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White House takes aim at growing threat of de minimis imports

By Eric Johnson

The Biden administration says it will take steps to target apparel and textile imports using the so-called de minimis exemption and called on Congress to pass legislation that would rein in the volume of duty-free packages entering the US .

The White House is proposing rulemaking that would apply section 301 tariffs to de minimis shipments , a part of US trade law that allows single shipments valued at less than $ 800 to move duty-free and with fewer data submission requirements .

Section 301 tariffs currently cover approximately 40 % of US imports from China , including 70 % of Chinese textile and apparel imports to the US .

“ Some e-commerce platforms and other foreign sellers circumvent these tariffs by shipping items from China to the United States claiming the de minimis exemption ,” the White House said in a Sept . 13 statement . “ If finalized , these goods would no longer be eligible for the de minimis exemption .”

The actions come amid intensifying scrutiny over a flood of de minimis shipments pouring into the US . The volume of such shipments doubled in the first half of 2024 , according to a dashboard maintained by US Customs and Border Protection ( CBP ).

The dashboard shows that more than 87 % of de minimis shipments move via air to the US , with most of the remainder going by truckload and a small portion going via ocean .

Aside from seeking to curtail apparel and textile products using the de minimis exemption , the proposed rulemaking seeks to access more information on the shippers and receivers of goods .

That includes a proposal to require specific , additional data for de minimis shipments , such as the 10-digit tariff classification number and the person claiming the de minimis exemption , to “ improve targeting of de minimis shipments and facilitate expedited clearance of lawful de minimis shipments ,” the White House said . “ These new requirements would help CBP protect consumers from goods that do not meet regulatory health and safety standards and protect US businesses from unfair competition against imported goods that would otherwise be charged duties or restricted from entry .”

“ If finalized , these goods would no longer be eligible for the de minimis exemption .”

A separate part of the rulemaking would require importers of consumer products to file Certificates of Compliance electronically with CBP and the Consumer Product Safety Commission , including for de minimis shipments .

Aside from its own efforts to stymie de minimis volume , the Biden administration also said Congress should prioritize legislation that would exclude from de minimis eligibility import-sensitive products , specifically textile and apparel products .

email : eric . johnson @ spglobal . com

More than 87 % of de minimis shipments to the US move via air , with most of the remainder going by truck . Shutterstock . com

22 Journal of Commerce | October 7 , 2024 www . joc . com