US: Biden-Harris Administration Introduces Measures aimed at E-Commerce

| Image Credits: Online Shopping, photo by Negative Space from PexelsPhoto by Negative Space from Pexels: https://www.pexels.com/photo/working-macbook-computer-keyboard-34577/Photo by Negative Space from Pexels: https://www.pexels.com/photo/working-macbook-computer-keyboard-34577/Photo by Negative Space from Pexels: https://www.pexels.com/photo/working-macbook-computer-keyboard-34577/Photo by Negative Space from Pexels: https://www.pexels.com/photo/working-macbook-computer-keyboard-34577/

The Biden-Harris Administration has announced new initiatives aimed at safeguarding American consumers, workers, and businesses by addressing the misuse of the de minimis exemption, particularly by China-founded e-commerce platforms. These actions seek to curb the entry of products that violate U.S. laws.

SURGE IN DE MINIMIS SHIPMENTS

Over the past decade, shipments entering the U.S. under the de minimis exemption—allowing imports valued at $800 or less to enter duty-free—have skyrocketed from 140 million per year to over a billion.

This surge poses challenges for U.S. authorities in enforcing trade laws, health and safety standards, and consumer protection regulations. Additionally, the influx of illicit drugs, including synthetic opioids like fentanyl, has become a significant concern.

Many de minimis shipments originate from China-based e-commerce platforms, increasing risks for American consumers and leading to unfair competition with U.S. businesses. These duty-free imports—especially textiles and apparel—have resulted in large volumes of low-value goods flooding the U.S. market without sufficient oversight or taxation.

TARGETING EXPLOITATION OF DE MINIMIS EXEMPTION

The administration highlighted how some foreign companies exploit this exemption to evade safety regulations and avoid compliance with U.S. trade enforcement measures. This undermines American workers and businesses, who face unfair competition from duty-free imports. To counter these abuses, the Biden administration has announced executive actions and called for legislative reform.

KEY ADMINISTRATIVE ACTIONS

Rulemaking to Reduce De Minimis Imports and Strengthen Trade Enforcement: The administration plans to issue new rules excluding products subject to tariffs under Sections 201, 301, and 232 from de minimis eligibility. These tariffs currently cover 40% of U.S. imports, including 70% of textile and apparel imports from China. By tightening these regulations, the government aims to block e-commerce platforms from exploiting the exemption.
Improved Data Collection and Shipment Accountability: Proposed rules will strengthen information collection for de minimis shipments, requiring details like the 10-digit tariff classification and the identity of the importer. This will enhance the ability of U.S. Customs and Border Protection (CBP) to target illegal shipments while expediting the processing of legitimate goods.
Ensuring Safety Standards Compliance: A proposed rule from the Consumer Product Safety Commission (CPSC) would require electronic filing of Certificates of Compliance (CoCs) for de minimis shipments, allowing authorities to block unsafe products from entering the U.S. market.

CALL FOR LEGISLATIVE ACTION

While the administration has initiated regulatory measures, it emphasized the need for comprehensive de minimis reforms through congressional action. Some key legislative priorities include:

Exclusion of Import-Sensitive Products: Congress is urged to remove import-sensitive goods, such as textiles and apparel, from de minimis eligibility.
Trade Enforcement Consistency: Legislative action is needed to ensure products covered by trade remedies under Sections 201, 301, and 232 are excluded from the de minimis exemption.
Counter-Fentanyl Measures: The administration calls for the passage of de minimis reforms included in the "Detect and Defeat Counter-Fentanyl Proposal." These reforms aim to increase transparency and accountability by requiring more detailed data from shippers, helping authorities track and seize illicit drugs and drug-making materials.

SUPPORTING U.S. TEXTILE AND APPAREL MANUFACTURERS

The administration is also exploring ways to support the U.S. textile and apparel industry, which plays a vital role in national defense and sustains hundreds of thousands of jobs. By enhancing procurement of American-made products and intensifying enforcement against illicit imports, the administration hopes to strengthen the domestic industry.

STRENGTHENED ENFORCEMENT EFFORTS

The administration plans to prioritize enforcement actions targeting small package shipments, customs audits, and joint trade operations. Additionally, it will expand the Uyghur Forced Labor Prevention Act (UFLPA) Entity List to combat forced labor in the global supply chain.

SOURCE/RECOMMENDED READ:

FACT SHEET: Biden-Harris Administration Announces New Actions to Protect American Consumers, Workers, and Businesses by Cracking Down on De Minimis Shipments with Unsafe, Unfairly Traded Products | The White House