Reciprocity in Tariffs: Ending 'De Minimis' Exemption for China and Russia
This Act changes the rules for importing small shipments (known as 'de minimis' entries), which were previously exempt from duties and taxes if their value did not exceed $800. It introduces a reciprocity principle, meaning the exemption threshold for goods from a specific country will depend on the threshold that country applies to US goods. Crucially, goods from China and Russia are immediately excluded from this exemption, which may increase the cost of online purchases from these nations. Additionally, the Act establishes a fund to facilitate moving manufacturing from China to the US.
Key points
End of duty exemption ('de minimis' relief) for shipments from China and Russia: This means low-value goods imported from these countries will be subject to duties and taxes, likely increasing their price for consumers.
Introduction of reciprocity in exemption thresholds: The duty-free threshold for a given country will be set based on the threshold that country applies to US goods (not exceeding $800).
New obligations for carriers: Contract carriers transporting small packages must collect and provide detailed data on the goods (e.g., country of origin, value, tariff classification) and will be responsible for collecting and remitting duties and taxes.
Establishment of a Reshoring and Near-shoring Account: A special fund, financed by new customs revenue, is created to support the movement of manufacturing from the People's Republic of China to the United States.
Potential exclusion of other countries: The Treasury Secretary can exclude other countries from the 'de minimis' exemption based on criteria such as forced labor violations (UFLPA), transshipment, counterfeit goods, or lack of commitment to fighting trafficking and terrorism.
Expired
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