KPMG report: Proposals to de minimis customs rules spike U.S. importer interest

Three bills pending in committees of both chambers of Congress that propose changes to the customs de minimis exception

Three bills pending in committees of both chambers of Congress that propose changes

The U.S. customs de minimis rule is currently being reexamined by Congress due to concerns about its potentially negative impact on domestic industries and possibility for abuse. The rule exempts small-value parcel shipments from duties, taxes, and the standard customs formalities. The current threshold is set at $800, which means goods can be imported by one person on one day into the United States with a value of $800 or less without being subject to duties or taxes, nor are importers of these goods generally subject to formal filing requirements at the time of entry. Notably, many countries do not have a de minimis threshold or have very low thresholds compared to that of the United States. The de minimis rule has significantly facilitated supply chain models that benefit companies that can offer direct delivery to customers in the United States from foreign locations while reducing their costs, simplifying the import process, and speeding up the delivery of goods.

There are presently three bills pending in committees of both chambers of Congress that propose changes to the customs de minimis exception. These bills, if enacted, will introduce significant changes to the de minimis rules including, but not limited to, potential reductions to the value threshold, prohibitions for shipments from certain countries (including China), additional documentation and information requirements, and new civil fines for non-compliance.

Read a January 2024 report* [PDF 301 KB] prepared by KPMG professionals: Proposals to De Minimis Customs Rules Spike US Importer Interest

* Reproduced with permission from Tax Management International Journal, 1/30/2024. Copyright @ 2024 by Bloomberg Industry Group, Inc. (800-372-1033)



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