DENIED Act Detection and Exclusion of Negligent, Illicit, and Extralegal Deliveries Act
The bill proposes significant changes to the way U.S. Customs and Border Protection (CBP) manages the entry of goods, mandating the publication of a list of 'covered entities' that have violated laws related to customs. Such entities would be denied the ability to import goods duty-free under the de minimis exemption. This prohibition directly impacts businesses and traders; those that may unwittingly trade with or represent covered entities could face substantial penalties if implicated in failing to comply with these regulations. The bill emphasizes the need for rigorous data collection and accountability in imports.
Bill SB5435, known as the Detection and Exclusion of Negligent, Illicit, and Extralegal Deliveries Act or the DENIED Act, aims to tighten regulations surrounding the importation of goods into the United States. The bill specifically targets the administrative exemption currently available for de minimis entries—goods valued below a certain threshold—by prohibiting entities involved in unlawful activities from taking advantage of these exemptions. This legislative move seeks to enhance enforcement measures against illicit trade practices, including those related to forced labor and counterfeit goods.
Several points of contention arise around the implications of this bill. Proponents argue that strengthening the rules about customs exemptions is vital for protecting U.S. markets from unfair practices and enhancing consumer safety. However, opponents raise concerns about the broad definition of covered entities and the potential for arbitrary enforcement. They worry that legitimate businesses could be unduly penalized, particularly if they are inadvertently included on the prohibited list due to insufficient transparency or criteria for removal. Furthermore, the enforcement of such stringent regulations may impose additional burdens on small and medium-sized enterprises navigating the complexities of the import process.