| WASHINGTON, DC – In response to the announcements that the House Select Committee on the Strategic Competition Between the U.S. and the Chinese Communist Party (Select Committee) has recommended legislation that would reduce the current threshold for de minimis treatment of low-value goods, NFTC Senior Director of International Supply Chain Policy John Pickel released the following statement:
“The recommendation from the Select Committee to reduce de minimis would make everyday purchases more expensive for American consumers and small businesses without improving enforcement at our borders. The recommended reduction of the current threshold is tantamount to a new tax that will hurt low-income and underserved communities the most without addressing risks that are present in all ways that products come into the U.S. “Reducing de minimis would double the cost of a $50 package, costing taxpayers millions and undoubtedly causing unnecessary delays for businesses and consumers without improving enforcement. “De minimis is not a loophole; it is a staple of U.S. customs law that Congress designed to provide access to international markets for small businesses and lower costs for consumers. CBP has confirmed that de minimis shipments are processed the same way as higher-value parcels and are subject to enforcement of U.S. laws, including the Uyghur Forced Labor Prevention Act. “This recommendation would not address challenges in the important work of stifling the flow of illicit drugs and products made using forced labor from entering our borders. There are policy options that improve enforcement of U.S. laws at our borders, including increasing compliance across all ways that products come into the U.S. without doubling costs for American consumers and small businesses. “We urge Congress to consider the negative impacts that reducing de minimis will have, particularly on inflation and our fragile supply chain at a vulnerable time for the economy. Lawmakers should allow de minimis to continue doing what Congress intended the law to do: relieve supply chain congestion and provide American consumers and businesses with better access to buy supplies and sell finished goods on the global market.” ###
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. |
