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ICYMI: U.S. Chamber of Commerce - Customs Trade Facilitation and Enforcement Act
Washington,
Jan 31 -
In case you missed it, today a letter was sent by the U.S. Chamber of Commerce to the Chairman of the House Ways and Means Subcommittee on Trade, Devin Nunes.
The letter endorses legislation introduced by Congressman Aaron Schock in the 112th Congress, which modernizes the U.S. Customs Process to help both consumers and small businesses by lowering customs duties rates on low value, low risk imports. Specifically the legislation would reduce labor/operator and brokerage expenses through fewer formal entry filings, facilitating commerce with small businesses by reducing shipment costs and paperwork. Lowering the duties on certain low value, low risk goods also demonstrates U.S. leadership among other countries, encouraging them to follow suit on a global scale and reduce the costs of business for American exporters.
Highlighted below is the section of the Chamber’s strong endorsement in the letter. Schock's legislation was also included in broader customs reauthorization introduced last month and he has plans to again introduce legislation to address these pending trade issues.
We expect further action on this issue in the weeks ahead.
To read the full letter sent by the U.S. Chamber of Commerce, click here.
Section 402 De Minimis Value and Entry Under Regulations
The legislation amends the Tariff Act of 1930 by increasing the de minimis value from $200 to $800. It also increases the Informal Entry value from $1,000 to $2,500. The Chamber supports these proposals as the increased value will simplify the entry process and reduce transaction costs, particularly for small and medium-sized businesses, thus making them more competitive in the global economy. However, the Chamber maintains the position that a higher de minimis of $1,000 is the appropriate value and should be included in the legislation.
The de minimis legislation introduced in the House in 2011 (H.R. 1635) has a $1,000 level and gained the support of 144 co-sponsors. The Peterson Institute for International Economics report on de minimis clearly outlines the additional benefits of the simplification in international trade procedures for products when the de minimis value is at $1,000. The legislation should also include provisions to increase the de minimis level annually for inflation, based on the yearly increase in the Consumer Price Index. |
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