W.B. Skinner > News > Reintroduction of Import Security and Fairness Act – Important Update

Reintroduction of Import Security and Fairness Act – Important Update

Congressman Blumenauer announced his intention to reintroduce the Import Security and Fairness Act, which was initially proposed last year. This new bill aims to strengthen U.S. international trade import laws, particularly in relation to imports from non-market economies like China, and addresses concerns regarding the exploitation of the de minimis threshold.

Under the current regulations, imports valued under $800 are allowed into the United States without incurring duties, taxes, or fees. However, the significant increase in the volume of e-commerce packages received in the country has exposed a loophole that foreign companies exploit to avoid tariffs, oversight, and compliance with U.S. laws. This situation places American businesses at a disadvantage in terms of cost competitiveness and enables the importation of illegal goods and potentially harmful products without effective scrutiny.

The provisions outlined in the Import Security and Fairness Act are as follows:

  1. Prohibition of De Minimis for Goods from Non-Market Economies: The legislation aims to address concerns related to U.S. competitiveness by prohibiting goods from non-market economies, such as China, from benefiting from de minimis treatment. This change ensures that shipments from these countries do not receive further benefits under U.S. law, considering the unfair advantages provided by such economies to their companies.
  2. Prohibition of De Minimis for Goods Subject to Enforcement Actions: Current U.S. enforcement statutes, including Section 301 and 232, provide leverage to address unfair trade practices that harm American workers and firms. However, exempting de minimis shipments from paying enforcement-related duties has significantly undermined this leverage. The bill seeks to rectify this by ensuring that de minimis shipments subject to enforcement actions, such as antidumping and countervailing duty orders, are required to pay the appropriate duties.
  3. Closure of De Minimis Loophole for Offshore Distribution or Processing Facilities: The proposed legislation intends to close the loophole that allows offshore distribution or processing facilities to exploit the de minimis threshold, thereby ensuring fair treatment and compliance with import laws.
  4. Enhanced Information Collection and Prohibition for Bad Actors: To address concerns regarding compliance with U.S. laws, the bill includes provisions that require U.S. Customs and Border Protection (CBP) to collect more information on de minimis shipments. Additionally, importers who have been suspended or debarred will be prohibited from utilizing de minimis treatment. This provision supports the ongoing efforts of multiple administrations at CBP in enhancing compliance and enforcement measures.

As we await further updates on the progress of this bill, we should remain vigilant and prepared for potential changes in import regulations that may affect our business operations. I will continue to monitor the situation closely and provide you with any necessary updates.

Should you have any questions or require further information, please do not hesitate to reach out to me. Thank you for your attention to this matter.