For businesses shipping to the United States, these regulatory updates by US Customs and Border Protection (CBP) will alter how goods enter the country, affecting final consumer pricing and the structural requirements for retailers operating transfer pricing models.

Here is a rundown of what is changing:

1. The Transition to Full Standard Entry 

On 24 July, the temporary 10% Global Tariff (Section 122) expires. At the same time, parcels sent into the US via the international postal network will lose their simplified clearance treatment and will be processed as standard commercial imports.

This shift away from postal shortcuts means:

• Precise Tariff Coding: Every shipment will require a specific 10-digit Harmonized Tariff Schedule (HTS) code, rather than a broad 6-digit category.
• Strict Valuations: Accurate country-of-origin and customs values must be declared and fully supported.
• Standard Duty Application: Shipments will face full standard duties based on exact classification and origin – charges that were previously bypassed under simplified postal rules.

2. Impact on US Consumer Pricing 

Moving to a full standard entry model means many lower-value shipments will incur duties at the border, noticeably increasing the landed cost for the American shopper. For example:

• Apparel and Fashion: A $150 clothing order that previously crossed the border without duty collection will now face standard US apparel tariffs, which frequently range from 15% to 32%. This adds between $22 and $48 in duty costs.
• Section 301 Goods: A $60 order of garments originating from China, will be subject to the 25% Section 301 tariff, adding a $15 base cost before any processing or carrier fees.

Retailers must decide whether to absorb these standard duties or integrate them at checkout to avoid unexpected bills upon delivery. As a reminder, at OCS Worldwide we don’t offer a Delivered Duty Unpaid (DDU) solution to the USA; so clear upfront pricing is essential.

3. Stricter Rules for B2B2C Models and US Entities

For retailers using a transfer pricing model – shipping freight in bulk to the US to be broken down for domestic delivery – US Customs and Border Protection is tightening the rules on who can act as the Importer of Record (IOR).

To qualify as a US IOR and maintain the ability to use continuous customs bonds and informal entries, a business must pass a strict ‘substantial presence’ test. The entity must:

1. Be organised under US law.
2. Maintain its principal place of business within the US.
3. Have controlling beneficial owners who are US citizens or lawful permanent residents. 

Businesses that do not meet these criteria will be classified as a foreign IOR. Foreign IORs are barred from filing informal entries and face heavily restricted bond usage, which will slow down clearance times and increase operational costs.

The Next Steps 

At OCS Worldwide, we are actively working with our global partners to navigate these new regulations and minimise disruption to our clients.

If you ship to the US, we recommend reviewing your current cross-border strategy immediately.

Please reach out to the OCS team so we can help your business remain compliant and cost-effective ahead of the 24 July deadline.