NCTO Asks CBP to Undertake a Detailed Analysis of de Minimis Shipments
The National Council of Textile Organizations, concerned that de minimis imports of apparel are undercutting apparel imports from the Western Hemisphere, is asking CBP to undertake a detailed analysis of de minimis shipments, and release the results publicly. The trade group cares if Mexican, Haitian and Central American apparel makers are losing ground because those countries' factories import U.S.-made fiber, yarn and fabrics. "Textile and apparel products are uniquely positioned to enter as de minimis shipments as apparel and other sewn products routinely sell for under $800 and represent over 40 percent of CBP's duty collections," NCTO said.
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In a letter sent Oct. 24, and publicly announced the next day, NCTO asked CBP to say which products are most impacted under de minimis, which countries are exporting the most under de minimis, projections on the trajectory of e-commerce de minimis applications over the next five to 10 years, and an estimate of how much in tariff revenue is forgone because of de minimis.
The group also wants an estimate of how the imports are impacting domestic manufacturing, and free trade agreement and trade preference partners. They suggest that CBP make recommendations for statutory or regulatory changes "to create a more reasonable 321 structure, especially in relation to e-commerce."