H.R. 5960: Territorial De Minimis Exemption Act

This bill, titled the Territorial De Minimis Exemption Act, aims to permanently maintain certain trade privileges for specific U.S. territories. Here’s what the bill proposes:

De Minimis Treatment

The bill establishes that starting from its enactment date, articles coming from certain U.S. territories will be allowed entry into the United States without having to pay import duties or taxes. The conditions for this exemption include:

• The total fair retail value of items imported by a single person in one day must not exceed $800.

Covered Territories

The territories that are covered under this bill include:

• United States Virgin Islands
• Guam
• Northern Mariana Islands
• American Samoa

Prohibition of Evasion

The bill prohibits any attempts to manipulate the system by limiting the de minimis treatment privileges. Specifically, if merchandise is sent in multiple shipments from a single order to avoid the $800 limit, that merchandise will not qualify for the duty exemption.

Regulations

The Secretary of the Treasury is required to create regulations to implement this de minimis treatment, ensuring it operates similarly to how it functioned before January 1, 2025.

Changes to Tariff Policy Regarding Gifts

Additionally, the bill amends existing regulations to include the Northern Mariana Islands in the scope of exemption for bona fide gifts under the Tariff Act of 1930, allowing gifts from this territory to also receive similar treatment.

Consultation on Trade Policy Changes

Lastly, the bill states that when changes to U.S. trade policy are under consideration—especially those that might affect a broad area—the President will consult with relevant officials to ensure that these changes do not negatively impact commerce in U.S. territories. This is particularly relevant if items from these territories are treated as imports from foreign countries.

Relevant Companies

• None found