CBP plans rules on low-value shipments to curb fakes

US Customs and Border Protection (CBP) has said it is working on measures that would strengthen its oversight of low-value or 'de minimis' shipments, which are known to be a major route for counterfeit goods entering the country.

The proposed Entry of Low-Value Shipments (ELVS) rule will "enhance supply chain visibility and…enable CBP to better interdict illegal shipments across US ports of entry," according to the agency.

Under current US laws, small-package shipments qualify for streamlined customs procedures that make it difficult for border security to detect and stop packages containing counterfeit goods, fentanyl and other illicit drugs, pill press parts, and products that are made with forced or child labour.

"Every day, the men and women of CBP interdict goods that threaten the health and safety of Americans as well as the economic vitality of our country," said Pete Flores, whose title is CBP senior official performing the duties of the commissioner.

"We see illicit drugs, dangerous toys, fake medicines, and other counterfeit goods shipped direct to American homes impacting the lives of our neighbours, friends, and families," he added. "This proposed rule will help to give us some of the tools we need to address more of these threats."

Among the measures in the proposed rule are new data collection powers to allow improved targeting of shipments, mandatory new data elements to assist in tracing their origin, contents, and destinations, and electronic systems to replace cumbersome manual processes.

That includes a unique identifier for each shipment – the clearance tracing identification number (CTIN) – the name and address of the seller and purchaser and the marketplace through which the item was sold, and other information such as the product's URL, a product image, a product identifier, or a shipment security screening report number.

A second proposed rule, expected soon, is expected to set out a framework for the exclusion of shipments containing goods subject to Section 301, 201, or 232 tariffs – officially those that may harm US industry, threaten national security, or violate trade agreements – from de minimis eligibility. 

"There is still more to be done," commented Flores. "CBP will continue to innovate within our current authorities, and we urge the private sector to maintain their vigilance," he added, whilst cautioning: "To achieve comprehensive de minimis reform and trade modernisation, we urgently need statutory updates."

Last year, a bipartisan bill was introduced in the Senate to try to close the de minimis loophole, with lawmakers saying that the sheer volume of packages is overwhelming the capacity of CBP to protect US citizens from illegal goods. On average, CBP processes over 4 million de minimis shipments into the US each day.