Big Changes to De Minimis Package Handling Are Coming
The Biden-Harris Administration recently proposed reforms to U.S. de minimis rules, signaling a significant shift in trade compliance and customs enforcement. These actions aim to combat the rising abuse of the de minimis exemption, which allows duty-free entry for shipments valued under $800. Over the past decade, de minimis shipments have skyrocketed from 140 million to over one billion annually, largely due to the growth of e-commerce platforms, especially those founded in China. This surge has created immense challenges in enforcing trade laws and ensuring consumer safety, as many goods bypass vital health, safety, and intellectual property regulations.
The new proposals will introduce stricter rules, requiring more detailed data for de minimis shipments, including a 10-digit tariff classification and information about the person claiming the exemption. These changes will especially impact Chinese e-commerce platforms, which account for a significant portion of these shipments, and aim to protect American consumers and businesses from unfair competition.
While these changes will strengthen U.S. trade enforcement, they also create a new challenge for compliance management. With the new rules, over 4 million extra packages each day will require a 10-digit tariff classification and compliance data. This will place an enormous administrative burden on companies importing goods, and manual processing will not be a viable solution for managing the increased workload.
Quickcode Can Help!
Quickcode offers a number of solutions that can help eCommerce platforms and eTailers manage their compliance data.
HTS Classification | Quickcode’s AI-based human-in-the-loop classification helps identify 10-digit HTS codes along with necessary compliance data including PGAs, AD/CVDs, Chapter 99 tariffs and exemptions, and more.
Product Catalog Compliance Audit and Monitoring | Quickcode’s audit process and compliance monitoring platform helps to identify products that might not be classified correctly and may require further review. This solution is not only great for organizations who may just be starting the process of gathering compliance data, but also for those who have collected the data and need to be sure it stays up-to-date and is compliant. Learn more about our Compliance Monitoring Platform.
API Integration | Quickcode’s HTS classification and data gathering experience is available via API for eCommerce platforms.
Beyond compliance, Quickcode’s AI-driven insights can help companies optimize their supply chain operations. By analyzing import patterns and regulatory changes, Quickcode can help identify more cost-effective sourcing strategies and highlight potential risks before they become compliance issues. This proactive approach not only saves time but also helps businesses maintain a competitive edge in the rapidly evolving global trade landscape.
Try our free tier and see why Quickcode is the best classification experience on the market today.
Why Quickcode?
Choosing Quickcode means partnering with a solution designed to meet the demands of modern supply chain management. Our robust, AI-driven platform ensures your product catalog is always compliant, allowing you to operate with confidence and efficiency.
