The de minimis rules of TFTEA allow eCommerce shipments of $800 or less to get to individual shippers and avoid Section 301 duties.

The United States and China are embroiled in a back-and-forth trade war that has seen duties imposed on nearly every tariff number in the book. Regardless of the list, importers whose goods were duty-free or even single-digit duty percentages have seen Section 301 duties imposed on those goods from 10% all the way to now 30% for nearly $250 billion in exports to the United States.

For importers bringing in large commercial shipments that are being broken down and distributed to individual consumers, there is a way to move the distribution process further upstream and take advantage of a regulation that in most cases means the Section 301 duties aren’t an issue.

In 2015, President Obama signed the Trade Facilitation and Trade Enforcement Act which, among other things, raised the de minimis on shipments to the United States from $250 to $800 per individual, per day. These shipments when they arrive with an express consignment operator can be declared on a manifest and be released by Customs and Border Protection and unless they’re flagged and held for further review or a physical examination, will move from plane to package delivery truck or Postal Service for delivery to a customer’s doorstep or mailbox.

The reason this avoids the Section 301 duties is that shipments moving through the express consignment process do not present for entry using the regular formal entry process – thereby avoiding the declaration of the additional HTS and payment of those duties.

Among other things, this means avoiding dramatic increases to continuous bond limits of liability and the underwriting, financials and additional guarantee instruments that would elsewise be required.

At Kesco Logistics, our eCommerce solution affords companies looking to direct ship consignments valued at $800 or less per day a vehicle to do so legally, efficiently and cost-effectively. For more information on how to ship your eCommerce orders to consignees and legally avoid paying Section 301 trade remedy duties, contact us today.

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