In 2016, U.S. Customs and Border Protection raised from $200 to $800 the value of a single imported shipment that’s exempt from duties and taxes, as well as certain reporting requirements. There’s no question that the higher de minimis value benefits shippers of small packages ordered online. That class of commerce has exploded with the rise of the internet, and the boost in the exemption can only spark further growth. But complications from the increase have arisen, threatening to inundate Customs with packages that bear little information about their contents and destinations, and cut into potential government revenues. On this episode, we get the full picture from Amy Magnus, director of customs affairs and compliance with logistics services provider A.N. Deringer, Inc. She discusses the confusion and uncertainty caused by disagreement among various regulatory agencies over whether to recognize the exemption. To further complicate matters, it turns out that some shippers have figured out how to game the system. Magnus offers a perspective on how this unanticipated mess can be fixed. Hosted by Bob Bowman, Managing Editor of SupplyChainBrain.

This episode is sponsored by A.N. Deringer.

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Show notes:

Information from CBP about de minimis.

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