White House Takes Action Against E-commerce Shipment Abuses

In a significant move to protect American consumers and businesses, the Biden-Harris Administration has announced new executive actions targeting the surge in de minimis shipments, particularly from China-founded e-commerce platforms. The White House is set to implement rules aimed at blocking illicit shipments that exploit the de minimis exemption—a loophole allowing certain imports to enter the U.S. duty-free.

The majority of these shipments, now exceeding one billion annually, originate from Chinese e-commerce platforms. This influx has prompted the Administration to use its executive authority to curb what it describes as “significant increased abuse.” Additionally, there is a call for Congress to enact legislation reforming this exemption comprehensively within the year.

According to the National Customs Brokers & Forwarders Association of America (NCBFAA), the proposed measures include enhancing information collection for better accountability and enforcement of de minimis shipments. This step aims to ensure consumer safety by preventing goods that fail health standards from entering the market and safeguarding U.S. workers and businesses from unfair competition.

Moreover, another rule in consideration would disqualify products subject to U.S. trade enforcement actions—like low-value textiles—from this exemption, effectively closing a significant loophole. A final rule by the Consumer Product Safety Commission (CPSC) would also require electronic filing of Certificates of Compliance with Customs and Border Protection (CPSC), bolstering efforts against unsafe products bypassing consumer protection laws.

These initiatives build upon ongoing efforts by the Department of Homeland Security and Customs and Border Protection to address de minimis abuses more effectively.