The Biden administration proposed new rules on Friday to limit duty-free imports under the $800 threshold, excluding goods subject to other punitive U.S. tariffs from the exemption.
The move aims to curb a trade practice exploited by companies like Shein and PDD Holdings’ Temu, which ship millions of low-value packages daily to U.S. customers.
The new rules, announced by U.S. Customs and Border Protection (CBP), would end duty-free exemptions for low-value packages containing items subject to Section 301 tariffs on Chinese imports, including apparel. Exemptions would also be eliminated for goods subject to Section 232 steel and aluminum tariffs and Section 201 solar product duties.
The rules require shippers to provide 10-digit Harmonized Tariff Schedule classifications for package contents to claim exemptions, enabling customs officials to better identify and intercept illicit goods. This step follows the administration’s September announcement to address trade “loopholes” linked to fentanyl precursor shipments and tariff evasion.
“We cannot let Chinese-founded e-commerce platforms gain an unfair trade advantage while American businesses play by the rules,” said National Economic Advisor Lael Brainard. “Today’s actions are an important step to level the playing field for American workers, retailers, and manufacturers while enforcing laws that protect consumers.”
