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
Department and Agencies
Related Federal Register Documents
2025-17122, Agreement Between the United States of America, the United Mexican States, and Canada (USMCA) Implementing Regulations Related to Textile and Apparel Goods, Automotive Goods, and Other USMCA Provisions; Correcting Amendments
Starting January 17, 2025, new rules fix earlier mistakes in how the USMCA trade deal is handled for textiles, cars, and other goods. These updates help businesses in the U.S., Mexico, and Canada get the right tariff benefits without confusion. If you trade these products, expect smoother customs processes and clearer rules soon!
2025-07849, Imposition of Import Restrictions on Archaeological and Ethnological Material of Uzbekistan
The U.S. is putting new rules on importing certain ancient and cultural items from Uzbekistan to protect their history. This affects anyone bringing in archaeological or ethnological stuff from Uzbekistan, starting now, and means some items might need special permission or could be stopped at the border. These changes help keep Uzbekistan’s cultural treasures safe and make sure importers follow the new guidelines.
2026-20650, Low-Value Shipments
The U.S. Customs and Border Protection is proposing new rules to make importing low-value goods (under $2,500) easier and more electronic, especially for mail shipments. They want to add new data requirements for carriers and require bonds for some shipments to keep things safe and smooth. If you’re involved in shipping or receiving small packages, get ready to adapt by December 7, 2026, when comments on these changes close.
2026-17390, Automated Commercial Environment (ACE) Electronic Export Manifest for Rail Cargo
Starting October 26, 2026, all rail cargo leaving the U.S. must have its export info sent electronically through the Automated Commercial Environment (ACE). This new rule helps Customs keep cargo safe and makes trade smoother for rail exporters. Rail companies and exporters should get ready because enforcement begins a year later, on October 26, 2027.
2026-12670, Indefinite Suspension of the De Minimis Exemption for Merchandise Arriving Through All Modes Other Than the International Postal Network
Starting June 24, 2026, small shipments worth $800 or less arriving by anything but the international postal network will no longer skip customs checks. This means everyone importing these goods must follow formal or informal entry rules, which could mean more paperwork and possible fees. If you’re a shopper, seller, or shipper using other delivery methods, get ready for this change and share your thoughts by July 24, 2026!
2026-12669, Indefinite Suspension of the De Minimis Exemption for Mail Shipments and New Postal Informal Entry Process
Starting July 24, 2026, the U.S. Customs and Border Protection is stopping the $800 tax-free rule for mail shipments coming into the U.S. Instead, a new process will handle these packages to better track and tax imports. This change affects anyone sending or receiving international mail and aims to protect U.S. revenue from unpaid duties.
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