The Biden Administration announced today that it is pursuing significant regulatory actions, including a proposal to exclude goods subject to major trade actions, such as Section 301 tariffs, from de minimis entry and require additional information for each de minimis entry that remains eligible. Since the de minimis entry exemption is used to import most e-commerce shipments, this proposed action would prohibit any Chinese merchandise subject to Section 301 tariffs from utilizing the de minimis exemption.
Specifically, the de minimis exemption allows certain goods imported by one person per day valued at $800 or less to enter the U.S. duty-free with minimal scrutiny. The Administration intends to issue a notice of proposed rulemaking that would exclude from the de minimis exemption all shipments containing products covered by tariffs imposed under Sections 201 or 301 of the Trade Act of 1974, or Section 232 of the Trade Expansion Act of 1962. Once the notice of the proposed rulemaking is issued there will be an opportunity for interested parties to comment on the proposed changes.
Additionally, the administration will issue a notice of proposed rulemaking to require that specific, additional data be submitted with entries still eligible for the de minimis exemption – including the 10-digit tariff classification number and identification of the person claiming the exemption.
Finally, Consumer Product Safety Commission (CPSC) intends to propose a final rule requiring importers of consumer products to file Certificates of Compliance (CoC) electronically with CBP and CPSC at the time of entry, including for de minimis shipments.
The Administration has signaled that it stands ready to work with Congress to codify these and other proposed changes before the end of the year. However, in the meantime, the notices of proposed rulemaking will undergo a notice-and-comment period to include a review of public comments on the proposed changes.
If you or your clients are impacted by these proposed changes, please contact one of our trade professionals listed here for assistance in submitting comments on the proposed changes or assessing the impact of the proposed changes on your supply chain.