Petition: Urgent Trade Actions which need to be taken

Urgent Trade Actions which need to be taken

Dear user

RE: Urgent Trade Actions which need to be taken

Dear Sir or Madame:

In support of key industries, our workers and the health and safety of our citizens, Congress should consider implementing several key trade actions immediately:

  1. Closing the de minimis loophole: The de minimis customs loophole, codified in Section 321 of the Tariff Act of 1930, allows imports valued at less than $800 to enter the United States without duties or formal entry requirements. While initially intended to reduce the burden on U.S. Customs and Border Protection (CBP) for low-value imports, this loophole has led to several significant issues that Congress must immediately address.

    • Economic Impact and Unfair Competition: The de minimis threshold was raised from $200 to $800 in 2016, coinciding with a surge in e-commerce. This change has allowed foreign companies, particularly from China, to flood the U.S. market with low-cost goods, often bypassing duties that American companies must pay. For instance, companies like SHEIN and Temu have exploited this loophole, shipping millions of packages daily without paying import taxes. This practice not only deprives the U.S. government of substantial revenue but also places domestic businesses at a competitive disadvantage.
    • Public Safety Concerns: The de minimis loophole also poses significant public safety risks. Due to the minimal information required for de minimis shipments, CBP has limited visibility into the contents of these packages. This lack of oversight has facilitated the entry of illegal narcotics, counterfeit goods, and unsafe products into the USMCA market. 90% of all illegal narcotics and counterfeit seizures by customs are linked to de minimis shipments. Closing this loophole would enhance the ability of CBP to inspect and regulate imports, thereby improving public safety.
    • Labor and Ethical Concerns: The loophole undermines efforts to enforce labor standards and prevent the importation of goods produced with forced labor. Regulations like the Uyghur Forced Labor Prevention Act aim to exclude such goods from the USMCA market (US, Mexico and Canada Trade Agreement), but the de minimis exception allows companies to circumvent these rules. By closing this loophole, Congress can strengthen the enforcement of ethical labor practices and ensure that imported goods meet USMCA standards.

  2. Anti-Dumping Duties: Anti-dumping duties are essential to prevent foreign manufacturers from selling goods below market value, which can harm USMCA producers. By imposing these duties, Congress can ensure that imported textiles and apparel are priced fairly, protecting domestic businesses from unfair competition.

  3. Strengthening Rules of Origin: Tightening the rules of origin requirements ensures that only products manufactured in countries with which the USMCA has trade agreements benefit from preferential treatment. This measure helps prevent transshipment, where goods from non-eligible countries are routed through eligible ones to avoid tariffs.

  4. Quotas on Imports: Reintroducing quotas on certain categories of textiles and apparel can help manage the volume of imports, giving our manufacturers a better chance to compete. Quotas can be particularly effective in sectors where domestic production is struggling to keep up with the influx of cheaper foreign goods.

  5. Enhanced Customs Enforcement: Improving customs enforcement to detect and prevent illegal imports, such as counterfeit goods and products that violate intellectual property rights, is crucial. Enhanced enforcement can protect USMCA brands and ensure that only compliant products enter the market.

Implementing these measures can significantly benefit our key retail, manufacturing and service-related sectors by ensuring fair competition, protecting domestic jobs, and maintaining high standards for imported goods. Closing the de minimis customs loophole is essential for protecting USMCA businesses, ensuring public safety, and upholding ethical labor standards. The current threshold allows foreign companies to exploit the system, resulting in significant economic and social costs. By addressing these issues and taking the actions described above, Congress can create a fairer and safer marketplace for all and support the growth and sustainability of the vital USMCA textile, retail, apparel & related industries.

With respect & appreciation, Altitude Partner or Altitude Exhibitor or Altitude Buyer or attendee

 

FULL COPY OF PETITION LETTER BELOW

RE: Urgent Trade Actions which need to be taken

Dear Sir or Madame:

In support of key industries, our workers and the health and safety of our citizens, Congress should consider implementing several key trade actions immediately:

  1. Closing the de minimis loophole: The de minimis customs loophole, codified in Section 321 of the Tariff Act of 1930, allows imports valued at less than $800 to enter the United States without duties or formal entry requirements. While initially intended to reduce the burden on U.S. Customs and Border Protection (CBP) for low-value imports, this loophole has led to several significant issues that Congress must immediately address.

    • Economic Impact and Unfair Competition: The de minimis threshold was raised from $200 to $800 in 2016, coinciding with a surge in e-commerce. This change has allowed foreign companies, particularly from China, to flood the U.S. market with low-cost goods, often bypassing duties that American companies must pay. For instance, companies like SHEIN and Temu have exploited this loophole, shipping millions of packages daily without paying import taxes. This practice not only deprives the U.S. government of substantial revenue but also places domestic businesses at a competitive disadvantage.
    • Public Safety Concerns: The de minimis loophole also poses significant public safety risks. Due to the minimal information required for de minimis shipments, CBP has limited visibility into the contents of these packages. This lack of oversight has facilitated the entry of illegal narcotics, counterfeit goods, and unsafe products into the USMCA market. 90% of all illegal narcotics and counterfeit seizures by customs are linked to de minimis shipments. Closing this loophole would enhance the ability of CBP to inspect and regulate imports, thereby improving public safety.
    • Labor and Ethical Concerns: The loophole undermines efforts to enforce labor standards and prevent the importation of goods produced with forced labor. Regulations like the Uyghur Forced Labor Prevention Act aim to exclude such goods from the USMCA market (US, Mexico and Canada Trade Agreement), but the de minimis exception allows companies to circumvent these rules. By closing this loophole, Congress can strengthen the enforcement of ethical labor practices and ensure that imported goods meet USMCA standards.

  2. Anti-Dumping Duties: Anti-dumping duties are essential to prevent foreign manufacturers from selling goods below market value, which can harm USMCA producers. By imposing these duties, Congress can ensure that imported textiles and apparel are priced fairly, protecting domestic businesses from unfair competition.

  3. Strengthening Rules of Origin: Tightening the rules of origin requirements ensures that only products manufactured in countries with which the USMCA has trade agreements benefit from preferential treatment. This measure helps prevent transshipment, where goods from non-eligible countries are routed through eligible ones to avoid tariffs.

  4. Quotas on Imports: Reintroducing quotas on certain categories of textiles and apparel can help manage the volume of imports, giving our manufacturers a better chance to compete. Quotas can be particularly effective in sectors where domestic production is struggling to keep up with the influx of cheaper foreign goods.

  5. Enhanced Customs Enforcement: Improving customs enforcement to detect and prevent illegal imports, such as counterfeit goods and products that violate intellectual property rights, is crucial. Enhanced enforcement can protect USMCA brands and ensure that only compliant products enter the market.

Implementing these measures can significantly benefit our key retail, manufacturing and service-related sectors by ensuring fair competition, protecting domestic jobs, and maintaining high standards for imported goods. Closing the de minimis customs loophole is essential for protecting USMCA businesses, ensuring public safety, and upholding ethical labor standards. The current threshold allows foreign companies to exploit the system, resulting in significant economic and social costs. By addressing these issues and taking the actions described above, Congress can create a fairer and safer marketplace for all and support the growth and sustainability of the vital USMCA textile, retail, apparel & related industries.

With respect & appreciation, Altitude Partner or Altitude Exhibitor or Altitude Buyer or attendee