HB1840, the “Closing the De Minimis Loophole Act,” would phase out the de minimis customs treatment under section 321 of the Tariff Act of 1930. De minimis treatment currently allows certain low-value imports to enter the United States with reduced or no duty collection and simplified entry procedures. The bill amends the statute to eliminate that treatment, with an immediate effective date for articles originating in China and a 120-day delayed effective date for articles from other countries.
The bill also directs the Secretary of the Treasury to conduct rulemaking within the 120-day transition period to implement the change, including revising entry procedures, data requirements, and penalty rules for informal entries. It specifically calls for more detailed Harmonized Tariff Schedule identification, stronger documentation standards, and enforcement measures intended to deter fraud and improve collection of duties, fees, and taxes. For shipments moving through the international postal network, Treasury and the Postmaster General would be required to align postal treatment as closely as feasible with other import channels.
Impact
If enacted, the bill would substantially narrow or end the de minimis import exemption in federal customs law by amending section 321(a)(2) of the Tariff Act of 1930. It would affect importers, e-commerce sellers, customs brokers, the U.S. Postal Service, and federal customs enforcement by increasing reporting obligations, duty collection, and compliance requirements for low-value shipments. The measure would also require Treasury to update regulations and procedures governing informal entries and postal shipments, likely increasing administrative oversight and enforcement capacity.
Sentiment
Based on the bill text and the absence of recorded committee debate or votes in the provided materials, the bill appears to be framed as a trade-enforcement and customs-compliance measure rather than a partisan policy package. The title and provisions suggest support from lawmakers concerned about loopholes, duty avoidance, and fraudulent imports. No contrary views are documented in the supplied record, but the delayed implementation for non-China shipments indicates an attempt to manage transition concerns for importers and logistics systems.
Contention
The main point of contention is the elimination of de minimis treatment itself, which would raise costs and compliance burdens for low-value imports and could affect cross-border e-commerce and postal shipments. The bill’s immediate application to China-origin goods, contrasted with a 120-day delay for other countries, may also draw scrutiny as a targeted trade measure. Another likely area of dispute is the requirement for more detailed entry data and stronger penalties, which importers and shipping intermediaries may view as burdensome, while supporters would see them as necessary to curb evasion and improve enforcement.