US President Donald Trump on Friday signed an executive order delaying tariffs on lower-value packages from China that enjoy the exemptions until the US Commerce Department can confirm that procedures and systems are in place to process packages and collect tariff revenue.
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The “de minimis” exemption that allowed packages worth less than US$800 to enter the United States duty-free was removed as part of an executive order signed by Trump on February 1 raising tariffs on Chinese goods by 10 per cent.
The tax loophole played a big role in driving the growth of China’s cross-border e-commerce industry, as vendors sending small shipments directly to US consumers were able to avoid US import duties and customs checks.
The amendment – dated February 5 but signed on Friday – stipulates that de minimis treatment “cease to be available for such articles upon notification by the secretary of commerce to the president that adequate systems are in place to fully and expediently process and collect tariff revenue applicable”.
It was not immediately clear why Trump’s signature came two days after the amendment’s date, or why the Commerce Department would be involved given that US Customs and Border Protection is responsible for collecting tariffs.
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