Tariff Talk

An item of low or insignificant value is considered de minimis. This week, the e-commerce and small-package sectors faced significant disruption following the removal of de minimis treatment for Chinese goods due to the newly imposed 10% duties under IEEPA. Amid challenges processing the high volume of low-value shipments, the Trump administration temporarily restored de minimis treatment for eligible goods from China. The additional 10% duty on Chinese goods is unaffected and continues to apply to covered imports entered for consumption, or withdrawn from warehouse for consumption, on or after February 4.

On Wednesday, the e-commerce sector faced what seemed like the near end of de minimis treatment due to the new processing requirements, with USPS temporarily suspending the acceptance of inbound parcels from China and Hong Kong. USPS reversed the decision shortly thereafter, stating that it would continue accepting packages while working with U.S. Customs and Border Protection (CBP) to implement an efficient collection mechanism for the new China tariffs.

The restoration of de minimis treatment appears to be temporary. Under the amended order, de minimis treatment will remain available until the Secretary of Commerce notifies the President that adequate systems are in place to fully and expediently process and collect the applicable tariff revenue. No specific end date for this temporary treatment was provided.