By David Lawder and Andrea Shalal
WASHINGTON (Reuters) -The U.S. ended tariff exemptions for parcel imports on Friday with out the logistical hiccups that dogged prior makes an attempt, whereas customers, e-commerce firms and small companies utilizing on-line marketplaces braced for price will increase and provide chain disruptions.
The U.S. Customs and Border Safety company started gathering regular responsibility charges on all package deal shipments valued underneath $800, no matter worth, nation of origin, or mode of transportation.
For the primary six months, importers can choose to pay a flat-rate responsibility of $80 to $200 per package deal shipped from overseas postal companies.
The change broadens the Trump administration’s cancellation of the de minimis exemption, already in place for packages from China and Hong Kong since Might as a part of an effort to halt shipments of fentanyl and its precursor chemical compounds into the U.S.
The customs company’s commissioner, Rodney Scott, mentioned it was able to implement the brand new responsibility necessities.
“For too lengthy, this loophole handed prison networks a free move to flood America with fentanyl, faux items, and unlawful shipments. These days are over.”
Trump administration officers mentioned the change may increase U.S. customs revenues by $10 billion yearly.
The de minimis exemption has been in place since 1938, beginning at $5 for present imports, and was raised from $200 to $800 in 2015 to foster small enterprise development on e-commerce marketplaces.
Direct shipments from China surged after President Donald Trump raised tariffs on Chinese language items throughout his first time period, creating a brand new direct-to-consumer enterprise mannequin for e-commerce corporations akin to Shein and Temu.
The Nationwide Coalition of Textile Organizations hailed a “historic win” for U.S. manufacturing following the closing of a loophole that allowed overseas fast-fashion corporations to keep away from tariffs and import attire generally made with pressured labor, undercutting American jobs.
“The administration’s govt motion closes this channel and delivers lengthy overdue reduction to the U.S. textile business and its staff,” the group mentioned.
The customs company has estimated that the variety of packages claiming the de minimis exemption jumped practically 10-fold from 139 million in fiscal 2015 to 1.36 billion in fiscal 2024 – a price of 4 million per day.
Greater than 25 overseas postal providers suspended mail to the U.S. within the run-up to the de minimis deadline, serving to the U.S. to keep away from a repeat of the chaotic package deal pile-up that pressured the Trump administration to drag again on its first try at ending the de minimis exemption for China in February.