On January 21, 2025, U.S. Customs and Border Protection (CBP) published a notice of proposed rulemaking that would make goods subject to tariffs under Sections 232, 201, and 301 ineligible for the de minimis duty exemption under the Section 321 Program, which allows imported shipments not exceeding $800 to enter the United States duty-free. To help CBP identify and ensure that such goods would not claim 321 de minimis exemption, the proposed rule would require goods entered under this program to enter with a 10-digit HTSUS classification.
This January 21 proposed rule follows an earlier notice of proposed rulemaking by CBP, also on low-value shipments, published on January 14, 2025. The January 14 proposed rule aims to establish a new “enhanced entry process” for low-value shipments subject to partner government agency regulations. The enhanced entry process would require the submission of advance electronic data about the contents (including 10-digit HTSUS classification), origin, and destination of the shipments. CBP also proposed modifications to the existing entry process, renamed as the “basic entry process.”
Currently, CBP processes approximately 4 million de minimis shipments per day. The proposed rules address administrative pressures faced by CBP to effectively enforce trade laws, particularly with identifying high-risk shipments of illegal drugs and counterfeit goods. The January 21 proposed rule also addresses growing concerns over the use of the de minimis exemption to circumvent certain trade remedies and national security actions, such as tariff actions under Sections 232, 201, and 301.
There is an opportunity for public comment for both proposed rules, but the comment windows are closing soon. CBP will accept public comments in connection with the January 14 proposed rule (developing and modifying processes for entering de minimis shipments) by March 17, 2025, and in connection with the January 21 proposed rule (excluding from the de minimis exemption any goods subject to trade or national security actions under Section 232, 201 or 301 tariff regimes) by March 24, 2025.