U.S. duty-free entry for imports in one day, and sent to U.S. fulfillment facility

U.S. duty-free entry for imports in one day

U.S. Customs and Border Protection (CBP) issued an administrative ruling that clarifies whether importations made by a nonresident importer in one day and sent to a U.S. fulfillment facility or warehouse may qualify for informal duty-free entry.


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Section 321(a)(2)(C) of the Tariff Act of 1930 provides for the duty-free entry of articles valued at $800 or less that are imported by one person on one day. This provision minimizes expense and inconvenience to the government disproportionate to the revenue that is collected.

The CBP administrative ruling concludes that:

  • Aggregate shipments imported by one person on one day and valued at $800 or less may be entered under informal procedures, provided that all regulatory requirements are met.
  • An owner or purchaser of the shipment or shipments may be identified as the one person on one day under Section 321.
  • If an owner or purchaser is not identified, CBP will use the named consignee to determine whether shipments are made in excess of $800 per person on one day.

Therefore, in situations when merchandise has not been sold to a consumer at the time of importation, CBP will consider the consignee (likely the U.S. fulfillment facility or warehouse taking custody of the merchandise) to be the “person” for Section 321 eligibility purposes. The owner or the purchaser of the merchandise (likely the foreign seller) may also qualify as the “person” provided the owner or purchaser’s identity is presented to CBP.

Accordingly, when the identity of the owner or purchaser of the merchandise is not presented to CBP, any affiliated shipment(s) may be subject to informal or formal entry procedures when the aggregate value exceeds the $800 limit or CBP determines it is necessary to protect the revenue or national interest.

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

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

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

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

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

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

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

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

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

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

George Zaharatos
T: 404-222-3292
E: gzaharatos@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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