From Loophole to Lifeline: How Ending the De Minimis Exemption Revives Safety in FR Workwear

[Updated May 20, 2025: A Postscript on the De Minimis Saga ]

 

Since the publication of our original blog post, the landscape surrounding the de minimis exemption has undergone significant changes, with ripple effects across global trade, e-commerce giants, and safety conscious industries like ours.

On May 2, 2025, the U.S. officially ended the de minimis exemption for imports from China and Hong Kong. This policy shift meant all shipments—regardless of value—are now subject to applicable duties and inspections. The loophole that once let ultra-cheap goods skate by customs duty-free has officially closed, taking with it a freight train of fast fashion and questionably compliant products.

In the immediate wake, air freight capacity between China and the U.S. nosedived by nearly 30%, while companies like Shein and Temu scrambled to rework their logistics playbooks. Consumers braced for higher prices, and retailers re-evaluated sourcing strategies.

To cushion the impact, the U.S. implemented a 90-day tariff reprieve: temporarily slashing duties from 120% to 54% on USPS parcels and down to 30% for FedEx, UPS, and other commercial carriers. The clock is now ticking.

What Happens After the Reprieve?

The prevailing forecast: tariffs are likely to return to full strength—or be replaced by a stricter and more permanent enforcement regime. Customs authorities are expected to step up inspections, slowing down high-volume e-commerce shipments, especially those from companies with murky supply chains or questionable safety standards. There’s also talk of new country-of-origin thresholds and expanded scrutiny on materials claims.

For the flame resistant (FR) workwear industry, this could be a critical turning point. As the cost and complexity of importing low-value, non-compliant garments rise, so too does the competitive advantage of domestically compliant, safety-tested gear. It’s a win for integrity—and for workers whose lives depend on it.

Now Featuring: Flat Fees + Tariffs

Here’s where the pain really kicks in for fast-and-loose importers: not only are shipments now taxed with steep duties, they’re also hit with flat fees—and they’re not small change.

• For international mail (think USPS):
  
• From May 2 to May 31, 2025, shipments from China or Hong Kong valued under $800 face either a 120% tariff or a $100 flat fee, whichever is greater.
• Beginning June 1, 2025, that flat fee doubles to $200 per shipment.
  
• For commercial carriers (FedEx, UPS, DHL):
  
• A 30% tariff applies immediately, in place of the higher flat fee.
  

These charges are in addition to any other applicable duties and are collected at the border. Translation? That $9 pair of flame-resistant-lookalike pants now costs more to import than it’s worth—before it’s even delivered.

 

What About Delays—and Who Benefits?

With the end of the de minimis exemption comes another unexpected benefit to compliant U.S. and Canadian manufacturers: time.

Shipments that once sailed through customs in a matter of hours are now subject to longer processing and increased documentation, with many low-cost sellers already reporting delays of 3–10 days. For fast fashion, that’s an eternity. For buyers in sectors like oil, gas, utilities, and construction—where performance, reliability, and turnaround time matter—those delays make slow-moving, low compliance imports far less attractive.

Meanwhile, quality FR brands that already meet North American compliance standards aren’t burdened by sudden regulatory hurdles. With a smoother path through customs and no need to revise production strategies overnight, we’re better positioned to deliver when it counts.

How Big Is This, Really?

Massive. As of late 2024, over 60% of all U.S. e-commerce shipments entered under the de minimis exemption (it has been suggested by some reports that the number is significantly higher than 60%). That’s more than 1 billion packages annually, the majority of which arrived from China. While not all of those were garments, a substantial share included low-cost clothing—often lacking in traceable certification or even basic safety testing.

This means the shift in policy isn’t just a procedural tweak—it’s a full-scale disruption of the discount import economy. For the FR workwear sector, where durability and fire resistance aren’t just features but requirements, the elimination of this loophole finally levels the playing field. When the race to the bottom gets slowed at customs, quality has a chance to lead again.

We’ll continue to monitor developments and stand by our commitment to making gear that protects people—not profits.

— Rasco Team

 

[Original Blog Post: May 4, 2025]: 

For years, a little-known trade loophole has allowed low-cost, offshore manufacturers to sidestep duties, ship direct to American consumers, and erode the integrity of entire product categories—flame resistant (FR) workwear included. But the winds are shifting. As of May 2, 2025, the de minimis exemption loophole is closing, and with it, the game is changing.

For the FR workwear industry—and safety professionals everywhere—this is a long overdue and important win. Let’s break it down.

 

What is the De Minimis Exemption?

The de minimis exemption, as codified under U.S. trade law, allows individual shipments with a value under $800 USD to enter the country duty-free and without formal customs procedures. The de minimis exemption was first created in 1938 and served the purpose on not wasting government resources collecting duties and tariffs on souvenirs sent home with a value of under $5.  The amount was increased from $200 to $600 in 2016. As a point of reference, under Canada law, goods with a value for duty of CAD $20.00 or less are exempt from customs duties and taxes (excluding goods from the United States or Mexico).

Think birthday gifts or souvenirs from abroad or a single replacement part for a home appliance. No one wants a mountain of paperwork for a $20 wrench.

In the spirit of lessening paperwork for the American consumer and increasing international trade, in 2016 the Trade Facilitation and Trade Enforcement Act (TFTEA) increased the de minimis exemption from $200 to $800. But then came the rise of fast fashion juggernauts—and aggressive offshore direct-to-consumer manufacturers with a keen eye for loopholes.

 

The De Minimis Loophole: A Gateway for Abuse

What began as a tool of efficiency morphed into a business model. Mega-platforms like Shein and Temu industrialized the de minimis exemption into a logistical juggernaut. Every day, hundreds of thousands of tiny parcels flew across oceans, landing in mailboxes across America—duty-free.

And we're not exaggerating: shipping giants like DHL were flying entire cargo planes daily packed with consumer goods from China, all individually packaged under $800, and all slipping through the tariff net. Planes. Full. Of. Product.

While this raised eyebrows across fashion and retail, it had particularly corrosive effects in sectors where product quality and compliance aren’t just “nice to have”—they’re life-and-death. Like FR apparel.

 

How It Affected the FR Workwear Market

Several offshore FR apparel manufacturers saw an opportunity. By listing their garments as under the $800 threshold and shipping direct to American end-users—contractors, welders, electricians—they avoided tariffs, safety testing costs, and many of the oversight mechanisms built into responsible supply chains.

The result? A race to the bottom.

These manufacturers could undercut legitimate FR brands on price—not because of superior efficiency or scale, but because they weren’t playing by the same rules. One particular way that offshore FR apparel manufacturers have abused the de minimis exemption is by listing their products on Amazon and then sending their products in small shipments valued at less than $800 to Amazon fulfillment centers across the country. This enabled to offshore factories to avoid paying duty and tariffs on the products and then to sell the products across the United States on the Amazon platform taking advantage of Prime next day or two day shipping.

And that’s not just bad business. It’s dangerous.

Why Safety and Compliance Matter in FR Workwear

Flame resistant clothing isn’t fashion. It’s personal protective equipment (PPE). It protects workers from arc flash, flash fire, and thermal hazards. It’s the line between “incident” and “injury.”

At Rasco FR, we engineer every garment with performance and compliance at its core. Our gear is:

• UL Classified to NFPA 2112
• Compliant with ASTM F1506
• Certified to NFPA 70E
• Meets CSA and CGSB standards in Canada

When you wear a Rasco FR shirt or coverall, you’re backed by 35+ years of expertise, rigorous testing, and ethical production.

But those cutting corners in offshore markets? Not so much. Their certifications are often vague, self-issued, or non-existent. Their labeling? Sometimes questionable. Their warranties? Good luck. The reality is that any offshore manufacturer selling FR workwear on the internet may technically subject to the same certifications and legal requirements as an American based FR workwear manufacturer, but it’s difficult to guarantee that they are actually following the required certifications and law, and often impossible to legally hold them accountable when they fail to do so.

 

The End of De Minimis: Why It Matters Now

Recent trade policy changes signal the closing of this loophole. The Office of the U.S. Trade Representative (USTR), supported by a coalition of domestic manufacturers, has now moved to remove the de minimis exemption for shipments originating from non-market economies (like China) or targeting products known for systemic abuse.

FR apparel, along with fast fashion, is on the radar.

This means that:

• All qualifying shipments now face the same tariffs as traditional imports
• Manufacturers must comply with customs documentation
• Direct-to-consumer imports from China are about to get more expensive

One exciting element about this change is that it has bipartisan support, which assures that this change should be long-term, thereby leveling the playing field. And more importantly, it restores integrity to the PPE industry.

 

But What About Price?

Yes, the loophole meant cheaper FR clothing. But let’s ask a better question:

At what cost?

Substandard materials, unreliable stitching, non-compliant designs, mislabeled certifications—and zero accountability if something goes wrong. When the flame ignites, do you really want to gamble?

Low price shouldn’t come at the cost of safety, and with the loophole closed, ethical FR brands now stand a fairer chance to compete on what really matters: quality, service, safety, and trust.

 

What Procurement Teams Should Look for in FR Apparel Post-De Minimis

With offshore low-cost products now subject to fair trade rules, procurement leaders and safety buyers need to double down on evaluating products for compliance and consistency. Here's what to prioritize:

1. Third-party certifications
   Look for UL Classification to NFPA 2112, ASTM F1506, NFPA 70E, and CSA Z96 or CGSB 155.20 if operating in Canada.
2. Supply chain transparency
   Can the manufacturer disclose where, how, and under what conditions the garment was made?
3. Traceable QA process
   Brands like Rasco FR log every production batch, every fabric spec, and every quality check.
4. Repair, warranty, and support policies
   If something goes wrong, who do you call? Try doing that with a .cn email address…
5. Reputation and track record
   Has the brand stood the test of time? For us, it’s been 37 years, millions of garments, and customers who trust Rasco FR for the long haul.

 

What Happens Next: An Industry Forecast

With the de minimis loophole closed, expect these ripple effects in the flame-resistant workwear sector:

• Price stabilization: Legitimate brands can now compete without being undermined by unfair imports.
• Higher bar for entry: New brands must now invest in proper testing and certifications.
• Greater emphasis on compliance and labeling: Buyers will pay closer attention to what's "certified" versus what's just "FR-looking."
• Consolidation of trust: Brands with longstanding reputations (like Rasco FR) will see renewed loyalty as buyers opt for known, proven options.
• Retailers and distributors return to domestic sources: Without unfair price advantages, offshore direct-sellers may shrink while local networks flourish.

In short, the FR market is about to get safer, stronger, and more transparent—and that benefits everyone.

 

Conclusion: A Safer, Fairer Future for FR Workwear

The end of the de minimis exemption isn’t just a trade policy update. It’s a line in the sand.

It marks a return to fairness in pricing, ethics in manufacturing, and accountability in safety. And for a category as critical as flame resistant workwear, that’s long overdue.

At Rasco FR, we’ve spent decades building a reputation for trusted, certified, and comfortable safety apparel. We’re excited to compete in a marketplace that values quality over shortcuts—and we’re ready to deliver.

If you’re a buyer, distributor, or safety manager looking for a proven partner in FR gear, let’s talk.

Your team deserves better than loophole PPE.

 

Click here to learn more about Rasco's top quality FR Workwear.