The Biden administration is set to tighten regulations on low-value imports, a move that could significantly affect e-commerce shipments from major Chinese retailers such as Shein, Temu, JD.com, and Alibaba. This initiative aims to combat the abuse of a trade exception that allows small shipments to enter the U.S. duty-free, which officials say has been exploited for evading tariffs, circumventing safety standards, and smuggling illicit goods.
This month, the White House announced plans to revise eligibility criteria and increase information requirements for low-value imports, also known as de minimis shipments. With the rapid growth of these shipments making it increasingly challenging for authorities to intercept unsafe or illegal products, the administration aims to bolster trade enforcement while leveling the playing field for American retailers and manufacturers.
Industry experts anticipate that these new regulations may lead to higher consumer prices for small shipments. However, many believe that Chinese online retailers will quickly adapt to the changing landscape. The new rules coincide with initiatives from major U.S. companies like Amazon and Walmart, which are exploring discount fulfillment services to ship international products directly to consumers.
In a notice to customers, DSV, a leading global logistics provider, advised that e-commerce importers will need to reassess their logistics, pricing strategies, and compliance measures to mitigate potential delays and additional costs. The administration plans to issue a proposed rule that would specifically exclude all shipments covered by tariffs imposed on China during the Trump era under Section 301 of the Trade Act. Currently, these tariffs can be as high as 25% and apply to about 40% of U.S. imports from China, including 70% of textile and apparel imports.
Additionally, the Consumer Product Safety Commission (CPSC) is expected to propose a rule requiring importers to electronically file certificates of compliance for consumer products upon entry, even for low-value shipments. This measure aims to ensure that unsafe products do not enter the U.S. market and to prevent foreign companies from exploiting the de minimis exemption to avoid necessary testing and certification.
While the rulemaking process from U.S. Customs and Border Protection (CBP) is not expected to be finalized until 2025, the CPSC is moving more swiftly and could set final terms in the coming months. The administration is also urging Congress to pass legislation that would permanently reform the exemption for small-dollar shipments, a move it argues would provide stronger protection for American taxpayers and consumers.
