De Minimis shipments—small packages valued at US$800 or less that bypass traditional customs scrutiny—have surged in volume, posing significant risks to public health, safety, and economic stability. Below, we address the scale of the problem, the tactics of bad actors, and the measures needed to tackle these challenges effectively.
The scale of De Minimis shipments
The growth of De Minimis shipments is unprecedented. In FY 2023, these packages accounted for 92 percent of all cargo entering the US, with 4 million packages processed daily, reflecting a 42 percent increase from 2022. This surge translates to over one billion packages annually, most arriving via air. The immense volume overwhelms US Customs and Border Protection’s (CBP) resources, creating exploitable entry points.
At JFK International Airport, which processes 25 percent of all De Minimis shipments, CBP handles 750,000 to one million packages daily. Despite its size, the staffing at JFK is insufficient to inspect a meaningful percentage of shipments. Even doubling or tripling personnel would fail to meet the demands of this massive influx.
Health and safety risks
Health violations dominate concerns surrounding De Minimis shipments. In FY 2023, 85 percent of shipments seized for health and safety violations fell into this category. These packages often contain counterfeit pharmaceuticals, unregulated medical devices, and cosmetics laced with toxic chemicals, putting American consumers at grave risk.
De Minimis shipments are also a key pathway for synthetic opioids like fentanyl and nitazene, which is up to 800 times more potent than morphine. In 2023, opioid overdoses claimed 107,543 lives in the US, equating to one death every five minutes. The smuggling of pill presses and precursor chemicals exacerbates this crisis.
Additionally, over 33,000 pounds of prohibited beef, pork, and poultry were seized at JFK Airport in 2023. These shipments, often originating from regions with diseases such as African swine fever and bird flu, threaten the US meat industry and the millions of jobs it supports.
Economic consequences
Counterfeit and substandard goods smuggled via De Minimis shipments undercut legitimate businesses, destabilise supply chains, and erode consumer trust. The profits from these illicit goods often fund organised crime and terrorism, magnifying their societal impact.
Fraudulent practices, such as master carton smuggling, result in significant revenue losses for the US Postal Service. This technique involves mislabeling smaller packages as domestic shipments, deceiving consumers and undermining the integrity of the supply chain.
Innovative smuggling tactics
Smugglers have become increasingly creative in their methods. In March 2023, CBP intercepted a master carton containing 14 packages of synthetic cathinone, leading to a warehouse raid in Ohio where over 1,760 pounds of narcotics were seized. Other tactics include concealing AK-47 receivers in chocolate bars and shipping auto sears and silencers disguised as grease guns.
These methods highlight the sophistication of bad actors exploiting the De Minimis environment, further emphasising the need for robust countermeasures.
Regulatory and technological interventions
To address these challenges, CBP has proposed modernised legislative updates. Current regulations, unchanged since 1995, are inadequate for today’s trade landscape. The proposed updates aim to create a new process for entering low-value shipments, enhancing enforcement capabilities and protecting consumers.
On the technological front, CBP has deployed AI and machine learning tools to identify contraband in De Minimis shipments. Non-intrusive detection devices, first introduced at JFK Airport, are now being rolled out nationwide to improve screening accuracy and efficiency.
Public awareness and consumer responsibility
Consumers play a crucial role in mitigating the risks associated with De Minimis shipments. They are urged to avoid unverified online purchases, as these often involve counterfeit or dangerous products.
The surge in De Minimis shipments represents a multifaceted challenge for US enforcement agencies, consumers, and businesses. Modernising regulations, leveraging advanced technology, and raising public awareness are essential steps in addressing the risks posed by these low-value yet high-impact packages. CBP’s initiatives, combined with collective vigilance, are critical to protecting American lives, businesses, and supply chains.
