CPA Applauds Brown, Scott Letter Urging Biden Administration To Close The De Minimis Loophole

CPA Applauds Brown, Scott Letter Urging Biden Administration To Close The De Minimis Loophole

WASHINGTON — The Coalition for a Prosperous America (CPA) today applauded U.S. Senators Sherrod Brown (D-OH) and Rick Scott (R-FL) for urging the Biden Administration to take executive action to close the de minimis loophole. Section 321 of the Tariff Act of 1930, known commonly as “de minimis,” allows individual packages to be shipped directly to American consumers with virtually no inspection or documentation and free of duty if the contents are valued beneath the de minimis threshold of $800.

“[T]he Chinese Communist Party (CCP) — one of the worst trade and human rights abusers — directly benefits from duty-free access to the U.S. market for shipments valued under $800. This generous gift comes with no rule of origin requirements, reciprocal market access, or labor or environmental standards. Simply put, the CCP and others utilizing de minimis can get rich while getting away with a host of trade infractions that undermine U.S. manufacturing, harm American workers and expedite the flow of fentanyl and other harmful goods into our communities,” the senators wrote.

“The situation has reached a tipping point where vast sections of American manufacturing and retail are at stake if de minimis is not immediately addressed — including a large portion of U.S. textile production and employment,” the senators continued. “Swift, effective executive action is necessary to safeguard U.S. jobs and communities against the economic sabotage of the CCP.”

Read the senators’ full letter HERE.

We applaud Senators Brown and Scott for their continued efforts to close the de minimis loophole. There is growing bipartisan support for taking action, and CPA is proud to join with more than two dozen organizations representing thousands of voices that support closing the de minimis loophole. While Congress should pass legislation to address this issue permanently, the White House should take immediate executive action.— CPA CEO MICHAEL STUMO

Last year, CPA and a coalition of law enforcement and other organizations devoted to fighting against the fentanyl crisis plaguing our nation, urged President Biden to take immediate action to close the de minimis loophole, which is contributing to the current drug crisis, including the importation of deadly fentanyl, that is plaguing American families and communities.

Earlier this week, CPA joined 24 other organizations in launching the Coalition to Close the De Minimis Loophole. The Coalition represents thousands of voices, from the families of victims of fentanyl fatalities and nonprofit and nonpartisan organizations to labor unions, domestic law enforcement associations, domestic manufacturers, and business associations.  

The Coalition was formed to amplify the urgent need to reform a loophole in federal law known as Section 321, which allows packages valued at less than $800 to enter the U.S. without facing any taxes, fees or inspection. As a result, this cripples domestic manufacturers and workers, undermines retailers, strains law enforcement resources, and facilitates the free flow of illegal and dangerous products and illicit drugs, particularly fentanyl—the leading cause of death for people ages 18-49. The Coalition is calling on Congress and the Administration to immediately close this dangerous loophole.