On September 13, 2024, the White House announced new actions to address "the significant increased abuse of the de minimis exemption" by China-founded e-commerce platforms and strengthen US efforts to target and block shipments that violate US laws.
The announcement will be followed by a series of Notices of Proposed Rulemaking (NPRMs) that will propose changes to the de minimis program, including:
- Excluding all shipments containing products subject to tariffs imposed under Section 201 or 301 of the Trade Act of 1974, as amended, from utilizing the de minimis program. (Section 301 tariffs currently cover a large number of products from China.)
- Excluding all shipments containing products subject to tariffs imposed under Section 232 of the Trade Expansion Act of 1962, as amended, from utilizing the de minimis program. (Section 232 tariffs currently cover imports of steel and aluminum products from almost all sources.)
- Strengthening information collection requirements to include additional information reporting so that US Customs and Border Protection (CBP) can more accurately screen imports utilizing the de minimis program. Additional data will include the 10-digit tariff classification number as well as the person claiming the de minimis exemption.
In addition, the announcement notes that the Consumer Product Safety Commission (CPSC) intends to propose a final rule that would require importers of consumer products to electronically file Certificates of Compliance with both CBP and the CPSC at the time of entry, including for de minimis shipments.
Finally, the announcement "urges Congressional action on de minimis reform" and highlights that the Administration "stands ready to work with Congress to pass comprehensive de minimis reform legislation by the end of the year." Further, "key reforms Congress should advance" include excluding from the de minimis exception import-sensitive products, such as textile and apparel products, and shipments containing products covered by Section 301, Section 201, and Section 232 trade enforcement actions. The announcement also recommends the passage of previously proposed de minimis reforms included in the Detect and Defeat Counter-Fentanyl Proposal, announced by the White House on July 31, 2024. 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."
These actions, if finalized, will likely have a significant impact on sales via e-commerce platforms that rely on direct shipments to US consumers from China, but other frequent users of the de minimis program will be affected, too. Interested parties should continue to monitor US actions relating to the de minimis exception.
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