Changes To "De Minimis" Shipping Will Likely Have Effects Beyond China And Russia

Changes may be coming to the "de minimis" exception under Section 321 of the Tariff Act of 1930, as amended, which allows goods valued less than $800 to enter the United States free of duty and taxes, and generally free from formal review, when shipped to individual consumers.

Senators Sherrod Brown (D-OH) and Marco Rubio (R-FL) and Representatives Neal Dunn (R-FL) and Earl Blumenauer (D-OR) introduced the Import Security and Fairness Act ("the Act") on June 15, 2023, the most recent of several legislative efforts proposing changes to the "de minimis" threshold. The Act would make goods sourced from perceived adversarial nations ineligible for de minimis treatment under Section 321 of the Tariff Act of 1930, as amended. Specifically, the Act targets countries that are both (i) a nonmarket economy (as defined by the Tariff Act) and (ii) listed on the United States Trade Representative's (USTR) Priority Watch List. Notably, as of June 2023, only China and Russia meet