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Biden administration’s crackdown on de minimis loophole could have broad implications

The action: The Biden administration is using its executive authority to clamp down on the so-called de minimis loophole, which allows packages from foreign countries to be shipped tariff-free to consumers or businesses as long as their aggregate retail value does not exceed $800 per recipient per day.

  • The administration proposed a new rule that would make packages containing merchandise that are subject to tariffs ineligible for de minimis treatment. About 40% of US imports are subject to tariffs, including 70% of Chinese textile and apparel shipments.
  • The White House also proposed requiring specific, additional data for de minimis shipments, including the 10-digit tariff classification number and the person claiming the de minimis exemption.

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