Winning Bizness Desk
Mumbai.For many years, parcels worth up to 800 dollars were allowed into the United States without paying duties or going through strict inspections. This rule, called the “de minimis” exemption, was meant to simplify trade and reduce delays. But American officials have grown worried that the system is being misused by some businesses and criminal networks.
Why the new rules were introduced
The Trump administration has argued that the existing system made it easier to smuggle dangerous items like fentanyl and fake goods into the country. It also pointed out that some companies were using the exemption to avoid duties, putting American businesses at a disadvantage. National security concerns were also highlighted, as lighter checks at ports left open the chance of threats slipping in undetected.
What the new order will change
The new Executive Order suspends duty-free entry for many parcels that were earlier covered under the de minimis rule. Goods of all sizes and from any country will now face stricter checks, duties, and taxes. This means that smaller online orders or packages sent through international postal networks will no longer be cleared as easily as before. Travelers returning with personal belongings will continue to have certain exemptions, but most international shipments will face heavier scrutiny.
Impact on costs and trade balance
With this move, experts warn that consumers could end up paying more for imported goods. Shipping delays are also expected as customs officers carry out more detailed inspections of incoming parcels. While buyers and businesses may face higher costs, the White House says the order will create fair competition for American companies by closing loopholes that allowed some importers to dodge taxes. The changes could also add to inflationary pressure in the US, which is already coping with tariff-related price hikes.
India and global response to the rules
According to NDTV Profit, India’s Ministry of Communications has reached out to the Commerce Ministry and the Ministry of External Affairs, asking for more time to adapt to the new system. India Post has expressed concern over operational and technical challenges that will come with the implementation of the order. Several other countries that regularly export to the US are also expected to feel the impact, as international postal networks will now face added checks and duties.
Key takeaways in brief
- US suspends duty-free exemption on small imported parcels
- Old de minimis rule allowed duty-free entry under 800 dollars
- Concerns over smuggling, fake goods and unfair competition
- New order imposes stricter duties and inspections on parcels
- Consumers may face higher costs and shipping delays
- India asks for more time to adjust to new rules
- Move may add to inflation already hitting US economy
