US to take steps to curb low-value Chinese shipments under $800 'de minimis' exemption [View all]
Source: Reuters, via Yahoo! Finance
US to take steps to curb low-value Chinese shipments under $800 'de minimis' exemption
David Lawder
Fri, September 13, 2024 at 7:07 AM EDT 3 min read
(Reuters) - The Biden administration on Friday said it was moving to curb a growing tide of low-value shipments entering the U.S. duty-free under the $800 "de minimis" threshold that has been exploited by Chinese e-commerce firms such as Shein and PDD Holdings' (PDD) Temu.
White House officials said they will propose the new trade rules to deny the duty-free exemption to packages that contain low value goods subject to the Section 301 tariffs on Chinese goods, the Section 232 tariffs on steel and aluminum products and Section 201 on "safeguard" tariffs on products including solar products and washing machines. {snip picture} The proposed rulemaking also includes new information disclosure requirements for small packages to help U.S. Customs and Border Protection agents to better identify contents for illicit or unsafe products, such as precursor chemicals that can be made into the deadly opioid fentanyl
The White House announcement comes two days after Democratic lawmakers in Congress urged President Joe Biden to use executive powers to close the de minimis provision, which they called a "loophole" that has allowed Chinese imports to evade tariffs and ship narcotics to the U.S. without customs inspection.
The small-package exemption has been part of U.S. trade law since 1930 to accommodate individual travelers, but the threshold was increased to $800 from $200 in 2015 as an aid to small businesses, including sellers on e-commerce platforms such as eBay (EBAY). Packages under the limit enter duty-free and with less customs scrutiny as long as they are addressed to individuals' residences.
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Read more: https://finance.yahoo.com/news/us-steps-curb-low-value-110736970.html
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