ARI SHAPIRO, HOST:
A big change is coming to online shopping on Friday. That's when a new policy takes effect suspending what's known as the de minimis rule on international shipments to the U.S. NPR's Bill Chappell explains it's already making waves.
BILL CHAPPELL, BYLINE: De minimis is Latin, meaning something is trifling or of little importance. For more than 90 years, it let people skip import fees for shipping things of small value. But in 2016, the U.S. sharply raised its de minimus threshold to $800, one of the highest in the world. De minimis shipments now dominate cargo entering the U.S. Think Temu or Etsy vendors. Basically, Americans are...
COURTNEY GRIFFIN: Everyone's favorite shopper. That's a great way to put it, yes.
CHAPPELL: That's Courtney Griffin of the Consumer Federation of America.
GRIFFIN: We buy a lot of stuff, and so it does mean it affects everyone as a result.
CHAPPELL: Griffin says the flood of duty-free packages comes with some risks.
GRIFFIN: It's created significant product safety concerns because low-value imports are facing minimal customs inspection, making it easier for unsafe or noncompliant product to enter the U.S. market.
CHAPPELL: Customs and Border Protection says it processes around 4 million de minimis shipments every day. With numbers like that, policymakers are calling the exemption a loophole. People who want to keep the de minimis rule say it gives U.S. consumers low prices, but critics say it favors foreign companies. Here's President Trump speaking about it earlier this year.
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PRESIDENT DONALD TRUMP: It's a big scam going on against our country, against really small businesses, and we've ended - we put an end to it.
CHAPPELL: Trump says suspending the rule will help the U.S. trade deficit and make it harder to import illegal drugs like fentanyl. An earlier suspension of de minimis focused on China, but this time, the new rule is global. With the new policy set to take effect on Friday, international postal and shipping services are suspending delivery of some packages to the U.S. They're trying to figure out two things - how to handle new paperwork for millions of packages and how to collect money for duties and taxes. The U.S. rule has exceptions - letters aren't affected, and people can send gifts worth less than $100 to each other. I asked Griffin if she has any advice for consumers.
GRIFFIN: The first would be, when possible, buy domestically. This would be a route to avoid import fees, potential shipping delays.
CHAPPELL: She says people should look for changes to retailers' shipping and return policies, especially in the upcoming holiday season. Griffin also says to look out for scammers trying to profit off of confusion over the new policy. Bill Chappell, NPR News.
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