De Minimis: Supply Chain Trifles the Law Should be Concerned With
Jul 18, 2024•22 min
Episode description
Section 321 of the U.S. Tariff Act of 1930 contains a small provision known as ‘de minimis.’
From a Latin phrase meaning “the law does not concern itself with trifles,” this provision has become a major concern for retailers, shippers, and regulators.
De minimis is supposed to simplify shipping so that packages under $800 can be sent to U.S. consumers from overseas without distracting U.S. Customs and Border Patrol from their core mission. With the rise in global ecommerce, however, this provision - or loophole - is proving to be far more than a trifle’s worth of trouble.
In this episode of the Art of Supply podcast, Kelly Barner covers:
- The history of the de minimis provision, including how it was intended to be used and how it is being used today
- Two foreign-based retailers that are pumping hundreds of millions of packages a year into the U.S. under the provision - and a third major U.S. retailer that looks poised to join them
- Ongoing efforts to stem the tide and increase oversight, including which organizations are advocating for de minimis reform and which are against making changes
Links:
- Kelly Barner on LinkedIn
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