De Minimus Update
Jack LaMadeleine • February 5, 2025
The recent guidance from U.S. Customs and Border Protection (CBP) regarding de minimis shipments from China is a significant update. Here's a quick breakdown of the key points in the alert:
New Executive Order (EO):
- The EO signed by President Trump on February 1, 2025, imposed an additional 10% tariff on U.S. imports from China. This affects the de minimis exemption for Chinese shipments, which previously allowed for low-value shipments to enter without paying duties.
Effective Date:
- The guidance took effect at 12:01 a.m. ET on February 4, 2025.
Impact on De Minimis Shipments:
- Most products from China (including Hong Kong) no longer qualify for the administrative exemption under 19 U.S.C. § 1321(a)(2)(C).
- Shipments from China that were previously eligible for de minimis treatment will now be subject to the 10% additional ad valorem duties.
- Any requests for de minimis entry and clearance for ineligible shipments will be rejected.
Actions Required by Importers:
- If a shipment was already filed as a de minimis entry, but it arrives after the cutoff time, it will no longer qualify.
- Filers will need to take action to clear the shipment under the new rules, including potentially paying applicable duties, taxes, and fees through a formal or informal entry.
- Pre-arrival clearances for affected shipments will be canceled after the cutoff time (12:01 a.m. ET on February 4).
CBP Guidance:
- The trade community is advised to closely monitor the shipments and messages from CBP.
- New technical guidance will be provided via CSMS as needed.
ACE System Updates:
- Changes in the Automated Commercial Environment (ACE) system are available in the Certification Environment starting at 5:30 p.m. ET on February 3, and will be accessible in the Production Environment following a maintenance outage.
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