New Executive Measures to Combat the Abuse of the De Minimis Exemption in Shipments to the United States
The U.S. Department of Homeland Security (DHS) has launched new executive actions aimed at addressing the growing problem of abuse of the de minimis exemption in international shipments. This initiative, announced today, primarily involves U.S. Customs and Border Protection (CBP), which will be responsible for implementing the new measures to protect American consumers, workers, retailers, importers, and manufacturers.
Context and Objectives
The de minimis exemption, which refers to low-value shipments exempt from duties and taxes under Section 321 of the U.S. Code (19 USC § 1321(a)(2)(C)), allows CBP to process goods valued at up to $800 without customs duties. This measure was created to facilitate trade and the importation of low-value goods. However, the increase in the volume of these shipments, especially through Chinese e-commerce platforms, has led to significant exploitation of this exemption.
Secretary of Homeland Security Alejandro N. Mayorkas emphasized that the new measures aim to address the challenge posed by global e-commerce and improve the ability to protect communities from dangerous products like fentanyl. CBP processes nearly four million de minimis shipments daily, and recent statistics show that a significant proportion of narcotics and unsafe products seized come from these low-value shipments.
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Announced Measures
The executive actions announced today include a series of regulations and standards designed to improve accountability and safety in handling de minimis shipments:
- New Regulation to Improve Accountability: The requirements for collecting information on de minimis shipments will be strengthened. This will allow for greater visibility and transparency, helping CBP identify and block products that do not meet health and safety standards, while also protecting American workers and businesses from unfair competition.
- Reduction in the Volume of De Minimis Shipments: New rules will be implemented to exclude certain products from the de minimis exemption, particularly those subject to specific trade measures. This will close a loophole that allowed low-value products to enter without customs duties.
- Rule to Prevent the Evasion of Safety Standards: The Consumer Product Safety Commission (CPSC) will require importers to submit electronic compliance certificates for consumer products. This rule will enhance CBP and CPSC’s ability to identify and block unsafe products.
Impact and Future Reforms
These measures will be implemented through the federal regulatory process in the coming weeks. Additionally, the Biden-Harris administration is prepared to work with Congress to pass comprehensive legislation to reform the de minimis program. Proposed reforms include excluding sensitive products from the exemption and incorporating stricter penalties against synthetic drug trafficking.
DHS Undersecretary for Policy Robert Silvers emphasized that these actions are crucial to ensuring that imported goods comply with U.S. laws and protecting Americans from unsafe products and unfair competition. Meanwhile, CBP will continue to use enforcement strategies to confront the challenges posed by global e-commerce and the abuse of the de minimis exemption.
The effective implementation of these measures is essential to maintaining economic and public health security in the United States while facilitating legitimate trade and supporting the country’s economic prosperity.
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