U.S. Customs and Border Protection (“CBP”) is preparing a regulatory change that would eliminate the $800 de minimis exemption for imports subject to Section 301 tariffs, according to a proposed rule submitted by CBP to the Office of Management and Budget (“OMB”) on September 2, 2020.  Reviews of the proposed rule by OMB and an interagency review are the final steps before the publication of a final rule in the Federal Register.

Section 321 of the Tariff Act of 1930 (19 USC § 1321) provides for an exemption from duties for certain shipments imported by one person on one day having an aggregate retail value in the country of shipment of not more than $800. Since the de minimis exemption applies only to low-value shipments of not more than $800, the exemption under Section 321 is most commonly applied to e-commerce scenarios where the seller ships directly to the buyer from a foreign country.

We will continue to monitor this situation and provide any updates as they become available. Husch Blackwell encourages those who may have questions or concerns on this issue to please contact Robert Stang and the International Trade and Supply Chain team.

 

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Photo of Robert Stang Robert Stang

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade…

Bob focuses his practice on customs and international trade law. He brings 30 years of experience to a wide range of issues that affect inbound and outbound goods, including tariff classification, valuation, country of origin marking matters, free trade agreements, and special trade programs. He also has extensive customs compliance experience and regularly assists importers facing U.S. Customs and Border Protection (CBP) audits, penalties, seizures, redelivery notices and other agency enforcement activities. Bob works with importers and exporters proactively to achieve cost savings and structure programs that meet CBP “reasonable care” requirements. He also handles supply chain security issues, including Customs-Trade Partnership Against Terrorism (C-TPAT) enrollment, verification and annual reviews.

Photo of Julia Banegas Julia Banegas

Julia is an associate in the Washington, DC office of Husch Blackwell. She advises clients doing business in the heavily-regulated Government Contracts and International Trade sectors.

Photo of Turner Kim Turner Kim

A trade analyst, Turner conducts industry research and analyzes trade data to assist attorneys with client proceedings at the U.S. International Trade Commission, U.S. Department of Commerce and U.S. Court of International Trade. He also actively monitors U.S. government and global trade developments…

A trade analyst, Turner conducts industry research and analyzes trade data to assist attorneys with client proceedings at the U.S. International Trade Commission, U.S. Department of Commerce and U.S. Court of International Trade. He also actively monitors U.S. government and global trade developments for issues relating to client’s most critical trade matters.

Photo of Camron Greer Camron Greer

A trade analyst, Camron researches transitions in global trade policy and their impact on client business matters. Camron assists clients, attorneys and legal teams when trade, business and the law intersect.