U.S. Senate introduces new bill to strengthen e-commerce import review to combat counterfeit products

It is learned that recently, according to foreign media reports, the US Senate is promoting a new bill to strengthen the review of e-commerce imports, aiming to crack down on goods containing illegal and counterfeit goods. The bill, titled "Cracking down on illegal goods, helping trusted importers, and gaining benefits for the United States," was proposed by five senators last week and is mainly aimed at the rapid growth of e-commerce platforms such as Shein and Temu in the US market. If this legislation is approved by the Senate and the House of Representatives, it will further rely on the president's signature for implementation.

The bill states that retailers are "abusing" the current duty-free policy for packages worth less than $800, making it difficult for U.S. Customs and Border Protection (CBP) to effectively identify and prevent the import of illegal and counterfeit goods.

The bill will prohibit certain categories of products from being imported through the duty-free system, including textiles, apparel and leather products that are identified as "import sensitive"; goods subject to anti-dumping or countervailing duties; goods subject to tariffs under Section 301, Section 232 or Section 201; and other types of goods that CBP determines are experiencing a surge in imports or are at risk of continued illegal imports. At the same time, the bill also requires CBP to collect more data on low-value goods and simplify the procedures for seizing and disposing of illegal goods.

In addition, the bill also requires increased penalties for violations of the minimum duty-free limit rules and a $2 fee for each shipment using the minimum duty-free limit entry procedure. This move has been supported by several labor unions and non-profit organizations, including the American Federation of Labor in Oregon and the National Council of Textile Organizations.

"This bill is the most comprehensive legislative proposal to date and will impose new penalties for violations, require additional data reporting on all de minimis packages, and impose a small customs user fee on packages," said Kim Glas, president of the National Council of Textile Organizations. "We fully support this legislation, which allows 4 million packages per day to bypass federal scrutiny, enter the U.S. duty-free, and serve as a gateway for illegal items to enter the country."

The United States has also been increasing its focus on e-commerce shipments over the past year, recently suspending several customs brokers from participating in the Entry Type 86 Testing Program, which imposes stricter scrutiny on shipments, leading to border detentions and flight cancellations.

Lawmakers have hardened their stance over concerns about drugs and contraband, split shipments and tax evasion by misreporting the value of goods.

However, the large volume of goods shipped quickly into the United States has also brought benefits to the air cargo industry. The American Air Cargo Association pointed out that the minimum duty-free threshold has played an important role in promoting the seamless entry of goods into the United States. Since the minimum duty-free threshold was raised from $200 to $800 in 2015, it has simplified the import process for low-value goods, reduced administrative burdens, and reduced costs for businesses and consumers, greatly promoting the booming e-commerce. Maintaining this policy will help support small businesses and consumers to participate in global trade.

Author✎ Summer/
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