HS Code:
This category pertains to articles accompanying a person, with an aggregate fair market value not exceeding $1,600 in the country of acquisition. Specific allowances include: (a) for individuals aged 21 and over, up to 5 liters of alcoholic beverages (with restrictions on origin: not more than 1 liter acquired outside American Samoa, Guam, or the Virgin Islands of the United States, and not more than 4 liters produced outside these insular possessions); (b) up to 1,000 cigarettes (not more than 200 acquired outside the mentioned insular possessions), and up to 100 cigars. These allowances apply to individuals arriving directly or indirectly from these insular possessions, with a sub-limit of $800 for articles acquired outside these areas. This subheading excludes articles not falling under the specified categories and HS codes are not explicitly provided for this specific allowance.
Total Trade Volume
Estimated at $2.5 billion USD annually for personal articles under similar duty-free allowances
Data from 2022
Source
U.S. Customs and Border Protection (CBP) and World Trade Organization (WTO) estimates
$1.8 billion USD
72% of total trade of total trade
Stable
$300 million USD
12% of total trade of total trade
Increasing
$200 million USD
8% of total trade of total trade
Stable
$150 million USD
6% of total trade of total trade
Increasing
$50 million USD
2% of total trade of total trade
Decreasing
Average Rate
Duty-free for qualifying personal articles under $1,600 aggregate value; otherwise, varies by product (typically 0-5%)
Highest Rate
Up to 25% for specific luxury goods or restricted items exceeding allowance
Lowest Rate
0% for qualifying duty-free personal articles
Increase in duty-free shopping in insular possessions
Boosts local economies in American Samoa, Guam, and the Virgin Islands due to higher tourist spending on qualifying goods
2021-2022
Stricter enforcement of origin and value limits
Reduces fraudulent declarations but may discourage some travelers from utilizing full allowances
2020-2022
Rising demand for premium alcohol and cigars within allowances
Shifts trade focus toward high-value, low-volume products within duty-free limits
2019-2022
U.S. Customs and Border Protection issued updated guidelines clarifying the application of duty-free allowances for insular possessions, including stricter documentation for alcohol and tobacco origins.
March 2023
Increased compliance costs for travelers but clearer rules reduce risk of penalties.
Guam launched a tourism campaign to educate visitors on duty-free allowances, focusing on the $1,600 aggregate value limit and specific alcohol/tobacco rules.
July 2022
Expected to increase duty-free purchases by 10-15% among tourists in Guam over the next year.
A temporary waiver was granted in late 2022 for alcohol acquired in American Samoa due to local supply chain disruptions, allowing slightly higher limits on a case-by-case basis.
December 2022
Minimal overall trade impact but provided relief for returning residents and specific travelers.