There is strong bipartisan support for reforming the de minimis exemption with multiple bills introduced in Congress. This legislation reflects ongoing efforts to regulate trade more effectively and address concerns about the influx of low-value imports. If passed, the elimination of the de minimis treatment could impact direct-to-consumer businesses and alter existing supply chains and product pricing.
Here are the main points of the recent legislation that were introduced by Ron Wyden:
Overview of the FIGHTING for America Act
- Purpose: The act aims to reform the de minimis exemption for certain imported goods, particularly targeting illicit goods and enhancing trade regulations.
Key Provisions:
- Removal of De Minimis Treatment: The act proposes to eliminate the de minimis exemption for goods affected by the Generalized System of Preferences(GSP) and those subject to specific tariffs (Sections 232, 201, and 301).
- Current Exemption: Under Section 321, goods valued under $800 can enter the U.S. duty-free, which the act seeks to restrict for “import sensitive” items.
Impact on Imports
- Focus on Textiles and Apparel: The legislation specifically targets textile and apparel imports, responding to the rise of e-commerce shipments from China.
- Increase in Shipments: U.S. Customs and Border Protection (CBP) processes around 4 million de minimis shipments daily, a significant increase from previous years.
