US Moving to Tighten below $800 Import under De Minimis Clause

[ABS News Service/10.08.2024]

Senate Finance Committee Chairman Ron Wyden (D-Ore) has introduced much-anticipated bipartisan legislation to tighten imports requirements for low-value packages in order to close the socalled de minimis loophole.

The bill would prohibit the use of the $800 de minimis threshold to import certain types of goods, including goods that are import-sensitive or subject to additional trade remedies.

This would not only level the playing field for US manufacturers by ensuring that tariffs are being enforced, but would also encourage a shift back to container shipments and reduce the volume of individual packages entering under de minimis, according to a summary of the bill

The legislation also would improve oversight of the de minimis entry process by requiring CBP to collect more information about commercial packages, facilitating the targeting and seizure of illicit goods, and increasing penalties for bad actors.

Provisions

The bill would:

· Bar certain categories of products from being imported through de minimis, including:

– Goods designated as “import-sensitive” under the Generalized System of Preferences (e.g., textiles, apparel, and leather goods);

– Goods subject to anti-dumping or countervailing duties;

– Goods subject to tariffs imposed pursuant to a Section 301, Section 232, or Section 201 investigation and

– Other types of goods that CBP has identified as experiencing a surge in de minimis imports or presenting a persistent risk of illegal importation.

· Require CBP to collect additional data on low-value shipments to better target and interdict unlawful imports.

· Streamline procedures for CBP to seize and dispose of unlawful goods shipped through de minimis and increases penalties for violations of de minimis rules.

· Establishes a fee of $2 per shipment for the use of de minimis entry procedures.

Cracking Down on Illegal Goods

“Foreign corporate giants are inundating our borders with millions of low-value packages, making it tough for customs agents to stop dangerous goods like fentanyl from falling into Americans’ hands,” Sen. Wyden said. “Americans should feel confident that anything arriving on their doorstep is safe, legal, and ethically produced. Our legislation would crack down on foreign companies abusing the law and make sure they play by the rules.”

Cosponsoring the legislation are Sens. Cynthia Lummis (R-Wyo), Sherrod Brown (D-Ohio), Susan Collins (R-Maine) and Bob Casey (D-Pa).

The Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains for America Act would tighten the rules for de minimis entry and help CBP more effectively stop unlawful imports, according to its supporters.

The legislation would ensure that Chinese corporate giants like Shein and Temu cannot use the de minimis process to avoid paying tariffs on textiles, shoes and apparel or evade trade penalties imposed because of Chinese trade cheating.

Reducing the overall volume of low-value packages entering under de minimis would lower carbon emissions, promote enforcement of US trade laws and level the playing field for US manufacturers and workers.

The legislation has the backing of the National Council of Textile Organizations, National Association of Police Organizations, Fraternal Order of Police, United Steelworkers, United States Footwear Manufacturers Association, National Treasury Employees Union and the Outdoor Industries Association.