President Donald Trump signed an executive order on Wednesday that will suspend the de minimis exemption — which allows packages with goods valued less than $800 to enter the US duty-free — for all countries. Earlier this year, Trump ended the de minimis exemption for goods from China and Hong Kong.
The White House says the change goes into effect on August 29th. Per the executive order, for the next six months, goods shipped through the international postal system will either be charged the flat tariff rate based on country of origin (an ad valorem duty) or a specific duty ranging from $80 to $200 per item. After six months, all duties will be calculated as ad valorem duties.
The White House’s argument for ending the exemption is that packages using it are “subject to less scrutiny than traditional imports” and could “pose health, safety, national and economic security risks.” The White House claims that 98 percent of narcotics seizures (by “number of cases”) are from de minimis shipments. It also says that low-value packages from China and Hong Kong accounted for “the majority of de minimis shipments to the United States.”
