CBP Issues New Value Limits for Section 321 Entries

August 31, 2016

Effective August 26, 2016, CBP issued an interim final rule amending its regulations to implement section 901 of the Trade Facilitation and Trade Enforcement Act of 2015 (TFTEA) by raising from $200 to $800 the value of certain articles that may be imported by one person on one day free of duty and tax (see 81 FR  58831). This notice also makes clarifying and conforming amendments to the regulations and solicits comments on the changes.

Trade Facilitation and Trade Enforcement Act of 2015

On February 24, 2016 the TFTEA (Pub. L. 114- 125) was signed into law. Prior to enactment of the TFTEA, section 321(a)(2)(C) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)(C)) authorized CBP to provide an administrative exemption to admit free from duty and tax shipments of merchandise (other than bona fide gifts and certain personal and household goods) imported by one person on one day having an aggregate fair retail value in the country of shipment not less than $200.

Section 901(c) of the TFTEA amended section 1321(a)(2)(C) by increasing the value of this administrative exemption from $200 to $800. Pursuant to section 901(d) of TFTEA, the effective date of this amendment was the 15th day after the date of enactment, i.e., effective as of March 10, 2016. Section 901 did not change the administrative exemption for bona fide gifts and personal or household articles accompanying travelers under 19 U.S.C. 1321(a)(2)(A) and 1321(a)(2)(B). Thus, while the change was effective March 10, 2016, CBP has just now released its changes to the regulations.

Amendments to Regulations to Reflect New Statutory Amount

CBP implements the administrative exemption provided for in 19 U.S.C. 1321 in its regulations at 19 CFR 10.151 and 10.153. The administrative exemption amount is also referenced in various other sections in the CBP regulations, including §§ 128.21(a)(4)(ii), 128.24(d) and (e), 143.21(l)(1), 143.23(j), 143.26, and 145.31. In all of the listed sections that currently provide that the 19 U.S.C. 1321(a)(2)(C) administrative exemption amount is $200, CBP is amending the regulations to reflect that the new amount is $800.

Comments to the interim final rule are due by September 26, 2016.

If you have any questions about these or other customs matters, please contact George R. Tuttle, III at george.tuttle.iii@tuttlelaw.com or at 415-986-8780.

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in the San Francisco Bay Area.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

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