*

Nearly 1.4 billion packages entered U.S. via de minimis

exemption in 2024

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Postal shipment plunged 81% when exemption ended in

August, U.N.

agency data showed

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Ron Wyden, top Senate Democrat on trade, says U.S.

procedures to

end de minimis were inadequate

By David Lawder and Lisa Baertlein

WASHINGTON, Oct 3 (Reuters) - The top Democrat on the

U.S. Senate Finance Committee accused the Trump administration

of having inadequate customs procedures in place as it ended the

"de minimis" U.S. tariff exemption for packages valued below

$800, leading to severe disruptions in mail shipments to U.S.

shoppers and small businesses.

Senator Ron Wyden in a letter to Commerce Secretary Howard

Lutnick seen by Reuters requested answers on how the department

concluded that adequate systems were in place to collect duties

on low-value packages as the exemption ended on August 29.

Wyden, one of the Democratic Party's most influential voices

on tax and trade matters in Congress, sought to put a negative

spin on the administration's claim that it closed a dangerous

trade loophole.

The de minimis exemption allowed nearly 1.4 billion packages

to enter the U.S. duty free in 2024 and fueled a boom in

direct-to-consumer e-commerce shipments from Chinese e-commerce

firms Shein and Temu.

Wyden said the change was "hasty," leading to "mass

disruptions in international shipments, confusion and increased

costs for American consumers and small businesses." He cited

data from the U.N.'s Universal Postal Union (UPU) showing that

on August 29, the day the de minimis exemption ended, total

postal shipments to the U.S. had fallen 81%.

"I have serious concerns about your judgment and seek

additional information regarding your role in the decision to

abruptly end de minimis without proper systems in place to

handle the change," Wyden wrote in the letter to Lutnick.

The U.S. Customs and Border Protection agency, which is

charged with collecting import duties, did not immediately

respond to a request for comment, nor did the Commerce

Department.

A spokesperson for the UPU said the agency would be updating

its U.S. shipment figures, which do not include commercial

express shipments such as those from FedEx ( FDX ) or United

Parcel Service ( UPS ), in coming weeks. The U.S. Postal Service

declined to comment on incoming shipment volumes for foreign

postal packages.

Shippers of illicit drugs and fentanyl precursor chemicals

also have exploited de minimis due to limited inspections for

many packages claiming the exemption.