Overview of Bonded Customs Warehouse US

- Duty/Tax Deferral: Pay only upon domestic release; rates apply as of withdrawn “release” date, not date of import.
- Flexibility: Store indefinitely, sort/manipulate goods, or export without duties; ideal for seasonal/high-value items.
- Compliance Support: CBP (Customs Border Protection) oversight ensures security and prevents unauthorised use.
Overview of the De Minimus Threshold Abolition in the US

- National Security & Public Health: Primarily driven by synthetic opiods crisis, with 90% of Fentanyl entering via De Minimus shipments from China. The White House cited intelligence report linking low-value parcels through drug trafficking.
Economic Protection: Critics argued it undercut US manufacturers by allowing $50B USD in annual duty-free Chinese Imports, bypassing anti-dumping duties, e.g. on steel and solar panels.
Trade Fairness: Ecommerce giants exploited the rule for “direct-to-consumer” shipping, evading tariffs that larger importers pay. The change levels the playing field.
Border Policy Shift: Aligns with Trump’s “America First” agenda, including tariffs on allies like UK/EU to address trade imbalances.
Impacts
(on Importers & Ecommerce):- Increased costs: Duties (0-25%+), merchandise processing fees (0.3464% of value, min $31.67), and formal entry requirements now apply to all shipments. Expect 20-50% price hikes for low-value goods.
- Logistics Delays: Full customs clearance (e.g. CBP Form 7501) replaces streamlined processing; hold times could rise from hours to days/weeks.
- Retail Panic: Brand like Shein saw stock dips; US consumers face higher prices on fast-fashion products, electronics, and toys. Daily volume: $1.4B parcels annually affected.
(On consumers):- Everyday items, e.g. $20 USD phone cases, now cost more due to duties + shipping adjustments.
- Positive: Better product safety/quality checks reduce counterfeits and hazardous goods.
(On businesses):- Winners: Domestic producers and high-value importers gain competitiveness.
- Losers: Small online sellers and platforms reliant on cheap imports, e.g. Amazon FBA alternatives.
- Adaptations: Shift to consolidated shipments, US warehousing, or tariff engineering, e.g. partial assembly abroad to qualify for lower rates.
Global Effects:Hits exporters from China (70% of De Minimis volume), UK, EU, and Vietnam the hardest. Mexico benefits as a nearshoring hub for duty-deferred re-exports under USMCA.
What's Next?
- Enforcement: CBP is ramping up inspections; violations, e.g. undervaluation, face penalties up to 4x the duty.
- Potential Challenges: Legal suits from Ecommerce claim overreach, but courts have upheld similar actions.

- Use bonded warehouses/FTZs (Free Trade Zones) for duty deferral.
- Consolidate orders to hit economies of scale.
- Explore USMCA/FTA preferences for qualifying goods.United States-Mexico-Canada Agreement | United States Trade Representative
Alternatives for Importers
Exemptions: Limited to personal effects or samples under separate rules; there are no broad carve-outs.
