S. 1185 — FIGHTING for America Act of 2025

This section expresses the sense of Congress that (1) the volume of low-value imports eligible for the de minimis exemption from duties under section 321 of the Tariff Act of 1930 (19 U.S.C. 1321)—which authorizes the Secretary of the Treasury to admit articles free of duty up to $800 retail value (or $100-$200 for gifts/personal use), disregard discrepancies under $20, and waive collections under $20—has increased due to the COVID-19 pandemic and other factors; (2) customs procedures should be reviewed to protect U.S. revenue, interdict illicit goods, facilitate legitimate trade, and ensure appropriate use of resources; (3) since the 2015 amendment to section 321, direct-to-consumer shipments have accelerated illicit drugs and unauthorized products while tariff remedies have increased; and (4) Congress should reevaluate the delegation of authority to the Secretary under that section to protect revenue and scrutinize exempt shipments.

This section designates as an additional priority trade issue under the Trade Facilitation and Trade Enforcement Act of 2015 (19 U.S.C. 4322) the smuggling of fentanyl, other illicit drugs, and related material by abusing entry procedures for merchandise qualifying for an administrative exemption pursuant to section 321 of the Tariff Act of 1930 (19 U.S.C. 1321). (Section 321 authorizes the Secretary of the Treasury to admit articles free of duty and tax if their aggregate fair retail value does not exceed $100 for bona fide gifts ($200 from the Virgin Islands, Guam, or American Samoa), $200 for personal or household use by arriving individuals not otherwise exempt, or $800 in other cases; and to disregard duties, fees, taxes, or interest under $20.)

This section establishes requirements for documentation and information supporting eligibility for the administrative exemption from duties and taxes for low-value imports (i.e., up to $800 aggregate fair retail value per person per day under 19 U.S.C. 1321(a)(2)(C)). Not later than 180 days after enactment, the Secretary of the Treasury, in consultation with the Postmaster General, must prescribe regulations requiring, separate from entry filing, the provision to U.S. Customs and Border Protection (CBP) of information on an article's offer for sale or purchase, subsequent sale, purchase, transportation, importation, or warehousing (including via U.S. e-commerce platforms); identities of the seller, shipper, carrier, final delivery party, or purchaser; fair retail value in the country of shipment; and other details necessary to assess admissibility, exemption eligibility, protect revenue, and prevent unlawful importations in postal or other shipments. Entry filings for such articles must include the 10-digit Harmonized Tariff Schedule (HTSUS) statistical reporting number, a sufficiently specific description to verify it, and country of origin; such documentation may be provided by parties other than the entry filer and must be true and correct under penalty of law, with CBP authorized to use it for any lawful purpose. Violations of these requirements incur civil penalties of up to $1,000 (first violation) or $5,000 (subsequent violations), in addition to other penalties and subject to remission or mitigation except for a fourth or subsequent violation by the same person (requiring the maximum penalty); false statements causing improper duty rates or exemption treatment incur penalties of up to $5,000 (first instance) or $10,000 (subsequent instances), also in addition to other penalties with similar remission rules.

This section limits the de minimis exemption from duties and taxes for low-value imports under 19 U.S.C. 1321(a)(2)(C)—which permits duty-free admission of articles with an aggregate fair retail value up to $800 per person per day in cases other than bona fide gifts or accompanying personal effects—by prohibiting the Secretary of the Treasury from applying it to (1) articles subject to antidumping or countervailing duties, tariff-rate quotas or other quotas, excise taxes collected by U.S. Customs and Border Protection, trade actions under Trade Act sections 201 or 301 or Trade Expansion Act section 232, or articles not designated as Generalized System of Preferences-eligible as of January 1, 2025; or (2) articles of a type or class that the Secretary determines cannot be exempted without harming revenue or enabling unlawful imports due to significant import increases or evidence of illicit goods, fraud, or counterfeiting. It requires the Secretary to maintain and annually review a public website list of articles under (2).

This section revises procedures for the disposition of detained imported merchandise by replacing references to the "Customs Service" with "U.S. Customs and Border Protection" throughout 19 U.S.C. 1499. It further amends subsection (c)(2) to establish special notice requirements for merchandise claimed under the section 321(a)(2)(C) administrative exemption (i.e., low-value shipments valued at $800 or less exempt from duties and formal entry): (1) CBP must notify interested parties (based on available information) in a prescribed form and manner; (2) the notice must inform parties they may voluntarily abandon the merchandise instead of providing required information; and (3) absent a response within 15 days, the merchandise is deemed abandoned, title vests in the United States, and it is disposed of accordingly. (Thus, this expedites disposal of unclaimed de minimis shipments.) The section also exempts such merchandise from standard disposition requirements under subsection (c)(5)(A)-(C).

This section directs the Secretary of the Treasury to submit to Congress, not later than 270 days after the date of enactment of this Act, a report on the engagement of partner government agencies (PGAs) of U.S. Customs and Border Protection (CBP) in the review and detention of merchandise claiming an administrative exemption under section 321 of the Tariff Act of 1930 (i.e., de minimis exemption allowing duty-free entry for low-value imports generally not exceeding $800). (Thus, the report must include recommendations for improving such PGA engagement and the interdiction of merchandise inconsistent with agency requirements.)

This section establishes summary forfeiture procedures under 19 U.S.C. 1595a(e) for merchandise being imported or attempted to be imported (1) under an administrative exemption from formal entry requirements for low-value shipments (i.e., section 321(a)(2)(C), generally for shipments valued at $800 or less) and (2) described in subsection (c)(1), (2), or (3) (i.e., stolen, smuggled, or clandestinely introduced merchandise; controlled substances imported not in accordance with law; contraband; plastic explosives lacking detection agents; merchandise violating health, safety, or conservation restrictions; merchandise lacking required licenses, permits, or authorizations; or merchandise involving specified intellectual property violations). (Thus, title to such merchandise vests immediately in the United States upon summary forfeiture by U.S. Customs and Border Protection, which must notify the carrier and may notify any involved customs broker electronically or otherwise as prescribed by regulation.)

This section revises the civil penalty under 19 U.S.C. 1595a(b) for persons who aid unlawful importation of merchandise to the greater of the domestic value of the articles or $5,000 (from the value of the articles), without regard to whether the articles were seized. (Thus, penalties apply even for low-value goods or when goods evade seizure.)

This section modifies U.S. Customs and Border Protection (CBP) authority under the Tariff Act of 1930 to share information with owners of recorded trademarks or copyrights regarding merchandise for which CBP has reasonable suspicion (previously, mere suspicion) of importation in violation of trademark or specified copyright laws, including by (1) making such disclosures permissive rather than mandatory for information and unredacted images on merchandise/packaging/labels (previously required) and for unredacted samples (previously discretionary, subject to bonding); and (2) authorizing disclosure of nonpublic information about the merchandise generated by and obtained from online marketplaces, express consignment operators, freight forwarders, or similar entities (e.g., copies or images of packaging, materials, labeling, or containers). (Thus, rights holders whose intellectual property is recorded with CBP may receive such materials to assist CBP in examining and testing suspected infringing imports, subject to limitations protecting law enforcement investigations and national security.)

This section imposes a $2 customs user fee, payable by the party making entry, for each shipment—whether processed manually or via automation—entered or released under the $800 de minimis exemption of 19 U.S.C. 1321(a)(2)(C) (i.e., articles imported by one person on one day with aggregate fair retail value not exceeding $800, free of duty and tax). It further directs the Secretary of the Treasury, in consultation with the Postmaster General, to assess whether equivalent fees should apply to such shipments arriving via the U.S. international postal network and, if appropriate, to prescribe them by regulation; it also specifies that these new fees are excepted from prior merchandise payment rules and must be paid by the party making entry.

This section requires the Secretary of the Treasury, in consultation with the U.S. Customs and Border Protection Commissioner, to submit to the Senate Committee on Finance and the House Committee on Ways and Means, not later than one year after enactment of this Act and annually thereafter, a report followed by a briefing on the use of administrative exemptions under section 321 of the Tariff Act of 1930 (19 U.S.C. 1321). (As background, these exemptions—commonly known as the de minimis rule—authorize duty- and tax-free admission of low-value imported articles, including up to $800 per day per person in most cases under subsection (a)(2)(C).) For the year preceding submission, each report must assess (1) the volume of imports claiming an exemption under subsection (a)(2)(C), including total shipments and merchandise volume by 4-digit Harmonized Tariff Schedule heading and country of origin; (2) total U.S. government revenue forgone; (3) violations of regulations under subsection (c), including penalties and mitigation actions; (4) shipments subject to detention or forfeiture by port of entry and reasons therefor; (5) merchandise under evaluation as ineligible under amended subsection (b)(1)(B); (6) average monthly criminal referrals to the Department of Justice or Homeland Security Investigations; (7) use of exemptions for merchandise from Mexico or Canada, including volume, type, and trends; and (8) current staffing, risk mitigation, and compliance actions.

This section sets the effective date for amendments made by this Act as 60 days after enactment and their applicability to articles entered on or after 30 days following the effective date of regulations prescribed under new subsection (c) of section 321 of the Tariff Act of 1930.