U.S. Delays Implementation of De Minimis Ban on Chinese E-Commerce

Trade Update • Feb 10, 2025

resident Donald Trump has postponed the elimination of duty-free treatment for low-value shipments from China, allowing border agencies additional time to develop an efficient process for collecting and managing tariffs on individual parcels without overwhelming the import clearance system.

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On February 5, 2025, the White House issued an amendment to the Executive Order originally signed on February 1, 2025, which sought to close the de minimis exemption for shipments valued at $800 or less. Although the order was revised on Wednesday, it was not made public until Friday.

The amended subsection (g) of section 2 states:

“Duty-free de minimis treatment under 19 U.S.C. 1321 is available for otherwise eligible covered articles described in subsection (a) of this section, but shall cease to be available for such articles upon notification by the Secretary of Commerce to the President that adequate systems are in place to fully and expediently process and collect tariff revenue applicable pursuant to subsection (a) of this section.”

This revision appears to be a response to industry concerns about adapting to the sudden policy shift and the resulting accumulation of packages at U.S. airport facilities. Since 2023, both Chinese and U.S. marketplace sellers have increasingly relied on de minimis shipments, which require minimal customs documentation.

Enforcement Challenges and Industry Impact

U.S. Customs and Border Protection (CBP) is the primary agency responsible for enforcing the new de minimis restrictions, though other regulatory agencies are also involved. The Trump administration abruptly ended the de minimis exemption alongside a 10% tariff on all Chinese goods, citing the necessity of curbing the flow of fentanyl and precursor chemicals. As a result, direct-to-consumer parcels faced tariffs of up to 38% when accounting for pre-existing duties.

Following the announcement, the U.S. Postal Service (USPS) temporarily halted incoming packages from China on Tuesday. However, after consultations with CBP, USPS resumed accepting shipments the next day while working on new procedures to collect tariffs with minimal disruption to deliveries.

The removal of de minimis privileges means that inexpensive imports from China must now undergo the formal customs entry process, requiring additional paperwork, processing time, and the payment of duties and taxes.

Trade Concerns Over Implementation

Trade professionals have voiced concerns that CBP lacks the personnel and technology to handle the increased workload of processing millions of small packages daily under formal or informal entry procedures. Many predict that enforcing the new restrictions without causing severe backlogs will be a significant challenge.

The National Foreign Trade Council has also warned that the costs of enforcing stricter de minimis rules could outweigh the revenue generated, potentially leading to broader clearance delays for other types of cargo as CBP shifts resources toward small package processing.

Next Steps: Awaiting Enforcement Readiness

While the de minimis exemption remains in place for now, its eventual removal will depend on the Department of Commerce certifying that proper enforcement mechanisms are fully operational. The Trump administration’s revised approach suggests an effort to balance trade enforcement goals with the logistical realities of international commerce.

How GHY Can Help

Navigating the complex changes introduced by the USMCA Interim Final Rule can be challenging, but we are here to help. GHY provides comprehensive support, including ensuring compliance with USMCA requirements, streamlining certification submissions for Labor Value Content (LVC), steel, and aluminum, managing unique identifiers for entry documents, and assisting with Tariff Preference Level (TPL) requirements for textiles.

Additionally, GHY offers guidance on filing protests, maximizing duty deferral programs, and tailoring solutions to your specific trade needs. With decades of expertise, GHY is your partner in achieving seamless compliance and navigating today’s regulatory landscape.

Contact Us Today! gts@ghy.com, or call +1 (800) 667-0771.