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

Ghoul

Member
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"
 
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