Republicans in Congress Concerned About Proposed de Minimis Carve-Out

Rep. Kevin Brady, R-Texas, the ranking member on the House Ways and Means Committee, said he knows that Rep. Earl Blumenauer, D-Ore., is sincere in his concern that the more generous de minimis threshold since 2016 has had unintended consequences. Blumenauer was one of just 24 House Democrats who supported the Trade Facilitation and Trade Enforcement Act that raised the threshold to $800. Blumenauer introduced a bill (see 2201180053) that would bar importers of Chinese goods from using de minimis, and would also end the ability to send exports to Canada and Mexico to wait in warehouses until a U.S. buyer makes an online purchase.

Brady said during a phone call with reporters Jan. 19 that he's open to learning more about Blumenauer's vision, but, he said, "I'm not convinced that de minimis is a loophole." Brady said that the submission of advance data for small packages already helps CBP stop fentanyl shipments, and is also effective in stopping goods made with forced labor.

There is no companion bill yet introduced in the Senate, but if the House tries to get a change to de minimis considered through a conference committee on China legislation, senators would have the opportunity to change or stop the initiative. Sen. Chuck Grassley, R-Iowa, said he would need to know more about how the proposal would change the efforts to stop fentanyl shipments before taking a stand on it. He also asked: "Are they a benefit to small business in America? Or if we did this, would it hurt the consumer?"

When told by an International Trade Today reporter that express carriers say the current de minimis approach is a benefit to small businesses, Grassley replied, "See, then I’m going to have to study that point of view. But I think the premise of the legislation’s very legitimate."

E-Merchants Trade Council says that Blumenauer's bill would have a major impact on e-commerce, both by ending the ability to ship imported goods from Canadian and Mexican warehouses and take advantage of de minimis, and because sellers would have to pay customs brokers for processing their imports. EMTC says that it typically costs $50 to $150 for each imported shipment.

Brady said that, especially in a time of a supply chain crisis, policymakers need to balance trade facilitation and enforcement. "I do think that de minimis facilitates trade, especially for our small businesses, by cutting both red tape and tariffs on those low-value shipments," he said.