Bipartisan legislation released in US to help stop illicit imports

In recent years, the number of direct-to-consumer shipments from foreign corporate giants into the United States has quadrupled. These retailers are abusing a customs process called ‘de minimis’ entry, which allows packages under $800 to enter the country tariff-free and under a streamlined process.

As the volume of packages has increased, CBP has struggled to effectively target such shipments.

“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,” said Democrat Senator Ron Wyden from Oregon in a release from the US Senate Committee on Finance.

“Whether through the southwest border or in packages mailed into the United States, China is using any tool available to get illicit drugs across our border,” Republican Senator Cynthia Lummis from Wyoming said.

“By cracking down on this loophole and providing law enforcement with more resources, this bipartisan legislation will begin to level the playing field for Ohio workers and Ohio manufacturers and retailers, while helping to stop the deadly flow of fentanyl into Ohio communities,” Democrat Senator Sherrod Brown from Ohio said.

“This bipartisan bill would strengthen CBP enforcement, improve data collection, and streamline the import approval process to address unlawful imports and protect domestic industries while ensuring fair trade practices,” said Republican Senator Susan Collins from Maine.

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

The legislation would ensure that Chinese corporate giants 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, the release noted.

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 would also 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.

This legislation is backed by several trade bodies across the country.

“This bill eliminates de minimis for the most import-sensitive products and goods subject to trade remedies, including the vast majority of textile and apparel imports from China and the rest of the world. It is a major step in the right direction toward closing the loophole,” National Council of Textile Organisations (NCTO) president and chief executive officer Kim Glas said in a statement.

“De minimis shipments have grown exponentially due to the explosion of e-commerce and the growth of companies like Shein and Temu that have built their business models around this duty-free loophole. As a result, the US market has been inundated with a flood of low value, subsidised and often illegal and tainted imports that are endangering US consumers and undermining the US textile and apparel production chain,” he added.

Fibre2Fashion News Desk (DS)