De Minimis Shipment Volume Falling, but Critics Still Want Changes, Report Notes
A researcher in the International Trade Commission's Office of Industry and Competitiveness Analysis said the share of de minimis shipments from China is falling -- it was 58% in 2021 -- but goods made in China may be coming from countries whose shipments are rising, such as Canada. Canada accounts for 8% of small-value packages. De minimis shipments are subject to risk-based screening, but the importers do not pay any tariffs.
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The recent report, which does not represent the views of the International Trade Commission, noted that the value of imports that entered the country under the de minimis provision peaked in 2020, during the COVID-19 pandemic, at $67 billion, and fell to $40 billion in 2021. "However, because specific value data are not verified, particularly for postal shipments, value estimates may be unreliable," the Office of Industry's George Serletis wrote. If that is accurate, however, de minimis imports are less than 2% of all imports.
The number of packages that entered under de minimis fell by 13% from 2021 to 2022.
The report said critics of the current de minimis regime say it makes it easier to import counterfeits and goods made with forced labor. "The large volume and fast growth of these imports from China since 2018 has led to increased Congressional scrutiny and proposed legislation to modify what some have called an outdated program not suited to the current trade environment of surging cross-border e-commerce," Serletis wrote.
The most vocal advocate in Congress for removing China from de minimis eligibility is Rep. Earl Blumenauer, D-Ore., who is leaving Congress at the end of next year.