US lawmakers are planning to either scrap or introduce major changes to the $800 de minimis provision. Back in 2016, former US President Barack Obama raised the threshold under which low-cost goods enter the USA without further inspection or payment of duties from $200 to $800. At the time, it was believed this move would help cut red tape and reduce import costs for US consumers.
The generous new limit had an instant impact. U.S. Customs and Border Protection says it processed 1 billion de minimis shipments in 2023, more than six times the volume it handled in 2015. While Shein's and Temu's (almost entirely China-produced) items account for nearly a third of these shipments, companies from all over the world, including UK manufacturers and exporters, have also greatly benefitted from the provision.
However, legislation supported by Democrat and Republican lawmakers is now being planned to either abolish or significantly alter the $800 de minimis exemption. Currently, international companies across a wide range of sectors - from clothing and consumer goods to health and beauty - use the provision but many US manufacturers say this introduces unfair competition by flooding the market with low-cost imports.
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