The de minimis exemption is a special rule for small packages. When companies (mostly in China) ship small, low-cost packages to the U.S. and if the package is worth less than $800, it gets in faster and doesn’t need to pay extra fees, or much/any customs documentation. This rule was made in 1930 to make trading easier, but a lot has changed since then!

The current Administration announced that they’re going to try to stop the misuse of the de minimis exemption. The administration plans to issue new rules for data collection for these shipments, exclude goods subject to U.S. trade tariffs, and require electronic certificates of compliance for consumer products. And, the administration is calling on Congress to pass further reforms to modernize rules like the de minimis exemption. I think this has been announced a few times, and it’s an election year, so unclear to me if anything is really going to happen.

From CNBC –

“…”report – Shein and Temu and determined the two companies are “likely responsible for more than 30 percent of all packages shipped to the United States daily under the de minimis provision, and likely nearly half of all de minimis shipments to the U.S. from China.”

Related:

• “U.S. to leave global postal union next month barring last-minute action; exit could send global parcel rates soaring”.
• The United States to Remain in the Universal Postal Union.
• Sweden adds fee per package plus VAT for packages from China.