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The US Customs and Border Protection is seeking to tighten the de minimis duty exemption for certain low-value shipments.
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CBP is proposing to make certain products ineligible for exemption
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Goods valued at $800 or less that enter the US do so without paying duties or certain taxes
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US businesses consider the current practice as unfair
The US Customs and Border Protection (CBP) is seeking to tighten the de minimis duty exemption for certain low-value shipments by making them ineligible for exemption.
Goods valued at $800 or less that enter the US currently do so without paying duties or certain taxes. US businesses consider the current practice as unfair.
Secretary of Homeland Security Alejandro Mayorkas noted that both the volume and combined worth of low-value goods, also known as de minimis shipments, to the US have risen substantially in the past decade.
“The exemption of these goods from duties and taxes has undermined American businesses and workers and flooded our ports of entry with foreign-made products, making CBP’s vital work screening these goods for security risks more difficult,” Mayorkas said in a statement.
He added that the actions announced to tighten the exemption “will strengthen America’s economic and national security.”
READ: US Customs eyes changes to de minimis import process
The Trade and National Security Actions for Low-Value Shipments rulemaking protects intellectual property rights, consumer health and safety protections, and closes enforcement gaps while safeguarding US businesses and workers from unfair trade practices.
In the last 10 years, the number of shipments entering the US claiming the de minimis administrative exemption rose by more than 600%, from roughly $139 million in 2015 to more than $1 billion by 2023.
Last year, de minimis shipments again rose to more than $1.36 billion.
The exponential rise has caused challenges for the CBP’s effective enforcement of US trade laws, health and safety requirements, intellectual property rights, and consumer protection rules.
Pete Flores, CBP senior official, said the CBP has taken “aggressive action” on a multi-pronged strategy to enhance their enforcement in the low-value shipping environment.
“We will continue to leverage existing authorities to improve tools and automation, while strengthening enforcement of textile and apparel trade laws,” said Flores.
The proposed rule states that merchandise subject to specific trade and national security actions no longer qualify for de minimis exemption. Certain shipments claiming the exemption will be required to provide the 10-digit Harmonized Tariff Schedule of the United States classification for low-value merchandise imports.
Lael Brainard, national economic advisor, said: “We cannot let Chinese-funded e-commerce platforms gain an unfair trade advantage while American businesses play by the rules.”
He added that the new actions “are an important step to level the playing field for American workers, retailers, and manufacturers and to enforce US laws that protect the health and safety of consumers.”
The CBP is particularly concerned about the entry of illicit synthetic drugs like fentanyl.
The public has been given 60 days to comment on the proposal.
