As previously mentioned in “De Minimis Value Increases to $800.00“, the Trade Facilitation and Trade Enforcement Act of 2015 raised the value of a shipment of merchandise imported by one person on one day that imported free of duties and taxes from $200.00 to $800.00. This was expected to expedite and simplify the Customs process.
However, according to Jack Hubbard, President of CBFANC, the Customs Brokerage industry has been and will continue to be hit hard by this change. He provides an example of a major USA women’s clothing retailer shipping to Canada, unloading a container there, splitting up and moving shipments into the U.S. via trucks to clear as de minimis transactions. No duties and fees are paid, and they are claiming that they saved approximately $20,000,000.00 in taxes, duties, fees, and processing costs in the last year. Many firms are following suit and it is estimated that as much as 30% or more of imports may fall under Section 321 in the next few years.
At a recent PCC board meeting in January, 2017, many board members expressed alarm about the financial and public health ramifications of continuing to operate with these clearances. This information was taken directly from cbfanc.org. Please read more at http://cbfanc.org/ – News – January 2017.
Vantage Point Services has been personally advised that U.S. Customs is cracking down on de Minimis transactions. Please note that they are only allowing one de minimis entry per day, per consignee.