Trump ends China’s De Minimis Trading Dimensions for Cheap Goods. What is it? : NPR

A trade hole called de minimis helped drive explosive growth for negotiating places such as Temu and Shein so they could send cheap goods from China to US consumers without having to pay taxes and import duties.

But that is now to change, after President Trump Signed an executive order To specify the minimis treatment “is not available” for products made in China, Top source for goods imported to the United States

The effects can be far -reaching: the minimis shipments are mostly emerging said last fall. The agency said it handled about 4 million de minimi’s shipments every day – a rate that would blow past the previous year’s brand of more than 1 billion shipments.

When he was asked to comment on the American shift, Teresa Murray of Public Interest Research Group Consumer Watchdog told NPR that her group supports changes in the law.

The minimis shipments “often do not have as much documentation, making it easier to get the shipments to the United States, whether we are talking about uncertain consumer products or fentanyl or food items that are not allowed to be imported,” Murray said.

Here’s a quick guide to de minimis:

The US border is among the highest

De minimis is a Latin expression that denotes something that is “trifle or of little meaning”, according to US International Trade Commission. It was law in the US Customs Act of 1930, as a way of letting people skip import fees for shipments with small values.

But over the past decade they have minimis pulled great: such shipments to the United States rose from 140 million in 2014 to 1 billion In 2023, according to the White House.

About 100 countries they have minimis exceptions, based on A wide range of monetary thresholds. The US level was previously $ 200, but it rose to $ 800 in 2016 — one of the highest in the world-then then President Barack Obama signed the bipartisan Trade facilitation and trade enforcement. Across the European Union, the level is 150 euros (about $ 156).

Elements that are imported under the exemption “are free of duty and taxes and are subject to accelerated approval of the approval,” notes the US International Commerce Commission.

Backmen of the existing de minimis structure say it facilitates trade and gives consumers low prices; Critics say it’s used to Hawk “Cheap Crap”, “ As a legislature expressed it and gives foreign companies an unreasonable advantage over domestic retailers.

Even before Trump was sworn last month, they became Minimis targeted at change. The Biden -Administration suggested a new rule last fall to close the logging. And US agencies and politicians have said the law is inclined to abuse, from unscrupulous retailers who mistakenly labeling expensive items that cost less than $ 800 for criminal shipment of illegal drugs under the form of innocent goods.

When Trump’s new 10% duty on Chinese goods came into force, the US postal service said Tuesday that the suspended acceptance of packages sent from China and Hong Kong – but that Reverse course on WednesdayAnd says it is working with customs and border protection in a way of collecting the new customs “to ensure that the least disruption of the packing delivery.”

Temu and Shein are under control

Together Temu and Shein made up approx. 17% of the US discount market in 2023 for goods such as consumer goods, fast fashion and toys, according to a report on the minimis policies that Congressional Research Service (CRS) Updated Last week.

None of the companies responded to NPR’s request for a comment on the new US de minimis policy until this story was published.

Murray, from Public Interest Research Group, said her group supports bipartisan legislation such as Provide accountability in the minimis lawwhich would limit which shipments can benefit from the minimis rules.

“Limiting what qualifies for a de minimis exemption would help keep more uncertain toys and other products in getting into our homes,” Murray said. “This would make people in the US safer.”

But she also said that lowering the US border of the minimis would not be enough to stop shipments of small packages that go directly from Temu and Shein to us consumers without close inspection.

Exporters also use “Master Cartons” (large containers that hold individually wrapped boxes) and transmissions (transfer of load to another container or vessel) to hide the origin and content of the products, As per CBP.

While the new US policy is targeting China, both Temu and Shein seem to be trying to become more global.

They are among the Chinese -founded companies that have changed the most important parts of their business structures outside China. The CRS report notes that Shein does not sell goods within China and has a parent company that “is based in Singapore and tied to a holding company in the British Virgin Islands”, while the Temus parent company, PDD Holdings “changed its legal residence from body to Ireland. “