De Minimis

De Minimis Loophole Closed

Overview
De minimis entry (19 U.S. Code § 1321) allows duty-free importation of merchandise valued at $800 or less, directly shipped from abroad to the United States, managed by US Customs and Border Protection (CBP). Originally established in 1938, its purpose was to ease government burdens for low-value imports.

The Issue
While the initial intent was to help American consumers ship items home from abroad, the rise of e-commerce giants like Amazon, Shein, and Temu stretched the limits of the provision. Between 2015 and 2024, the volume of de minimis shipments entering the U.S. increased from 134 million shipments to over 1.36 billion shipments. On average, CBP was processing over 4 million de minimis shipments into the U.S. each day.

The RV aftermarket sector was particularly affected by these huge e-commerce companies, allowing Chinese manufacturers to sell cheaper, less regulated products duty-free. This created a situation where these foreign manufacturers were able to undercut domestic companies in the aftermarket space, leading to millions of dollars in lost sales for the American RV aftermarket community.

Closing the Loophole
On April 2, 2025, President Trump announced action to close de minimis exemptions for Chinese imports, aimed at curbing the flow of illicit synthetic opioids into the United States. The order allowed U.S. Customs and Border Protection time to implement systems to begin collecting the appropriate tariff revenues. 

The One Big Beautiful Bill (OBBB) that the President signed into law in July 2025, extended the previous measures by phasing out the de minimis exemption for all countries starting July 1, 2027.

Subsequently, the President signed an executive order suspending the de minimis exemption, applying tariffs to low-value imports from all trading partners ahead of the OBBB date in 2027. The measure took effect on August 29, 2025, and applies to all goods that are valued at or under $800 that previously qualified for that tax-free treatment. The order applies to commercial shipments and will impose duties on online retailers that ship directly to US consumers, such as Shein and Temu.

American travelers can still bring back up to $200 in personal items, and individuals can continue to receive bona fide gifts valued at $100 or less duty-free.

Impact on the RV Industry 
This change represents a significant win for the RV industry, which has long advocated for closing the de minimis loophole. The loophole has had a particularly harmful impact on the RV aftermarket sector, putting domestic manufacturers and suppliers at a competitive disadvantage.

The RV Industry Association appreciates the Trump Administration and Congress working to end the de minimis loophole, which allowed foreign sellers to ship low-cost goods directly to U.S. consumers without paying duties or complying with product safety and labeling standards.