Democratic lawmakers are urging the president to use his authority to exempt commercial shipments from “de minimis” restrictions, which allow packages worth under $800 to enter the United States duty-free.
More than 100 Democrats in the House of Representatives Calling on President Biden The government will use its powers to reduce the flow of goods entering the United States duty-free by exploiting a “de minimis” loophole in U.S. trade law.
In a letter sent to Biden on Wednesday, 126 lawmakers urged him to exempt commercial shipments from de minimis treatment, which allows packages under $800 to enter the US without being taxed and often avoiding US customs inspections, and has been abused by importers, particularly Chinese brands such as SHEIN and Temu.
member I wrote a letter to Biden.:
Removing commercial cargo from demi-minimum status would significantly reduce package imports. Instead of millions of packages arriving each day at express air distribution centers or via international mail, legitimate goods ordered online would arrive at official ports assembled in shipping containers with product details submitted online in advance as required by the SAFE Port Act. This would allow customs and other regulatory agencies enforcing product safety, labor rights, drug enforcement, and other policies to target cargo that requires inspection and seize violating imports. It would also close the door to bad actors who exploit the lack of inspection and information about the contents of demi-minimum cargo to flood the U.S. with illegal, forced labor, counterfeit, and deadly goods, creating a level playing field for domestic manufacturers and workers.
Kim Glass, president and CEO of the National Textile and Textile Trade Council, said at a press conference on Wednesday that 4 million very small packages enter the United States every day, about half of which contain textile or apparel products.
While some unscrupulous merchants are exploiting de minimis, Chinese brands SHEIN and Temu are leading the way, according to a 2023 report by the House of Representatives China Communist Party Committee. Found The two companies sent 600,000 packages per day to the U.S. in 2022 while paying zero tariffs.
And it’s American textile manufacturers who are paying the price.
“The U.S. textile industry is facing five alert levels,” Glass said. “Eighteen factories have closed over the past year — 18 factories that literally pivoted their operations overnight during the COVID-19 outbreak, when the country did not yet have life-saving personal protective equipment.”
Without action, the problem is likely to get worse. “We know we’re going to see more textile mill closures, and we feel a real urgency now to put an end to this,” Glass said.
A wide range of groups, from manufacturing groups and labor unions to law enforcement and advocacy groups seeking to end the fentanyl crisis, are working to close this narrow loophole because of evidence that fentanyl is flowing into the US from China. With minimal transportationcausing epidemics, About 75,000 people died Last year in the US.
Efforts are underway in Congress to close this loophole, including: Bipartisan Bill Senators proposed the bill in August. A bipartisan, joint House and Senate bill introduced by Rep. Earl Blumenauer (D-Oregon). Others: Politico reporter Gavin Bade Reported on Wednesday Negotiations are still ongoing to pass some form of legislation to address de minimis during this Congressional session.
But in the meantime, House Democrats are calling on Biden to act.
“There is broad support in the United States for closing this de minimis loophole, from law enforcement to labor unions, domestic manufacturers, religious and consumer groups, retailers large and small, and families who have lost loved ones to fentanyl-laced drugs imported from China,” they wrote. “We pledge to continue our efforts to enact legislation to provide relief for the de minimis crisis. In the meantime, we are working very diligently with you to find more timely relief to this urgent and growing problem.”
