Source: Blog – Alliance for American Manufacturing

The Port of San Pedro in Los Angeles. Getty Images

The Coalition to Close the De Minimis Loophole is calling on Congress and the Biden administration to end de minimis.

A new coalition is bringing together Members of Congress with domestic manufacturers, nonprofit groups, labor organizations, law enforcement, and even the families of fentanyl victims to fight to end the de minimis loophole, which allows imports said to be valued under $800 to enter the United States duty-free.

The Alliance for American Manufacturing is a member of the new coalition, alongside groups like the United Steelworkers, AFL-CIO, Service Employees International Union, National Council of Textile Organizations (NCTO), Rethink Trade and manufacturers like Sherrill Manufacturing and New Balance. We’ve advocated for reforming de minimis because it has allowed companies like SHEIN and Temu to send hundreds of thousands of products a day to the United States without paying tariffs or going through U.S. Customs inspections, undermining U.S. trade law and giving these companies a massive unfair advantage over domestic manufacturers.

But as the new coalition shows, de minimis isn’t just about unfair trade — it is also about public safety, as the loophole is easily allowing shipments of deadly fentanyl to enter the United States. That’s why members of the new coalition also include law enforcement groups and advocates working on reducing fentanyl deaths, which unfortunately continue to rise.

Closing the de minimis loophole wouldn’t likely put an end to the fentanyl crisis, but it would cut off one unchecked route that has allowed the deadly drug to penetrate our shores. It also would stop giving bad actors like SHEIN and Temu an unfair advantage, especially considering their goods are artificially cheap thanks to bad practices like forced labor, intellectual property theft, and horrid environmental practices.

Reps. Earl Blumenauer (D-Ore.) and Neal Dunn (R-Fla.) joined a kickoff call with the coalition on Wednesday to press for passage of the Import Security and Fairness Act, legislation they introduced to close the de minimis loophole. Both said that momentum is building on Capitol Hill to get the bill across the finish line in the House; Sens. Sherrod Brown (D-Ohio) and Marco Rubio (R-Fla.) have introduced companion legislation in the Senate.

“We’re on a great path, more people are signing on, it’s getting traction, and it’s more compelling by the day,” Blumenauer said, adding that he thinks a majority of House members will sign onto the bill in the coming weeks.

Dunn echoed Blumenauer, noting this issue is unique because it has attracted the interest of Members of Congress from both parties. It’s clear to see why, he added, as our “current de minimis tariff actually incentivizes the gaming of American import costs.”

Companies like SHEIN and Temu “not only escape all the tariffs and duties, they largely escape any inspections by Customs as well,” Dunn said. “This is a huge advantage, an unfair advantage, against American production and this must stop.”

Kim Glas, president and CEO of the NCTO, noted that 10 U.S. textile plants have closed over the past five months due to the flood of duty-free packages entering the United States, which now number at 4 million per day. But while cheap clothing and consumer products have gotten much of the attention, importers are also gaming the system to ship larger goods.

Roy Houseman of the United Steelworkers noted that products like tires have been shipped to the United States under de minimis. Other speakers pointed out that de minimis also allows things like car parts to pass through U.S. ports without inspections, many of which may be fakes or not up to safety standards.

“There’s a very real cost hidden behind these cheap wares, and it’s paid by the men and women on the factory floor both here and abroad,” AAM President Scott Paul said. “The de minimis provision invites importers to cheat the system and to exploit their workers. The United States must close this loophole now.”

You can help: Tell your Members of Congress to pass the Import Security and Fairness Act!

Full Article: Read More