The U.S. textile sector has voiced strong support for a new provision included in the House Ways & Means Committee’s budget reconciliation bill that seeks to permanently eliminate the de minimis entry privilege for all commercial shipments by July 1, 2027.
Currently, under Section 321 of the Tariff Act of 1930, shipments valued under $800 entering the U.S. are exempt from customs duties and taxes. While this privilege was recently revoked for China (including Hong Kong and Macau) effective May 2, it remains in place for all other countries—prompting mounting concerns from U.S. manufacturers about unfair competition and illicit trade.
The new legislative proposal would repeal de minimis access globally, significantly changing the landscape for cross-border e-commerce and international low-value shipments. It also introduces penalties for violations, with fines of $5,000 for initial offenses and $10,000 for repeat infractions.
Kim Glas, President and CEO of the National Council of Textile Organizations (NCTO), welcomed the committee’s move, stating:
“This significant step validates that the destructive de minimis loophole has harmed U.S. textile manufacturing and impeded the fight against illicit fentanyl trafficking and must be permanently closed.”
According to U.S. Customs and Border Protection (CBP), use of the de minimis exemption surged from 139 million shipments in FY 2015 to over 1.36 billion in 2024. This exponential growth has raised red flags over revenue loss, regulatory gaps, and unfair pricing advantages for foreign sellers.
Glas further emphasized the urgency of enforcement, calling for a faster timeline for the global repeal.
“Express shippers have already shown their ability to adapt to stricter controls, particularly for Chinese imports. A quicker implementation would better support U.S. manufacturers and help stem the flow of illegal goods.”
The legislation preserves lower de minimis thresholds for gifts and personal-use items, distinguishing between personal and commercial imports. It also supports ongoing efforts to protect public health and safety, particularly amid concerns over counterfeit goods and synthetic drug imports.
Earlier this month, NCTO also applauded the Trump administration’s executive order to end de minimis exemptions for China and Hong Kong, urging that the policy be expanded to cover all countries to restore fair trade and protect domestic industries.
The Ways & Means Committee, chaired by Rep. Jason Smith (R-MO), is expected to mark up the legislation in the coming days.
