House Ways and Means Advances Bill to End de Minimis in 2027
The House Ways and Means Committee, after an all-night session on what it calls One Big Beautiful Bill, passed the tax cut bill along party lines on May 14.
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While most of the bill concerns income taxes, it also ends de minimis for all commercial shipments on July 1, 2027. The bill also curtails the use of drawback when exporters of U.S.-manufactured tobacco products file drawback claims for imported products that paid tobacco excise taxes. The Joint Committee on Taxation estimated that the curtailment of drawback for tobacco products would add $12.1 billion in revenue to the treasury through the end of fiscal year 2034, and $879 million in the first full year of the restriction.