News & Insights

Washington, D.C. – The National Foreign Trade Council has launched a De Minimis Tax Exemption Fact Center to inform policymakers and press of the benefits of this tax break to the American economy. Conversely, passage of pending legislation to degrade the current de minimis threshold would levy a regressive tax increase on underserved populations.

The de minimis tax exemption permits shipments valued under $800 (per person, per day) to enter the U.S. free of duty and taxes. These shipments are subject to U.S. laws and information requirements that promote effective enforcement at the border. Congress reaffirmed and expanded this long-standing tax exemption on a bipartisan basis in 2016, noting the significant economic benefits.

“Congress passed and expanded the de minimis tax exemption for a reason:. De minimis is a tax cut that reduces costs for consumers and promotes economic security. It reduces the effects of inflation on U.S. businesses, helps to alleviate port congestion, and enables customs authorities to better focus resources,” said John Pickel, NFTC Senior Director for Supply Chain Policy. “As Congress considers policy proposals, we want to make sure the drastic cost reductions, supply chain benefits, and facts about enforcement capabilities are front and center. We also want Congress to understand that there are clear ways to enhance the implementation of de minimis without hurting the businesses and consumers who benefit from it.”

The new NFTC De Minimis Tax Exemption Fact Center includes:

• A web page that highlights the benefits of the tax exemption to small businesses, consumers, underserved communities, CBP enforcement efforts, and the ongoing fight against inflation and supply chain slowdowns.
• A fact sheet that includes information on the benefits of de minimis, a fact-check on the detailed information that CBP requires on de minimis shipments, and suggestions for Congress on how de minimis can be further improved.
• Links to Congressional testimony on the small business, consumer, and supply chain benefits of the de minims tax exemption.
• Infographics that illustrate the increased fees packages would accrue if de minimis were curtailed or eliminated and the significant information CBP requires on de minimis shipments.

The Fact Center will be updated with additional information regularly.

In addition, John Pickel the Senior Director of International Supply Chain Policy at the National Foreign Trade Council is available for media inquiries on de minimis and other supply chain policy issues. He can be reached by contacting Veronica Berkshire at vbershire@nftc.org.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.