Remnants of a small snowman stand on the National Mall in front of the U.S. Capitol days ahead of President-elect Donald Trump’s 2nd term inauguration January 17, 2025 in Washington, DC. The Trump inauguration ceremony on January 20 will be moved to the rotunda of the U.S. Capitol as temperatures are expected to be the coldest in forty years. (Photo by Daniel Pierce Wright / GETTY IMAGES NORTH AMERICA / Getty Images via AFP)
WASHINGTON, United States — The United States unveiled a new rule Friday to tighten an exemption allowing low-value imports to enter the country duty-free, taking aim at Chinese shipments that might be benefiting from it.
The proposal disqualifies certain products from the low-value, or “de minimis,” exemption, which allows goods valued at $800 or below to come into the United States without paying duties or certain taxes.
Article continues after this advertisement“Both the volume and combined worth of low-value, or de minimis, shipments to the United States have risen significantly over the past ten years,” said Secretary of Homeland Security Alejandro Mayorkas in a statement.
FEATURED STORIES BUSINESS Taiwan biz delegation eyes ecozone development in PH BUSINESS BSP: InstaPay still overtakes ATM withdrawals BUSINESS DA creates new logistics unit to lower retail pricesHe added that the exemption has “undermined American businesses and workers” while allowing foreign products to flood US ports of entry, making it harder to screen the goods for security risks.
“The actions announced today to tighten this exemption will strengthen America’s economic and national security,” he said.
To recall, at the time the contract was terminated last August—four years after it was awarded—AllCard delivered 49.9 percent of its commitment to supply raw materials for the production of 116 million blank cards.
The country’s balance of payments (BOP) position recorded a $3.5-billion surplus in September, a reversal from the $414-million deficit posted a year ago, the BSP said in a report.
Article continues after this advertisementThe number of shipments claiming the exemption rose from about 139 million in fiscal year 2015 to more than a billion in 2023.
Article continues after this advertisementUS officials have pointed to the growth of Chinese-founded online retailers Shein and Temu — known for selling items at low prices — as a key factor behind this increase.
Article continues after this advertisementNational Economic Advisor Lael Brainard accused Chinese-founded e-commerce platforms of trying to “gain an unfair trade advantage” by using the rules.
With the new proposed rule, products subject to tariffs imposed under Section 301 of the Trade Act, for example, would not qualify for duty-free treatment under the de minimis exemption.
Article continues after this advertisementThe section has been a key tool used to justify levies against China in recent years.
Section 301 tariffs hit about 70 percent of Chinese textile and apparel imports, meaning the move would reduce the number of shipments entering through this exemption.
thor slotsPackages containing products subject to Section 232 tariffs on steel and aluminum goods, as well as Section 201 safeguards impacting solar manufacturing, are also targeted.
In a notice on Friday, US Customs and Border Protection (CBP) said low-value e-commerce shipments pose the same risks as higher-value ones.
The large volume of imports and smaller amount of data received about low-value shipments make it increasingly tough to “target and block illicit synthetic drugs such as fentanyl and synthetic drug raw materials and related manufacturing equipment from entering the country,” said the CBP.
In 2024, more than 120 US lawmakers raised “grave concerns” over the de minimis “trade loophole” in a letter and urged President Joe Biden to close it.
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Further action on the matter will fall to incoming President-elect Donald Trumplvbet, who takes office next week.
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