De minimus small package customs exemption and Chinese "Reshippers" targeted by US Congress

[Ghoul]

Released by Congress a couple of weeks ago. Fentanyl is the focus but it's clear they've put a ton of effort into investigating how illicit substances of all types are sold and shipped from China to the US. The report below is fascinating.

TLDR: US's small package inspections are so lax it's become the primary destination in North America for fentanyl precursors from China, sent in small packages, which are then sent to Mexico.

Congress wants to change that, carefully scrutinizing all small parcels and going after the shipping companies that specialize in aiding exporters of illegal goods to the US get passed customs. (they mention they'll be able to collect lots of money in customs duties on the legal stuff, as well).

I don't see how this won't have a MAJOR impact on availability from Chinese vendors (or international vendors in general for that matter), but I'm all ears. Tell me why it won't.

From page 42:

"The United States should also reform its trade laws that enable illicit shipments of narcotics and employ additional trade and customs enforcement measures to restrict imports and punish violators.

Specifically, Congress should:

1. Pass legislation amending the Tariff Act of 1930 to reduce the de minimis threshold for duty-free shipments into the United States with particular focus on foreign adversaries, including the PRC. Approximately three million overseas packages arrive in the United States every day. Many fall under the current de minimis threshold of $800, resulting in the parcels receiving minimal inspection and not having to pay duties, taxes, or fees.

Fentanyl precursors and dangerous synthetic drugs currently enter the United States through these de minimis packages.

During the course of its investigation, the Select Committee heard from California state law enforcement that the current form of the de minimis exception leaves America so vulnerable to drug smuggling that cartels increasingly have PRC- sourced fentanyl precursors shipped first into the United States before smuggling them to Mexico. In other words, the current form of the de minimis exception makes the United States the most vulnerable nation in North America to this form of drug trafficking.

There is widespread bipartisan support for reforming the de minimis exception.

It would not only combat the fentanyl crisis and thus save lives, but also increase American competitiveness and help prevent the importation of goods produced with forced labor. Congress should enact appropriate reforms to address this vulnerability and support increased enforcement."


https://selectcommitteeontheccp.house.gov/sites/evo-subsites/selectcommitteeontheccp.house.gov/files/evo-media-document/The CCP's Role in the Fentanyl Crisis 4.16.24 (1).pdf"

 

[Blahblahblacksheet]

Thanks for this. Lesson of the day…beyond the fentanyl issues, don’t ever underestimate the power of Amazon and Eli Lily.

 

[songsofpyramids]

I don't see how this won't have a MAJOR impact on availability from Chinese vendors (or international vendors in general for that matter), but I'm all ears. Tell me why it won't.

I mean, you could argue this likely will have little to no impact like almost all their new initiatives to stop drug importation have little to no impact on the flow of drugs. What counter drug op can you think of that has ever made a substantial difference in the market? They’re still playing whack-a-mole with the darknets and now those are bigger than ever before too. Drugs are cheaper and stronger than ever despite thousands of crackdowns over the decades. This just seems like another drug war battle that drugs will win handedly imo.

 

[Ghoul]

I mean, you could argue this likely will have little to no impact like almost all their new initiatives to stop drug importation have little to no impact on the flow of drugs. What counter drug op can you think of that has ever made a substantial difference in the market? They’re still playing whack-a-mole with the darknets and now those are bigger than ever before too. Drugs are cheaper and stronger than ever despite thousands of crackdowns over the decades. This just seems like another drug war battle that drugs will win handedly imo.

While anything can be smuggled in to meet demand at a high enough price, the current situation is unique. The volume of packages from China increased so incredibly quickly, slow moving government had no chance of keeping up, allowing contraband to slip in among the flood of other stuff. There's a big difference between ordering today, on the clearnet no less, and having hear directly shipped to the end user with little concern of consequences.

I won't rehash the large number of motivations to get a tight grip on small packages, none of them being to stop the steroid trade, but it can, and will be done and putting an end to this direct seller to buyer route through the mail.

There are good reasons certain countries are subject to "no reship" or "no sale to" policies. Stricter enforcement and package volumes not overwhelming customs capacity to monitor them. From everything I've read, it's clear to me volume will be reduced, capacity will be massively increased (and funded by a $2 pack security fee).

Even poor little Mexico has improved customs and now so successfully intercepts packages from China, drug precursors are easier to mail to the US, smuggle into Mexico, then return across the southern border as finished product.

Steroids will still be available, of course, but I really doubt the variety, convenience, cheap price, and low risk will continue when they've got to be smuggled like cocaine, and not just mailed with the ease of some cheap junk from Temu..

 

[Ghoul]

Let me just add. I'll be very happy if I turn out to be completely wrong on this, and it's business as usual.

The India pharma scene just got a little taste over the last 4 months, with love letters going out left and right, forcing all vendors to modify shipping methods.

 

[Cyclist]

Let me just add. I'll be very happy if I turn out to be completely wrong on this, and it's business as usual.

The India pharma scene just got a little taste over the last 4 months, with love letters going out left and right, forcing all vendors to modify shipping methods.

But a lot of that was because India decided to make fake millions and millions of dollars off of pharmaceutical pills and decided that they could just sell dangerous, under dosed and or not even putting the correct ingredients into the medication they claimed they were making. People were dying, and they were supposed to be the legit pharmaceutical companies we were buying our legal stock from.

I believe American said fine and decided to crack down on places and making a point to stop fake prescription pills from coming in because we're spending hundreds of millions on bunk stuff for our own pharma distributors, the DEA/FDA won't allow you to step on product and straight up lie and kill it's own customers,

it was all over Google last winter about reports of US investigations, I remember I read up on multiple reports about bad India pills because I was nastily sick and would Google "getting sick from India pills" I couldn't pinpoint what was making me feel that bad.

I agree with the post you have replied to and definitely believe we should be concerned, I also believe the government knows what is and is not coming into our country, but think about this, we are deeply in debt and what Is one sure fire way to get repayment payed back to our government? Court fees, probation fees, tickets, and all that that comes with illegal substances and if you get caught.

they don't necessarily want to lose out on almost guaranteed money.
Long rant but definitely look into what India was doing with its pharma companies because they were playing the house

 

[songsofpyramids]

But a lot of that was because India decided to make fake millions and millions of dollars off of pharmaceutical pills and decided that they could just sell dangerous, under dosed and or not even putting the correct ingredients into the medication they claimed they were making. People were dying, and they were supposed to be the legit pharmaceutical companies we were buying our legal stock from.

I believe American said fine and decided to crack down on places and making a point to stop fake prescription pills from coming in because we're spending hundreds of millions on bunk stuff for our own pharma distributors, the DEA/FDA won't allow you to step on product and straight up lie and kill it's own customers,

it was all over Google last winter about reports of US investigations, I remember I read up on multiple reports about bad India pills because I was nastily sick and would Google "getting sick from India pills" I couldn't pinpoint what was making me feel that bad.

I agree with the post you have replied to and definitely believe we should be concerned, I also believe the government knows what is and is not coming into our country, but think about this, we are deeply in debt and what Is one sure fire way to get repayment payed back to our government? Court fees, probation fees, tickets, and all that that comes with illegal substances and if you get caught.

they don't necessarily want to lose out on almost guaranteed money.
Long rant but definitely look into what India was doing with its pharma companies because they were playing the house

I totally forgot about this but you’re right. There was a big scare starting in 2019 and 2020 when Indian pharma drugs like couch syrup and pills were killing people. Article about it.

Cough syrup deaths: Why drugs made in India are sparking safety concerns - BBC News

India is one of the world's largest drug makers. Can the country's drugs be trusted?

www.bbc.com

 

[Cyclist]

Thanks for quoting that! They definitely did wrong

 

[ve79]

Released by Congress a couple of weeks ago. Fentanyl is the focus but it's clear they've put a ton of effort into investigating how illicit substances of all types are sold and shipped from China to the US. The report below is fascinating.

TLDR: US's small package inspections are so lax it's become the primary destination in North America for fentanyl precursors from China, sent in small packages, which are then sent to Mexico.

Congress wants to change that, carefully scrutinizing all small parcels and going after the shipping companies that specialize in aiding exporters of illegal goods to the US get passed customs. (they mention they'll be able to collect lots of money in customs duties on the legal stuff, as well).

I don't see how this won't have a MAJOR impact on availability from Chinese vendors (or international vendors in general for that matter), but I'm all ears. Tell me why it won't.

From page 42:

"The United States should also reform its trade laws that enable illicit shipments of narcotics and employ additional trade and customs enforcement measures to restrict imports and punish violators.

Specifically, Congress should:

1. Pass legislation amending the Tariff Act of 1930 to reduce the de minimis threshold for duty-free shipments into the United States with particular focus on foreign adversaries, including the PRC. Approximately three million overseas packages arrive in the United States every day. Many fall under the current de minimis threshold of $800, resulting in the parcels receiving minimal inspection and not having to pay duties, taxes, or fees.

Fentanyl precursors and dangerous synthetic drugs currently enter the United States through these de minimis packages.

During the course of its investigation, the Select Committee heard from California state law enforcement that the current form of the de minimis exception leaves America so vulnerable to drug smuggling that cartels increasingly have PRC- sourced fentanyl precursors shipped first into the United States before smuggling them to Mexico. In other words, the current form of the de minimis exception makes the United States the most vulnerable nation in North America to this form of drug trafficking.

There is widespread bipartisan support for reforming the de minimis exception.

It would not only combat the fentanyl crisis and thus save lives, but also increase American competitiveness and help prevent the importation of goods produced with forced labor. Congress should enact appropriate reforms to address this vulnerability and support increased enforcement."


https://selectcommitteeontheccp.house.gov/sites/evo-subsites/selectcommitteeontheccp.house.gov/files/evo-media-document/The CCP's Role in the Fentanyl Crisis 4.16.24 (1).pdf"

Wow. Very eye opening and it makes plenty of sense. I really believe also that places like temu or even ticktock shop or anything coming from China will be effective doing business with the US. I wonder where the raws will be coming from next and how it's going to effect the quality and availability. This sucks