Sponsors (2)
Official title: To amend section 321 of the Tariff Act of 1930 to modify the administrative exemptions under that Act.
Introduced January 28, 2025 by Gregory Francis Murphy · Last progress January 28, 2025
The bill strengthens customs enforcement and closes loopholes to protect revenue and domestic competitors, but it raises compliance costs and penalty risks—especially for very small e‑commerce sellers and individual importers.
U.S. importers and domestic manufacturers face less unfair competition because the bill closes low-value exemption and shipment-splitting loopholes that were used to evade trade‑remedy and national‑security duties, protecting U.S. revenue and leveling the playing field.
Customs and enforcement agencies can more precisely target collections and enforcement because covered entries must be filed electronically with 10‑digit HTSUS classifications via authorized data interchange.
Small e‑commerce sellers and individual importers will face added compliance burdens and may lose the $800 de minimis benefit for affected goods, increasing their costs and administrative load.
Importers (especially small firms) face higher financial risk because civil penalties rise to $5,000 for a first violation and $10,000 for subsequent violations, heightening the cost of filing errors or misunderstandings.
Very small sellers and some foreign vendors must bear technology and integration costs to meet the authorized electronic data interchange and 10‑digit classification requirements, which may be a barrier to participation.
Based on analysis of 2 sections of legislative text.
Restricts de minimis duty‑free entries by banning order‑splitting, excluding goods subject to certain trade‑remedy/national‑security duties, requiring 10‑digit HTSUS electronic filings, and raising penalties.
Limits the use of the $800 de minimis duty-free/low-value import exemption and tightens customs entry rules to stop abusive splitting of orders and imports that evade trade remedy or national-security duties. It requires 10‑digit HTSUS classification submitted electronically for eligible de minimis entries, raises civil penalties for violations, and applies to entries or withdrawals for consumption made 30 days after enactment.