Moolenaar on Administration's New De Minimis Actions
WASHINGTON D.C. - Chairman John Moolenaar (R-MI) today released the statement below following the Biden Administration's actions that will reduce the number of packages that enter the United States via the de minimis exemption by prohibiting the packages from receiving the exemption if they are also subject to Section 201 or 301 tariffs. The de minimis exemption allows packages with a retail value of $800 or less to enter the United States without being subject duties or taxes, and with limited information about the package provided to authorities.
“Over a billion de minimis shipments have entered the United States this fiscal year, overwhelming CBP’s capacity to identify and intercept high-risk shipments, including fentanyl and other narcotics, dangerous merchandise, counterfeits, and products made with forced labor. This flood of shipments, paired with insufficient data, has severely hampered enforcement efforts. The administration’s action today is a critical step toward gathering the information necessary to target illegal shipments and level the playing field for U.S. retailers.
“As the Select Committee's investigation into Shein and Temu revealed, the majority of products from Shein and Temu fall under the de minimis exception. This allows them to dodge U.S. Customs and evade the scrutiny other retailers face. The U.S. must urgently curb these shipments and force these companies to correct their anemic compliance practices.
“In our bipartisan report last year, the Select Committee called for action on this issue to reset our country’s economic competition with China. Today’s positive actions draw on the efforts by Republicans on Ways and Means to address the challenges in de minimis. Now, Congress must urgently make de minimis reform law.”
Read more about the Select Committee's ongoing investigation into Shein and Temu HERE.