This exemption currently allows for goods valued at no more than $800 to be imported into the US without being subjected to duties or certain taxes.
The proposed adjustments intend to exclude specific merchandise from this exemption, particularly items affected by designated trade or national security measures.
The proposal necessitates that shipments leveraging this exemption must provide a detailed classification of the merchandise using the ten-digit Harmonized Tariff Schedule of the United States (HTSUS).
The suggested regulatory changes aim to fortify protections around intellectual property, consumer health and safety, and bridge enforcement gaps. These measures are designed to defend US industries and labour against inequitable trade practices.
This Notice of Proposed Rulemaking (NPRM) represents one part of a two-pronged initiative announced by the Biden Administration on 13 September 2024, which focuses on safeguarding US consumers, workers, and businesses. Following up on this initiative on 13 January 2025, CBP introduced an NPRM concerning the Entry of Low-Value Shipments (ELVS).
Over the past decade, there has been a significant surge in the number of imports availing themselves of the de minimis exemption. From approximately 139m in fiscal year (FY) 2015, these imports have escalated by over 600%, reaching beyond 1bn annually by FY23.
In FY24, this figure further climbed to upwards of 1.36bn shipments. Such a dramatic rise poses challenges for CBP’s capacity to enforce compliance with US trade laws, as well as regulations pertaining to health and safety, intellectual property rights, and consumer protection.
The US textile industry, also vital for military and PPE supplies, is facing significant demand loss due to 4m daily de minimis shipments of cheap, often illegal imports. This results from an outdated trade provision that allows Chinese e-commerce platforms and importers to bypass tariffs and flood the US market.
“Both the volume and combined worth of low-value, or de minimis, shipments to the United States have risen significantly over the past ten years,” said Homeland Security Secretary Alejandro Mayorkas.
“The exemption of these goods from duties or 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. The actions announced today to tighten this exemption will strengthen America’s economic and national security.”
Commending the rulemaking, NCTO’s president and CEO Kim Glas said: “We welcome CBP’s announced notice of proposed rulemaking exempting de minimis tariff-free benefits on imports ‘specified as trade and national security actions.”
