CHANDLER, Ariz. -- Should the de minimis exemption eventually disappear for low-value shipments, the business-to-business-to-consumer model could rise as a result, according to panelists at the National Customs Brokers & Forwarders Association of America annual conference.
“A couple weeks ago, when we first planned our panel, I think there were lots of open questions about what’s going to happen with de minimis, but I think a lot of those are answered,” said Rob Fickeisen, customs brokerage compliance supervisor for UPS Supply Chain Solutions and member of the NCBFAA regulatory agencies committee, speaking on a panel discussion April 9.
“I mean, we have executive orders telling us, as soon as the government has the ability to collect everything, that it’s not gonna be there” and instead, goods will have to be filed using a formal or informal entry, Fickeisen said.
As a result of the potential disappearance of the de minimis exemption, a business model that could arise is B2B2C, wherein an entity between the importer and the private citizen serves as the party that will be on the record for paying the duties, according to panelist Amber Hagewood, senior manager of regulatory compliance for FedEx Logistics and NCBFAA customs committee member.
This is because private citizens may be the ones responsible for paying the duties for low-value goods, but private citizens may be hesitant to provide their Social Security numbers as an identifier and serve like an importer of record.
“I do think there’s going to be a shift consolidation in the B2B2C space. So I think you're going to see a lot more formal entries as a result for de minimis,” Hagewood said. “This could be a negotiating tool, just like the tariffs, with other countries. There are ACE edits in place that can prevent a particular country from going through as de minimis.”
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