The subcommittee that covers intellectual property issues under the House Judiciary Committee questioned how Congress should address the escalating volume of de minimis packages -- and the opportunities those shipments provide for sending counterfeits and goods made with forced labor, but the CBP witness responsible for de minimis and IP declined to back any of the ideas that were bandied about.
Acting CBP Commissioner Troy Miller, just after telling an appropriations committee member that CBP's staff "need help in the de minimis environment," told her that there are legislative proposals, that if they were to pass, "allow us to actually bring that level [of shipments] down to a manageable level for us."
PHILADELPHIA -- Getting the funding for ACE 2.0 is the biggest challenge, the executive director of CBP's trade transformation office said. He said the agency was unsuccessful in the budgetary process, and asked industry to lobby their representatives for funding.
PHILADELPHIA -- When CBP ran an audit to estimate how many packages that enter under de minimis violate Customs laws, it found about 9% did, either through misclassification, insufficient documentation, or more serious violations, like smuggling narcotics.
PHILADELPHIA -- Bill Reinsch, a senior scholar at the Center for Strategic and International Studies, told CBP Executive Assistant Commissioner AnnMarie Highsmith that he is pessimistic Congress will vote on any trade bill, whether liberalizing trade, as in the Generalized System of Preferences benefits program or the Miscellaneous Tariff Bill, or restricting it, as in changes to de minimis eligibility or changes to trade remedy laws.
U.S.-China Economic and Security Review Commissioner Kimberly Glas, calling e-commerce "a superhighway of the Wild West," asked witnesses at a hearing on Chinese exports and product safety if de minimis is a major contributor to unsafe products.
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House Ways and Means Committee Trade Subcommittee Chairman Adrian Smith, R-Neb., said he thinks the chances are good for renewing the Generalized System of Preferences benefits program in 2024, due to bipartisan interest in the legislation. "A lot of members have examples from their district of why we need GSP." He added that a three-year lapse of the benefit program is "inexcusable."
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Coalition for a Prosperous America, an organization that has been arguing that de minimis should only apply to gifts and goods brought by consumers as they return from abroad (see 2312140046), wants to kill the Customs Modernization Act of 2023, the bipartisan bill introduced in the Senate that would update CBP authorities in a number of areas (see 2312110048).