A group of senators introduced the FIGHTING for America Act to tighten rules that allowed low-value imports to avoid taxes, tariffs, and inspections.
A bipartisan bill was introduced on Thursday in a bid to stop the United States from being flooded by counterfeits, forced labour products, and fentanyl from China.
It comes after the number of low-value packages imported into the United States rose by over 258 percent in the past six years, from 298 million in 2017 to more than 1 billion in 2023, and is on track to grow further.
Under the rule, imports worth under $800 can enter the United States without paying duties and taxes and with minimal customs inspection.
The rule, which is meant to minimise bureaucracy and reduce costs for customers, small businesses, and the government, has been exploited by Chinese e-commerce giants such as Shein and Temu, which built their business models around the rule.
2-Pronged Approach
A bipartisan group of senators, including Finance Committee Chair Ron Wyden (D-Ore.), Brown, the chair of the Banking Committee, and Sens. Cynthia Lummis (R-Wyo.), Susan Collins (R-Maine), and Bob Casey (D-Pa.), introduced the FIGHTING for America Act, which they say will tackle the loophole through a two-pronged approach.
The bill would ban the use of de minimis entry rule to import certain categories of products, including “import-sensitive” goods such as textiles and leather goods, goods subject to anti-dumping or countervailing duties, and other types of goods that Customs and Border Protection (CBP) deems to be risky or that floods the U.S. market, the note said.
It would also require CBP to “collect more information about commercial packages, facilitating the targeting and seizure of illicit goods, and increasing penalties for bad actors,” it added.
The lawmakers said the measures would would help lower carbon emissions, promote enforcement of U.S. trade laws, and level the playing field for U.S. manufacturers and workers by reducing the overall volume of de minimis imports.
“Foreign corporate giants are inundating our borders with millions of low-value packages, making it tough for customs agents to stop dangerous goods like fentanyl from falling into Americans’ hands,” Wyden said.
“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.”
Brown named China as one of the countries “exploiting the de minimis loophole to cheat our trade laws and flood our country with packages containing fentanyl and other illicit substances,” and said the 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.”
In February, Brown and Scott called on President Joe Biden to end the de minimis rule, saying it was “a contributing factor to the fentanyl crisis that is killing Americans and tearing families apart.”
According to the Drug Enforcement Administration, China is the primary source of fentanyl and fentanyl-related products in the United States, often through “international mail and express consignment operations” that take advantage of the de minimis loophole.
The new bill has been applauded by a number of unions, trade and police associations, as well as campaign groups focusing on the fentanyl crisis.
Reynolds’s remarks followed concerns over allegations that some of Shein’s clothes could be made with Uyghur forced labour in China.
The minister said he would welcome Shein’s listing in the UK but the fashion retailer is expected to meet the same standards as other businesses do, including on ethical and moral targets, tax, and all aspects of business.
Joseph Lord contributed to this report.