At VacBagsUSA, we encourage the purchase of American made goods. By being the only USA manufacturer of vacuum cleaner bags and filters, we are thankful for your patronage to support American jobs and American companies. The biggest challenge that we face today is staying competitive in pricing against lower quality goods that are being made overseas. Countries like China and Vietnam are making goods with lower manufacturing standards and employee care while also taking advantage of loopholes in our import system like the De Minimus Customs Rule.

The de minimis customs rule, established under Section 321 of the Tariff Act of 1930, allows goods valued below a certain threshold to enter the United States without incurring duties or taxes. In 2016, this threshold was raised to $800, facilitating a surge in low-value imports, particularly from international e-commerce platforms. While this provision was designed to streamline trade and reduce administrative burdens, it has inadvertently created disparities affecting U.S. online sellers.

Challenges Posed by the De Minimis Rule

The de minimis rule has been leveraged by foreign e-commerce giants, especially those based in China, to ship vast quantities of low-cost goods directly to U.S. consumers. Platforms like Shein and Temu have utilized this exemption to offer products at highly competitive prices, often bypassing traditional customs duties and inspections. This practice has led to several challenges for U.S. online sellers:
1. Unfair Pricing Competition: Domestic sellers are required to include duties and taxes in their pricing structures, making it difficult to match the lower prices of foreign competitors who benefit from the de minimis exemption.
2. Regulatory Discrepancies: U.S. businesses must adhere to stringent regulatory standards, including product safety and labor laws. The influx of de minimis shipments has raised concerns about the entry of substandard or non-compliant products, which may not undergo thorough inspections.  
3. Supply Chain Disruptions: The sheer volume of de minimis shipments has strained logistics networks and customs operations, leading to potential delays and increased costs for domestic sellers who rely on these systems.  

Recent Policy Developments

In response to these challenges, the U.S. government has taken steps to reassess the de minimis threshold. In early 2025, the Trump administration announced the suspension of the de minimis exemption for goods originating from China, citing concerns over trade imbalances and the entry of unsafe products. This move aimed to ensure that all imports, regardless of value, are subject to appropriate duties and inspections, thereby promoting fair competition.  

However, the policy shift led to significant disruptions in international shipping and e-commerce operations. The United States Postal Service briefly suspended incoming packages from China and Hong Kong due to the sudden change, highlighting the complexities involved in implementing such policy adjustments. Subsequently, the administration reinstated the de minimis exemption temporarily to allow for the development of more efficient tariff collection systems.  

Levelling the Playing Field for U.S. Online Sellers

Eliminating or modifying the de minimis rule can contribute to a more equitable competitive environment for U.S. online sellers in several ways:
1. Equitable Taxation: Ensuring that all goods, domestic and imported, are subject to the same duties and taxes prevents foreign sellers from undercutting prices unfairly.
2. Enhanced Product Safety: Requiring comprehensive customs inspections for all imports helps prevent the entry of substandard or unsafe products, protecting consumers and maintaining market integrity.
3. Supply Chain Efficiency: Reducing the volume of de minimis shipments can alleviate pressure on logistics networks and customs operations, leading to more efficient processing for all sellers.

Conclusion

While the de minimis rule was originally intended to simplify trade and reduce administrative burdens, its exploitation by foreign e-commerce platforms has created significant challenges for U.S. online sellers. Reevaluating and potentially eliminating this exemption can help level the playing field, ensuring fair competition, consumer safety, and a more balanced marketplace. As policymakers consider these changes, it is crucial to implement measures that support domestic businesses while maintaining efficient trade practices. All of us at VacBagsUSA support the suspension of the De Minimus Customs Rule and encourage you to “buy American” and support companies who are promoting American workers and American towns.