NCTO supports move to end de minimis loophole in US trade

“The Trump administration has taken decisive action to close the de minimis loophole, a trade measure long exploited by Chinese e-commerce giants and other foreign shippers to circumvent US trade laws. For years, companies have used this loophole to avoid tariffs and customs reporting requirements on shipments valued at $800 or less, devastating US manufacturers, undercutting American jobs, and opening the floodgates to unsafe and counterfeit products and goods made with forced labour. The administration’s executive action closes this channel and delivers long overdue relief to the US textile industry and its workers, while strengthening America’s economic and national security,” NCTO president Kim Glas said.

“Effective Friday, August 29, all commercial shipments must follow the same rules—customs documentation on the origin of goods and their classification and payment of all applicable duties and fees. This reform brings critical accountability back into the trade system and restores confidence for American manufacturers who have been competing on an uneven and destructive playing field,” Glas added.

“Those addicted to the profits of de minimis have been raising alarms about the change to the status quo perpetuating false information, but the fact remains that consumers will still receive their online orders. These packages—over 90 per cent of which enter the United States as express shipments—will now come in under a system that is fair, transparent, and enforceable. US Customs and Border Protection (CBP) is equipped to handle this change and has the systems in place. The US Postal Service is ready and has the systems in place. The US is not stopping international mail,” Glas explained.

“This action expands the president’s suspension of de minimis treatment for low-value commercial shipments from China and Hong Kong, which already covers the majority of de minimis packages and has been in effect since May 2. It ensures all small package shipments – regardless of delivery method – have the necessary inspection, information, and duty collection. Packages are arriving every day into the United States. Tomorrow will be no different. With this action, the Trump administration has delivered an historic win for US industry, American workers, and the integrity of our trade system,” concluded Glas.

ALCHEMPro News Desk (RR)