This bill restricts the $800 duty-free import exemption for low-value shipments by prohibiting shipment splitting and excluding goods subject to specific trade enforcement actions or national security tariffs.
Gregory Murphy
Representative
NC-3
The "End China’s De Minimis Abuse Act" restricts the use of duty-free exemptions for low-value shipments to prevent the exploitation of current trade loopholes. The bill prohibits the splitting of shipments to bypass duty limits and excludes goods subject to existing trade enforcement actions from qualifying for these exemptions. Additionally, it mandates stricter documentation for imports from targeted countries and establishes significant civil penalties for non-compliance.
End China’s De Minimis Abuse Act Targets $800 Import Loophole with New Tariffs and $5,000 Penalties.
If you’ve ever snagged a cheap pair of sneakers or a kitchen gadget from an overseas site and wondered why you didn't pay import taxes, you’ve benefited from the 'de minimis' rule. Currently, most goods worth $800 or less enter the U.S. duty-free. This bill, the End China’s De Minimis Abuse Act, is about to change that math for a lot of shoppers and small businesses. It specifically targets the practice of splitting one large order into several small packages to dodge taxes, and it strips away the $800 tax break for any products already flagged by U.S. trade protections, such as those involving national security or anti-dumping measures (Section 2).
The End of the 'Split-Order' Hack
For the savvy shopper or the small boutique owner, the days of breaking up a $1,500 inventory order into two $750 boxes to avoid fees are likely over. The bill explicitly prohibits splitting shipments from a single order or contract just to stay under that $800 ceiling. If you’re caught trying to game the system, the price tag is steep: a $5,000 civil penalty for the first slip-up and $10,000 for every time after that. For a small e-commerce seller running on thin margins, one fine could be enough to wipe out an entire year’s profit.
New Paperwork for Your Packages
If you’re importing goods from countries currently under 'Section 301' trade actions—most notably China—the process is about to get a lot more bureaucratic. To keep the duty-free status on eligible items, importers must now provide a specific 10-digit classification code (the Harmonized Tariff Schedule code) through an electronic data system. This isn't just a headache for logistics companies; it means that if you’re a DIYer ordering specialized parts from a Chinese manufacturer, your package might face delays or get stuck in customs limbo if the digital paperwork isn't perfect.
Who Picks Up the Tab?
The bill's reach extends to any items covered by existing trade wars or national security tariffs, including Section 232 (steel and aluminum) and Section 301 (various Chinese-made goods). By removing the $800 exemption for these items, the bill effectively raises the price of those goods for the end consumer. Whether you’re a contractor buying tools or a parent buying toys, if those items fall into these protected categories, expect to see the 'de minimis' savings disappear from your cart and be replaced by new duties and processing fees starting 30 days after the bill becomes law.