommerce demand is hitting its first turbulence, after newspaper reports on US Customs inspecting inbound shipments were confirmed by US Customs and Border Protection (CBP).

Entry under Section 321 of the Tariff Act of 1930 exempts ‘de minimis’ shipments imported by one person on one day valued at or below a certain threshold from duties and formal entry requirements.

This threshold was increased from $200 to $800 as part of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA), to facilitate trade and simplify customs procedures for low-value shipments.

Type 86 Entry in the Automated Commercial Environment (ACE) was introduced on a trial basis in September 2019 and allowed for the filing of the required Section 321 dataset within 15 days of arrival.

The CBP crackdown on Type 86, or de minimis, shipments began earlier this year with the introduction of new rules that required shipment data to be filed?prior or on arrival of the imported cargo.

Previously filing could take place up to 15 days after the arrival of the shipment.

CBP is also focusing on the import of illicit substances like fentanyl and other narcotics, counterfeits and other intellectual property rights violations, and goods made with forced labour.

In a statement issued on Friday, CBP acting commissioner Troy Miller said: “CBP is taking action to ensure compliance and minimise the exploitation of the small package, or de minimis, environment. While the majority of brokers, carriers, and supply chain businesses that participate in CBP’s Entry Type 86 Test are compliant with applicable laws, we are enhancing our enforcement efforts to ensure that all participants are held accountable when they are not.”

CBP has suspended multiple customs brokers from participating in the Entry Type 86 Test after determining that their entries posed an unacceptable compliance risk.

Despite press reports of cancelled and suspended services, we have not seen any obvious decreases in Transpacific freighter flights and neither in China-originating flights.

Logicall UK has been providing sea and air services into the USA for over 50 years, with our long-term local partners providing national Customs Brokerage solutions that keep U.S. importers and exporters compliant and free of regulatory penalties.

We operate daily import/export air freight services, full load container departure on next vessel and weekly groupage services.

If you would like to discover our services for the United States, improve your supply chain or reduce costs, please DM Lewis Atkinson our U.S. business development manager.