CBP Introduces New Electronic Filing Requirements for De Minimis Shipments

U.S. Customs and Border Protection (CBP) announced yesterday a significant change to the filing requirements for Section 321 de minimis shipments, mandating electronic data submission for all such imports effective July 1, 2025. The new rule will impact millions of small-value shipments entering the United States daily, particularly affecting e-commerce retailers, express carriers, and freight forwarders.

The announcement, published in the Federal Register on March 21, finalizes a proposal that has been under development since early 2024 and represents one of the most substantial changes to de minimis regulations since the threshold was raised to $800 in 2016.

What Is Changing

Under the new requirements, all shipments valued at $800 or less (the current de minimis threshold) must be filed electronically through one of CBP's authorized systems before arrival in the United States. This marks a significant departure from current procedures, where many de minimis shipments enter with minimal documentation and often without advance filing.

Key elements of the new requirements include:

• Mandatory Advance Electronic Data (AED): All Section 321 shipments must include detailed information about the shipper, recipient, and contents submitted electronically before arrival
• HTS Code Requirements: Each item must be identified with the appropriate 10-digit Harmonized Tariff Schedule code
• Product Description Standards: Generic descriptions like "merchandise" or "samples" will no longer be acceptable; specific product descriptions are required
• Filing Timeframes: Data must be submitted at least 4 hours prior to arrival for air shipments and 24 hours before arrival for ocean shipments
• Retention of Records: Importers must maintain all shipping records for a minimum of five years

The electronic filings can be submitted through several CBP systems, including the Automated Commercial Environment (ACE), the Automated Broker Interface (ABI), or the recently developed Section 321 Data Pilot interface.

"These new requirements strike a critical balance between facilitating legitimate low-value shipments and ensuring that CBP has the necessary tools to identify and interdict illegal or dangerous goods. The explosive growth in e-commerce has created vulnerabilities that this rule helps address."

— Jason Matthews, Executive Director, Trade Policy and Programs, U.S. Customs and Border Protection

Why CBP Is Making This Change

The new requirements come in response to several concerns that have emerged as de minimis shipments have exploded in volume over recent years:

• Volume challenges: CBP processed over 720 million de minimis shipments in fiscal year 2024, a 300% increase from 2016 when the threshold was raised to $800
• Security concerns: The limited data requirements for de minimis shipments have created enforcement challenges for detecting contraband, counterfeit goods, and unsafe products
• Forced labor compliance: The lack of detailed information has made it difficult to enforce prohibitions on goods produced with forced labor
• Commercial fairness: Domestic retailers and importers using formal entry procedures have argued that the lighter filing requirements for de minimis shipments create an uneven playing field

The Trump administration has made strengthening border enforcement a priority, with particular emphasis on preventing the importation of illegal narcotics and counterfeit goods. These new requirements align with broader efforts to modernize and enhance CBP's oversight capabilities.

Industry Impact and Reactions

The new requirements have elicited varied responses across the supply chain:

The American Association of Exporters and Importers expressed concerns about the readiness of small businesses to comply with the new requirements, stating that many lack the technical infrastructure or customs expertise needed for electronic filing.

Meanwhile, major carriers like FedEx, UPS, and DHL indicated they are preparing to offer enhanced services to help clients meet the new requirements, though these will likely come with additional fees.

Retail groups have been generally supportive, with the National Retail Federation stating that the requirements "help address the unfair advantage that foreign sellers have enjoyed through simplified import procedures."

Enforcement and Penalties

CBP has outlined a phased enforcement approach:

1. Initial Phase (July-September 2025): Education period with informed compliance notices for non-compliance
2. Secondary Phase (October-December 2025): Warnings and potential examination holds for repeat non-compliance
3. Full Enforcement (Beginning January 2026): Penalties for non-compliance and potential shipment rejections

The penalties for non-compliance after the transition period could be substantial. CBP has indicated that violations may result in fines of up to $5,000 per shipment, potential seizure of goods, and for repeated violations, suspension from using the de minimis provision altogether, requiring formal entry and payment of duties and fees.

Next Steps for Businesses

With the July 1, 2025 implementation date approaching, businesses involved in importing low-value shipments should take several proactive steps:

• Technology evaluation: Assess your current systems' capability to generate and transmit the required electronic data
• Partner communication: Engage with your carriers, customs brokers, and suppliers to ensure alignment on new requirements
• Staff training: Develop training programs to educate relevant personnel on the new procedures
• Cost analysis: Evaluate the financial impact of the new requirements and adjust pricing or logistics strategies as necessary
• Pilot participation: Consider joining CBP's ongoing Section 321 Data Pilot to gain early experience with the filing requirements

CBP has scheduled a series of webinars beginning in April 2025 to provide technical guidance on the new requirements. The agency has also established a dedicated help desk to assist importers and carriers with implementation questions.

Additionally, several customs brokerage firms have announced plans to offer specialized consulting services and software solutions to help businesses adapt to the new requirements, particularly targeting small and medium-sized enterprises that may lack in-house customs expertise.

Looking Ahead

The new electronic filing requirements represent the most significant change to the de minimis program in nearly a decade, reflecting the evolving landscape of international trade and e-commerce. While the short-term impact will likely include increased compliance costs and potential shipment delays during the transition period, the long-term effects on the e-commerce ecosystem remain to be seen.

Some analysts suggest that the new requirements could accelerate the trend toward nearshoring, as businesses seek to reduce the complexity and cost associated with cross-border e-commerce. Others predict consolidation in the market, with smaller players potentially partnering with larger entities that have the resources to manage the more complex compliance environment.

What is clear is that the era of minimal oversight for small-value shipments is coming to an end, as customs authorities around the world grapple with the challenge of balancing trade facilitation with effective enforcement in the e-commerce age.

TariffGlossary.com will continue to monitor the implementation of these new requirements and provide updates as additional guidance becomes available. For more information on de minimis provisions and electronic filing requirements, visit our De Minimis Value glossary entry.