Proposed U.S. Customs changes to de minimis exemptions are dividing business leaders—some see a path to safer, fairer trade; others warn of higher costs, delays, and operational headaches.
Mixed Signals from Industry as CBP Tightens the Screws
U.S. Customs and Border Protection (CBP) is pushing forward with two rule changes that could dramatically reshape how low-value goods—those under $800—enter the U.S. duty-free. The measures include stricter data collection and a denial of de minimis treatment for goods subject to Section 201, 232, and 301 tariffs, such as those targeting imports from China, Mexico, and Canada.
The National Customs Brokers and Forwarders Association of America (NCBFAA) pushed back strongly, arguing that CBP’s fragmented six-channel entry process proposal would “create a de minimis environment rife with compliance, national security, and safety risks.” The group advocated instead for a uniform data set and bonded importer requirements, rejecting any flexibility in declaring Harmonized Tariff Schedule (HTS) codes.
Likewise, the National Foreign Trade Council (NFTC) highlighted concerns about consumer costs and capacity strain. According to the council, de minimis shipments help customs operate more efficiently—any change risks overloading the system and pushing traffic to postal channels that lack enforceable tracking. In their words: “Increases in government charges and transaction fees would be felt more directly by businesses and consumers.”
Calls for Reform Meet Operational Reality
Some stakeholders do support reform. The Aerospace Industries Association, which counts Amazon among its members, backed efforts to modernize the process. But it warned that enforcing 10-digit HTS code requirements could trigger “enforcement challenges” unless CBP updates its systems and resources accordingly. Without these updates, AIA noted, even the most well-intentioned reforms could create logistical chaos.
Public health voices are also weighing in. The Partnership for Safe Medicines endorsed tougher data rules to block counterfeit drugs but called for even deeper data fields, including SKU-level tracking and AI-driven inspection tools. Their stance: smarter enforcement, not just more paperwork.
On the other end, U.S.-based manufacturers like Decker Technology Group painted a stark picture. The company sources essential components from China and relies on de minimis entries to avoid bulk ordering. One small design tweak, and its entire inventory could be rendered useless. “That’s a 47.5% increase on a $500 shipment,” they warned, noting that even moderate fees and delays could jeopardize their survival.
Furniture wholesalers like N9ne Furniture Group, meanwhile, welcomed the crackdown. They argue the loophole has tilted the playing field in favor of overseas direct-to-consumer sellers. “Closing this loophole,” they said, “would help us claw back lost ground.”
Yet for small retailers like Kora’s Corner in Point Roberts, Washington—where Canadian foot traffic keeps businesses afloat—the threat is more existential. “We lack the resources of large corporations,” said owner Neil King, warning that detailed tariff codes and added documentation could upend already-fragile operations.
A Turning Point for Cross-Border Trade
CBP’s de minimis reforms are well-intentioned, aiming to balance national security with trade integrity. But the growing divide between small businesses and regulatory expectations is hard to ignore. For supply chain leaders, this moment demands a recalibration—balancing advocacy with readiness. Whether the rules pass as is or evolve, procurement and logistics heads should prepare for more rigorous classification, tech investment, and, potentially, a leaner but costlier import process.
