WASHINGTON, D.C. — The Coalition for a Prosperous America (CPA) applauds U.S. House Ways & Means Trade Subcommittee Ranking Member Linda T. Sánchez (D-CA-38) for introducing new legislation to end the de minimis loophole entirely and once and for all. With her bill, all merchandise originating in China would immediately lose access to de minimis, with merchandise from the rest of the world losing access 120 days following enactment of the bill.
CPA has been one of the leading voices in calling for closing the de minimis loophole, 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, and strains law enforcement resources. It also kills thousands of people who are poisoned by fentanyl each year—the leading cause of death for people ages 18-49.
Closing de minimis means that commercial shipments from overseas vendors must enter the United States through standard customs procedures, submit full import documentation, and pay applicable duties and taxes—a long-overdue reform to restore order and accountability to America’s trade system. CPA strongly supports the total repeal of the de minimis loophole as it is incompatible with the rule of law and has overwhelmed U.S. ports entirely.
Repealing de minimis is necessary for U.S. Customs and Border Protection’s (CBP) trade enforcement functions, particularly in the fight against the smuggling of fentanyl precursors that is rampant in the de minimis environment. Repealing de minimis will encourage more secure bulk containerized shipments as opposed to cargoes of individually wrapped consumer packages.
“Congress should immediately pass this legislation,” said Zach Mottl, Chairman of CPA. “For years, the de minimis loophole has flooded the U.S. with uninspected, untaxed, and often dangerous goods—from counterfeit products to fentanyl precursors fueling America’s opioid crisis. Closing this loophole is a critical step toward securing our borders, enforcing trade laws, and protecting American businesses.”
Last year, CPA joined 24 other organizations to launch 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.
According to U.S. Customs and Border Protection (CBP), imports using the de minimis loophole include “high-risk shipments that may contain narcotics, merchandise that pose a risk to public safety, counterfeits, or other contraband.” CBP recently stated that the agency “continues to see bad actors seeking to exploit the increasing volumes of de minimis shipments to transit illicit goods, including fentanyl and the precursors and paraphernalia used to manufacture it.”
According to the State Department, “Illicit fentanyl shipments directly shipped to the United States via air cargo, international mail, and express consignment are high-purity, low-weight shipments destined for criminal groups or individuals in the United States. Most originate in China with suppliers who use international mail consolidators to mask the origin of the shipments.”
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