Closing the De Minimis Loophole Act
SB 1867, the “Closing the De Minimis Loophole Act,” would eliminate de minimis treatment under section 321(a)(2) of the Tariff Act of 1930. De minimis treatment currently allows certain low-value imports to enter the United States with reduced customs processing and without the full set of duties, fees, and documentation requirements. The bill would end that treatment immediately for goods originating in China and, after a 120-day delay, for goods from all other countries.
The bill also directs the Secretary of the Treasury to conduct rulemaking within 120 days to implement the change, including procedures for ending existing privileges, strengthening data and entry requirements for informal entries, and tightening penalties and liability rules to deter fraud and encourage reasonable care in import documentation. For shipments entering through the international postal network, Treasury, in consultation with the Postmaster General, would be required to set fees and procedures to align postal shipments as closely as feasible with other imports.
The bill would amend the Tariff Act of 1930 by striking the statutory language that authorizes de minimis entry treatment for certain imports, thereby expanding customs enforcement and increasing the likelihood that low-value shipments are subject to duties, fees, and more detailed entry procedures. It would also require Treasury to update regulations, guidance, and entry systems, including more specific Harmonized Tariff Schedule classification information, and to coordinate postal processing rules with the U.S. Postal Service. Importers, e-commerce sellers, customs brokers, carriers, and postal shippers would be directly affected, especially those relying on low-value shipments to avoid formal customs processing.
The available context suggests generally supportive or reform-oriented sentiment, reflected in the bipartisan sponsorship by Senators Whitehouse and Graham and the bill’s framing as a measure to close a loophole. No committee transcript or vote record is provided, so there is no evidence of formal opposition or amendment debate in the supplied materials. The bill appears to be presented as a customs enforcement and trade compliance measure rather than a partisan policy fight.
The main likely point of contention is the elimination of de minimis treatment itself, which would raise compliance burdens and potentially increase costs for importers, online marketplaces, small businesses, and consumers who benefit from duty-free low-value shipments. Another likely issue is the immediate application to China-origin goods versus the 120-day delayed application for other countries, which could raise concerns about trade fairness, implementation timing, and supply-chain disruption. The postal-network provisions and expanded data/penalty requirements may also be debated by stakeholders concerned about administrative complexity and the operational impact on the U.S. Postal Service and customs processing.