Blumenauer sees hope for de minimus reform

House Ways and Means trade subcommittee ranking Democrat Earl Blumenauer (Ore) said last week he believes it is “highly likely” the House will take up China legislation this year that includes addressing the de minimis loophole.

China is responsible for 60 percent of the billion packages that come in under the $800 de minimis threshold, meaning that those packages go unchecked by Customs and Border Protection.

Closing the de minimis loophole is his biggest trade priority, Rep. Blumenauer, who has announced his plans to retire from Congress after this year, told a program sponsored by the Center for Strategic and International Studies.

"I didn't know what we were doing in 2015 when we lowered the threshold to $800.  It seemed like a reasonable effort to cut down on bureaucracy, and if Aunt Nellie came back with $800 worth of perfume, she shouldn't have to fill out tariff. paperwork.

"Little did we anticipate that the Chinese would build an entire industry predicated on being able to use this de minimis loophole."

The House Select Committee on China also has raised the de minimis problem, but its proposed solution is to increase the threshold level. Rep. Blumenauer prefers bipartisan legislation that would deny de minimis to any non-market economy that currently is on the watch list – which would be China.

Government Procurement

The lawmaker said he also would like to see China barred from bidding on US government procurement projects because Beijing never joined the World Trade Organization’s Government Procurement Agreement, as it committed to do when it joined the WTO.

Asked about Congressional proposals to revoke China’s Permanent Normal Trade Relations status, Rep. Blumenauer said he would “have no problem” with Congress debating that question.

On other trade issues, Rep. Blumenauer said he is “not optimistic” there will be any movement on reauthorization of the Trade Adjustment Assistance program this year. He also seemed somewhat surprised to hear that his colleague, trade subcommittee chair Adrian Smith (R-Neb) expressed optimism about renewal of the expired Generalized System of Preferences Program.

“If Adrian is optimistic, I’m optimistic,” he commented, but added he is frustrated that proposed additions to beneficiary country criteria, like environmental protection, are proving to be “roadblocks” to GSP renewal.

"There is still an opportunity for bipartisanship," Rep. Blumenauer said, "but it's overwhelmed by the imperative of the news cycle and the messaging that party leadership, I'll just say the Republican Party leadership feels they're captive to."

"I guess the issue really is not starting things, but getting them across the finish line."