Kevin Roy, Chief Public Policy Officer, Takes Part in Press Conference to Discuss De Minimis
Video of Press Conference Available Here
Today, U.S. Representatives Rosa DeLauro (CT-03), Earl Blumenauer (OR-03) and Tom Suozzi (NY-03) released a letter signed by 126 House Democrats calling on President Biden to use executive authority to end the dangerous de minimis loophole and protect Americans from its growing dangers. The letter urges the administration to update the de minimis policy, which undercuts American workers, manufacturers and retailers and threatens our health and safety. You can read the letter here.
Under regulations issued in 1994, before the rise of mass direct-to-consumer e-commerce, de minimis now enables four million packages daily of imports—mainly from China—ordered online to enter the U.S. without inspection for dangerous materials, and to evade taxes and tariffs, including most trade-cheating penalties and the ban on forced-labor goods. Hidden in the daily flood of uninspected packages are many fake and often dangerous goods that threaten U.S. consumers. Increasingly, the loophole is being exploited by drug cartels and criminals to facilitate the importation of deadly substances like fentanyl.
“The urgency of closing the de minimis loophole cannot be overstated. Americans continue to die from mislabeled fentanyl-laced pills that are ordered online, skirt inspection thanks to de minimis and are delivered to Americans’ doorsteps,” the Members wrote. “…Congress provided the executive branch with broad discretion to designate what products may qualify for de minimis treatment in Section 321 of the Tariff Act of 1930. In the absence of a legislative solution at this time, we urge you to use the full range of your authorities to disqualify commercial shipments from de minimis treatment, so that packages entering the United States no longer evade inspection, information disclosure requirements, or the requisite tariffs and taxes.”
National Association of Police Organizations Executive Director Bill Johnson said: “American law enforcement is fighting a losing battle if Chinese drug smugglers can continue to circumvent our trade laws with the click of a button and ship hundreds of thousands of packages of fentanyl directly into our country. The de minimis loophole is severely exacerbating our nation’s opioid crisis. Closing it would help staunch the flow of fentanyl and other narcotics coming across our borders and help safeguard the lives of our children, families, and friends. NAPO stands firmly with Representatives DeLauro, Blumenauer, and Suozzi, and the more than 100 Members of Congress who join in calling on President Biden to use executive authority to close the dangerous de minimis loophole now.”
Shatterproof Chief Public Policy Officer Kevin Roy said: “Shatterproof is a national nonprofit leader at the forefront of addressing our nation’s biggest public health crisis – addiction. We are part of the Coalition to Close the De Minimis Loophole because we understand the urgency to change regulations to prevent the entrance of fentanyl and other illicit drugs into our country and save lives. We urge the leadership of Congress to make this a national priority.”
Rethink Trade director Lori Wallach said: "After the House GOP blocked a real legislative fix, kudos to these Representatives asking the president to take executive action to close this loophole that is projected to allow 1.4 billion e-commerce shipments to be imported into the U.S. in 2024 without inspection and evading taxes, trade-cheating tariffs, and the forced labor ban. De minimis was not intended for commercial use. A president has statutory authority to determine what types of goods can use the program so as to stop unlawful imports. President Biden not only has authority to exclude e-commerce goods as requested in this letter, but would protect millions of Americans by updating the current 1994 regulations issued before the mass direct-to-consumer ecommerce that today are facilitating imports of deadly fentanyl and precursor chemicals, fake and unsafe consumer goods, and billions in unfair, job-killing other imports."
National Council of Textile Organizations (NCTO) President and CEO Kim Glas said, “We sincerely thank Congresswoman Rosa DeLauro (D-CT) for her tremendous leadership on the de minimis issue and are equally appreciative of Ranking Member Earl Blumenauer’s (D-OR) efforts to move critical legislation forward. We also applaud Congressman Tom Suozzi (D-NY) and the more than 120 House Democrats who supported this letter to President Biden. NCTO strongly supports closing the de minimis loophole and greatly appreciates being part of this broad coalition to amplify the significant urgency of this crisis. Our industry has lost 18 plants over the last year. De minimis has been crippling to our manufacturing sector and its workforce and is rewarding forced labor, duty-free trade to our doors. Morethan 4 million de minimis packages are now entering the U.S. every day with virtually no scrutiny or inspection – half are estimated to be textile and apparel products. De minimis is a free trade agreement for the world at the expense of U.S. manufacturers, retailers and consumers. Shockingly, it has now become a black market for dangerous products facilitating fentanyl, precursors and pill presses. De minimis is destruction. We are proud to join this broad coalition to urge the President and the Administration to use their executive authorities to the fullest extent to close this dangerous loophole immediately. There has never been a more critical time to close this dangerous loophole, and we would strongly appreciate the Administration’s support in this action. We also urge Congress to immediately pass meaningful, substantive and enforceable legislation.”
