US lifts tariff exemptions on low-value shipments from China

(CLO) One day before announcing the reciprocal tax list, US President Donald Trump signed an executive order to end the practice of allowing low-value packages from China and Hong Kong (China) to enter the US without being subject to taxes.

President Donald Trump has signed an executive order eliminating the minimum duty exemption for low-value imports from China and Hong Kong, effective at 12:01 a.m. ET on May 2, the White House said on its official website on April 2.

The duty-free regime, known as “de minimis,” allows items worth $800 or less to be imported into the United States duty-free. But President Donald Trump has said it is a trade loophole that is being exploited by bad actors to hide illegal substances, including drugs, from entering the U.S. market.

Currently, 60% of "de minimis" goods entering the US come from China. Photo: GI

The White House said the decision to end "de minimis" came after US Commerce Secretary Howard Lutnick confirmed "there was an appropriate system in place to collect duties" on these low-value shipments.

Accordingly, imported goods from China and Hong Kong (China) sent outside the international postal network and valued at or below 800 USD will now be subject to all applicable taxes.

Imported goods sent through the postal network and valued at or below $800 will currently be subject to a duty of 30% of the value of the goods or $25 per item, which will increase to $50 per item after June 1.

Mr Trump actually signed an executive order ending tariff exemptions for low-value Chinese goods on February 1 but later suspended the order because of logistical problems that complicated the inspection of millions of low-value shipments.

The number of goods entering the US via the duty-free route has skyrocketed in recent years, reaching nearly 1.4 billion packages last year. More than 90% of all goods sent into the US are now “de minimis”, and about 60% of that comes from China, led by direct retailers like Temu and Shein.

The White House said that carriers shipping packages from China and Hong Kong must "report shipment details to U.S. Customs and Border Protection (CBP), maintain international transportation bonds to ensure payment of duties and taxes, and remit duties to CBP on a scheduled basis."

According to Reuters, the US Secretary of Commerce will submit a report within 90 days to assess the impact of the decree and consider whether to extend this regulation to parcels from Macau (China).

Quang Anh (according to WH, Reuters, WSJ)

Source: https://www.congluan.vn/my-bo-mien-thue-doi-voi-cac-lo-hang-gia-tri-thap-tu-trung-quoc-post341277.html