CBP Changes Informal Entry Requirements

December 11, 2012

In a recent Federal Register (December 6, 2012) CBP announced changes to its informal entry requirements. Effective January 7, 2013, the limit for merchandise value under an informal entry will raise from $2,000 to $2,500. This raise was in response to inflation and also to conform to commitments the U.S. made under the U.S.-Canada Beyond the Border Action Plan.

When an importer is able to use the informal entry process to bring merchandise into the U.S., the need for a surety bond is eliminated, the customs clearance process is expedited and the Merchandise Process Fee (MPF) is $2. For formal entries the MPF is 0.3464% of the entered value with a minimum amount of $25.00 and a maximum limit of $485.00.

In October 2011, CBP raised the MPF from 0.21%. The increase to $2,500 for entered value under an informal entry was also made as a reflection of the increase in the MPF rate.

Additionally, CBP announced technical corrections to conform the regulations to section 13031(a)(9) of the Consolidated Omnibus Budget Reconciliation Act of 1985 made necessary by the Trade Adjustment Assistance Act of 2011 that increased the MPF from 0.21% to 0.3464%. See Federal Register/Vol. 77, No. 235/December 6, 2012 for complete details.

In this same announcement, CBP also declared the removal of language requiring formal entry for certain articles because, with the elimination of absolute quotas under the Agreement on Textiles and Clothing, CBP no longer needs to require formal entries for these articles.

If you have any questions about these or other customs matters, please contact George R. Tuttle, III at george.tuttle.iii@tuttlelaw.com or at (415) 986-8780.

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in San Francisco.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

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