In 2016, the U.S. de minimis threshold, which is the value below which imports are exempt from duties, was increased from $200 to $800. This change has greatly benefited businesses, particularly small and medium-sized enterprises (SMEs), by allowing them to access top-quality products at the lowest possible cost to fulfill their customers’ needs. This is especially vital for small manufacturers who import components for assembly processes, as they can create products that are then sold domestically or exported. Small retail businesses also benefit from this policy, as they can import high-quality products at low prices for sale in-store or online.
Besides being exempt from tariffs, importers enjoy additional savings due to the simplified border entry process for de minimis shipments. This process eliminates the need for brokerage services and their associated costs.
The House Ways and Means Trade Subcommittee chairman’s bill, the Import Security and Fairness Act, has inspired a coalition of opponents, including the U.S. Chamber of Commerce, the Express Association of America, National Retail Federation, and others. The coalition is working to preserve the U.S. de minimis statute.
The coalition is interested in hearing testimonials from businesses that have experienced the advantages of the de minimis provision. If you have a positive story to share, please reach out to Mike Mullen at [email protected] or call (703) 340-7521.