For months, RV industry leaders have been lobbying congressional members to change a tax code exemption challenging various U.S. businesses. After weeks of pushing for change, the issue was addressed—by the White House.
President Joe Biden acted Friday on U.S. tax code section 301 “de minimis” exemptions affecting U.S.-owned businesses.
The administration intends to issue a Notice of Proposed Rulemaking (NPR) regarding the de minimis exemption for imported products. The NPR would exclude all shipments covered by tariffs imposed under Sections 201 or 301 of the Trade Act of 1974, or Section 232 of the Trade Expansion Act of 1962, from the de minimis exemption.
Section 301 tariffs cover around 40% of U.S. imports.
RVIA Director of Federal Affairs Samantha Rocci said RVIA supports the president’s proposal to strengthen de minimis shipment oversight.
“By enhancing regulatory enforcement and closing loopholes that allow unsafe and unfairly traded goods to flood our borders, this initiative ensures a level playing field for U.S. manufacturers while maintaining critical safety standards,” Rocci said. “We look forward to working with Congress to advance policies that support fair trade and the competitiveness of American industries without compromising consumer protection or the integrity of the market.”
The de minimis exemption allows foreign companies to export products costing less than $800 into the U.S. with no or minimal fees. About 1 billion shipments enter the country through the loophole per year.
The president revealed numerous additional steps to address the issue.
One step is an additional NPR that would strengthen information collection requirements on low-value imports. De minimis shipments would be required to include a 10-digit tariff classification number and the name of the person claiming the exemption.
U.S. Secretary of Commerce Gina M. Raimondo said, “American workers and businesses can outcompete anyone on a level playing field, but for too long, Chinese eCommerce platforms have skirted tariffs by abusing the de minimis exemption. With these new actions, the Biden-Harris Administration is standing up for American consumers and cracking down on Chinese companies’ efforts to undercut American workers and businesses.”
The president said his administration is also ready to collaborate with Congress to pass comprehensive de minimis reform legislation by year’s end.
Congress has been working on legislation to address the de minimis exemption, separate from the president’s actions Friday. Future efforts could include import-sensitive product exclusion from de minimis eligibility and excluding certain shipments from the de minimis exemption.
