The Biden administration announced Sept. 13 a number of actions to address ?he significant increased abuse?of the de minimis exemption and to strengthen efforts to target and block shipments that violate U.S. laws. The administration also called on Congress to pass this year legislation to comprehensively reform this exemption. Section 321 of the Tariff Act of 1930 allows for the informal entry of articles that have a retail value of $800 or less and are imported by one person in one day. These de minimis shipments are free of duty and taxes and are subject to expedited clearance processing. According to a White House press release, over the last decade the number of shipments claiming the de minimis exemption has increased from approximately 140 million to more than one billion per year. Most ?riginate from several China-founded e-commerce platforms,?which a press release said ?xploit?this exemption for a number of reasons, including concealing shipments of illegal and dangerous products, avoiding compliance with U.S. health and safety and consumer protection laws, and circumventing U.S. trade enforcement actions. The Department of Homeland Security noted that 89 percent of all seizures in the cargo environment in fiscal year 2024 have originated as de minimis shipments. In response, the administration plans to take the following measures before the of the year. - issue a proposed rule that would exclude from the de minimis exemption all shipments containing products covered by Section 301, 201, or 232 tariffs (the White House notes that 70 percent of textile and apparel imports from China are currently covered by Section 301 tariffs) - issue a proposed rule that would require specific, additional data for de minimis shipments, including the 10-digit HTSUS number and the identity of the person on whose behalf the exemption is claimed - issue a final rule requiring importers of consumer products to file certificates of compliance electronically with U.S. Customs and Border Protection and the Consumer Product Safety Commission at the time of entry, including for de minimis shipments The administration is also calling on Congress to pass by the of 2024 comprehensive de minimis reform legislation that (1) codifies the first two actions listed above and (2) excludes import-sensitive products, including textiles and apparel, from de minimis eligibility. Congress has already made some progress toward these goals. In April the House Ways and Means Committee approved legislation that would prohibit the use of de minimis entry for imports subject to antidumping or countervailing duties and/or Section 301, 201, or 232 tariffs after rejecting a proposal to exclude all imports from China. In February two senators expressed support for excluding goods subject to partner government agency import notification requirements, Section 232 and 301 tariffs, and import restrictions under the Uyghur Forced Labor Prevention Act, as well as products in sectors designated as priority trade issues. In a Sept. 11 letter to President Biden, more than 100 House Democrats expressed support for disqualifying all commercial shipments from de minimis treatment. However, efforts to include de minimis reform among the dozens of measures considered during the House? ?hina Week?Sept. 9-13 appear to have fallen short.
