Customs and Border Protection (CBP) Acting Commissioner Troy Miller has introduced new enforcement measures to enhance compliance and prevent exploitation in the de minimis environment. Announced on May 30, 2024, these efforts target non-compliant brokers to maintain the integrity of the U.S. trade system.
Key Discussion Points
Enhancing Compliance and Enforcement
CBP’s latest measures reflect its commitment to balancing economic security with trade facilitation and law enforcement responsibilities. The Entry Type 86 Test, which allows small shipments to enter the U.S. without duties and taxes, has been a focal point of these efforts. While most participants comply with the law, CBP has identified and suspended multiple customs brokers for posing unacceptable compliance risks.
The Importance of the Entry Type 86 Test
The Entry Type 86 Test is a voluntary program enabling businesses to import small shipments valued under $800 without paying duties and taxes.
This initiative facilitates trade but also presents opportunities for exploitation. By enhancing enforcement, CBP aims to ensure that all participants adhere to U.S. legal requirements, thereby protecting the supply chain’s integrity.
Areas of Focus
Customs Compliance
Customs compliance remains a cornerstone of CBP’s enforcement strategy. Ensuring that businesses follow U.S. trade laws is crucial for maintaining a fair and secure trade environment. CBP’s proactive approach includes evaluating and suspending non-compliant participants to uphold these standards.
Combating Synthetic Drugs and Contraband
A significant concern addressed by the new measures is the movement of synthetic drugs, such as fentanyl and its analogues, through the de minimis environment.
Bad actors exploit this process to smuggle contraband into the U.S., posing severe risks to national security and public health. CBP’s multi-layered enforcement strategy aims to disrupt these illicit activities, starting beyond U.S. borders.
Key Focus Areas |
Description |
|---|---|
| Customs Compliance | Ensuring adherence to U.S. trade laws |
| Synthetic Drugs and Contraband | Preventing the smuggling of synthetic drugs and other illicit materials |
| Trade Facilitation | Balancing security with the smooth flow of legitimate trade |
Facilitating Legitimate Trade
While enforcement is critical, CBP also emphasizes facilitating legitimate trade. The agency’s efforts aim to strike a balance between managing risks and enabling the smooth flow of commerce. This approach supports the broader economic goals of the U.S. while maintaining stringent security measures.
Key Outcomes
- Enhanced enforcement to prevent exploitation in the de minimis environment.
- Suspension of non-compliant brokers to maintain trade integrity.
- Continued commitment to balancing trade facilitation with security measures.
CBP’s proactive stance on enforcement underscores the importance of maintaining a compliant and secure trade environment. By addressing both cooperative and contentious issues, these measures aim to manage the complexities of the de minimis process while preventing potential risks and exploitation.
Future Engagement
CBP’s enforcement measures are designed to protect American consumers, industries, and the integrity of the trade system. By suspending non-compliant brokers and enhancing compliance efforts, CBP ensures that businesses adhere to legal requirements and do not exploit the de minimis process.
Future actions will include ongoing evaluations and potential reinstatement of suspended brokers who demonstrate remedial actions. CBP remains dedicated to working closely with businesses and stakeholders to maintain a secure and compliant trade environment.
The Final Word
In summary, the new enforcement measures announced by CBP Acting Commissioner Troy Miller represent a significant step in ensuring compliance and preventing exploitation in the de minimis environment.
These efforts focus on maintaining the integrity of the U.S. trade system, combating the smuggling of synthetic drugs, and balancing security with trade facilitation. Through proactive measures and ongoing collaboration with stakeholders, CBP aims to protect the interests of American consumers and businesses.
Sources: THX News, Council on Foreign Relations, DHS Media Library, DHS (document) & US Customs and Border Protection.
