The Court of International Trade on July 10 heard oral argument in importer Detroit Axle's case against President Donald Trump's decision to end the de minimis exemption for Chinese goods. Judges Gary Katzmann, Timothy Reif and Jane Restani pressed counsel for both the U.S. and the importer on whether the International Emergency Economic Powers Act enables the president to take such action, given the specific language at play in both IEEPA and 19 U.S.C. 1321, the de minimis statute (Axle of Dearborn, d/b/a Detroit Axle v. Dep't of Commerce, CIT # 25-00091).
The FDA’s decision to begin requiring partner government agency filings for some previously exempt products could have an impact on some companies, though generally its effects on the trade will be limited by widespread use of Type 86 filing and the recent end of de minimis for China, Lenny Feldman of Sandler Travis said in an interview.
Several FDA-regulated products previously exempt from partner government agency filing requirements when falling under the $800 de minimis threshold must now be reported to the FDA, “effective immediately,” CBP said in a cargo systems message issued July 9.
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The House of Representatives passed a tax bill, 218-214, that includes language that will end de minimis eligibility for all e-commerce, beginning July 1, 2027. The bill, which also extends individual and pass-through business tax breaks passed during the first Trump administration, now heads to the president's desk.
The Senate passed the Trump tax bill with a tie-breaking vote from the vice president on July 1. The House of Representatives will vote on whether it will accept the Senate's changes to its bill.
CBP issued the following releases on commercial trade and related matters:
The latest version of the tax bill introduced by the Senate over the weekend ends commercial de minimis on July 1, 2027, as the House version does. The Congressional Budget Office estimates that would increase revenues by $39 billion between 2027 and 2034.
Two former general counsels from the Office of the U.S. Trade Representative disagreed sharply about the need for the current aggressive tariff hikes. But Jennifer Hillman, who is helping to write amicus briefs for members of Congress challenging the legality of International Emergency Economic Powers Act tariffs, and Steven Vaughn, who served in the first Trump administration, agree what would happen if the current administration loses the case.
House Ways and Means Committee Chairman Jason Smith, R-Mo., said he would "love" if a provision his committee authored, to end de minimis for all commercial purposes in 2027, would make it into the Senate version of what Republicans call "One Big Beautiful Bill."