Biden Moves to Tighten Rules on Low-Value Chinese Imports

The Biden administration announced new trade rules to curb duty-free low-value shipments entering the U.S. from Chinese e-commerce firms. Changes include enhanced disclosure requirements and new tariffs on goods like textiles. The aim is to reduce the volume of de minimis shipments and enhance screening for illicit or unsafe products.

The Biden administration announced on Friday a move to curb the surge of low-value shipments entering the U.S. duty-free under the $800 'de minimis' threshold. This threshold has been increasingly exploited by Chinese e-commerce firms such as Shein and PDD Holdings' Temu.

To address the issue, the White House plans to propose new trade rules to deny duty-free exemptions to packages containing low-value goods subject to Section 301, Section 232, and Section 201 tariffs. Enhanced disclosure requirements for small packages will also be introduced to help U.S. Customs better identify contents for illicit or unsafe products.

The initiative follows pressure from Democratic lawmakers urging President Joe Biden to close the 'de minimis' provision. The provision has allowed a sharp increase in duty-free imports, particularly benefiting Chinese firms, while making it harder to block illegal and unsafe shipments. The administration aims to reduce the volume of these shipments to improve overall screening processes.

(With inputs from agencies.)