U.S. Customs and Border Protection (CBP) issued a Notice of Proposed Rulemaking on January 13, 2025, regarding an update to the rules governing de minimis shipments. The public can make comments on the proposed rule until March 17, 2025.

CBP states three reasons for updating the de minimis rule. First, individuals and entities are taking advantage of the loopholes found in the old system. CBP is aware of individuals importing several shipments under the de minimis threshold to avoid duties and taxes; small businesses having their employees receive de minimis packages on behalf of the business; and persons using de minimis shipments to bring illicit substances into the U.S. Second, since the de minimis threshold was set at $800 in 2016, the volume of packages imported every day is too much for CBP to effectively regulate. Finally, the technology available to CBP and other customs authorities worldwide is much more advanced now than it was when the original rule was written. The proposed changes are meant to address each concern.

If the proposed rule is implemented, CBP will require more information about the importer, replacing “ultimate consignee” with the name of the actual owner or buyer. This will allow CBP to link all packages for each individual or entity together. If an importer exceeds the $800 threshold with multiple packages in a single day, none of those packages will be eligible for de minimis, duty-free treatment. Focusing only on the actual owner of the goods also removes a business’s ability to exploit the $800 limit by sending packages to multiple employees.

CBP also proposes to separate de minimis entries into two distinct systems: enhanced and basic entry. Entries currently coming in under the Type 86 program will now be subject to the enhanced entry process, with CBP to shut down the Type 86 entry program upon the new rule taking effect. Enhanced entry will require:

• Clearance tracing identification number
• Country of shipment
• HTS code (waivers available for “filers with demonstrated capabilities and histories of segmenting out goods subject to PGA requirements”)
• The marketplace’s product listing URL, a picture of the product, a SKU or product code, and/or a foreign security scanning report, such as an x-ray
• Seller name and address
• PGA data, if needed
• Marketplace name and website

According to CBP, the basic entry process will be “quite similar” to the current process of clearing goods via manifest.

The Husch Blackwell Trade Team continues to follow these developments closely and will provide updates on the latest information. If you have any questions or concerns, please feel free to contact us.