The US proposed a new regulation on Monday to strengthen oversight of low-value imports under the de minimis rule, which exempts goods valued at US$800 or less from duties and stringent screening.
The US Customs and Border Protection agency (CPB) said its proposed Entry of Low-Value Shipments rule was intended to enhance its ability to “intercept unsafe and illegal goods” by mandating additional shipment data and implementing a fully electronic filing process.
The proposal comes as CBP grapples with an unprecedented influx of de minimis shipments – over 4 million daily – that officials say overwhelm their ability to target high-risk packages.
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Pete Flores, the acting head of the agency, called the proposed change vital to addressing growing threats.
“Every day, the men and women of CBP interdict goods that threaten the health and safety of Americans as well as the economic vitality of our country,” Flores said in a statement.
“This proposed rule will help to give us some of the tools we need to address more of these threats.”
Flores added that the change was necessary to mitigate vulnerabilities and safeguard US consumers, workers and manufacturers.
“To achieve comprehensive de minimis reform and trade modernisation, we urgently need statutory updates,” he said.
The announcement was part of the broader initiative by US President Joe Biden’s administration to address vulnerabilities in international trade and curb abuse of the de minimis rule.
While the proposed regulation does not explicitly mention China, it follows months of scrutiny by both Congress and the White House of Chinese e-commerce platforms like Shein and Temu, which have been accused of exploiting the exemption to flood the US market with low-cost goods.
A report last year by the House select committee on China estimated that nearly half of all de minimis shipments originate in China, with Shein and Temu accounting for more than 30 per cent of daily packages.
The proposal comes with just a week left in the Biden’s administration, but public comments on the proposed rule will be accepted for 60 days. Whether to put the rule into effect will be a decision for the incoming president, Donald Trump, and his nominee to lead CBP, Rodney Scott.
In September, the Biden White House announced measures to limit the use of the de minimis exception for goods already subject to tariffs.
Daleep Singh, deputy national security adviser for international economics, said at the time that removing eligibility for certain products, including textiles and apparel, would “drastically reduce” shipments entering under the exemption, which he called a loophole that enabled bad actors to evade trade enforcement.
CBP’s statement on Monday emphasised that the proposed rule would let the agency more effectively identify shipments containing counterfeit goods, unsafe products or synthetic opioids such as fentanyl.
By requiring detailed shipment data in advance of arrival, CBP hopes to ease the burden on officers processing large volumes of packages while improving targeting accuracy.
The change is also intended to ensure compliance with trade enforcement laws, particularly for goods subject to tariffs under Sections 201, 232 and 301 of US trade law, which address threats to national security and unfair trade practices.
In addition to tightening de minimis rules, the Biden administration last year imposed significant tariff increases on billions of dollars’ worth of Chinese imports, including electric vehicles, batteries, and textiles.
US Trade Representative Katherine Tai said in September that those measures targeted China’s “harmful policies and practices” that had disadvantaged American workers and businesses.
Those tariff increases drew criticism from some Chinese industry stakeholders. Shein and Temu defended their use of the de minimis rule, attributing their e-tail success to efficient business models.
In July, a Shein spokesperson urged reforms to create a “level, transparent playing field” while Temu said it was reviewing the proposed changes.
More from South China Morning Post:
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