The GigReporter

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WHITE HOUSE PLANS NEW RESTRICTIONS ON SMALL CLOTHING IMPORTS

09/23/2024

The Journal of Commerce reports[1] that the Biden administration has announced plans for new rules restricting the imports of apparel and textiles falling under the de minimis exemption for low-value imports. These small shipments may soon be subject to tariffs and additional information requirements.

Currently, American trade law allows single shipments valued under $800 to enter the country without paying duties and fewer information gathering requirements. However, Section 301 of the Trade Act of 1974[2] grants broad authority to the United States Trade Representative, at the direction of the President, to impose duties or trade restrictions on foreign commerce whenever a foreign action burdens commerce in the United States.

The volume of de minimis exemptions has doubled in the first half of this year, and the Biden administrations seems concerned that foreign businesses, particularly from China, are abusing the de minimis exemption to unfairly compete by flooding the U.S. market with clothing and textile goods, some of which do not meet health and safety standards. The proposed rulemaking will institute import tariffs on such de minimis shipments and require importers to file certificates of compliance with both U.S. customs officials and the Consumer Product Safety Commission.

Most affected imports enter the United States via airplane, but some do arrive on trucks. Carriers handling cross-border shipments are advised to keep abreast of developments in this matter to keep their compliance efforts up to date.

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