Newly Proposed Limits on Trade Carveout Target China E-Commerce

A US Department of Homeland Security agency proposed a rule to limit a trade law carveout that has enabled online retailers from China and elsewhere to ship low-value packages straight to consumers without paying customs duties or certain taxes.

Customs and Border Protection’s proposal announced Friday launches a rulemaking process that would block some products from meeting the “de minimis” trade law exemption that allows shipments worth less than $800 to enter the US duty free, opening them to enforcement actions. The public will have 60 days to comment on the proposed rule, meaning efforts to finalize it would stretch ...