Importers and truck carriers utilizing Section 321 release privileges into the United States should note a significant new requirement beginning next year. On or after January 1st, 2019, Section 321 imports entering the U.S. will be required to be included and detailed in the truck carrier’s Automated Commercial Environment (ACE) eManifest transmission sent prior to arrival at the port of entry.
Failure to comply as of this date may result in carriers being assessed a $5000 penalty for an initial offense with $10,000 being assessed for subsequent violations. Beginning November 26, 2018, non-compliant carriers will be referred to secondary inspection for shipment processing.
Additional information is available here.
The Section 321 program allows many shipments valued under US$800 (‘de minimis value’) to be released into the U.S. based on minimal information and without a subsequent entry summary (CF7501) filing. Duties and taxes are not assessed on Section 321 transactions.
The use of the Section 321 program is expanding rapidly with the parallel growth in cross-border e-commerce activities. U.S. Customs has publically stated its intent to tighten the requirements around the Section 321 program to ensure compliance with applicable import regulations – especially those involving Partner Government Agency (PGA) oversight such as the Food & Drug Administration (FDA).
Delmar can help! We have solutions. We file timely, compliant ACE eManifest information for U.S. and Canadian importers and carriers each day. Please contact your local Delmar International representative or our North American Customs Advisory Services Group at firstname.lastname@example.org for additional information and assistance.