The administration has announced that it will issue three regulatory notices in the coming months that will exclude from the exemption de minimis to products subject to tariffs under sections 301, 201 and 232 of the Trade Act. This means that products valued at less than $800 will no longer be exempt from these tariffs.
U.S. lawmakers from both parties and local manufacturers have welcomed plans by the White House to tighten de minimis requirements, which allow low-value shipments to enter the country free of tariffs and/or customs duties, but agree that the measure does not replace the need for broader legislation.
In addition, new data requirements will be implemented for shipments, such as the obligation to include the tariff classification number and the identification of the person requesting the de minimis exemption. Importers will also have to certify that they comply with safety standards.
House Ways and Means Committee Chairman Jason Smith welcomed the move, noting that it reflects Republican proposals. But he stressed the importance of a legislative solution that would quickly stop the flow of shipments from China.
The US textile industry, which has been hit by low-cost imports from China, will also benefit from these new measures, which will cover approximately 70% of textile imports from the Asian country.
The Biden administration has urged Congress to pass legislation before the end of the year to comprehensively address the de minimis issue and protect industries vulnerable to imports. However, some critics have warned that these regulations could increase costs for American families by eliminating de minimis duty-free treatment for certain products.
Sources:
- Lawmakers, US producers welcome de minimis executive action as a 'first step' | InsideTrade.com
- FACT SHEET: Biden-Harris Administration Announces New Actions to Protect American Consumers, Workers, and Businesses by Cracking Down on De Minimis Shipments with Unsafe, Unfairly Traded Products | The White House (insidetrade.com)
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