Bill Would Close De Minimis Loophole

Bipartisan, bicameral legislation introduced Thursday would bar non-market economies like China from taking advantage of the $800 de minimis threshold.

Lawmakers have been complaining that China is exploiting the de minimis thresholds, which allows imports valued under $800 to enter the US market without paying duties, taxes, fees or undergoing inspection.

The bill also would require Customs and Border Protection to collect more information on de minimis shipments.

Joining together to introduce the measure are Reps. Earl Blumenauer (D-Ore) and Neal Dunn (R-Fla) and Sens. Sherrod Brown (D-Ohio) and Marco Rubio (R-Fla).

“The de minimis loophole is a threat to American competitiveness, consumer safety, and basic human rights,” said Rep. Blumenauer, who is ranking Democrat on the House Ways and Means subcommittee on trade.

“It is used by primarily Chinese companies to ship over two million packages a day into the United States. It puts American businesses at a competitive disadvantage while flooding American consumers with undoubtedly harmful products. There is virtually no way to tell whether packages that come in under the de minimis limit contain products made with forced labor, intellectual property theft, or are otherwise dangerous. It is time to close this loophole once and for all.”

Bill Details

The Import Security and Fairness Act would:

• Prohibit Goods from Countries that are Both Non-Market Economies and on the
  US Trade Representative’s Priority Watch List from Using De Minimis: To address concerns related to US competitiveness, the legislation prohibits goods from non-market economies that are on the Priority Watch List, such as China, from benefitting from de minimis treatment. The US government has found that such countries provide unfair benefits to their companies. This change ensures that shipments from these countries don’t benefit further under US law.
• Require CBP to Collect More Information on All De Minimis Shipments and Prohibit Use by Bad Actors: To address concerns regarding compliance with US laws, this provision makes common-sense changes that will require CBP to collect more information on de minimis shipments and prohibit importers that have been suspended or debarred from being able to use de minimis. This provision provides statutory support for the ongoing work that multiple administrations at CBP have already started.