Bipartisan US Law to Hit E-Commerce Enterprises from China and Russia

21-06-2023

Marios Putro

South and East Asia Team Human Rights Researcher

Global Human Rights Defence 

A bipartisan bill, the Import Security and Fairness Act was introduced by US Senators Marco Rubio, and Sherrod Brown, while US Representatives Earl Blumenauer, and Neal Dunn, introduced companion legislation in the House of Representatives. The aim of the Import Security and Fairness Act is to shift an almost 100-year-old trade law that has been allowing the import of goods that fall under the $800 threshold to receive less oversight in the US customs process (Holman, 2023)

This particular trade rule is called de minimis and critics say: “It gives an unfair advantage to foreign e-commerce companies, including some where forced labor is an issue”. Currently, companies importing packages valued under $800 are not charged duties, taxes, or fees by the U.S. government (International Trade Administration, n.d).

 China and Russia are considered non-market economies and have been taking advantage of this law by shipping a high quantity of low-value goods (Rubio, 2023) The bill that was introduced aims to bar these countries from the de minimis trade law. Additionally, the bill seeks to have U.S. Customs and Border Protection collect more information on all shipments under the $800 threshold. That information would include a description of the article, the article’s country of origin, and the identity of the shipper and importer (Holman, 2023)

Its advocates also claim that a change to the trade law would put an end to a loophole that paves the way for companies to get products into the United States that may have been made with forced labor and would level the playing field for American companies that face the fees associated with importing goods made for them in other countries (Holman, 2023)

“The current de minimis threshold provides incentive for the gaming of American laws. Foreign exporters can access our market for free when each importation is less than $800. Right now, the Chinese Communist Party is operating a shell game with their trade. The Import Security and Fairness Act is a momentous step in the right direction – by eliminating China from this non-reciprocal trade benefit and strengthening U.S. Customs screening, China will need to start complying with our trade laws.” – Congressman Dunn said (Rubio, 2023).

“The de minimis loophole is a threat to American competitiveness, consumer safety, and basic human rights.“It is used by primarily Chinese companies to ship over two million packages a day into the United States. It puts American businesses at a competitive disadvantage while flooding American consumers with undoubtedly harmful products. There is virtually no way to tell whether packages that come in under the de minimis limit contain products made with forced labor, intellectual property theft, or are otherwise dangerous. It is time to close this loophole once and for all.” – Congressman Blumenauer (Rubio, 2023).

The two bills need to be considered separately in the House and Senate and are likely to face a long road to being passed (Holman, 2023).

Sources and further readings: 

Holman, J. (2023, June 15). Bipartisan Bills Would Hit E-Commerce Like Fast Fashion. The New York Times. https://www.nytimes.com/2023/06/15/business/ecommerce-shein-us-china-trade.html 

International Trade Administration. (n.d.). De Minimis Value. International Trade Administration | Trade.gov. Retrieved June 21, 2023, from https://www.trade.gov/de-minimis-value 

Rubio, Brown Introduce Import Security and Fairness Act. (2023, June 16). U.S. Senator For Florida, Marco Rubio. https://www.rubio.senate.gov/public/index.cfm/2023/6/rubio-brown-introduce-import-security-and-fairness-act