CBP Proposes New Rules on Low-Value Imports

At a glance

• The main takeaway: U.S. Customs and Border Protection (CBP) has proposed changes to duty exemption for low-value imports to protect American businesses and workers from unfair trade practices.
• The impact on your business: Businesses and consumers that import low-value items may experience increased duties, delays in customs clearance, and stricter reporting requirements on imported merchandise.
• Next steps: Meet with Aprio’s Customs and Tariffs Services team to reduce customs duties, maximize international tax savings, and ensure compliance with evolving CBP regulations.

The full story:

On January 17^th, CBP announced the second Notice of Proposed Rulemaking (NPRM) in 2025 that aims to crack down on the de minimis duty exemption for certain low-value shipments imported into the U.S. These proposed rules arrive after mounting concerns with the volume of shipments entering the U.S. that claim the de minimis exemption. The use of this exemption increased more than 600% from fiscal year (FY) 2015 to FY 2023. This increase has created challenges with effective enforcement for health and safety requirements, intellectual property (IP) rights, consumer protection rules, and trade laws.

Low-value shipments eligible for the de minimis exemption include:

• Bona-fide gifts valued at $100 or less sent from a foreign country to a person in the U.S.
• Personal or household articles valued at $200 or less accompanying a person arriving in the U.S.
• Other imported articles valued at $800 or less

This most recent NPRM is a continuation of the first NPRM, which was issued on January 13^th with the intention of enhancing supply chain visibility and contraband detection accuracy by introducing an “enhanced entry process.” CBP stated that existing entry requirements for low-value shipments did not provide sufficient information to accurately identify the shipment’s merchandise or the parties involved in its sale and purchase. Consequently, CBP issued the first NPRM to establish the enhanced entry process and enable CBP to more accurately target high-risk shipments. Under this new process, the NPRM requires shipments claiming the de minimis exemption through the enhanced entry process to provide additional reporting elements for the merchandise, like the 10-digit Harmonized Tariff Schedule of the United States (HTSUS) classification.

The second NPRM aims to further expand upon the objectives of its predecessor by eliminating the duty-free exemption for low-value shipments subject to specific trade actions, such as Section 301 tariffs on Chinese imports, Section 232 tariffs on steel and aluminum, and Section 201 duties on solar products. Currently, merchandise subject to a quota, whether open or closed, is not eligible for the de minimis administrative exemption, but goods subject to Section 201, 232, and 301 tariffs may still claim the exemption. CBP believes stricter de minimis exemption will help remove unfair advantages for Chinese-founded e-commerce platforms that hinder American workers, retailers, and manufacturers. Thus, with this NPRM, the specified trade actions will no longer be eligible for duty-free treatment under the de minimis exemption, and low-value shipments that enter the U.S. through the “basic entry process” will also be subject to provide the HTSUS classification for the merchandise.

Impacts on consumers and importers

CBP modeled two scenarios to evaluate the additional costs imposed on consumers as a result of the proposed rule:

1. If imports are consolidated into bulk shipments to lose the de minimis exemption, consumers will face higher costs from the additional tariffs, which would amount to approximately $10 billion in 2025.
2. If imports from China continue entry as single-recipient, low-value items, this will push additional broker fees, Merchandise Processing Fees (MPFs), and tariffs on each package, amounting to more than $18 billion in additional costs in 2025.

In its analysis of the economic impacts, CBP acknowledged that poorer households buy more from Chinese-based e-commerce platforms like Shein and Temu; as a result, these households are likely to experience a 25% higher financial impact than the average household. Regarding inflation on the overall market, CBP projects the impact will be marginal, increasing the average cost of imported goods to less than one-third of a percent as in scenario 1 or one-half of a percent in scenario 2.

Prepare for changes in costs & documentation

Many companies that import foreign merchandise or purchase from foreign-based companies, especially those in China, should prepare for stricter reporting requirements and increased duties. CBP invites those who are interested to submit commentary on the rule at https://www.regulations.gov, docket number USCBP-2025-0003. Feedback can be submitted for 60 days starting January 21^st.

However, these proposals could undergo further changes with the new presidential administration. On January 20^th, the White House issued the “America First Trade Policy” executive order that directs several agencies to review the loss of tariff revenues and the risks of importing counterfeit products and contraband drugs that result from the de minimis exemption. This review could result in additional changes or modifications to low-value import duties.

To stay updated on the recent developments and navigate the implications of CBP’s NPRMs, Aprio’s team of Customs and Tariffs advisors are available to help. Our knowledgeable team members can help devise regulation-compliant and tax-effective foreign trading procedures.

Related Resources/Assets/Aprio.com articles/pages

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Tariffs & Import Sanctions: Retaliation Against China’s Unfair Trade Acts