The senator has introduced bipartisan legislation to address the problem and has repeatedly called on President Joe Biden to take executive action to close the loophole.

“We know what a problem unfair foreign competition is for Ohio companies, particularly from China. Tariffs have been one way to counter this and level the playing field for American manufacturing, but this de minimis loophole is yet another way for China to cheat,” said Brown in a statement.

“And because these packages enter the US with minimal inspection, drug traffickers are also exploiting the de minimis loophole to send deadly drugs like fentanyl into our country without any detection,” he said.

Packages under $800 in value are exempted from US duties, taxes and fees now, and are allowed to enter the country with little or no inspections.

The number of packages using this loophole to avoid duties has soared recently to more than three million packages per day, and urgent action is needed to prevent unfair competition and exploitation of US manufacturers, he said.

Foreign competitors will often split large shipments into many small packages to cheat the rules and evade the duties they owe, gaining an unfair competitive advantage, he added.

These shipments often include counterfeit items and items made with slave labour.

“With nearly 4 million packages per day, the de minimis loophole has created rampant lawlessness and is facilitating the import of high-risk, illegal, and dangerous products,” said Michael Stumo, chief executive officer of the Coalition for a Prosperous America.

“The de minimis loophole also makes a mockery of the Uyghur Forced Labour Prevention Act and efforts to prohibit Chinese imports made with forced labour,” he added.

Fibre2Fashion News Desk (DS)