De Minimis ‘Low-Value Entry’ Changes are Coming

On September 13, 2024, the White House released a Fact Sheet on new actions that will ‘crack down’ on De Minimis ‘low-value’ imports into the U.S.

Over the past ten years, De Minimis, which allows goods to be imported free of duty, has grown yearly with increased business-to-consumer shipping through e-commerce platforms. Today, the shipments have reached over one billion a year.

De Minimis is often used for shipments of qualifying products with an aggregate value of $800 or less for the benefit of duty-free treatment of goods that would otherwise be dutiable. For example, many products made in China would carry a 7.5% or 25% duty rate, and with the use of a De Minimis entry, no duty is owed. Additionally, the entry type requires less information from the shipper/importer, resulting in enforcement gaps. The actions announced will help reduce those gaps.

Actions

Exclude Shipments Containing Products Covered by Certain Tariffs

The Administration intends to issue a Notice of Proposed Rulemaking that would exclude from the de minimis exemption all shipments containing products covered by tariffs imposed under:

• Section 201 (Solar)
• Section 301 (China)
• Section 232 (Steel & Aluminum)

New Rulemaking to Improve Accountability and Enforcement in De Minimis Shipments

Strengthen information collection by adding these data requirements:

• 10-digit tariff classification number
• Person claiming the de minimis exemption
• Clarify who is eligible for the exemption and the person on whose behalf the exemption is being claimed

Final Rule to Prevent De Minimis Shipments from Circumventing Safety Standards

The Consumer Product Safety Commission (CPSC) is to propose a final rule requiring importers of consumer products to file Certificates of Compliance electronically with CBP and CPSC at the time of entry, including for de minimis shipments.

Key Reforms the White House has asked Congress to Advance

• Exclusion from de minimis eligibility of import-sensitive products.  Congress should act to exclude import-sensitive products, including textile and apparel products, from the de minimis exemption. 
• Exclusion from the de minimis exemption of shipments containing products that are covered by Section 301, Section 201, or Section 232 trade enforcement actions.  The Administration intends to issue a Notice of Proposed Rulemaking to exclude shipments containing products covered by Section 301, Section 201, or Section 232 trade remedies actions, but legislative action by Congress to make this statutory change would help to achieve this important reform more quickly. 
• Passage of previously proposed de minimis reforms in the Detect and Defeat Counter-Fentanyl Proposal.  These reforms would, among other actions, increase transparency and accountability under the de minimis program by requiring more data from shippers, including the product tariff classification number, and give border officials tools they need to more effectively track and target the millions of shipments coming in claiming the de minimis exemption.  The Detect and Defeat Counter-Fentanyl proposal incorporates many of the bipartisan ideas put forward by Members of Congress, and will increase CBP’s ability to detect and seize illicit drugs and the raw material used to make them, and hold drug traffickers accountable. 

Prioritize Enforcement of Textiles & Apparel

Continue to prioritize enforcement efforts against illicit textile & apparel imports through:

• Intensified targeting of small package shipments

• Joint trade special operations
• Increased customs audits and foreign verifications
• Expansion of the Uyghur Forced Labor Prevention Act (UFLPA) Entity List

For additional information, please contact your local NNR Representative.