The Toy Association™ Lauds Biden-Harris Administration for Action on De Minimis Exemption Reform

September 25, 2024 | The Toy Association™ and its members applaud the Biden Harris Administration’s announcement to curb the increasing abuse of the de minimis exemption, a provision that allows goods valued under $800 to enter the U.S. duty-free and without formal customs procedures.

Companies have been using the exemption, originally intended to simplify the importation of low-value shipments, at dramatically increasing rates, with annual shipments rising from 140 million to over one billion in the past decade, according to the administration. This surge in de minimis shipments has made it harder for U.S. authorities to enforce trade laws, health and safety standards, and intellectual property rights.

“Products coming from outside the U.S. and shipped directly to consumers through third party platforms using the de minimis exemption appeal to consumers because they are often cheap, but they may include counterfeit, infringing items and in the case of toys, may fail to meet strict U.S. safety standards,” said Greg Ahearn, president & CEO of The Toy Association. “Action from the current administration will help protect American consumers, workers, retailers, importers, and manufacturers.”

The toy industry works year-round with government agencies and leading e-commerce platforms to combat the issue of counterfeit products. All toys sold in the U.S., regardless of where they are made, must comply with strict U.S. standards – and it is the responsibility of the companies’ selling products in this country to make sure that their toys are safe.

“Required testing and certification by government-accredited, independent testing laboratories verifies a toy’s compliance with strict federal regulations. The recent actions announced by the White House will help ensure that products imported into the U.S. using de minimis meet these safety requirements,” added Ahearn.

The Toy Association’s full statement can be read here.