Express Delivery Firms Complained about Customs Enforcement, End of De Minimis

Washington, D.C. — The Trump administration’s quiet waiver of a longstanding customs rule requiring Formal Entry for goods valued between $250-$2500 that are subject to ‘penalty’ tariffs will make it extremely difficult to collect tariffs on the millions of daily e-commerce shipments from China that are slated to lose duty-free status when the de minimis loophole is closed at midnight Friday May 2, AELP said.

American Economic Liberties Project’s Rethink Trade director, Lori Wallach, released a thread on X that unpacks how the customs waiver would affect trade enforcement.

“Absent action in the next 36 hours to reverse the customs waiver or otherwise require the needed data and accountability to accurately and thoroughly collect tariffs, the Trump administration will have undermined its promised end of the de minimis loophole, which is key to ending illicit fentanyl imports. This will become an acute problem when the current 145% China tariffs are reduced,” Wallach said. “Allowing Informal Entry of goods subject to penalty tariffs valued between $250-$2500 will also undermine enforcement of all Trump tariffs because without requiring importers to provide full tariff codes, it will be almost impossible to collect proper tariffs and without requiring involvement of a U.S. entity, like a Customs Broker, it’s very hard to discipline against cheating.”

BACKGROUND: On April 28, the administration issued a Federal Register notice waiving longstanding Customs rules requiring “Formal Entry” for goods valued $250+ subject to ‘penalty’ tariffs, which after Trump’s imposition of April 2 tariffs is the vast majority of goods. Customs regulations have allowed “Informal Entry,” which does not require posting of a bond, use of a Customs Broker or listing of tariffs codes or other data, for goods valued under $2500 except for goods facing penalty tariffs. To make sure importers were following the Formal-Entry-Only rules, the Trump administration issued an April 4 Federal Register notice reiterating the need for importers subject to “Liberation Day” tariffs to list an HTS 99 code. (HTS Chapter 99s refers to the part of the official U.S. tariff list where penalty tariffs are recorded.) CBP issued an “IEEPA FAQ” noting that “Informal entry is not permitted and formal entry is required for any merchandise that exceeds $250 in value and is classified in Subchapters III and IV of Chapter 99 of the HTSUS.” This was then deleted and the waiver issued after express delivery companies escalated their protests, including DHL ending direct-to-consumer deliveries for good sunder $2500.

After the waiver was issued, DHL resumed its consumer service and issued a statement: “DHL Express values the opportunity to have contributed to the development of this new regulation” after “constructive dialogue between DHL and [USG], who demonstrated a strong willingness to understand our operational and technical challenges…” President Trump had previously pulled the plug on what was supposed to be a February 1 end of de minimis tariff evasion and inspection dodging for goods from China after meeting with the CEO of Federal Express.

Learn more about Rethink Trade’s work on de minimis here.

Learn more about Economic Liberties here.

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The American Economic Liberties Project works to ensure America’s system of commerce is structured to advance, rather than undermine, economic liberty, fair commerce, and a secure, inclusive democracy. Economic Liberties believes true economic liberty means entrepreneurs and businesses large and small succeed on the merits of their ideas and hard work; commerce empowers consumers, workers, farmers, and engineers instead of subjecting them to discrimination and abuse from financiers and monopolists; foreign trade arrangements support domestic security and democracy; and wealth is broadly distributed to support equitable political power.