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Removes the “de minimis” informal entry treatment that lets many low‑value imports enter without formal customs processing, and orders the Treasury Secretary to issue rules tightening data and entry requirements, set penalties, and coordinate with the Postal Service. The change takes effect immediately for goods from China (with a 3‑day loading/transit exception) and 120 days after enactment for goods from other countries, and Treasury must complete implementing rulemaking within 120 days.
Amend section 321(a)(2) of the Tariff Act of 1930 (19 U.S.C. 1321(a)(2)) by changing the text in subparagraph (B) to replace ", or" with "; and" and by striking subparagraph (C) and all that follows through the end of that provision.
The amendments take effect on the date of enactment of this Act.
For articles originating in China: the amendments apply beginning on the date of enactment, except for articles that were loaded onto a vessel at the port of loading, or in transit on the final mode of transport prior to entry into the United States, during the 3‑day period ending on the date of enactment.
For articles originating in any other country: the amendments apply to articles entered, or withdrawn from warehouse for consumption, on or after the date that is 120 days after the date of enactment.
The Secretary of the Treasury must, during the 120‑day period beginning on the date of enactment, carry out a rulemaking process under the authority of 19 U.S.C. 66 and any other applicable law to implement the termination of privileges that were authorized under section 321(a)(2)(C) before enactment, including as to entry procedures.
Who is most affected and how:
Small cross‑border sellers and international e‑commerce merchants: Many sellers who relied on informal small‑parcel entry will face new paperwork, classification and valuation requirements, potential duties, and penalties. This raises compliance costs and may reduce the viability of very low‑margin sales shipped directly to U.S. consumers.
Platform operators and online marketplaces: Platforms that facilitate cross‑border sales may need to collect more detailed shipment and seller data, update checkout and customs declaration flows, and potentially withhold or remit duties and taxes to remain compliant.
Postal and parcel carriers (including USPS and private couriers): Carriers must modify intake, data capture, and international mail processing. The bill explicitly requires Treasury to coordinate with the Postmaster General on procedures and fee alignment, which could change postal billing, customs brokerage responsibilities, and transit practices.
Importers and customs brokers: Formal entry requirements will increase workload and recordkeeping; brokers may see higher demand but importers—especially small or occasional shippers—will face higher costs and new administrative burdens.
U.S. consumers: Potential downstream impacts include higher prices for some imported consumer goods, longer delivery times if shipments are held for customs processing, or reduced availability of low‑cost imported items.
Customs enforcement and federal agencies: CBP and Treasury will be responsible for implementing, enforcing, and auditing new entry rules, and may need additional resources or reallocated workflows to handle higher volumes of formal entries.
Broader effects and trade implications:
The immediate application to goods from China could rapidly reduce a pathway often used to avoid duties, shifting trade flows, pricing, and compliance strategies for importers sourcing from China.
The 120‑day window for other countries gives affected parties a short period to adapt, but the required Treasury rulemaking within 120 days sets a fast timetable that may create operational strain for carriers, postal operators, marketplaces, small businesses, and customs brokers.
Coordination with USPS on fees and procedures could change the economics of international postal shipments and require updating existing bilateral postal arrangements or operational practices.
Uncertainties and risks:
The content and strictness of Treasury’s implementing regulations will determine the real burden and enforcement posture; rapid rulemaking risks gaps or rushed guidance.
Potential legal and trade policy pushback from affected industries, trading partners, or marketplaces concerned about competitiveness and access to the U.S. market.
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Read twice and referred to the Committee on Finance.
Introduced May 22, 2025 by Sheldon Whitehouse · Last progress May 22, 2025
Read twice and referred to the Committee on Finance.
Introduced in Senate