U.S. Customs Crackdown: Bitcoin Mining Firms' Tactics to Avoid Import Fees

The bitcoin mining industry has been known to undervalue shipments of mining rigs to the U.S. Customs and Border Protection to reduce import charges. With the Trump administration's increased tariffs on goods from around the world, this practice has become more significant. According to Jill Ford, founder of BitFord Digital, a firm that procures equipment for miners, industry members often declare lower package values to avoid tariffs. However, this practice is considered fraudulent and illegal. The U.S. Customs and Border Protection has tightened its controls, making it more challenging for miners to undervalue their shipments. The size of the shipment and the state it is imported to can impact the level of scrutiny it receives. Hundreds of thousands of mining rigs are imported into the U.S. every year, with the $30 billion application-specific integrated circuit market dominated by Chinese companies. The Trump administration's new trade policy has caused uncertainty for bitcoin miners in the U.S., who may have to pay significant taxes on their shipments. The combination of tariff uncertainty and increased vigilance from U.S. Customs is forcing some mining operations to reconsider their plans, with roughly 50% of Ford's clients proceeding with caution.