This webinar will provide a comprehensive discussion of the history and policy behind the de minimis provision; the opportunities and challenges associated with the de minimis provision; and various proposals to improve or restrict the provision.

Areas Covered

The webinar will cover: (1) Background, history, and policy behind the de minimis provision under Sec. 321 of the Tariff Act of 1930; (2) Details of the language in the de minimis provision; (3) Opportunities and challenges created by the increase in the de minimis provision; (4) Policy concerns and debate surrounding the de minimis provision; and (5) Proposals to change the de minimis provision and possible consequences.

Who Should Attend

Managers to C-Level Executives and Company General Counsels

Why Should You Attend

The increase in the de minimis level under Sec. 321 of the Tariff Act of 1930 created opportunities and challenges for companies and industries. Opportunities include reducing costs and increasing the efficiency of their e-commerce operations by avoiding some high U.S. duties and associated compliance costs on consumer goods, and a way for foreign exporters to get duty-free access to U.S. consumers. Challenges include (1) eliminating tariff protection on high-duty consumer goods like textiles, apparel, and footwear; (2) geopolitical concerns over trade with China, which has been a major beneficiary of the de minimis provision; (3) ensuring the de minimis rule does not provide easy access for fentanyl and other illicit trade to enter the U.S. market; (5) the ability of companies to keep their e-commerce distribution operations in the U.S. in the face of pressure created by the de minimis rule to move operations out of the country; and (6) possible action by Congress to reduce or eliminate the de minimis provision and/or exclude certain countries and products.

Topic Background

At the behest of the air express industry, in 2016, Congress increased the duty-free de minimis level for importations of individual products from $200 to $800 just as small package delivery was booming. This change created several controversies and challenges including eroding the tariff wall for U.S. manufacturers of high-duty consumer products like textiles and apparel, geopolitical concerns over trade with China, fentanyl and other illicit trade entering the U.S. market, and the ability of distributors of imported consumer goods through e-commerce channels to remain in the United States.