Biden Administration Tackles E-commerce Duty-Free Loophole

The Biden administration announced new rules to limit duty-free imports under the $800 'de minimis' threshold. This move targets e-commerce companies that exploit this rule, including China's Shein and Temu, to send low-value packages to the U.S., affecting American businesses and customs duties.

The Biden administration has proposed new rules to curb duty-free imports under the $800 'de minimis' threshold, aiming to close a loophole exploited by e-commerce giants like China's Shein and Temu. This initiative is designed to improve customs control and support U.S. businesses.

U.S. Customs and Border Protection highlighted that the rules would deny duty-free status to low-value goods subject to Section 301 tariffs on vast amounts of Chinese imports, including apparel, as well as Section 232 tariffs on steel and aluminum and Section 201 duties on solar products.

Additionally, small package shippers must provide 10-digit Harmonized Tariff Schedule classifications for contents to secure exemptions, enhancing the ability to identify illicit goods. Lael Brainard, National Economic Advisor, emphasized the importance of this action in equalizing the trade playing field for U.S. entities.

(With inputs from agencies.)