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HR 805119th CongressIn Committee
End China’s De Minimis Abuse Act
Introduced: Jan 28, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs
This bill, titled the End China’s De Minimis Abuse Act, would tighten and narrow the use of the Section 321 de minimis exemption in the Tariff Act of 1930. It aims to curb abuse of small-value imports (often shipped under $800) by prohibiting certain practices, expanding which shipments can qualify for exemption, and increasing penalties for violations. Notably, it adds restrictions specifically targeting shipments from China by tying eligibility to whether the article is subject to certain U.S. trade laws (e.g., 201, 301, 232) and by requiring certain data (the 10-digit HS classification) to accompany entries. The changes take effect for articles entered or withdrawn from warehouse for consumption on or after 30 days following enactment.
Key Points
- 1Prohibits splitting shipments to multiple lots to obtain the de minimis exemption (i.e., you can’t break one order into several shipments just to get under the threshold).
- 2Expands and tightens eligibility for the de minimis exemption:
- 3- Subparagraph (C) (the $800 de minimis category) is conditioned on new rules and cannot be used for articles subject to certain U.S. trade restrictions.
- 4- Specifically bars the de minimis benefit for articles that fall under duties/restrictions under subtitle VII, sections 201, 301, or 232 of relevant trade laws.
- 5Requires 10-digit HS (harmonized tariff schedule) classification data to be provided to U.S. Customs and Border Protection (CBP) via an authorized electronic data interchange system as part of entry filing for articles claiming the de minimis benefit.
- 6Defines “covered article” as one whose origin is a country with goods subject to duties or restrictions under Section 301 (China-related tariffs) and ties the de minimis exemption to this concept.
- 7Establishes civil penalties for violations:
- 8- $5,000 for the first violation.
- 9- $10,000 for each subsequent violation.
- 10Effective date: Applies to articles entered or withdrawn from warehouse for consumption 30 days after enactment.
Impact Areas
Primary group/area affected: Importers utilizing the de minimis exemption, especially those dealing with small-value shipments from China; import firms that rely on e-commerce or direct-to-consumer shipments under $800.Secondary group/area affected: U.S. Customs and Border Protection (CBP) and suppliers/EDI systems handling entry data; businesses that ship goods in multiple small lots to bypass thresholds.Additional impacts:- Increased compliance burden due to mandatory HS classifications and EDI data.- Potential reduction in the use of de minimis for shipments subject to Section 301, 201, or 232 restrictions.- Higher potential penalties for violations, which could affect smaller importers more acutely.De minimis exemption: A threshold (<$800) allowing certain small shipments to enter duty-free without formal entry procedures.Section 321: A provision in U.S. law allowing certain small-value shipments to enter with minimal formalities.HS 10-digit classification: The standardized tariff code used to identify the product’s category and duty rate.EDI (electronic data interchange): An electronic system for transmitting required shipment and tariff data between traders and CBP.
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