In response to the surge in de minimis shipments, the Biden-Harris Administration announced a series of executive actions to crack down on abuses of the de minimis exemption on U.S. imports, particularly by foreign e-commerce platforms.

De minimis shipments have increased from 140 million to over one billion annually, making it harder for the U.S. Customs and Border Protection (CBP) to enforce trade laws and prevent prohibited goods from entering the country.

Foreign e-commerce platforms, especially China-based giants like SHEIN and Temu, have been exploiting the $800 de minimis exemption to ship large volumes of low-value products, such as textiles and apparel, into the U.S. duty-free.

Apart from evading tariffs, these goods often bypass U.S. safety standards, intellectual property rights protections, and fair trade enforcement measures, putting American industries at risk.

In response, the Biden-Harris Administration will take the following actions:

• New rule to exclude certain shipments from de minimis: The administration will issue a proposed rule to exclude products subject to Section 201, 301, and 232 tariffs from the de minimis exemption.
• Strengthened enforcement of low-value shipments: Additional data collection, including 10-digit tariff codes, will be required for de minimis shipments to improve visibility and enforcement.
• Final rule on consumer protection standards: The Consumer Product Safety Commission (CPSC) will propose a rule requiring Certificates of Compliance for all de minimis shipments. 

The Administration is also urging Congress to pass de minimis reform legislation. These reforms will build on previous executive actions to further protect American jobs and industries.

The suggested reforms include:

• Excluding import-sensitive products: Omit products such as textiles and apparel, which face unfair competition, from the de minimis exemption.
• Closing loopholes in trade enforcement: Ensure shipments subject to Section 301, 201, or 232 tariffs are excluded from de minimis eligibility.
• Increasing data collection for de minimis shipments: Require more detailed information on de minimis shipments, including tariff classification and origin data.

For more information about this story, please reach out to our logistics consultant, Deirdre Moffitt.