2025-01074Proposed RuleWallet

Cheap Imports Face Security Crackdown: No More Free Rides

Published Date: 1/21/2025

Proposed Rule

Summary

The government wants to change rules for small shipments under $800 by blocking duty-free treatment for items linked to trade or national security concerns. Shippers will also need to include a special 10-digit code to describe their goods. These changes affect anyone sending or receiving low-value imports and could impact how quickly and cheaply items clear customs starting after March 24, 2025.

Analyzed Economic Effects

4 provisions identified: 0 benefits, 3 costs, 1 mixed.

De‑minimis ($800) Exemption Removed For Certain Tariffs

If your low-value import is subject to an ad valorem tariff imposed under Section 232, Section 201, or Section 301, it would no longer qualify for the $800 "administrative exemption" and would be subject to additional duties even if the shipment’s value is under $800. CBP estimates the change could increase tariff revenue by about $5.9 billion to $7.8 billion in 2025.

Low‑Value Imports May Face New Entry Types and Duties

Importers of merchandise made ineligible for the $800 exemption would need to enter those shipments using alternative entry types (CBP expects entry type 11 or formal entry type 01) and would pay both standard duties and any additional Section 232/201/301 duties even for shipments under $800. CBP estimates that in FY2023 about 77 percent of shipments claiming the exemption would have been assessed additional duties under those actions had they not claimed the exemption.

10‑Digit HTSUS Code Required On Low‑Value Entries

Shippers claiming the $800 administrative exemption under either the proposed basic or enhanced entry processes must provide the 10‑digit Harmonized Tariff Schedule of the United States (HTSUS) classification for the merchandise. That 10‑digit code will be used by CBP to check whether your shipment is subject to ad valorem tariffs.

Postal (International Mail) Shipments May Be Treated Differently

CBP is considering whether international mail should be handled differently because most international mail is low‑value and the U.S. Postal Service (USPS) often cannot collect duties from foreign mailers. CBP notes the proposed rule might create substantial unrecoverable financial costs for the USPS and is seeking comments on operational feasibility.

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Key Dates

Published Date
1/21/2025

Department and Agencies

Department
Independent Agency
Agency
Homeland Security Department
U.S. Customs and Border Protection
Treasury Department
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