End China’s De Minimis Abuse Act
End China’s De Minimis Abuse Act
Plain Language Summary
# End China's De Minimis Abuse Act (HR 805) - Summary **What the Bill Does:** This bill would close a loophole in U.S. trade law that currently allows small shipments (under $800) to enter the country tariff-free and without inspection. The legislation would eliminate this "de minimis" exemption for goods subject to existing U.S. trade penalties—including items hit with anti-dumping tariffs, countervailing duties, or tariffs imposed for national security reasons. For shipments from countries under Section 301 trade restrictions (primarily China), companies would need to provide detailed product classification codes to qualify for any de minimis treatment. **Who It Affects:** The bill primarily targets imports from China and would impact importers, e-commerce companies, and consumers.
Small businesses and retailers that rely on importing low-value goods could face higher costs if tariffs now apply to previously exempt shipments. The change could make it more expensive to bring in small quantities of products, potentially affecting everything from online purchases to manufacturing supplies. **Current Status:** The bill was introduced by Rep. Gregory Murphy (R-NC) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House. The bill has not advanced to a vote.
CRS Official Summary
End China’s De Minimis Abuse ActThis bill prohibits certain U.S. imports from receiving de minimis treatment and establishes related civil penalties. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)The bill prohibits imports from receiving de minimis treatment if those imports are subject to specified trade remedies, includingantidumping and countervailing duty tariffs (Subtitle A or B of Title VII of the Tariff Act of 1930),safeguard measures (Section 201 of the Trade Act of 1974),actions in response to unfair trade practices (Section 301 of the Trade Act of 1974), or actions for national security purposes (Section 232 of the Trade Expansion Act of 1962).The bill requires imports from countries that are subject to trade restrictions under Section 301 of the Trade Act of 1974, in order to receive de minimis treatment, to have a 10-digit classification of the import under the Harmonized Tariff Schedule of the United States (HTS) that is provided to U.S. Customs and Border Protection. (HTS sets out the tariff rates and statistical categories for all U.S. imports.)The bill also establishes civil penalties for any person who enters, introduces, or attempts to introduce an import in violation of this bill.
Latest Action
Referred to the House Committee on Ways and Means.