US poised to restrict low-value imports from China

A third of e-commerce imports could be impacted if the Biden administration, as expected, this week further moves to plug a vulnerability in the nation’s trade system by excluding merchandise covered by tariffs on China from a program that offers duty-free access for low-value shipments.

U.S. border authorities on Monday said they will require certain shippers to electronically submit additional data on low-value consignments prior to arrival so they can more effectively target high-risk shipments for inspection, including those that contain synthetic opioids like fentanyl. The requirement applies to goods subject to the regulatory jurisdiction of other agencies, like the U.S. Consumer Product Safety Commission. Otherwise, it is optional for shippers who want to receive faster clearance.

The proposed rulemaking is part of a broader crackdown on business-to-consumer e-commerce shipments, primarily from China, valued below $800 that are exempt from duty and tax payment. Parcels shipped under the de minimis rule have much less rigorous information requirements than goods declared on formal customs entries. Customs officials say criminal elements take advantage of the system to smuggle dangerous and counterfeit goods into the United States.

The draft regulation formalizes an existing test program that gives importers expedited clearance in exchange for voluntarily submitting more data about individual parcels. Most e-commerce shippers already use the so-called Type 86 filing process, so the proposal is likely to have limited impact, according to an initial analysis of the notice from U.S. Customs and Border Protection.

The agency said it will publish a second proposed rulemaking in the coming days, which is expected to limit Chinese e-commerce platforms from participating in the de minimis program. In September, the White House said it would tighten eligibility and increase information requirements for low-value imports that qualify for duty-free status in an effort to prevent businesses from evading duty payments, circumventing safety standards and smuggling illicit products.

According to CBP,  61% of all de minimis entries come from China alone. 

The Office of Management and Budget on Tuesday appeared…

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