Understanding Minimal Value [Foreign Gifts and Decoration]: A Legal Overview

Definition & Meaning

The term "minimal value" refers to the retail value of gifts and decorations received from foreign governments, which is set at $100 or less in the United States at the time of acceptance. This value is subject to adjustment every three years to account for inflation, based on the consumer price index. The adjustments are made by the Administrator of General Services in consultation with the Secretary of State.

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Real-world examples

Here are a couple of examples of abatement:

Example 1: A U.S. diplomat receives a decorative item from a foreign government valued at $90. This gift falls under the minimal value threshold and can be accepted without reporting.

Example 2: A government official is offered a luxury watch valued at $150 from a foreign dignitary. Since this exceeds the minimal value limit, the official must decline the gift or report it according to federal regulations. (hypothetical example)

Comparison with related terms

Term Definition Difference
Gift A voluntary transfer of property from one person to another without compensation. Minimal value specifically refers to the threshold for accepting gifts from foreign governments.
Foreign Gift A gift received from a foreign government or its representatives. Minimal value applies to foreign gifts and sets a specific monetary threshold.

What to do if this term applies to you

If you are a government employee and receive a gift from a foreign government, first assess its value. If it is $100 or less, you can accept it without reporting. For gifts exceeding this value, consult your agency's ethics guidelines and consider using US Legal Forms to find appropriate templates for reporting or declining gifts. If you have any doubts, seeking professional legal advice is recommended.

Quick facts

  • Typical value threshold: $100 or less
  • Adjustment frequency: Every three years
  • Relevant area: Foreign relations and ethics regulations

Key takeaways

Frequently asked questions

You must report it according to your agency's ethics guidelines or decline the gift.