U.S. Customs and Border Protection has intensified scrutiny of low-value ecommerce shipments, targeting customs brokers and air cargo hubs amid rising compliance concerns.
June 02, 2024 — Sunday — Ecommerce North America
U.S. Customs and Border Protection (CBP) has ramped up its scrutiny over ecommerce imports, focusing particularly on ensuring that all small package shipments comply with U.S. laws. This crackdown targets customs brokers specifically, with several facing suspension from the Entry Type 86 Test, which allows expedited entry for low-value shipments under $800.
CBP acting commissioner Troy Miller emphasized the agency’s commitment to upholding legal standards, stating, “While the majority of brokers, carriers, and supply chain businesses are compliant, we are enhancing our enforcement efforts to hold all participants accountable.”
The crackdown has had tangible impacts. Seko Logistics, a key player in logistics services, was publicly named and suspended after failing to meet compliance standards. The company expressed disappointment over the decision, highlighting their high compliance rate of 99.999% and noting that they were given limited time to address the issues raised by CBP.
“Our commitment to compliance is unwavering, and we intend to press for reinstatement as soon as possible,” a representative from Seko Logistics stated.
The tightened enforcement has also affected air cargo operations, with increased inspections leading to congestion at major U.S. entry points like Los Angeles International Airport. This has caused delays and heightened tensions in the air cargo market, particularly affecting shipments from China.
Furthermore, CBP has seized multiple illegal shipments, some linked to nefarious activities like the smuggling of materials used in synthetic drug production, including fentanyl and its analogs. This action is part of CBP’s broader strategy to prevent abuse of the de minimis provision and protect the integrity of the U.S. supply chain.
Commissioner Miller reiterated the agency’s dedication to safeguarding American consumers and industries: “We remain dedicated to protecting the integrity of our trade system and will continue to take enforcement action against those who fail to comply with U.S. law.”
The ongoing enforcement actions reflect CBP’s multi-layered approach to combat illicit activities and ensure a fair trading environment, highlighting the complexities and challenges in managing the modern global supply chain.
What is the Entry Type 86 Test and How Does it Relate to the De Minimus Tax Provision?
The Entry Type 86 Test is a program by U.S. Customs and Border Protection (CBP) that allows for the expedited clearance of low-value shipments under the de minimis rule. This rule permits imports valued at less than $800 USD to enter the United States without paying duties and taxes, aiming to streamline the import process for small, low-cost items frequently associated with e-commerce.
Entry Type 86 specifically refers to an electronic filing option that customs brokers and importers can utilize to process these shipments more efficiently. The test program is designed to modernize the customs process, facilitating quicker delivery and reducing administrative burdens. It supports the rapid growth of e-commerce by allowing businesses to quickly move low-value goods into the U.S. market.
However, the Entry Type 86 Test also requires strict compliance monitoring by CBP to prevent misuse of the de minimis provision. The program is closely watched to ensure that importers and brokers do not abuse this threshold by under-declaring the value of goods, smuggling illegal items, or bypassing other regulatory requirements. This oversight is crucial to maintain the integrity of U.S. trade regulations and protect domestic industries and consumers.
