Sandler, Travis & Rosenberg, P.A. said it is working to create a new coalition that will seek to increase the duty-free allowance for small shipments for the first time in nearly 20 years, from $200 to $1,000. This statutory change would reflect the increasing costs for mail-order businesses, Internet retailers and others that rely on this exemption to provide competitive prices to U.S. consumers.
U.S. law currently provides that shipments of articles that are valued at $200 or less and imported by one person on one day are eligible for duty-free entry. This provision also applies to informal entries of articles imported via direct sales from catalog or Internet orders that meet the value limit as well as direct sales of articles to tourists while abroad that are shipped to the ultimate U.S. customer at some later date. As more commerce is conducted online, however, more individual importations are taking place, meaning that U.S. Customs and Border Protection officers are spending more time processing small importations with no real cost benefit.
The coalition will therefore seek the enactment of legislation that increases the duty-free exemption from $200 to $1,000 and allows for regular adjustments in the future. The draft customs reauthorization bill now pending in the Senate already includes a provision increasing this exemption to $500. The coalition will focus on inserting an increase to $1,000 in the companion House bill. Interested parties are encouraged to contact Nicole Bivens Collinson or Gerry Horn at the law firm.
