On January 17, 2025, the U.S. announced a significant tightening of trade rules aimed at low-value imports, specifically targeting shipments from China. Secretary of Homeland Security Alejandro Mayorkas highlighted that the volume of low-value shipments has surged from 139 million in fiscal year 2015 to over a billion in 2023, posing challenges to American businesses and complicating the screening process for illicit drugs [28157d17].
The new regulation disqualifies products subject to Section 301 tariffs from receiving duty-free treatment under the de minimis exemption, which previously allowed low-value imports to enter the U.S. without tariffs. This change is expected to impact approximately 70% of Chinese textile and apparel imports, reflecting a broader strategy to enhance both economic and national security [28157d17].
This move aligns with ongoing efforts by U.S. Customs and Border Protection (CBP) to improve import transparency and enforcement. Recently, Shein joined the CBP Section 321 Data Pilot program, which aims to streamline the import process for low-value e-commerce shipments while preventing illegal and hazardous products from entering the country. Shein's participation underscores the increasing scrutiny on low-cost imports and the need for greater visibility into shipment data [604d9370].
The tightening of trade rules comes in response to growing concerns among U.S. lawmakers regarding the de minimis loophole, with over 120 legislators expressing their worries in 2024 and urging President Biden to take action. As the political landscape shifts, further decisions are anticipated from incoming President-elect Donald Trump regarding these trade policies [28157d17].
In the context of these developments, CBP has also been intensifying its enforcement efforts against synthetic drugs, particularly fentanyl, which have been increasingly entering the U.S. through low-value shipments. The agency's focus on improving data quality and information sharing is crucial in addressing the risks associated with these imports [ff174a12].