Bipartisan Bill Introduced to Allow FTZs to Stage de Minimis Shipments
A bipartisan bill led by a House Ways and Means Committee member would allow warehouses and brands located in foreign trade zones to send goods that were imported into the zones to consumers and have those packages qualify for de minimis treatment.
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Rep. Brad Wenstrup, R-Ohio, said the U.S. Foreign Trade Zone Parity Act would put companies in FTZs on an equal footing to foreign warehouses that are distributing consumer packages and qualifying for de minimis. He said in a recent news release that he wants to make sure the country's trade policy "doesn't punish U.S. businesses operating within the U.S."
“E-commerce shipments from outside the United States should not be afforded special treatment compared to shipments from inside the U.S.,” Rep. Brian Fitzpatrick, R-Pa., said in the press release.
“Foreign Trade Zones are vital to the strength of our supply chain and for supporting U.S. jobs,” Rep. Ruben Gallego, D-Ariz., said in the release. “I am proud to back this bill to finally bring parity to FTZs, ease supply chain burdens, and keep our economy moving.”
Wenstrup said he has heard from Ohio businesses "who face punishing tariffs due to this unequal treatment," and have to compete against foreign shippers who avoid those tariffs through de minimis. He said the current setup makes it more difficult for CBP to properly oversee e-commerce imports.
Columbia Sportswear Company, REI Co-Op and David's Bridal all endorsed the bill, saying consumers will benefit, and so will their firms.
The National Association of Foreign-Trade Zones President Jeff Tafel said in the release: "Congressman Wenstrup’s bill eliminates the existing incentive to establish or relocate operations across the border, resulting in no change to the volume of de minimis trade, only where those transactions originate ... . We recognize the on-going dialogue associated with de minimis entry and this legislation is intended solely to provide parity to U.S. FTZs based on whatever action Congress ultimately takes where de minimis is concerned."