Change in Informal Entry Level to Benefit E-Commerce, Small Businesses, Says EAA
The increases to informal entry levels in the U.S. and Canada will be a boon to small and medium businesses that deal with low value imports of components, samples and raw materials, said the Express Association of America in a press release. CBP and the Canada Border Services Agency recently increased the value threshold for informal entry from $2,000 (CND1600) to $2,500 (CND2500). Importers of low value goods "will save a significant amount of time from not having to file formal entries and the streamlined release of their products," said the EAA.
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(See ITT's Online Archives 12120533 for summary of the change.)
The new threshold will allow easier movement across borders, said Rich McArdle, UPS vice president-international public affairs. “The industry has experienced a consistent increase in the number of low value e-commerce shipments crossing our borders over the last five years," he said in the press release. "The actions taken by the Canadian and U.S. governments on informal entry are a significant step toward facilitating a more rapid flow of goods, not only across our common border, but also with our broader global trading partners. Small and medium size firms along with individuals who import and export these goods will find the border clearance process much faster and easier as a result of the higher thresholds.”
The change will also allow the customs agencies to focus on higher level enforcement, said the EAA. "In raising the level, the U.S. simultaneously is eliminating virtually the entire list of low value goods that previously were exceptions to the informal entry rules, goods which required formal entry regardless of their value," it said. "This step will reduce the processing load on CBP’s aging Automated Commercial System, with consequential reduced need for system maintenance."
Email ITTNews@warren-news.com for a copy of the press release.