The flow of millions of small parcels into the U.S. from China thanks to the explosive growth of online shopping has caught the attention of Congress.
U.S. lawmakers are looking into the rise of global online shopping, particularly from countries like China. More and more consumers are looking to buy items overseas that cost less and ar a bargain. How can stylish imports from the other side of the Pacific be so cheap? The answer has much to do with a trade rule known as the de minimis exception, which allows parcels valued under $800 to enter the U.S. duty-free per person per day.
The National Foreign Trade Council, whose members include major shippers such as FedEx, UPS and DHL as well as online retailers like Amazon and eBay, argue that restricting its use would make purchases more expensive for American consumers and small businesses. The cost of a $50 package would double, according to the council.Introduced in 1938, the de minimis exception was intended to facilitate the flow of small packages valued at no more than $5, the equivalent of about $106 today.