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Adds new administrative provisions to section 321 of the Tariff Act of 1930 requiring submission of specified documentation/information for articles that may qualify for an administrative exemption, establishes veracity standards, authorizes CBP use of the information, prescribes civil penalties for violations, and authorizes exceptions to exemptions for importations caused or facilitated by persons suspended or debarred from doing business with the Federal Government.
Replaces references to the Customs Service with 'U.S. Customs and Border Protection' in section 499(c), reorganizes paragraph (2) language, and adds requirements for CBP when detaining merchandise that may qualify for certain administrative exemptions, including notice to interested parties, option to voluntarily abandon merchandise, and procedures if no response is received within 30 days (denial of entry/export at importer's expense or deemed abandonment with title vesting in the United States).
Amends the Tariff Act de minimis (duty‑free) rule to allow Customs to limit the $800 duty‑free exception for certain low‑value imports, and disallows the exemption when the article both originates from or is shipped from a country that is a “nonmarket economy” and is on the Trade Act priority watch list. It also requires the Treasury Secretary to issue regulations within 180 days setting reporting requirements for parties seeking the administrative exemption, creates civil penalties for false or missing information, and directs CBP to adopt notice, detention/abandonment, and disposition procedures for merchandise that may have claimed an exemption improperly. The changes take effect for articles entered or withdrawn for consumption on or after the 180th day after the Act is enacted.
Amend the introductory wording of subsection (a) by replacing “(a) The Secretary” with “(a) .—The Secretary.” This is a textual amendment to subsection (a).
In subsection (a), paragraph (2), subparagraph (C): replace the phrase “$800” with the phrase “except as provided in subsection (b)(1), $800” (i.e., insert a cross‑reference to subsection (b)(1) into the $800 language).
In the matter following subparagraph (C) (as amended), replace each instance of the word “subdivision (2)” with the word “paragraph.”
Strike the phrase “(b) The Secretary” and insert a new subsection heading and text labeled “(b) Exceptions.” This replaces the existing subsection (b) heading/text with the new Exceptions subsection shown in the amendment.
Subsection (b)(1) (In general) states: “An article may not be admitted free of duty or tax under the authority provided by subsection (a)(2)(C) if the country of origin of such article, or the country from which such article is shipped, is — (A) a nonmarket economy country (as such term is defined in section 771(18)); and (B) a country included in the priority watch list (as such term is defined in section 182(g)(3) of the Trade Act of 1974 (19 U.S.C. 2242(g)(3))).” In other words, the amendment makes articles from countries meeting both conditions ineligible for duty‑free treatment under subsection (a)(2)(C).
Who is affected and how:
Importers and third‑party representatives (customs brokers, freight forwarders, declaring parties): Most directly affected. They must supply required information to CBP to support de minimis claims, face potential civil penalties for inaccurate or missing information, and may experience more detentions and administrative review of shipments. Expect increased compliance costs, new data collection and recordkeeping, and possible shipment delays.
Advertisers and sellers on online platforms (including foreign sellers using U.S. marketplaces): Many low‑value cross‑border sales rely on de minimis treatment. Sellers and marketplaces may need to provide additional shipment and origin data or change practices (e.g., absorb duties or alter shipping channels) to avoid detention or penalties.
Foreign persons and exporters (manufacturers, shippers): Entities shipping from countries that are designated both ‘‘nonmarket economies’’ and on the Trade Act priority watch list cannot obtain the administrative exemption for eligible shipments; exporters must anticipate customs checks, and some consignments may lose duty‑free status.
Federal agencies and CBP/Treasury (administration and enforcement): Treasury must issue regulations within 180 days; CBP must implement new intake, detention, notice, abandonment, and disposition procedures and administer civil penalties. Operational workload and IT/process changes will be required.
American consumers and businesses receiving low‑value imports: Potential indirect effects include slower deliveries, increased shipping costs, or pass‑through of duties and fees when de minimis treatment is unavailable or claims are subject to scrutiny.
Net effect: The law tightens eligibility for a commonly used duty exemption, increases regulatory paperwork and enforcement tools for customs officials, and shifts compliance responsibilities and risks onto importers, sellers, carriers, and foreign shippers. It does not appropriate new funds or create new social programs, and it phases in after a 180‑day rulemaking/implementation period.
Referred to the House Committee on Ways and Means.
Introduced January 9, 2025 by Thomas Suozzi · Last progress January 9, 2025
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Referred to the House Committee on Ways and Means.
Introduced in House