Industry News
Proposed Rule Prohibits Section 301 Goods from De Minimis Exemption
TweetJan. 21, 2025
By:
Austin J. Eighan
U.S. Customs and Border Protection announced a proposed rule aimed at tightening the duty-free exemption for certain low-value (or “de minimis”) imports by introducing several major changes to the applicable regulations. Most notably, Customs seeks to make de minimis value goods, which are subject to trade and national security actions (such as Section 201, 232, and 301 duties), ineligible for the duty-free exemption. The proposed rule would also require that shipments claiming the de minimis exemption include the 10-digit Harmonized Tariff Schedule of the United States (HTSUS) classification upon entry.

Section 321(a)(2) of the Tariff Act of 1930 (19 U.S.C. § 1321(a)(2)), as amended, authorizes eligible merchandise with an aggregate value up to $800 per day per person to be imported duty- and tax-free. Importers may currently take advantage of the de minimis exemption for any applicable goods regardless of whether they would otherwise be subject to ad valorem duties imposed under trade or national security actions. The exemption is currently only unavailable for goods subject to any absolute or tariff-rate quota, as well as antidumping or countervailing duties. However, the proposed rule also seeks to broaden the prohibition and “strengthen the effectiveness of [the] United States’ trade and national security actions” by making all goods subject to ad valorem duties under Sections 232, 201, or 301 (even if they are accorded an exclusion) ineligible for the de minimis exemption.
Earlier this week, Customs proposed various amendments to de minimis entry procedures, such as the introduction of the “enhanced entry process” and its 10-digit classification requirement, as well as revisions to the “basic entry process” (read more here). In this latest proposed rule, Customs would also extend the 10-digit classification requirement to goods claiming the de minimis exemption under both entry processes, as well as goods released from manifest.
Customs acknowledged that should this rule be finalized as proposed, U.S. consumers may face higher prices for imported goods. However, the total amount of additional revenue to be collected is nonetheless projected to range between $5.9 billion and $7.8 billion in 2025.
If your company is interested in submitting comments or assessing how these regulatory changes may affect your business, do not hesitate to contact one of our attorneys at Barnes, Richardson & Colburn.