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U.S. CBP guidance, trucks containing “Section 321 merchandise”

U.S. CBP, trucks containing “Section 321 merchandise”

U.S. Customs and Border Protection (CBP) today issued a release announcing that beginning January 1, 2019, all commercial truck shipments containing “Section 321 merchandise” will be required to file an advance electronic manifest in accordance with the guidelines specified in the Trade Act of 2002. Shipments qualifying for Section 321 release were exempt from the electronic manifest filing requirement due to a policy decision made by CBP during the implementation of the Trade Act of 2002

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According to a CBP release—CSMS #18-000656—the increase in eCommerce combined with the increase in the de minimis value has resulted in a significant growth in shipments being manifested and released under Section 321. The lack of an electronic manifest eliminates CBP’s ability to conduct a risk assessment or perform advance targeting within the Automated Targeting System (ATS), results in slower processing times and longer wait times.

CBP reported there are multiple ways to submit a Section 321 manifest. Companies not using the provided portal will need to hire a service provider or have an electronic data interchange (EDI) system in place to submit the information. 

CBP also announced that beginning November 26, 2018, it will begin a phased approach for non-compliance with conveyances being referred to secondary for processing. Then starting January 1, 2019, carriers that make no attempt to comply with the electronic manifest requirement will be subject to a monetary penalty ($5000 for the first offence and $10,000 for subsequent offences).

Updated guidance

CBP issued a release—CSMS #18-000659—stating that all commercial truck shipments containing low-value merchandise cleared under the provisions of 19 CFR 10.151 (more commonly known as Section 321 shipments) will require an advance electronic manifest to be filed with CBP prior to border crossing.

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner, Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

Andy Siciliano
Partner, National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Robert Waldrop
Principal
T: 212-954-8117 
E: rwaldrop@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

John L. McLoughlin
Principal, East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal, WNT
T: 212-954-3094
E: labad@kpmg.com

Amie Ahanchian
Managing Director
T: 202-533-3247
E: aahanchian@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com
 

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