S.1867 - Closing the De Minimis Loophole Act (119th Congress)
Summary
S.1867, the "Closing the De Minimis Loophole Act," aims to eliminate the de minimis treatment under the Tariff Act of 1930. This treatment currently allows for the entry of goods valued under a certain threshold (de minimis) to enter the United States without the usual duties and taxes. The bill proposes phasing out this treatment, particularly targeting goods originating from China.
Expected Effects
The immediate effect will be increased scrutiny and taxation of low-value goods, especially those from China. This could lead to higher costs for consumers and businesses that rely on these imports. The Act also mandates rulemaking by the Secretary of the Treasury to implement these changes and ensure effective enforcement.
Potential Benefits
- Increased revenue for the U.S. government through tariffs and taxes.
- Leveling the playing field for domestic businesses that compete with imported goods.
- Enhanced enforcement of U.S. laws and regulations on imported goods.
- Reduced opportunities for fraudulent or unlawful activity related to undervalued imports.
- Greater transparency and accountability in international trade.
Most Benefited Areas:
Potential Disadvantages
- Increased costs for consumers who purchase low-value imported goods.
- Potential disruptions to supply chains that rely on de minimis shipments.
- Increased administrative burden for businesses importing goods.
- Possible retaliatory measures from China or other countries.
- Could disproportionately affect small businesses and online retailers.
Constitutional Alignment
The bill aligns with Congress's power to regulate commerce with foreign nations, as granted by Article I, Section 8 of the Constitution. The rulemaking requirement assigned to the Secretary of the Treasury is consistent with the delegation of authority by Congress to the executive branch to implement laws. The bill does not appear to infringe upon any individual rights or liberties protected by the Constitution.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).