Strengthening US Trade Protections: A New Era for Low-Value Shipments
The US government is taking bold steps to revamp the de minimis exemption, a policy that has allowed goods valued at $800 or less to enter the country duty-free. The proposed changes aim to exclude specific merchandise from this exemption, particularly items affected by trade or national security measures.
A Surge in Low-Value Imports
Over the past decade, the number of imports leveraging the de minimis exemption has skyrocketed, from approximately 139 million in fiscal year 2015 to over 1.36 billion in fiscal year 2024. This dramatic increase poses significant challenges for US Customs and Border Protection (CBP) to enforce compliance with trade laws, health and safety regulations, and intellectual property rights.
Protecting US Industries and Labour
The proposed regulatory changes seek to fortify protections around intellectual property, consumer health and safety, and bridge enforcement gaps. These measures are designed to defend US industries and labour against unfair trade practices. The US textile industry, a vital sector for military and PPE supplies, has been particularly hard hit by the influx of cheap, often illegal imports.
A Call to Action
Homeland Security Secretary Alejandro Mayorkas emphasized the need for change, stating, “The exemption of these goods from duties or taxes has undermined American businesses and workers and flooded our ports of entry with foreign-made products, making CBP’s vital work screening these goods for security risks more difficult.”
Industry Support
The National Council of Textile Organizations (NCTO) has welcomed the proposed rulemaking, urging CBP to expedite the process to the fullest extent possible. The NCTO also called upon the administration to endorse and swiftly implement a comprehensive solution to tackle the escalating de minimis issue.
A New Era for US Trade
The proposed changes mark a significant shift in the US government’s approach to trade policy. By strengthening protections and closing loopholes, the administration aims to safeguard US consumers, workers, and businesses. As the US textile industry continues to face significant challenges, the proposed rulemaking offers a glimmer of hope for a more level playing field.
Leave a Reply