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

Art of Supply

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

Links:

• Kelly Barner on LinkedIn
• Art of Supply LinkedIn newsletter
• Art of Supply on AOP
• Subscribe to This Week in Procurement