De Minimis Reciprocity Act of 2023
If enacted, SB1969 would significantly alter the manner in which small imports are handled by tightening regulations surrounding the de minimis category. This could affect numerous importers, particularly small businesses and e-commerce merchants who send small goods across borders. The bill would create a list of countries, including China and Russia, for which goods would be prohibited from entering under de minimis provisions if they do not meet specific compliance criteria. These criteria could cover issues related to labor practices, such as those outlined in the Uyghur Forced Labor Prevention Act.
SB1969, known as the De Minimis Reciprocity Act of 2023, aims to amend the Tariff Act of 1930 to establish reciprocity regarding the de minimis entries of articles into the United States. The bill seeks to ensure that the dollar amount threshold for de minimis entries is at par with those imposed by trade partners, particularly countries identified as non-compliant with U.S. labor and trade laws, including forced labor considerations. The bill mandates the Secretary of the Treasury to set thresholds that do not exceed $800 and take into account the respective thresholds of other countries.
The bill highlights ongoing tensions in U.S.-China trade relations, notably by targeting countries with questionable human rights practices. Critics may argue that by imposing such legislation, the U.S. could further complicate international trade dynamics and lead to retaliatory measures from affected countries. Proponents, however, insist that ensuring reciprocity strengthens U.S. trade laws and protects domestic industries from unfair competition, especially in light of products being shipped without adequate inspection from nations with unsatisfactory labor records.