U.S. Customs and Border Protection has extended for another two years, through August 2025, its pilot program testing the transmission of additional data elements for Section 321 goods in advance of their arrival. CBP is also adding optional data elements that may be submitted by participants and opening the pilot to all eligible parties.
Section 321 of the Tariff Act of 1930 generally exempts from duty and taxes up to $800 worth of goods imported by one person on one day. The growing use of e-commerce has increased the number of such shipments, but CBP has said it is not receiving adequate advance information to assess the security risk of these shipments while still maintaining the clearance speeds the private sector has come to expect.
CBP is therefore conducting the Section 321 data pilot to test the feasibility of (1) obtaining advance information from non-traditional entities, such as online marketplaces, and (2) collecting in advance data elements beyond those required by current regulations. CBP has said it will use this information to improve its ability to identify and target high-risk e-commerce shipments, including for narcotics, counter-proliferation, and health and safety risks, but not for entry or release purposes.
The pilot was previously limited to nine participants but applications will now be accepted from all those that meet the eligibility requirements. CBP is seeking participation from stakeholders in the e-commerce environment such as carriers, brokers, freight forwarders, and online marketplaces. While there are no restrictions regarding organizational size, location, or commodity type, participation is limited to those with sufficient information technology infrastructure and support. CBP anticipates onboarding an average of three additional participants per month.
CBP is also modifying the pilot to add optional data elements. Required data elements vary somewhat depending on the transmitting entity but generally relate to the entity causing the shipment to cross the border, the product in the package, the listed marketplace price, and the final recipient. CBP now states that participants, regardless of filer type, may also submit a number of optional data elements, including HTSUS number, weight and quantity of goods, and information identifying the manufacturer, buyer, seller, consignee, shipper, carrier, and marketplace.
After the end of the pilot, CBP will determine whether to further extend and/or expand it or make additional advance reporting requirements mandatory in the e-commerce environment.
For more information on e-commerce and/or the Section 321 pilot, please contact attorney Lenny Feldman at (305) 894-1011 or via email.
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