Industry associations seek reduction to De Minimis amount
Reduction sought to combat Chinese companies using de minimis to evade U.S. trade laws
The National Customs Brokers and Freight Forwarders Association of America (NCBFAA) has issued an update on this discussion working through the House Ways and Means Committee involving De Minimis. This in the early stages and Farrow will continue to monitor this issue via the NCBFAA Legislative Counsel.
The House Ways and Means Trade Subcommittee on Dec. 2 held a hearing on China trade policy, where Trade Subcommittee Chair Earl Blumenauer (D-OR) suggested Chinese companies are using de minimis to evade U.S. trade laws.
Blumenauer asked National Council of Textile Organizations (NCTO) Executive Director Kim Glas, who testified before the committee, what the organization believes Congress should do to address these issues. Glas suggested Congress should consider several options, including:
- Reducing the de minimis level from $800 to $7 to be in alignment with China’s de minimis level;
- Designating e-commerce shippers as the importer of record;
- Denying Section 321 entry for any products subject to Section 301 duties or other trade actions; and/or
- Barring the use of Section 321 entry for e-commerce shipments.
While Blumenauer didn’t respond to directly to any of the recommendation, he told Glas that he looks forward to working with the organization as these proposals are developed.
Blumenauer later doubled down on this idea of amending the di minimis, stating that Congress needs to look at the de minimis in a press interview.
The Columbia River Customs Brokers & Forwarders Association is a longtime friend of Rep. Blumenauer locally, as well as in D.C. He has told the NCBFAA Affiliate Association in the past that he understands the role of the customs broker in international trade.
“We have reached out to the congressman’s office and offered our assistance should they need any guidance on possible remedies that may be introduced,” said Victoria Lane, NCBFAA Secretary and Columbia River Customs Brokers & Forwarders Association President.
“The de minimis issue is one that has drawn a lot of attention since the implementation of the Section 301 tariffs on China. The use of this provision exploded as e-commerce exploded during the pandemic. NCBFAA will ensure that its position is included as part of Rep. Blumenauer begins his deliberations,” said NCBFAA Legislative Counsel Nicole Bivens Collinson.
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