U.S. Customs & Border Protection (CBP) is cracking down further on shipments that fit the Section 321 de minimis trade provision, suspending multiple customs brokers from a program that expedites the arrangement of these shipments.
The crackdown puts yet another spotlight on the tense relationship between U.S. officials and foreign-owned businesses like Shein and Temu, and illustrates the increasingly complicated environment logistics companies like customs brokers and freight forwarders must navigate when working to import products into the country.
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Reports from The Information and The Loadstar identified logistics services provider Seko Logistics as one of the brokers suspended for 90 days from participating in the Entry Type 86.
When filing an Entry Type 86 customs form with the CBP, importers and customs brokers can import shipments of goods less than the $800 de minimis threshold in order to avoid paying taxes. It is designed to expedite the customs process so businesses can get low-value products in the U.S. quicker.
Seko’s temporary ban started Monday and will be in effect until Aug. 24.
Sourcing Journal reached out to both the CBP and Seko Logistics. The Loadstar said six brokers in total were suspended.
“We are incredibly disappointed by this unfortunate decision,” Seko told customers in a note seen by The Loadstar. The company says it processes millions of annual parcels through the rule at airports in New York, California and Illinois.
The third-party logistics (3PL) provider said it had an “exceptionally high, 99.999 percent, compliance rate” in the program, claiming that it has always sought to be compliant in its partnership with the CBP, and further address any concerns that were raised.
“Despite our extraordinary compliance rate, we were given less than seven days before the suspension went into effect and no opportunity to address any potential deficiencies,” Seko said.
Seko also said it strongly disagrees with the decision, and intends to press for reinstatement as soon as possible. The 3PL told customers it would help to try to minimize disruption to their business.
The Loadstar report indicated that a major seizure had been made related to shipments from Shein.
Sourcing Journal reached out to Shein.
Although the exact reason for the suspension has not been clarified, the holdup for Seko and the other brokers follows the CBP’s recent implementation of stricter filing requirements for Entry Type 86.