De Minimis Changes Introduced in the US.
- Ben Bradford
- May 2
- 2 min read
From today, Friday 2nd May, goods entering the US from China (including Hong Kong) will no longer be able to benefit from the de minimis exemption.
The de minimis exemption allows goods valued at under $800 to enter the US without the payment of import duties. However, following a number of Executive Orders from President Trump, the de minimis exemption is now being removed, and relevant goods will be expected to pay customs duty.
According to this Notice issued by the U.S. Customs and Border Protection, relevant goods shall be subjected to either:
An ad valorem duty rate of 120%; or
A specific duty of $100 per postal item for goods entering before June 1 2025. This rises to $200 per postal item for goods entering from June 1 2025.
This duty is in lieu of any other duties to which the products would otherwise be subjected to.
Currently, the legislation states that the removal of the de minimis exemption impacts “products shipped from China or Hong Kong to the United States,” however, it does not apply to products listed in the USHTS under headings:
9903.01.21 (Articles the product of China and Hong Kong that are donations, by persons subject to the jurisdiction of the United States, of articles, such as food, clothing, and medicine, intended to be used to relieve human suffering, as provided for in U.S. note 2(t) to this subchapter); or
9903.01.22 (Articles the product of China and Hong Kong that are informational materials, including but not limited to, publications, films, posters, phonograph records, photographs, microfilms, microfiche, tapes, compact disks, CD-ROMS, artworks, and news wire feeds).
Impact on the UK:
In the UK, we are likely to see in the short term a surge in imports from China as Chinese businesses look to move stock which previously would have been sold in the US. This should result in lower prices for some UK goods due to the rise in competition and alternative options.
However, this can have a damaging impact on UK businesses and the UK Government, along with governments across the globe, will need to look at what measures they should/need to introduce to protect their own businesses and domestic markets.
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