U.S. Senate Committee on Finance

08/08/2024 | Press release | Distributed by Public on 08/08/2024 21:44

Wyden, Lummis, Brown, Collins and Casey Release Bipartisan Legislation to Halt the Flood of Illicit Packages into the United States

August 08,2024

Wyden, Lummis, Brown, Collins and Casey Release Bipartisan Legislation to Halt the Flood of Illicit Packages into the United States

New Legislation Cracks Down on Fentanyl Smuggling, Imports of Products Made with Forced Labor

Washington, D.C. - U.S. Senator Ron Wyden, D-Ore., Sen. Cynthia Lummis, R-Wyo., Sen. Sherrod Brown, D-Ohio, Sen. Susan Collins, R-Maine, and Sen. Bob Casey, D-Pa., today released bipartisan legislation to help Customs and Border Protection (CBP) stop the flow of illicit goods, including fentanyl, counterfeits, and products made with forced labor, into the country by tightening import requirements for low-value packages.

In recent years, the number of direct-to-consumer shipments from foreign corporate giants like Shein and Temu into the U.S. has quadrupled. These retailers are abusing a customs process called "de minimis" entry, which allows packages under $800 to enter the country tariff-free and under a streamlined process. As the volume of packages has increased, CBP has struggled to effectively target shipments and keep out packages containing illicit drugs, counterfeits, products made with forced labor and other goods that violate U.S. law.

"Foreign corporate giants are inundating our borders with millions of low-value packages, making it tough for customs agents to stop dangerous goods like fentanyl from falling into Americans' hands," Wyden said. "Americans should feel confident that anything arriving on their doorstep is safe, legal, and ethically produced. Our legislation would crack down on foreign companies abusing the law and make sure they play by the rules."

"Whether through the southwest border or in packages mailed into the United States, China is using any tool available to get illicit drugs across our border," Lummis said. "It is time for CBP to crack down on shipments from China to ensure drugs and products made using slave labor are encountered before making it into our communities."

"Countries like China are exploiting the de minimis loophole to cheat our trade laws and flood our country with packages containing fentanyl and other illicit substances," Brown said. "By cracking down on this loophole and providing law enforcement with more resources, this bipartisan legislation will begin to level the playing field for Ohio workers and Ohio manufacturers and retailers - while helping to stop the deadly flow of fentanyl into Ohio communities."

"Chinese companies continue to abuse U.S. trade laws. It is necessary that we tighten customs oversight of low-value imports entering the United States to combat these abuses of tariff-free entry procedures," Collins said. "This bipartisan bill would strengthen CBP enforcement, improve data collection, and streamline the import approval process to address unlawful imports and protect domestic industries while ensuring fair trade practices."

"Far too many families across Pennsylvania have lost a loved one to the fentanyl crisis. We need to fight back against foreign corporations and traffickers that take advantage of holes in our trade laws to allow dangerous goods-including fentanyl and products made with forced labor-to enter our country undetected and free of tariffs, duties, or inspection," Casey said. "This legislation is a critical step to crack down on fentanyl crossing our borders, and I will continue to fight like hell to stop the fentanyl crisis."

The Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains (FIGHTING) for America Act would tighten the rules for de minimis entry and help CBP more effectively stop unlawful imports. The legislation would ensure that Chinese corporate giants cannot use the de minimis process to avoid paying tariffs on textiles, shoes and apparel or evade trade penalties imposed because of Chinese trade cheating. Reducing the overall volume of low-value packages entering under de minimis would lower carbon emissions, promote enforcement of U.S. trade laws, and level the playing field for U.S. manufacturers and workers. The legislation would also improve oversight of the de minimis entry process by (1) requiring CBP to collect more information about commercial packages, (2) facilitating the targeting and seizure of illicit goods, and (3) increasing penalties for bad actors.

"The Oregon AFL-CIO and Oregon's labor movement stands behind Senator Ron Wyden in his efforts to close a dangerous trade loophole that has undermined policy and makes it vastly easier for illicit goods, including fentanyl, to enter our country," said Graham Trainor, president of Oregon AFL-CIO. "Unions have always stood on the side of fair trade, and the bill proposed by Senator Wyden is a step in the right direction toward trade policies that protect American workers and consumers."

"We sincerely appreciate Chairman Wyden's leadership and the support of all the co-sponsors on this critical bipartisan legislation designed to reform the outdated de minimis provision in U.S. trade law and curtail the abuse of this loophole, which has had a devastating impact on U.S. manufacturers," said Kim Glas, president of the National Council of Textile Organizations. "The bill is by far the most comprehensive legislative proposal to date that would impose new penalties for violations, require additional data reporting on all de minimis packages, and impose a small customs user fee on packages. We fully support the legislation as a strong step toward addressing this glaring loophole, which facilitates 4 million packages a day that bypass federal scrutiny and enter the U.S. duty free, and acts as a gateway for products made with forced labor, counterfeits, toxic products and illicit narcotics such as fentanyl. We are extremely encouraged by this bill and grateful for the work that has gone into developing a sound legislative approach that will undoubtedly help staunch the unfettered flow of illegal products from entering our market and help shield and bolster vital domestic supply chains."

"Law enforcement is battling the trafficking of illegal narcotics on multiple fronts, including the international mail system. The de minimis loophole is severely exacerbating the opioid crisis by allowing fentanyl and other illegal opioids to enter our country largely uninspected. Substantial reform or the closing of this trade loophole is necessary to remove significant fentanyl trafficking routes into this country and is essential to any national strategy to end the fentanyl crisis," said Bill Johnson, executive director of the National Association of Police Organizations. "NAPO supports the FIGHTING for America Act and we look forward to working with Chairman Wyden to ensure the de minimis trade exemption will no longer be a gateway for illicit drugs and goods to cross our borders."

"This bill represents more than just a policy adjustment; it signifies a critical step toward safeguarding public health and enhancing national security," said Andrea Thomas, co-founder of Voices for Awareness. "These changes create actionable solutions to save American lives and curb the flow of fentanyl into the U.S., ultimately sparing other families the devastation that fentanyl has already brought to so many of us."

"In an effort to evade detection and interdiction, drug smugglers are using low-value, direct-to-consumer shipments that enter the country, which allows these criminals to bypass the usual screening methods employed by Customs and Border Protection and get fentanyl and other drugs and illicit goods into the United States," said Patrick Yoes, national president of the Fraternal Order of Police. "The FOP supports legislation as proposed by Senators Wyden and Lummis to tighten the rules and crack down on these foreign-based drug traffickers who are using low-value imports to game the system and flood our communities with fentanyl and other illegal goods and substances."

This legislation is supported by Oregon AFL-CIO, AFL-CIO, National Council of Textile Organizations (NCTO), Parents Against Vaping e-Cigs (PAVe), Voices for Awareness | Facing Fentanyl Now, National Association of Police Organizations, Fraternal Order of Police, United Steelworkers (USW), United States Footwear Manufacturers Association (USFMA), National Treasury Employees Union, and the Outdoor Industries Association.

A one-pager is available here. A section-by-section outline of the legislation is available here. The text of the bill is here.

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