De Minimis: Supply Chain Trifles the Law Should be Concerned With

Art of Supply

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6M ago 21:45

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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

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