The US Customs and Border Protection (CBP) announced on Wednesday, December 17th, that due to the implementation of new measures to enforce strict supervision on low-price parcels, the country’s economy and national security have been enhanced.
The announcement stated that CBP has been gradually phasing out the “De Minimis” policy since May this year, which exempted e-commerce parcels valued below $800 from taxes. Tariffs collected on over 2.46 billion batches of low-cost goods have exceeded $1 billion, setting a record.
Rodney S. Scott, the CBP Commissioner, lamented in the announcement, “Reaching the milestone of $1 billion so quickly shows how much revenue we lost under the old policy.” He further mentioned, “Through this reform, not only can CBP more effectively monitor goods entering our country, but American businesses no longer have to compete with tax-exempt foreign products.”
Starting on May 2, 2025, the Trump administration began gradually closing the loopholes in the “De Minimis” exemption, and low-value goods from mainland China and Hong Kong no longer enjoyed tax-free treatment.
Foreign companies often break down bulk commodities into many low-priced small parcels, ensuring each parcel falls below the “De Minimis” threshold, thus avoiding both duties and rigorous inspections.
CBP ultimately fully abolished the “De Minimis” provision on August 29. From that day onward, imported goods valued under $800 are no longer automatically exempt from duties, taxes, or other charges and must be declared and taxed following the regular import process.
Today, CBP can not only collect significant tariffs through comprehensive inspection of goods but also prevent dangerous and illegal products from reaching American consumers.
Since the inception of the new policy, the CBP has discovered an 82% increase in unsafe and non-compliant low-value goods, including counterfeit products, drugs, defective electronics, and items containing hazardous chemicals.
Susan S. Thomas, Acting Assistant Commissioner for CBP’s Trade Office, stated, “Cracking down on smuggling of drugs, counterfeit goods, and other illegal items makes our country safer.”