WASHINGTON (BRAIN) The Trump administration said the $800 de minimis loophole on Chinese imports will end on May 2.
The administration had announced Feb. 3 that it would close the loophole on shipments from China, Mexico and Canada.
Days later the administration said it would delay the closure as import officials prepared to handle the extra load.
De minimis allows single packages with an import value under $800 to arrive duty free, and often subject to less inspection for compliance with safety regulations. State or local sales taxes also are not collected on de minimis shipments. Retail groups have complained the loophole gives offshore sellers a major advantage and point to safety concerns about importation of uninspected lithium-ion batteries and other products. Illegal drugs including fentanyl and products that violate U.S. intellectual property laws also are thought to arrive under the de minimis exception.
Industry members and trade groups have been calling for de minimis reform for years. Besides the White House's executive orders, legislation has been introduced several times to reform the policy. Shipping companies and "fast fashion" e-commerce retailers who benefit from the policy have lobbied against the reform.
According to an executive order Wednesday, officials are now prepared to inspect and apply duties to all packages from China or Hong Kong starting May 2.
According to PeopleForBikes, goods sent through the international postal network will be subject to a duty rate of either 30% of their value or $25 per item, increasing to $50 per item after June 1. Goods sent through other means will be subject to all applicable duties, which will be collected under applicable entry and payment procedures.
