How Potential Legislation to Restrict De Minimis Provisions Impacts Global Trade

The U.S. government has recently proposed new bipartisan legislation aimed at restricting de minimis provisions for textiles and apparel imports. De minimis provisions play a crucial role in facilitating cross-border e-commerce by allowing low-value shipments to enter a country without burdensome paperwork and costs.

According to U.S. Customs and Border Protection (CBP), 92% of imports qualify as de minimis shipments. The U.S. has maintained a relatively high de minimis threshold, $800, which has enabled many foreign sellers to ship directly to American consumers with minimal regulatory friction. This has been especially beneficial for e-commerce businesses that rely on seamless, cost-effective international transactions.

The proposed legislation would require CBP to collect more information about de minimis packages, facilitate the targeting and seizure of illicit goods, and increase penalties for bad actors. While this proposed legislation aims to close existing loopholes that may currently benefit foreign companies, it also risks creating unintended barriers that could hinder international trade and disrupt established supply chains.

Historically, de minimis provisions have helped level the playing field for smaller e-commerce businesses, allowing them to compete with larger players on an international scale. However, this has not gone unnoticed by othe…