U.S. Customs and Border Protection (CBP) has announced a Notice of Proposed Rulemaking (NPRM) to amend the de minimis duty exemption for low-value shipments entering the United States. The current rule allows goods valued at $800 or less to enter without paying duties or taxes, which CBP claims disadvantages American businesses.
The proposed "Trade and National Security Actions for Low-Value Shipments" aims to protect intellectual property rights, consumer health and safety, and address enforcement gaps. It seeks to support American businesses by preventing unfair trade practices.
"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 Secretary of Homeland Security Alejandro N. Mayorkas. He highlighted that exempting these goods from duties has challenged American businesses and workers while complicating CBP's efforts in screening for security risks.
Since Fiscal Year 2015, there has been a more than 600% increase in such shipments entering the U.S., rising from approximately 139 million annually to over one billion by FY 2023. In FY 2024, this figure increased again to over 1.36 billion shipments.
CBP Senior Official Pete R. Flores stated that they are pursuing a multipronged strategy to enhance enforcement in this area: "We will continue to leverage existing authorities to improve tools and automation while strengthening enforcement of textile and apparel trade laws."
Under the proposed rule, merchandise subject to certain national security tariffs would not qualify for duty-free treatment under the de minimis exemption. This includes tariffs imposed under Sections 232, 201, and 301 of various trade acts.
The proposal follows another NPRM issued on January 13, aimed at improving supply chain visibility through the Entry of Low-Value Shipments (ELVS) rule.
National Economic Advisor Lael Brainard commented on foreign competition: "We cannot let Chinese-founded e-commerce platforms gain an unfair trade advantage while American businesses play by the rules." She emphasized that these measures aim to level the playing field for American workers and retailers.
The public has a 60-day period to comment on this proposed rulemaking via www.regulations.gov by including relevant agency information with their submissions.
CBP serves as America's primary law enforcement organization responsible for border management. With over 65,000 personnel dedicated to ensuring lawful travel and trade, it plays a crucial role in safeguarding U.S. economic prosperity and national security.
