WASHINGTON (BRAIN) — Rep. Linda Sánchez on Tuesday introduced legislation to close the de minimus loophole that allows the duty-free importation of packages valued at under $800.
President Donald Trump announced Feb. 4 that he had closed the loophole on packages from China, Canada and Mexico, but then four days later Trump delayed that closure until the Secretary of Commerce determines that procedures are in place to handle the extra inspections.
Sánchez’s legislation would close the loophole on shipments from all countries, noted Pat Cunnane, an industry veteran who has long lobbied for de minimis reform.
“This is a clean, clear bill that provides enough time to do it right,” Cunnane told BRAIN. He said closing de minimus for shipments from Europe is of particular value to the bike industry.
The bill would immediately end de minimis treatment for packages from China and phase out de minimis for all other countries after a four-month transition period. It also would direct the Treasury Secretary to oversee a rule-making process during the four-month transition and direct the Treasury Secretary to consult with the Postmaster General to establish appropriate fees and entry procedures.
Sánchez, a Democrat from California, serves on the House Committee on Ways and Means. She introduced the legislation at a news conference Tuesday that Cunnane attended (video below). The National Council of Textile Organizations, the National Association of Police Organizations, Facing Fentanyl and the United Steelworkers union also were represented at the event.
“Closing the de minimis loophole is essential to protecting American manufacturing and shielding families from fentanyl and other dangerous products,” said Sánchez in a press release Tuesday.
“Countries like China are exploiting this loophole to bypass our trade laws and ship harmful or low-quality goods directly to homes. By closing the loophole, we can level the playing field for American workers, keep families safe from fentanyl, and prevent other dangerous products from entering our communities undetected,” she added.
Cunnane, an industry consultant and advisor to Hyper Bicycles, also is quoted in Sánchez's press release. He is the former CEO of ASE, the parent of the Performance Bicycle retail chain and the ASI distribution business.
“As a member of the bicycle industry I strongly support the efforts of Congresswoman Sánchez to close the de minimis loophole,” Cunnane says in the release.
“I learned while CEO of the largest specialty retailer of bicycle products how harmful the de minimis loophole was to my business. Today's bill levels the playing field for USA-based retailers while protecting consumers from counterfeit and unsafe products. At the same time generating revenue by collecting tariffs that all USA-based companies must pay.”
Cunnane recently wrote a guest editorial for BRAIN calling for de minimis reform. It was written prior to Trump’s temporary closure and Sánchez’ legislation.
