
U.S. Customs and Border Protection (CBP) is proposing new rules to collect more data on low-cost shipments under the $800 “de minimis” exemption, a move highlighted by the Supply Chain Brain. The change aims to reduce illegal shipments of counterfeit goods and drugs, often exploited by e-commerce platforms like Shein and Temu. They write:
U.S. Customs and Border Protection (CBP) is proposing changes to what data elements it collects on low-cost shipments, including a new “enhanced entry process” designed to curb the flow of illegal drugs and counterfeit goods.
So-called “de minimis” exemptions allow any individual shipment valued under $800 to arrive duty-free with less scrutiny from CBP. Although the rule was initially introduced in the 1930s so that American tourists wouldn’t have to pay duties on items they bought while abroad, Chinese e-commerce retailers like Shein and Temu have taken advantage of the exemptions to ship millions of online orders in smaller lots without paying tariffs, and in many cases, sneak counterfeit alternatives to brand name products through customs. Drug traffickers have also been known to use de minimis rules to smuggle fentanyl precursor chemicals or pill press parts into the U.S. […]
The proposal will next go through a 60-day public comment period, before the next presidential administration can review, finalize and implement the new rules. According to CBP, this is the first of two proposals designed to tighten de minimis exemptions, with the agency planning to release the second “in the coming days.”
Read more here.
Also read, America Is Adding New Scrutiny to Chinese Trade Loophole Abusers.