Proposed changes to the de minimis rules in the US may result in varying tariffs for imports from different countries, with some countries possibly losing the privilege altogether. The current de minimis threshold for imports in the US is $800, raised from $200 in 2016. This is significantly higher compared to other parts of the world, such as the European Union where it is €150 ($160.83).
US lawmakers have been considering changing the de minimis rules due to the influx of low-value e-commerce imports from China that evade the tax threshold. According to the Wall Street Journal, these de minimis entries represent approximately $67 billion in lost tax revenue. The Americas Act, proposed by Republican congresswoman Maria Elvira Salazar, outlines potential changes to the de minimis rules.
The act includes provisions to offer $14 billion to the domestic textile manufacturing sector to encourage near-shoring, which could be funded by increased tax revenue from proposed de minimis rate adjustments. The new de minimis threshold would align with the threshold of the country from which the parcel originated. Additionally, the act introduces a ‘blacklist’ for countries considered non-trustworthy and denies them de minimis privileges.
China and Russia are automatically placed on the blacklist, with estimates suggesting this could generate over $15 billion in new revenue annually. Countries can be added to the blacklist for various reasons, including violations of labor laws and harm to US industries. Any country on the blacklist must demonstrate progress before being removed.
While the Americas Act is still in the early stages of legislative approval, there is a looming possibility of reducing the $800 de minimis threshold. Some in Congress support this change as a means to fund near-shoring programs. If implemented, the reduction in the de minimis threshold could have significant implications for importers and e-commerce logistics providers. However, the outcome of the bill’s passage remains uncertain, especially in light of the recent presidential election and ongoing political dynamics in the US.
