Trade Ranking Member Sánchez introduces bill to close de minimis loophole

WASHINGTON – Ways and Means Trade Subcommittee Ranking Member Linda T. Sánchez (D-Calif.) today introduced the Closing the De Minimis Loophole Act, the most comprehensive bill to close a loophole that has harmed American consumers and families and gutted U.S. manufacturing by allowing illicit goods—like fentanyl, counterfeit products, and items made with forced labor—to enter the United States through relaxed import requirements for low-value packages. 

Foreign bad actors are exploiting a customs process known as "de minimis" entry, which allows packages valued under $800 to enter the country without tariffs and through a simplified process. As the number of these shipments has surged in recent years, Customs and Border Protection has struggled to identify and block packages containing illicit drugs, counterfeit goods, items produced with forced labor and other illegal products.

“Closing the de minimis loophole is essential to protecting American manufacturing and shielding families from fentanyl and other dangerous products,” said Ranking Member Sánchez. “Countries like China are exploiting this loophole to bypass our trade laws and ship harmful or low-quality goods directly to homes. By closing the loophole, we can level the playing field for American workers, keep families safe from fentanyl, and prevent other dangerous products from entering our communities undetected.”

The Closing the De Minimis Loophole Act is endorsed by the National Council of Textile Organizations, the National Association of Police Organizations, Facing Fentanyl and the United Steelworkers.

“On behalf of the U.S. textile industry, I want to sincerely thank Congresswoman Sánchez for her leadership in introducing critical legislation today aimed at permanently closing the destructive de minimis loophole to commercial shipments from China and notably all countries,” said Anderson Warlick, chairman and CEO of Parkdale Mills. “Over 4 million de minimis packages valued at $800 or less are now entering the United States every day with virtually no scrutiny or inspection – half are estimated to be textile and apparel products. De minimis is a black-market duty-free superhighway of goods hiding forced labor and illegal products and putting our essential industry out of business. Congresswoman Sánchez’s bill would finally stop the abuse of this loophole. This legislation would also help restore a level playing field for the U.S. textile industry, which has lost 27 plants in the past 20 months. We believe the congresswoman’s bill is the strongest, most comprehensive legislation to date that will counter global predatory trade practices and address the de minimis crisis we are all facing. This bill has our strongest support, and we will do all we can to get this bill over the finish line.”

“Facing Fentanyl strongly supports Congresswoman Sánchez’s Closing the De Minimis Loophole Act,” said Andrea Thomas, founder, Facing Fentanyl. “This critical piece of legislation takes a significant step toward closing the dangerous loophole that has allowed deadly fentanyl and other illicit substances to enter the United States undetected, putting our communities and families at grave risk. 

“As an organization representing over 200 fentanyl awareness groups and thousands of families who have lost loved ones to fentanyl poisoning, Facing Fentanyl knows firsthand the devastating impact of this epidemic. This bill is a necessary and urgent measure to protect future generations from the same tragic fate. We thank Congresswoman Sanchez for her leadership and urge Congress to act quickly to pass this bill and bring an end to the flow of fentanyl into our communities.”

“Law enforcement is battling the trafficking of illegal narcotics on multiple fronts, including the international mail system. The de minimis loophole is severely exacerbating the opioid crisis by allowing fentanyl and other illegal opioids to enter our country largely uninspected. The closure of this trade loophole is vital to removing significant fentanyl trafficking routes into this country and is essential to any national strategy to end the fentanyl crisis,” said Bill Johnson, executive director of the National Association of Police Organizations. “NAPO supports the Closing the De Minimis Loophole Act and the efforts of Congresswoman Sánchez to ensure the de minimis trade exemption will no longer be a gateway for illicit drugs and goods to cross our borders.”

“As a member of the bicycle industry I strongly support the efforts of Congresswomen Sanchez to close the de minimis loophole,” said Patrick Cunnane, Stoker Strategies, bicycle industry consultant and advisor to Hyper Bicycles. “I learned while CEO of the largest specialty retailer of bicycle products how harmful the de minimis loophole was to my business. Today's bill levels the playing field for USA based retailers while protecting consumers from counterfeit and unsafe products. At the same time generating revenue by collecting tariffs that all USA based companies must pay.”

The Closing the De Minimis Loophole Act:

• Immediately ends de minimis treatment for packages from China and phases out de minimis for all other countries after a four-month transition period.
   
• Directs the Treasury Secretary to oversee a rulemaking process during the four-month transition, ensuring that U.S. Customs and Border Protection has the necessary tools and procedures to implement the termination of de minimis for all countries smoothly and efficiently.
   
• Directs the Treasury Secretary to consult with the Postmaster General to establish appropriate fees and entry procedures, aiming for consistency between postal and other shipments wherever feasible.

Ranking Member Sánchez was joined by supporters of the bill at a press conference earlier today. That press conference can be viewed HERE.

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