U.S. Customs and Border Protection (CBP) issued a notice of proposed rulemaking concerning the de minimis exemption under 19 U.S.C. § 1321 (Section 321). Currently, the de minimis exemption allows goods with an aggregate value under $800 to enter the U.S. duty-free and via an expedited process. The proposed amendment is intended to stem the flow of unsafe and illegal goods by mandating that importers provide additional shipment data through an electronic filing process. Further, the proposed amendment would impose greater requirements for compliance with trade enforcement laws, such as Sections 201, 232 and 301, which address threats to national security and unfair trade practices.
The new rule targets low-value e-commerce shipments, which CBP states have served as conduits for entry of illicit goods into the United States because the lower value shipments are less scrutinized by the agency. CBP notes that 90 percent of the shipments entering the U.S. are low-value shipments valued at $800 or less.
Senate Finance Chairman Ron Wyden (D-OR) introduced a bill that formalizes the legislation released in August 2024, the Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains (FIGHTING) for America Act, but the legislation remains in committee and would mandate that de minimis shipments be accompanied by additional data and impose higher penalties on importer violations. The goal of the bill and the proposed rule overlap: increase regulation of shipments, notably in e-commerce and textile and apparel sectors.
CBP’s proposed amendment would require importers to provide data elements such as the URL address to the marketplace’s product listing for the merchandise in the entry; product picture; product identifier; and/or a shipment x-ray or other security screening report number verifying completion of foreign security scanning of the shipment. Further, CBP will require the address and name of the purchaser and seller of the goods upon entry.
Under the Administrative Procedure Act (APA), the public is entitled to comment on the proposed rule within a 60-day period after the date of publication of the rule. At the end of the notice-and-comment process, the agency must base its reasoning and conclusions on the rulemaking record. In the instant scenario, the rulemaking process saddles the tail-end of the Biden presidency and the early days of the Trump presidency.