De Minimis Phase Out Bill Introduced

House Ways and Means trade subcommittee ranking Democrat Linda Sánchez (Calif) has introduced legislation to phase out the customs de minimis provision that allows packages valued under $800 to enter the United States duty free.

The de minimis loophole has allowed illicit goods – like fentanyl, counterfeit products and items made with forced labor – to enter the United States through relaxed import requirements for low-value packages. “Closing the de minimis loophole is essential to protecting American manufacturing and sshielding families from fentanyl and other dangerous products,” she said.

“Countries like China are exploiting this loophole to bypass our trade laws and ship harmful or low-quality goods directly to homes. By closing the loophole, we can level the playing field for American workers, keep families safe from fentanyl, and prevent other dangerous products from entering our communities undetected.”

The Closing the De Minimis Loophole Act: 

• Immediately ends de minimis treatment for packages from China and phases out de minimis for all other countries after a four-month transition period.
•  Directs the Treasury Secretary to oversee a rulemaking process during the four-month transition, ensuring that US Customs and Border Protection has the necessary tools and procedures to implement the termination of de minimis for all countries smoothly and efficiently.
•  Directs the Treasury Secretary to consult with the Postmaster General to establish appropriate fees and entry procedures, aiming for consistency between postal and other shipments wherever feasible.