CBP Proposing to Increase Informal Entry Limit from $2,000 to $2,500
U.S. Customs and Border Protection is proposing to increase the informal entry limit from $2,000 to its maximum statutory limit of $2,500. CBP also proposes to remove regulatory language requiring the use of a formal entry for certain shipments of textile or apparel products, which is no longer needed due to the elimination of quotas formerly established under the Agreement on Textiles and Clothing. Comments on this proposed rule are due no later than Dec. 27.
All merchandise imported into the customs territory of the United States is subject to entry and clearance procedures. Formal entry generally involves the completion and filing of one or more forms (such as CBP Form 7501, Entry/Entry Summary, which contains detailed information regarding the import transaction) or their electronic equivalent as well as the filing of commercial documents pertaining to the transaction. However, CBP regulations exempt from formal entry imported merchandise whose aggregate value does not exceed a specified amount.
The informal entry limit has remained at $2,000 since 1998. CBP believes that increasing this limit by $500 will reduce the overall administrative burden on importers and other entry filers by expanding the availability of the simplified informal entry procedures. CBP has also determined that this increase will save the trade community approximately $11 million in merchandise processing fees annually (a figure that could rise considering that the MPF was recently increased from 0.21% to 0.3464%).