In a significant move to protect American consumers, workers, and businesses, the Biden-Harris administration has announced new measures to crack down on de minimis shipments—low-value imports that often bypass traditional scrutiny. These shipments, typically valued under $800, have been increasingly exploited to flood the U.S. market with unsafe or unfairly traded goods. The new actions focus on enhancing oversight and enforcing stricter trade practices to address safety concerns, tax evasion, and unfair competition.

What Are De Minimis Shipments?

De minimis shipments refer to goods valued at or below $800 that can enter the U.S. without paying duties or going through detailed customs inspections. This exemption is intended to simplify trade for small businesses and consumers, but in recent years, it has been used by larger foreign companies to sidestep regulations and introduce unsafe or counterfeit goods into the market.

Key Actions Announced

The administration’s new approach introduces several key strategies:

1. Increased Enforcement: Customs and Border Protection (CBP) will strengthen its efforts to inspect and seize de minimis shipments that violate safety regulations or contain counterfeit goods. This will help protect American consumers from harmful products, such as faulty electronics or contaminated food.
2. Targeting Unfair Trade Practices: Foreign companies using de minimis shipments to exploit loopholes in trade rules will face stricter scrutiny. By cracking down on underpriced goods that undermine U.S. manufacturers, the administration aims to restore fair competition for American businesses.
3. Collaboration with International Partners: To prevent the misuse of de minimis provisions, the U.S. will work closely with international trading partners. This effort includes ensuring that products meet U.S. safety standards and addressing trade imbalances caused by the loophole.
4. Tougher Penalties: The administration is also implementing tougher penalties for companies that repeatedly abuse the de minimis threshold to avoid duties, creating a stronger deterrent against trade malpractice.

Why This Matters for Consumers and Businesses

The influx of unsafe products through de minimis shipments has become a growing concern. For consumers, it can lead to health and safety risks, while for American businesses, it represents unfair competition from foreign firms that exploit the system. By tightening the regulations, the Biden-Harris administration is not only safeguarding the market but also reinforcing trust in the trading system.

This new action plan reflects the administration’s commitment to fostering a safer, fairer trade environment. By cracking down on de minimis shipments of unsafe or unfairly traded products, the Biden-Harris administration is taking a vital step to protect American consumers and promote a level playing field for U.S. businesses.

For companies navigating these changes, Global Logistical Connections (GLC) offers customs brokerage services that can ensure compliance with these new rules. GLC’s licensed customs brokers are equipped to handle the complex regulations set forth by U.S. Customs and Border Protection (CBP), minimizing risks associated with non-compliant shipments. Whether it’s ensuring accurate classification of goods, managing security filings, or dealing with duty drawbacks, GLC’s expertise helps businesses stay compliant while keeping their supply chains running smoothly.