John Jefferson
The Biden-Harris administration announced Friday that it is taking action to limit the number of imports eligible for the de minimis exception to American tariffs and customs inspection. This rule exempts shipments under $800 from standard importation rules and requirements, including duties and taxes, inspections, and some information regarding the contents, source and destination of the shipment.
The administration justified the action in a statement:
Over the last ten years, the number of shipments entering the United States claiming the de minimis exemption has increased significantly… This exponential increase in de minimis shipments makes it more challenging to enforce U.S. trade laws, health and safety requirements, intellectual property rights, consumer protection rules, and to block illicit synthetic drugs such as fentanyl and synthetic drug raw materials and machinery from entering the country.
The new regulations revoke the de minimis exemption for goods subject to certain tariffs under the Trade Act of 1974 and the Trade Expansion Act of 1962, require shipments to submit additional information about their contents, origin, and destination, and require importers of electronic goods to file for additional certification.
The statement closes by urging Congress to implement comprehensive legislative reforms to the de minimis exemption, particularly by extending tariff coverage to Chinese-made apparel and textiles, which it alleges exploit the loophole and undercut American producers.
The Biden-Harris administration’s pledge to “support U.S. textile and apparel manufacturers and their workers” by supporting more expansive tariffs on imported goods is notable for its contrast with the current Harris campaign’s approach to the issue. At the previous presidential debate, Vice President Kamala Harris slammed Donald Trump’s proposal to implement a broad tariff on imported goods as a “Trump sales tax.”
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