November 2024

The Biden administration is expected to begin revising the de minimis rule as early as December 2024. This rule currently allows imports valued at under $800 to bypass import taxes. This rule, which impacts numerous goods from China, has become a focus for those concerned about its influence on the U.S. economy and trade practices. Revisions aim to narrow the de minimis exemption, which could increase costs for companies dependent on low-value imports.

In recent years, this exemption has led to a surge in small, duty-free shipments, rising from 140 million in 2013 to over 1 billion in 2023, with approximately 4 million low-value shipments arriving daily. This growth has presented challenges for U.S. Customs and Border Protection, particularly around counterfeits, safety, and tariff avoidance from foreign e-commerce giants. Reducing the scope of the exemption could significantly affect landing costs for both large and small businesses reliant on duty-free imports to stock inventory.

Industries likely to feel the impact include e-commerce and smaller businesses, both of which benefit from importing products without extra fees. The rulemaking process is anticipated to include a thirty to sixty-day public feedback period, followed by administrative reviews, which could delay implementation into the next administration. Businesses should prepare for potential operational shifts in case new regulations affect their import processes. These anticipated changes underscore shifting toward a more protectionist trade stance, with likely supply chain ripple effects. Navigating these adjustments will be essential for businesses affected by evolving U.S. import regulations.