The Biden administration has recently tasked Congress to pass legislation aimed at reforming the Section 321 de minimis rule. This provision allows for the duty and entry free importation of $800USD of merchandise into the USA by one person per day. The Press Release is found on CBP's site at DHS Workforce on the Frontlines of Biden-Harris Administration’s New Executive Actions to Address Surge in De Minimis Shipments and Protect American Consumers, Workers, and Businesses | Homeland Security and the White House posted a fact sheet at FACT SHEET: Biden-Harris Administration Announces New Actions to Protect American Consumers, Workers, and Businesses by Cracking Down on De Minimis Shipments with Unsafe, Unfairly Traded Products | The White House .
In summary, the administration is expected to issue a Notice of Proposed Rulemaking (NPRM) by the end of 2024 to:
· Prohibit use of the exemption, for any products subject to a Trade Remedy. This would exclude S321/ET86 usage for any article covered by Section 201, 232 or 301 tariffs.
· Require the 10-digit HTS Code for all de minimis shipments.
· Add a user fee for de minimis packages, to help fund more staff and equipment.
· Enhance the scope of civil penalties to "incentivize the private sector to self-police their supply chains for narcotics risk"
· Establish rules concerning who is eligible to claim the Section 321 exemption and require filers to identify the person on whose behalf the exemption is being claimed.
· Possibly exclude "import sensitive products" from de minimis entry.
o in this category are textiles, apparel, footwear, work gloves and some electronic glass and steel items.
o the exclusion is intended to apply regardless of origin, unless otherwise covered by a free-trade agreement
· Issue a final rulemaking requiring Certificates of Compliance be filed electronically with CBP and CPSC for all de minimis shipments.
We will continue to monitor this initiative and provide additional details as soon as the NPRM is published. Please contact [email protected] for any questions