H.R. 322 — Import Security and Fairness Act

This section limits the de minimis exemption allowing duty-free admission of articles valued up to $800 (19 U.S.C. 1321(a)(2)(C)) by prohibiting such treatment for articles whose country of origin or shipment is both a nonmarket economy country (as defined in 19 U.S.C. 771(18)) and included on the priority watch list under the Trade Act of 1974 (19 U.S.C. 2242(g)(3)). (As background, the de minimis exemption permits one person per day to import articles free of duty and tax if their aggregate fair retail value does not exceed specified amounts—generally $800—to avoid administrative costs disproportionate to collected revenue; China has qualified under both criteria in recent years.)

This section establishes additional administrative requirements for low-value (de minimis) duty- and tax-free importations under section 321(a)(2) of the Tariff Act of 1930 (19 U.S.C. 1321), which authorizes the Secretary of the Treasury to admit articles free of duty up to $100 for bona fide gifts ($200 from certain U.S. territories), $200 for personal or household use by certain arriving travelers, or $800 in other cases. (1) Adds subsection (c) directing the Secretary to prescribe regulations within 180 days of enactment requiring submission to U.S. Customs and Border Protection (CBP) of documentation—including at a minimum the article's description, Harmonized Tariff Schedule classification, countries of origin and shipment, shipper and importer identities, and U.S. transaction value—to verify eligibility (with allowances for additional data on sales platforms and penalties of $5,000 for the first violation and $10,000 for subsequent violations). (2) Adds subsection (d) authorizing regulatory exceptions to de minimis exemptions for importations caused or facilitated by persons suspended or debarred from federal business. (3) Amends examination procedures under section 499(c) of the Tariff Act (19 U.S.C. 1499(c)) to require CBP, upon detaining merchandise potentially eligible under section 321(a)(2)(C) ($800 threshold), to notify interested parties (advising voluntary abandonment as an alternative to providing information); absent a response within 30 days, CBP may deny entry for export (at importer expense) or deem the merchandise abandoned for U.S. disposition.