Explainer | Why Trump’s axing of ‘de minimis’ rule is no small thing for Hong Kong exporters
White House claims end to duty-free entry for low-value packages from May 2 will stop exploitation by e-commerce companies
Hong Kong exporters will bear the brunt of United States President Donald Trump’s crackdown on duty-free entry for low-value packages shipped from the city and mainland China from May 2, economists and industry players have warned.
The White House claimed the removal of the so-called “de minimis” exemption, which applies to international shipments with a retail value of US$800 or less, was essential because it had been used by many e-commerce companies to avoid import taxes and customs inspections.
In response, the Hong Kong government said it would continue postal services to the country until May 2, but would not collect any tariffs on behalf of the US government.
The Post examines how this policy will affect Hong Kong businesses and the wider economy.
1. What is the de minimis exemption?
The name of the policy derives from the Latin phrase “de minimis non curat lex”, meaning “the law does not concern itself with trifles”, with the provision originally designed to reduce administrative burdens.
The trade provision allows companies to avoid US import duties by shipping products directly to individual consumers in small parcels, usually via air cargo.