De minimis changes: Businesses, trade groups weigh in

Businesses and industry groups are split on what the de minimis exemption’s future should look like.

The trade tool allowing sub-$800 products to enter the U.S. duty free is poised to end for products from China, Canada and Mexico as part of tariff measures imposed by the Trump administration. Further de minimis restrictions will come if two recently proposed rule changes from U.S. Customs and Border Protection are implemented as planned.

One of the proposals calls for strengthening data collection requirements for low-cost goods entering the U.S. The other would nix de minimis treatment for products covered by Section 201, 232 and 301 tariffs.

Several companies, trade groups and small business owners weighed in on the proposals during a public comment period. Some supported the measures’ potential to curb the flow of illegal drugs and help domestic industries, while others expressed concern over potential added costs and delays.

Here’s a deeper look at what commenters said about the planned de minimis shifts ahead of their implementation.

National Customs Brokers and Forwarders Association of America

The National Customs Brokers and Forwarders Association of America warned that most of the CBP’s proposals won’t achieve the visibility and compliance necessary to stop fentanyl and other illicit items from entering the U.S.

The group critiqued CBP’s plans to establish six different variations of the cargo entry and release process, saying it would create an inconsistent system that hinders compliance, security and safety. Instead, it suggested a uniform process requiring a complete entry data set and bonded importer of record for all merchandise.

“Rather than the six differing clearance channels, we propose consistency and transparency throughout the entire entry/release process, including de minimis through unified requirements and standards,” the NCBFAA said.

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