A provision in a tax bill under consideration in Congress would eliminate de minimis entries entirely as of July 1, 2027.
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 generally free of duty and taxes and subject to expedited clearance processing.
De minimis eligibility was terminated for goods from China (including Hong Kong and Macau) as of May 2 but remains in effect for imports from all other countries, though President Trump has indicated an intent to eliminate de minimis entirely.
A wide-ranging tax bill now moving through the House of Representatives would do just that. Specifically, the bill would terminate the $800 de minimis exception for commercial shipments from all countries as of July 1, 2027 (while retaining the lower de minimis amounts for gifts and items accompanying persons arriving in the U.S.). It would also impose a penalty on those who use the de minimis exception before that date to import goods in violation of any other U.S. law. This penalty would be $5,000 for the first violation and $10,000 for each subsequent violation.
It is unclear whether these provisions will remain in the tax bill as it moves forward.
In the meantime, other efforts are underway that could also result in restrictions on the use of de minimis entry.
- U.S. Customs and Border Protection has issued separate proposed rules (see here and here for more information) that would remove de minimis eligibility for imports subject to certain tariffs and require additional data elements for de minimis entries.
- A recent report to the president said it is “imperative” to end the de minimis exemption because it is “a means by which fentanyl, counterfeit goods, and various deadly and high-risk products enter the United States with little scrutiny.”
- 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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