House Bill Would Allow De Minimis Limit for Duty-Free Entry to be Increased
On May 25, 2010, Representative Owens (D) introduced H.R. 5375, the Customs De Minimis Adjustment Act of 2010, which would allow the de minimis limit for duty-free entry to be increased.
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(This bill has been introduced and is not in effect. Generally, in order for a bill to be implemented, identical versions of the bill must be passed by both the House and Senate, and then the bill must be approved (enacted) by the President.)
Bill Would Allow De Minimis Limit to be Increased to $1,000 or More
H.R. 5375 would amend 19 USC 1321(a)(2)(C) to authorize the Treasury Secretary to allow articles1 to be imported duty- and tax-free by one person on one day in an amount not exceeding that specified by regulation, but not less than $1,000 (which would be an increase from the current $200 limit).
According to a press release issued by Representative Owens, the current $200 limit was established in 1993 and has not been adjusted for inflation in 17 years.
Increase Has Been Endorsed by Various Business and Trade Groups
The press release further states that H.R. 5375 has received endorsements and support from numerous organizations, including the U.S. Chamber of Commerce, American Association of Exporters and Importers, Cargo Airline Association, U.S. Council for International Business, and the American Trucking Association.
Representative Owens Hopes Canada Will Enact Corresponding Legislation
Representative Owens states that he hopes that the Canadian Government will enact corresponding legislation to enhance shopping and tourism in upstate New York communities across the Canadian border.
Senate Customs Reauthorization Bill Would Also Allow De Minimis Limit to be Increased
The Senate Customs Facilitation and Trade Enforcement Reauthorization Act of 2009 (S. 1631) would also authorize Treasury to raise the de minimis limit for duty-free entry. If enacted, S. 1631 would authorize the de minimis limit for duty-free entry to be increased to not less than $500. (S. 1631 was introduced on August 6, 2009.)
1other than certain bona fide gifts and personal/household articles accompanying persons arriving in the U.S.
(See ITT’s Online Archives or 09/16/09 news, 09091610, for BP summary of S. 1631’s proposed amendment of the de minimis provision, etc.
See ITT’s Online Archives or 05/26/10 news, 10052665, for BP summary on the introduction of H.R. 5375.)