A bipartisan bill has been introduced in an effort to address the influx of counterfeit products, forced labor goods, and fentanyl from China into the United States. The bill aims to tighten the de minimis entry rule, which has allowed Chinese e-commerce giants like Shein and Temu to bypass tariffs, taxes, and customs inspections by shipping small packages directly to American consumers.
The number of low-value packages imported into the US has risen by over 258 percent in the past six years, from 298 million in 2017 to more than 1 billion in 2023. This upward trend is expected to continue. Sens. Sherrod Brown (D-Ohio) and Rick Scott (R-Fla.), along with Kimberly Glas, president and CEO of the National Council of Textile Organizations, have attributed this increase to the de minimis entry rule.
Under this rule, imports valued under $800 can enter the US without paying duties or taxes and with minimal customs inspection. While intended to streamline processes for customers, small businesses, and government agencies alike while reducing costs, it has been exploited by Chinese e-commerce giants such as Shein and Temu.
According to a report published by the US International Trade Commission in November 2023, China is currently the leading source for total de minimis imports by a significant margin. Packages from Shein and Temu accounted for over 30 percent of US de minimis imports in 2022.
To address this issue head-on through a two-pronged approach are senators Ron Wyden (D-Ore.), Sherrod Brown (D-Ohio), Cynthia Lummis (R-Wyo.), Susan Collins (R-Maine), Bob Casey (D-Pa.). They have introduced the FIGHTING for America Act which seeks to ban certain categories of products from being imported using the de minimis entry rule. These include import-sensitive goods like textiles and leather goods as well as goods subject to anti-dumping or countervailing duties that pose risks or flood markets.
Additionally, Customs and Border Protection would be required under this bill ”to collect more information about commercial packages” enabling better targeting of illicit goods while increasing penalties for violators.
Supporters argue that these measures will help reduce carbon emissions while promoting enforcement of trade laws within America’s borders. They also aim at leveling out competition between domestic manufacturers/workers with foreign corporate giants who exploit loopholes like de minimis imports.
Senators Wyden emphasized that foreign companies must adhere strictly “to rules” so Americans can trust that anything arriving on their doorstep is safe both legally produced ethically sourced.