Category: Press Releases and Statements

NFTC Launches De Minimis Tax Exemption Fact Center

Posted on by Veronica Berkshire

Washington, D.C. – The National Foreign Trade Council has launched a De Minimis Tax Exemption Fact Center to inform policymakers and press of the benefits of this tax break to the American economy. Conversely, passage of pending legislation to degrade the current de minimis threshold would levy a regressive tax increase on underserved populations.

The de minimis tax exemption permits shipments valued under $800 (per person, per day) to enter the U.S. free of duty and taxes. These shipments are subject to U.S. laws and information requirements that promote effective enforcement at the border. Congress reaffirmed and expanded this long-standing tax exemption on a bipartisan basis in 2016, noting the significant economic benefits.

“Congress passed and expanded the de minimis tax exemption for a reason:. De minimis is a tax cut that reduces costs for consumers and promotes economic security. It reduces the effects of inflation on U.S. businesses, helps to alleviate port congestion, and enables customs authorities to better focus resources,” said John Pickel, NFTC Senior Director for Supply Chain Policy. “As Congress considers policy proposals, we want to make sure the drastic cost reductions, supply chain benefits, and facts about enforcement capabilities are front and center. We also want Congress to understand that there are clear ways to enhance the implementation of de minimis without hurting the businesses and consumers who benefit from it.”

The new NFTC De Minimis Tax Exemption Fact Center includes:

  • A web page that highlights the benefits of the tax exemption to small businesses, consumers, underserved communities, CBP enforcement efforts, and the ongoing fight against inflation and supply chain slowdowns.
  • A fact sheet that includes information on the benefits of de minimis, a fact-check on the detailed information that CBP requires on de minimis shipments, and suggestions for Congress on how de minimis can be further improved.
  • Links to Congressional testimony on the small business, consumer, and supply chain benefits of the de minims tax exemption.
  • Infographics that illustrate the increased fees packages would accrue if de minimis were curtailed or eliminated and the significant information CBP requires on de minimis shipments.

The Fact Center will be updated with additional information regularly.

In addition, John Pickel the Senior Director of International Supply Chain Policy at the National Foreign Trade Council is available for media inquiries on de minimis and other supply chain policy issues. He can be reached by contacting Veronica Berkshire at vbershire@nftc.org.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

Congressional Movement on Taiwan Tax Agreement Will Strengthen Business Opportunities for U.S. Companies

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued the following statement:

“The activity of Congress this week on Taiwan is a great move towards formalizing relations with one of our closest allies in the Indo-Pacific region. The NFTC has always welcomed increased engagement from Congress internationally in support of the U.S. economy. Reducing double taxation is an important step towards ensuring that U.S. and Taiwanese companies can do business in both markets. We encourage Congress to continue their work on a path forward to increased economic cooperation with Taiwan.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Welcomes U.S.-EU Data Privacy Framework

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith today issued a statement following following the EU’s adoption of an adequacy decision for the U.S.-EU Data Privacy Framework:

“NFTC welcomes yesterday’s decision by the European Union that the U.S. offers data protections equivalent to the EU. This determination completes years of hard work under the U.S.-EU Data Privacy Framework and enables data transfers between the U.S. and EU in compliance with the EU’s GDPR privacy protections, thus allowing U.S. companies to reliably deliver world class goods and services in the Transatlantic marketplace.

“NFTC calls on the U.S. and EU governments to continue working together on the full range of digital regulations to ensure U.S. companies continue to have access to the EU market.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

U.S.-Chile Tax Treaty Passage Will Bring Business, Investment Opportunities to Both Countries

Posted on by Veronica Berkshire

WASHINGTON DC – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued a statement following Senate passage of the U.S.-Chile Tax Treaty:

“We are thrilled with today’s vote by the Senate consenting to the ratification of the U.S.-Chile Tax Treaty, a moment more than 10 years in the making. Chile is a vital U.S. partner in Latin America, and this treaty will allow American businesses to avoid double taxation which can currently climb as high as 44%. This treaty will go a long way in strengthening the economic relationship between the United States and Chile as well as encouraging more trade and bilateral investment.

“We thank Senators Schumer and McConnell, the Senate Foreign Relations Committee and the Senate Finance Committee for their extensive work in moving this treaty through the Senate.

“Tax treaties are critical mechanisms that strengthen America’s relationships with allies and partners and facilitate U.S. companies’ ability to succeed and do business abroad. We encourage the Administration and Congress to make negotiating and ratifying additional treaties a priority in the coming years.”

The NFTC recently released its annual Tax Treaty Survey, which identified Brazil, Singapore, Taiwan and India as top treaty priority countries for the business community. Read more here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Applauds Introduction of Medical Supply Chain Resiliency Act

Posted on by Veronica Berkshire

WASHINGTON D.C. – In response to the introduction of the Medical Supply Chain Resiliency Act, National Foreign Trade Council (NFTC) Vice President for Global Trade Policy Tiffany Smith released the following statement:

“The ‘Medical Supply Chain Resiliency Act is an excellent example of the creative approaches needed to reinforce and ensure the security of supply chains for medical goods and services for the United States and key allies and partners around the world.

“By charging the United States Trade Representative with negotiating new agreements with trusted trade partners, this legislation cements the role of trade negotiations at the heart of improving medical supply chain security and supporting U.S. innovation and job creation.

“Greater supply chain resilience depends on aggressive advocacy by the U.S. Government to eliminate tariffs and nontariff barriers that impact trade between the United States and our partners. The clear participation criteria for the Trusted Trade Partnership Agreements created by the Act ensures that these agreements benefit both the United States and our trading partners that share our values and high standards for strengthening global health security, protecting intellectual property, reducing barriers, and implementing good regulatory practices.

“Global health events, including COVID-19, illustrate the importance of collaboration among partner governments and between the public and private sectors to safely bring critical medical and pharmaceutical products across borders.

“NFTC applauds Senators Carper and Tillis for their vision and urges swift passage of this legislation so that the United States and its Trusted Partners can better prepare to meet the public health demands of our populations and rise to meet the challenges of the next global health emergency.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Reacts to USTR Tai’s Speech on Supply Chain Resilience

Posted on by Jake Colvin

Washington D.C. – In response to United States Trade Representative Katherine Tai’s major speech at the National Press Club, National Foreign Trade Council Vice President for Global Trade Policy Tiffany Smith issued the following reaction:

“The vision for U.S. trade policy articulated today by Ambassador Tai outlines admirable goals for workers, SMEs, stronger supply chains, and sustainable and inclusive trade that we can all agree on. At the same time, the Administration’s perspective undervalues the importance of writing new rules for the global economy through trade agreements that level up standards, create certainty and advance American values and interests.

“The most important thing that the United States Trade Representative can do to build greater supply chain resilience is to work aggressively to address tariffs and nontariff barriers abroad and unlock new global opportunities to benefit America’s families, farmers, manufacturers, workers, consumers, and businesses.

“While the COVID-19 pandemic revealed risks and fears of global supply chains, it also demonstrated that governments and the business community could work together to cut red tape, adapt plans, and pivot supply chains to develop life-saving vaccines in record time and minimize the effects on workers, companies, and consumers.

“We look forward to working with the Biden Administration on commercially-meaningful trade policies that achieve its vision of trade that benefits all.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

DST Moratorium a Step in the Right Direction

Posted on by Veronica Berkshire

Washington D.C. – National Foreign Trade Council President Jake Colvin issued the following statement following reports that the Administration is working multilaterally to extend the Digital Services Tax (DST) moratorium until the end of next year:

“We welcome the Administration’s efforts to extend the DST moratorium as countries continue their work to finalize the Inclusive Framework at the OECD. This should give Inclusive Framework negotiators time to ensure the final policies are administrable and not overly burdensome, rather than pushing to meet an artificial deadline.

“While this process concludes, it would be shortsighted for countries to move forward individually with implementing a web of discriminatory, country-specific DSTs before the outcome of Pillar One is clear.

“We hope that PIllar One negotiations will lead to an outcome that makes DSTs, which primarily target U.S.-based companies, obsolete. We urge countries participating in the Inclusive Framework negotiations to continue to participate in good faith and to agree to extend the moratorium past January 1, 2024.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

Business Community Outlines Customs Modernization Priorities

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today joined 12 leading industry associations representing a diverse group of sectors across the U.S. economy in outlining their legislative priorities as Congress considers updates to current U.S. customs laws.

“The business community supports this process and the idea that there needs to be a balance between trade facilitation, which drives prosperity, and enforcement, which keeps Americans safe,” said John Pickel, NFTC Senior Director for International Supply Chain Policy. “The vast majority of traders are compliant and this is an opportunity to recalibrate the relationship between government and responsible industry partners.”

The letter, addressed to Senators Ron Wyden (D-OR) and Mike Crapo (R-ID) as well as Representatives Jason Smith (R-MO) and Richard Neal (D-MA) underscored the importance of trade for our nation’s economy and the role that customs law and rules play in facilitating trade for America’s businesses.

The letter reads, in part: “The last update to the nation’s customs laws made under the Trade Facilitation and Trade Enforcement Act of 2015 included many important provisions but the trade landscape has changed dramatically since enactment of that law, including the explosive growth of global e-commerce, the emergence of many new actors – good and bad – in the trade environment, post-Covid supply-chain constraints and resiliency planning, and growing attention to supply chain transparency.”

It continues: “Customs modernization should not only provide CBP with appropriate authority and tools to stop unlawful trade, but to facilitate lawful trade, protect good actors, and provide opportunities for the trade community to engage with CBP in advancing its important trade mission.”

The NFTC has previously enumerated many of these priorities, including during testimony by John Pickel during a Senate Finance Committee hearing on Customs Modernization. You can read his testimony and watch a video of the hearing here.

The trade facilitation measures proposed by the business community in the letter include:

  • Government Wide Policy Consistency in the Customs Entry Process;
  • Continue to Facilitate Entries Under Regulations;
  • Fight forced labor through better information sharing;
  • Timelines for Government Response;
  • Codify requirements for existing carriers;
  • Establish Data Collection Standards;
  • Clarify the benefits, opportunities, and harmonization of trusted trader programs;
  • Limit the Use of Outdated “Redelivery” Authority;
  • Update Access to Information by Embracing Progressive Filing;
  • Section 301 Duty Refunds;
  • Modernizing the Automated Commercial Environment;
  • Studying the current Duty and Fee Structure;
  • Support Due Process in Enforcement of U.S. Laws;
  • Promote Visibility and Transparency;
  • Increased Resources to Fight Counterfeits;
  • Enhance Information Sharing with the Private Sector;
  • Fund Ports of the Future; and
  • Define Structured Green Trade Benefits.

Read the letter and recommendations here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

Tax Treaty Negotiations a Priority for U.S. Businesses

Posted on by Veronica Berkshire

Washington D.C. – The National Foreign Trade Council (NFTC) today released its 2023 Tax Treaty Survey after a several year hiatus.

The survey, which was answered by tax professionals for NFTC member companies, asked businesses to rate their tax treaty priorities around the world.

“Tax treaties give U.S. companies certainty when competing in international markets. Without these treaties, our companies face higher tax rates than their competitors and their employees abroad often face the burden of double taxation on their income,” said NFTC VP for International Tax Policy Anne Gordon. “It is clear from this survey that U.S. companies are clamoring for the Administration to prioritize the negotiation of these agreements with a variety of countries all around the world where their companies already have substantial presence.”

Highlights of the report include:

  • Brazil was identified as the most important to respondents.
    The next tier of countries that were identified as #1 priority to respondents are: Taiwan followed by Singapore, Saudi Arabia and Switzerland.
  • Issues listed as priorities within these countries include Transfer Pricing, reducing withholding rates on Royalties and Dividends, the Mutual Agreement Process (MAP) and Covered Taxes.
  • Countries with the overall most requests for a Treaty were Brazil, Singapore, Taiwan and India. The next tier includes Colombia, Hungary, Saudi Arabia, and Switzerland followed by Malaysia, Mexico and the UK.
  • In total, respondents requested treaties with 31 countries.

Read the full results here.

An infographic of the top most requested countries can be found here.

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.

NFTC Welcomes Movement on U.S.-Chile Tax Treaty; Urges Quick Ratification

Posted on by Veronica Berkshire

WASHINGTON DC. – National Foreign Trade Council (NFTC) Vice President for International Tax Policy Anne Gordon today issued the following statement:

“The U.S.-Chile Tax Treaty will offer U.S. companies operating in Chile long-sought certainty that will allow them to fairly compete in a country with enormous potential in Latin America – a region where the U.S. currently only has two other treaties. U.S. companies currently pay a higher tax rate than those incorporated in the country, putting them at a comparative disadvantage when competing in the Chilean market. We commend the Foreign Relations Committee for favorably reporting the Treaty today and we urge the Senate to quickly approve the ratification, so we can continue our forward progress towards increased business opportunities in the country.”

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About the NFTC
The National Foreign Trade Council (NFTC) is the premier business association advancing trade and tax policies that support access to the global marketplace. Founded in 1914, NFTC promotes an open, rules-based global economy on behalf of a diverse membership of U.S.-based businesses.