Closing the De Minimis Loophole Act

Key Points

• This bill eliminates the rule that allows packages worth less than $800 to enter the U.S. without paying import duties or taxes. Currently, millions of small shipments, especially from online retailers, skip customs fees entirely under this provision.
• Shipments from China would lose their duty-free status almost immediately upon enactment, with only a 3-day grace period for goods already in transit. Goods from all other countries would lose the exemption 120 days later, giving businesses time to adjust.
• The Treasury Department must create new rules within 120 days to handle the flood of newly taxable packages, including stricter data collection requirements. Clothing and textile imports (HTS chapters 50-63) would need detailed product classification codes at the 10-digit level.
• The bill also requires that packages sent through the international mail system follow the same rules as those shipped through private carriers like FedEx or UPS. The Treasury Secretary and Postmaster General would work together to set appropriate fees and procedures.