The US has seen a staggering surge in shipments claiming a de minimis exemption, jumping from 140 million to over 1 billion shipments annually over the past decade. The de minimis exemption—managed by Customs Border Protection (CBP)—allows merchandise imported by one person, per day, with a retail value of $800 or less to enter the country duty-free and tax-free. However, this significant increase has made enforcing trade laws, health and safety requirements, intellectual property rights, and consumer protection rules increasingly challenging.

To address this issue, the Biden-Harris Administration has announced executive actions proposing new rulings to protect American consumers, workers, and businesses from unfair competition, unsafe products, and illicit drugs.

A Glance at the Proposed Rulings

  • A rule to exclude all shipments containing products covered by tariffs imposed under Sections 201 or 301 of the Trade Act of 1974, or Section 232 of the Trade Expansion Act of 1962 from the de minimis exemption.
  • A rule regarding the entry of low-value shipments that will propose to strengthen information collection requirements to promote greater visibility into de minimis shipments.
  • A rule from the Consumer Product Safety Commission (CPSC) requiring importers of consumer products to file Certificates of Compliance (CoC) electronically with CBP and CPSC at the time of entry, including for de minimis shipments.

These actions are intended to safeguard Americans and US businesses from the growing misuse of the de minimis exemption, particularly by China-founded e-commerce platforms. The Administration is working with Congress to pass these comprehensive de minimis reforms legislation by the end of the year. Our experts are closely monitoring the development of these rulings and will continue to provide updates as necessary. For more information reach out to us.

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