WASHINGTON — The Coalition for a Prosperous America (CPA) today released a statement following remarks by U.S. Department of Homeland Security (DHS) Secretary Alejandro Mayorkas that the de minimis loophole is a risk to the U.S. and undermines enforcement of the Uyghur Forced Labor Prevention Act (UFLPA). 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.
“If anyone here would … see what we discover, it is stunning. It is stunning from a point of view of forced labor and goods produced in whole or in part. It is stunning from a point of view of narcotics, controlled substances and ghost guns and all sorts of contraband,” Secretary Mayorkas said. “And so, the de minimis exception is built on a false premise that low value means low risk. That is one area where we hope to make some advances.”
In May, CPA and members of the Coalition to Close the De Minimis Loophole sent a letter to House Ways and Means Committee Chairman Jason Smith (R-MO) and Ranking Member Richard Neal (D-MA) highlighting how the de minimis loophole contributes to illicit fentanyl trafficking and fatalities. The Coalition represents a diverse range of American voices, including families of fentanyl victims, law enforcement, drug prevention groups, labor unions, manufacturers, business associations, and consumer safety advocates.
“While we appreciate Secretary Mayorkas’s acknowledgement that the de minimis loophole is a serious risk and undermines the U.S. government’s efforts to enforce the UFLPA, we have yet to see substantive action from the Biden administration to close this dangerous loophole,” said Michael Stumo, CEO of CPA. “The Biden administration has the authority to close the de minimis loophole right now, and save tens of thousands of lives while preserving many thousands of jobs. But it has failed to do so. Additionally, Congress has considered multiple pieces of legislation to address the de minimis loophole, but to date lawmakers have failed to pass meaningful legislation. The evidence is clear: de minimis is a dangerous loophole that must be closed. The time for talk is over.”
Earlier this year, CPA applauded the leaders of the House Select Committee on the CCP for urging DHS to aggressively strengthen enforcement of the UFLPA. The letter, as first reported by The Wall Street Journal, outlines a number of factors that “seriously undermine the effective enforcement of the UFLPA.” Specifically, the letter highlights how the de minimis loophole has caused imports to surge “from 150 million packages in 2016 to 720 million in 2021, of which more than half—440 million packages—were from the PRC. This exponential growth continued in 2023, with de minimis shipments topping one billion.” The letter also warns that “the de minimis provision has created a major avenue for goods made by forced labor—as well as fentanyl, counterfeit products, and other unsafe goods—to enter the U.S. market.”
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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