Under an executive order issued by President Trump, effective Feb. 4 de minimis entry is no longer available for imports from China subject to the additional ten percent tariff imposed by that EO, which include virtually all products of China (including Hong Kong). This suspension will remain in effect as long as the tariff does.
This change will effectively increase the cost of importing goods from China that previously qualified for duty-free entry under the de minimis exemption. However, ST&R offers a three-pronged approach to avoiding, mitigating, and/or recovering these and other tariffs. For more information on which of these strategies might be most effective for your business, please contact ST&R.
Section 321 of the Tariff Act of 1930 allows for the informal entry of articles that have a retail value of $800 or less and are imported by one person in one day. These de minimis shipments are free of duty and taxes and are subject to expedited clearance processing.
U.S. Customs and Border Protection has said that it processes an average of more than four million de minimis imports each day, and the White House has said that over the last decade the number of shipments claiming the de minimis exemption has increased from approximately 140 million to more than one billion per year. Most such shipments originate from China.
There have been growing concerns among U.S. policymakers that de minimis shipments conceal illegal and dangerous products, avoid compliance with U.S. health and safety and consumer protection laws, and circumvent U.S. trade enforcement actions. President Trump has therefore taken action to prohibit de minimis entry for imports from China. CBP guidance on how the agency will enforce this prohibition emphasizes that it is the responsibility of the trade community to monitor messaging for their shipments and take appropriate action to clear those shipments under the China EO.
(President Trump had also issued EOs imposing additional tariffs on imports from Canada and Mexico and suspending eligibility for de minimis entry for goods subject to those tariffs. However, those tariffs were subsequently delayed until March 4, which would appear to mean de minimis eligibility remains in effect until that date as well.)
In the meantime, efforts are underway that could result in broader and more permanent restrictions on the use of de minimis entry.
- CBP has issued separate proposed rules that would remove de minimis eligibility for imports subject to certain tariffs and require additional data elements for de minimis entries.
- President Trump has set an April 1 deadline for federal agencies to report on the loss of tariff revenues and the risks from importing counterfeit products and contraband drugs that result from the current implementation of de minimis exemption, as well as any necessary modifications to that exemption.
- In its most recent annual report, the U.S.-China Economic and Security Review Commission recommended that Congress eliminate de minimis eligibility for imports sold through an online marketplace.
- In December 2024 the House Ways and Means Committee favorably reported a bill that would prohibit the use of de minimis entry for imports subject to antidumping or countervailing duties and/or Section 301, Section 232, or Section 201 tariffs. Similar legislation has been reintroduced in Congress this year.
For more information on the status of de minimis entries, please contact attorney Lenny Feldman via email or at (305) 894-1011.
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