Biden Administration Cracks Down on Dangerous and Unfair Import Flooding the U.S.

The Biden-Harris Administration is tackling a growing problem: the abuse of the de minimis exemption, a loophole that allows low-value goods (under $800) to enter the U.S. without duties or taxes. What was once a minor trade detail has become a major headache, with the number of these shipments skyrocketing from 140 million to over a billion in just ten years. This surge is making it harder to enforce U.S. laws, protect consumer safety, and keep dangerous goods like synthetic drugs out of the country.

Much of this de minimis activity is fueled by China-founded e-commerce platforms, which are flooding the U.S. market with low-value products like textiles and apparel, dodging tariffs and duties. This not only undercuts American businesses and workers but also exposes consumers to potentially unsafe products. The lax regulations surrounding de minimis shipments mean they require less information at customs, making it difficult to weed out illegal or harmful items.

To combat this, the administration is rolling out a series of new measures, starting with executive action to reduce the number of de minimis shipments and close loopholes that foreign companies are exploiting. One big move: a proposed rule that would exclude items subject to tariffs (like textiles and apparel from China) from being eligible for the de minimis exemption. If finalized, this could hit around 40% of U.S. imports, ensuring they face the same rules as other goods.

Another key piece of the strategy involves boosting transparency. The administration plans to require more detailed data on de minimis shipments, such as specific tariff classifications and the identities of those claiming the exemption. This will help U.S. Customs and Border Protection (CBP) better target bad actors and speed up the clearance of legitimate goods. There’s also a push to make importers of consumer products file electronic Certificates of Compliance to ensure products meet U.S. safety standards.
While the administration is using executive powers to get the ball rolling, it’s also calling on Congress to pass more comprehensive reforms by the end of the year. This includes excluding sensitive imports like textiles from the de minimis exemption and cracking down on shipments that could contain dangerous substances like fentanyl.

Ultimately, the administration aims to protect American businesses, workers, and consumers from unfair competition and unsafe products. By tightening regulations on de minimis shipments, the U.S. hopes to restore a level playing field in trade and bolster safety at its borders.