Wednesday orders will implement the De Minimis package mandatory from 12:01am on May 2nd
President Donald Trump signed another executive order on Wednesday, dictating closing previous loopholes that postponed missions on low-cost China’s imports.
Imports worth less than $800, sent via channels other than the international postal network, were previously subject to de minimis exemption. The new obligation rate is 30% of its value or $25 per item, and from June 1st the amount will increase to $50.
Airlines carrying these goods must report shipment details to the Customs and Border Protection (CBP) while maintaining international airline bonds to ensure payment of their obligations. You will also need to transfer your obligations to the CBP on a set schedule.
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The April 2 order requires the Secretary of Commerce to assess its impact and submit a report within 90 days to consider whether to extend these rules from Macau to products.
Global digital commerce companies are taking advantage of the exemption to send tax-free products to the US under $800. Industry experts say this has created a competitive advantage for Chinese e-commerce companies such as Shein and Temu.
Removing the exemption was expected to inundate CBP with low-cost shipments that require formal processing, including inspections and obligations.
The Trump administration has repeatedly said that exemptions should end because of China’s role in fentanyl trafficking to the US, suggesting that exporters have used it as a loophole.
Linda Sanchez (D-Calif.), a ranking member of the House Ways and Means Trade Subcommittee, estimated that 90% of fentanyl currently in the US come from packages entering the country based on the De Minis Policy.
Andrew Moran contributed to this report.
