H.R. 1840 — Closing the De Minimis Loophole Act

This section terminates the $800 de minimis exemption for duty-free entry of low-value imported articles (i.e., aggregate fair retail value in country of shipment not exceeding $800 per person per day) under section 321(a)(2)(C) of the Tariff Act of 1930. (Thus, after applicability, such articles exceeding the remaining exemptions of $100 for bona fide gifts from foreign countries ($200 from Virgin Islands, Guam, or American Samoa) or $200 for personal or household use accompanying certain arriving travelers will be subject to duties, fees, taxes, and interest.) The termination applies upon enactment to articles originating in China (except those loaded onto a vessel at the port of loading or in transit on the final mode of transport during the 3-day period ending on the enactment date) and, for articles from any other country, to entries or withdrawals from warehouse for consumption on or after 120 days after enactment. This section further directs the Secretary of the Treasury to issue regulations during the 120-day period after enactment to (1) implement the termination, including entry procedures; (2) require sufficient data for informal entries, including 10-digit Harmonized Tariff Schedule identification for textiles (chapters 50-63), to support enforcement, duty collection, and reasonable care; and (3) establish penalties to deter fraud; and, in consultation with the Postmaster General, to set fees and procedures for consistency in handling former section 321(a)(2)(C) postal shipments.