The Department of Homeland Security (DHS), particularly U.S. Customs and Border Protection (CBP), is at the forefront of new executive actions announced by the Biden-Harris Administration aimed at protecting American consumers, workers, retailers, importers, and manufacturers. These actions address the surge in small packages claiming the de minimis exemption.
CBP plays a crucial role in implementing these measures by targeting and blocking shipments that violate U.S. laws as they arrive at various entry points across the country. The agency enforces trade laws to protect consumers, eradicate forced labor from supply chains, safeguard U.S. workers and businesses from unfair competition, ensure national economic security, and prevent dangerous products like illicit opioids from entering the United States.
The executive actions aim to combat a significant increase in shipments claiming the de minimis exemption, especially from Chinese e-commerce platforms. They strengthen information collection requirements to improve accountability and enforcement and prevent misuse of the exemption for high-volume shipments of de minimis packages.
De minimis shipments refer to goods exempt from duty and tax under specific U.S. codes if their aggregate fair retail value is $800 or less. CBP processes nearly four million such shipments daily. Despite their low value, these packages pose potential health, consumer safety, and economic security risks similar to larger containerized shipments.
As of July 30, 2024, 89 percent of all seizures in the cargo environment this fiscal year originated as de minimis shipments, including 97 percent of narcotics seizures and 72 percent of health and safety seizures of prohibited items.
"The actions announced today by the Biden-Harris Administration will help the Department keep pace with global electronic commerce," said Secretary of Homeland Security Alejandro N. Mayorkas. "Our Administration remains ready to work with Congress to pass comprehensive de minimis reform legislation."
Robert Silvers, DHS Under Secretary for Policy and Chair of the federal Forced Labor Enforcement Task Force stated: "Today’s actions will give us strong tools to ensure that imported goods comply with U.S. laws that serve to protect Americans."
Troy Miller, CBP Senior Official Performing the Duties of Commissioner added: "These executive actions are a critical first step in modernizing our enforcement mechanisms in the small package environment so we can better protect Americans' health and safety."
The new executive actions include:
1. New rulemaking to improve accountability and enforcement in de minimis shipments.
2. New rulemaking to reduce de minimis volume and strengthen trade enforcement.
3. A final rule requiring importers of consumer products to file Certificates of Compliance electronically with CBP and CPSC.
These measures will be implemented through federal regulatory processes over the coming weeks and months.
The Administration is also prepared to work with Congress on comprehensive de minimis reform legislation by year-end. Key reforms include excluding import-sensitive products from de minimis exemption, addressing products covered by specific trade enforcement actions, passing previously proposed reforms under the Detect and Defeat Counter-Fentanyl Proposal.
The DHS continues efforts to enforce U.S. textile and apparel trade laws supporting American manufacturers and workers while prioritizing eliminating forced labor from supply chains through various initiatives led by CBP and Homeland Security Investigations (HSI).
In Fiscal Year 2024 through September 1st:
- Launched 18 Trade Special Operations focusing on physical inspection.
- Initiated over 553 verifications on more than $150 million in textile trade.
- Conducted audits on more than $22 billion in textile imports.
- Doubled Textile Production Verification Team visits compared to FY23.
In July, DHS added 26 entities in textiles to its Uyghur Forced Labor Prevention Act Entity List restricting imports into the United States.
###
