US Ends Duty Exemption on Goods under $800
August 29, 25
(IDEX Online) - The loophole that allowed most goods under $800 to enter the US duty-free closes as of today (29 August).
The end of the so-called de minimis exemption is another blow to the diamond and jewelry trade, hot on the heels of reciprocal tariffs of at least 10 per cent for all US trading partners, and a partly-punitive tariff of 50 per cent on all Indian imports.
Ending the de minimis exemption (de minimis is Latin for "about minimal things) marks a significant shift in US trade policy, enforcing tariffs and customs duties on all shipments, regardless of value.
It was announced in an executive order issued on 30 July called Suspending Duty-Free De Minimis Treatment for All Countries. De minimis for China and Hong Kong ended on 2 May.
The Jewelers Vigilance Committee (JVC) has issued exporters with the following guidance: "Review your supply chain and identify products you currently import under the de minimis exemption.
"Update landed cost calculations and factor in applicable duty rates for these goods.
"Communicate with suppliers and customs brokers; ensure they are aware of and prepared for the change. Clearly communicate any increases in costs to your customers.
"Consider different shipment strategies. Consolidating or adjusting order sizes may help reduce administrative costs.