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This bill would tighten the rules for low-value imports that can enter the United States without paying customs duties. It is aimed at stopping people from splitting shipments to dodge tariffs and at limiting the duty-free treatment of certain goods from countries that already face trade penalties, especially China. It would also require more detailed product information when these items are imported and would add larger fines for breaking the rules.
- It would block the duty-free benefit when a single order or contract is broken into smaller shipments just to qualify.
- It would bar the $800 duty-free treatment for items already subject to certain import duties or restrictions, including those under trade laws used for safeguard, anti-dumping, countervailing, national security, and Section 301 tariffs.
- For certain covered goods, importers would have to provide the 10-digit customs classification code when filing entry paperwork.
- People who try to bring in goods in violation of these rules could face civil penalties of $5,000 for the first offense and $10,000 for each later offense.
Official Summaries
End China’s De Minimis Abuse Act
This bill prohibits certain U.S. imports from receiving de minimis treatment and establishes related civil penalties. (Current law allows for U.S. imports under a de minimis threshold of $800 per shipment to enter free of tariffs, fees, and taxes.)
The bill prohibits imports from receiving de minimis treatment if those imports are subject to specified trade remedies, including
- antidumping and countervailing duty tariffs (Subtitle A or B of Title VII of the Tariff Act of 1930),
- safeguard measures (Section 201 of the Trade Act of 1974),
- actions in response to unfair trade practices (Section 301 of the Trade Act of 1974), or
- actions for national security purposes (Section 232 of the Trade Expansion Act of 1962).
The bill requires imports from countries that are subject to trade restrictions under Section 301 of the Trade Act of 1974, in order to receive de minimis treatment, to have a 10-digit classification of the import under the Harmonized Tariff Schedule of the United States (HTS) that is provided to U.S. Customs and Border Protection. (HTS sets out the tariff rates and statistical categories for all U.S. imports.)
The bill also establishes civil penalties for any person who enters, introduces, or attempts to introduce an import in violation of this bill.
Current Full Text
[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 805 Introduced in House (IH)]
<DOC>
119th CONGRESS
1st Session
H. R. 805
To amend section 321 of the Tariff Act of 1930 to modify the
administrative exemptions under that Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 28, 2025
Mr. Murphy introduced the following bill; which was referred to the
Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend section 321 of the Tariff Act of 1930 to modify the
administrative exemptions under that Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``End China's De Minimis Abuse Act''.
SEC. 2. MODIFICATION OF ADMINISTRATIVE EXEMPTIONS UNDER THE TARIFF ACT
OF 1930.
(a) In General.--Section 321 of the Tariff Act of 1930 (19 U.S.C.
1321) is amended--
(1) in subsection (a)(2)--
(A) in the matter preceding subparagraph (A), by
striking ``admit articles'' and inserting ``subject to
subsection (b)(1), admit articles'';
(B) in subparagraph (C)--
(i) by striking ``$800'' and inserting
``subject to subsection (b)(2), $800''; and
(ii) by striking the period at the end and
inserting ``; and'';
(C) in the matter following subparagraph (C), by
striking ``The privilege'' and all that follows through
``; and'';
(2) by redesignating subsection (b) as subsection (d); and
(3) by inserting after subsection (a) the following:
``(b)(1) The privilege of subparagraph (A), (B), or (C) of
subsection (a)(2) shall not be granted in any case in which merchandise
covered by a single order or contract is forwarded in separate lots to
secure the benefit of such subsection.
``(2) The privilege of subparagraph (C) of subsection (a)(2) shall
not be granted with respect to any article that is subject to duties or
other import restrictions under any of the following provisions of law:
``(A) Subtitle A or B of title VII of this Act.
``(B) Section 201 of the Trade Act of 1974 (19 U.S.C.
2251).
``(C) Section 301 of the Trade Act of 1974 (19 U.S.C.
2411).
``(D) Section 232 of the Trade Expansion Act of 1962 (19
U.S.C. 1862).
``(3)(A) No covered article may receive the privilege of
subparagraph (C) of subsection (a)(2) unless the 10-digit
classification of the article under the Harmonized Tariff Schedule of
the United States is provided to U.S. Customs and Border Protection,
pursuant to an authorized electronic data interchange system, as part
of the entry filing in accordance with section 498 of this Act, in
addition to any other information required by law.
``(B) In this paragraph, the term `covered article' means an
article the origin of which is a country with any goods subject to
duties or other import restrictions under section 301 of the Trade Act
of 1974 (19 U.S.C. 2411).
``(c) Any person who enters, introduces, or attempts to introduce
an article in violation of this section is liable for a civil penalty
of $5,000 for the first violation; and $10,000 for each subsequent
violation. A penalty imposed under this subsection is in addition to
any other penalty authorized by law.''.
(b) Effective Date.--The amendments made by this section shall
apply with respect to articles entered, or withdrawn from warehouse for
consumption, on or after the 30th day after the date of the enactment
of this Act.
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