The Biden-Harris Administration has announced new actions aimed at protecting American consumers, workers, and businesses by targeting the increasing misuse of the de minimis exemption, particularly by China-founded e-commerce platforms. This policy addresses the exponential growth of de minimis shipments (goods valued at $800 or less), which now account for over a billion shipments annually. The new measures aim to enhance trade enforcement, consumer protection, and prevent the entry of unsafe or illicit products.
Key Points:
1. De Minimis Exemption Abuse:
• There has been a significant increase in shipments claiming the de minimis exemption, growing from 140 million to over one billion shipments per year, many originating from China.
• These shipments often evade U.S. duties, taxes, and safety standards, undermining U.S. businesses and consumers.
2. Regulatory Actions:
• New Rulemaking on De Minimis Exemption: The administration plans to issue rules to exclude shipments containing goods covered by tariffs (Sections 201, 301, and 232) from de minimis eligibility.
• Strengthened Information Requirements: New regulations will require additional data, such as tariff classification and details on who is claiming the exemption, to improve shipment visibility and enforcement.
• Certificates of Compliance: Importers will be required to file Certificates of Compliance for consumer products, even for de minimis shipments, to prevent circumvention of safety standards.
3. Congressional Action Urged:
• Comprehensive De Minimis Reform: The administration calls for legislative changes, including excluding import-sensitive products like textiles and apparel, and products subject to trade enforcement actions, from de minimis eligibility.
• Detect and Defeat Counter-Fentanyl Proposal: This proposal includes reforms to increase transparency and accountability in de minimis shipments and improve detection of illicit drug shipments.
4. Protection for U.S. Textile and Apparel Industry:
• Procurement Expansion: The administration is exploring increased procurement of U.S. textile and apparel products to support domestic industries.
• Strengthened Enforcement: Efforts to combat illicit textile imports include enhanced targeting of small shipments, joint operations, customs audits, and enforcement of the Uyghur Forced Labor Prevention Act.
For more information, please visit: White House Briefing
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