<figure id="attachment_3024677" aria-describedby="caption-attachment-3024677" style="width: 1600px" class="wp-caption aligncenter"><img loading="lazy" class="wp-image-3024677 size-full" src="https://media.freemalaysiatoday.com/wp-content/uploads/2025/04/bc772b8a-12942482_1600x1000_1.webp" alt="" width="1600" height="1000" /><figcaption id="caption-attachment-3024677" class="wp-caption-text">Low-value shipments from China to the US reached an estimated US$5.1 billion in 2024, according to US Census Bureau data. (EPA Images pic)</figcaption></figure>
WASHINGTON: The Trump administration ended US duty-free access for low-value shipments from China and Hong Kong today removing the &#8220;de minimis&#8221; exemptions availed of by Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods.
The action restores an executive order from President Donald Trump in February that was quickly suspended due to a lack of screening procedures for sub-US$800 shipments that sparked chaos at airports and caused millions of packages to pile up.
&#8220;US customs and border protection (CBP) has &#8216;a massive task at hand&#8217; but is ready to handle the enforcement and collection of Trump&#8217;s tariffs on small Chinese shipments,&#8221; a spokesman for the agency said.
&#8220;We are prepared and equipped to carry out enhanced package screening and enforce orders effectively as outlined&#8221; in Trump&#8217;s executive order ending de minimis treatment for China, the spokesman added.
&#8220;The new procedures should not affect passenger wait times at airports and ports of entry,&#8221; the spokesman said.
The packages are handled in the cargo section of airports, even when they arrive in the bellies of passenger planes.
Under CBP&#8217;s latest guidance, shipments from China and Hong Kong regardless of size will now be subject to Trump&#8217;s new tariffs of 145% plus any prior duties, except for products such as smartphones which were excluded last month.
These will largely be handled by express shippers such as FedEx, United Parcel Service or DHL, which have their own cargo handling facilities.
Items valued at up to US$800 and sent from China via postal services are treated differently.
They are now subject to a tax of 120% of the package&#8217;s value or a flat fee of US$100 per package &#8211; an amount that rises to US$200 in June.
Collections at take-off
The US Postal Service (USPS) said it would not be involved in any duty collections.
Instead, a USPS spokesman said, airlines and vessel operators would need to work with shippers and Chinese postal authorities to pay the import taxes and show proof before the goods are transported out of China or Hong Kong.
Although de minimis is a Latin term referring to matters of little importance, low-value shipments from China to the US reached an estimated US$5.1 billion in 2024, according to US Census Bureau data.
That made it the seventh-largest US import category from China, behind video game consoles, but just ahead of computer monitors.
Shippers were bracing for more package chaos, and some questioned whether airlines were prepared to handle duty collection from China Post and Hongkong Post.
&#8220;We have the same worry about bottlenecks,&#8221; said Kate Muth, executive director of the International Mailers Advisory Group (IMAG), whose members include Amazon.com, eBay and divisions of United Parcel Service, FedEx and DHL.
&#8220;I don&#8217;t think we&#8217;re ready for the change because we&#8217;re still awaiting some clarification around the rules,&#8221; including how to define Chinese origin for goods that are shipped from other countries,&#8221; Muth said.
Formal entry shift
A late change in the CBP&#8217;s guidance took away a major complication for shippers, but created a potential new hurdle to enforcement as CBP temporarily suspended a rule that would have required formal customs entry for all shipments valued at over US$250 containing goods that are also subject to punitive tariffs.
Formal customs entry, normally associated with larger, containerised cargo, requires full 10-digit tariff codes for all items, advance electronic transmission of entry data and a bond to cover for customs liability.
It would have applied to many other countries now subject to US tariffs imposed by Trump, creating a potential new crush of administrative paperwork for shippers.
Instead, the suspension allows the use of informal entry procedures for shipments from China and Hong Kong valued at up to US$800 and up to US$2,500 from elsewhere, requiring no tariff codes and a less detailed contents description.
Lori Wallach, director of Rethink Trade, which has advocated an end to the de minimis exemption, said the use of informal entry would make it harder to screen packages.
&#8220;Without it being electronic or having an HTS code, the whole system that&#8217;s used to inspect and to prioritise things that should be pulled for inspection doesn&#8217;t work,&#8221; Wallach said.
Trump ended the de minimis exemption for China largely because it was being used for largely unscreened low-value shipments containing fentanyl precursor chemicals into the US, a phenomenon documented in a Reuters series about fentanyl.

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