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Earlier this month, US President Donald Trump signed one executive order To enclose the minimis -Maas (including shipments with a value of or below $ 800 rates and taxes) for input from China and Hong Kong. The change will officially take effect at the beginning of May. Not long after, in response to Beijing’s retribution rates (who in turn were a response to Trump’s ‘Liberation Day’ rate rate), the White House moved to Increase the duty percentages On this class of previously tax -free incoming shipments.
The Minimis exemption has been a subject of discussion among Americans for years who are concerned about the position of China in relation to the United States. The decision of the Trump government to take action in this context will offer the United States an important incentive in three areas: production and job security, public health and efforts to improve human rights in China.
China has benefited the most from this provision, with a House Select Committee on the Chinese Communist Party (CCP) from 2023. report Discovers that Chinese e-commerce giants Shein and Temu are only good for 30 percent of all the minimis shipments to the United States. Chinese sellers on Amazon, who now include More than 50 percent Sellers on the e-commerce platform have also used this rule.
The US is by far the largest market For the products of Shein and Temu. The termination of the Minimis rule will practically improve the business models of both companies.
The Executive Order of Trump works to level the playing field for American manufacturers and employees who have had difficulty compete with the flood of cheap Chinese products. For years, Chinese companies have gone away with the avoidance of rates and benefit enormously – enrich the Chinese economy while they are placed American companies bankrupt. That is particularly gall -like, since Beijing has never offered us products such as mild treatment.
Now Chinese companies will be forced to play according to the same rules as American companies when they compete on the American market.
Chinese companies have also used the Minimis exemption to prevent systematic inspections and risk assessment by US Customs and Border Patrol (CBP). Packages of illegal drugs -Including drugs, fentanylvoorlopers and drug parafernalia-hebben disguised as packages those benign goods, goods. This comes at a time when the United States is in the middle of a Fentanyl epidemic, with More than 70,000 Fentanyl overdose deaths per year.
The decision of the Trump administration to terminate the minimis also protects American consumers against products that contain harmful material that is traditionally used for industrial purposes.
China is known for its frequent public health scandals and low consumer product security standards. Remarkable incidents are the 2008 Melamine Milk Scandal and the 2013 toxic school uniform scandal In Shanghai. Some clothing products from Shein and Temu have been found contain extremely high levels From carcinogens carcinogens phthalate and formaldehyde as well as significant traces of lead that can cause damage to the central nervous system and lead to death. Many of these deadly products are aimed at babies and toddlers.
But possibly most overlooked by the headlines is how an end to the Minimis exemptions from China is an important step to keep the CCP responsible for his human rights violations.
The Uyghur Domende Lab Prevention Act (UFLPA) In 2021, it is assumed that companies import products that are bound to Uyghur -Dwang labor and sanctions involved in this practice. There are indications that Shein And TemuFor example, supply chains that are linked to Uyghur’s forced labor, in the midst of a continuous genocide in the region – one reason why they should be added to the UFLPA entity list.
However, because of the Minimis rule, companies have been able to circumvent this law, such as their products Does not require formal entry documentation. This is a certain challenge for the enforcement of import bans on products.
Closing this Maas in the law will make it more difficult for goods produced with Uyghur – forced labor to enter the American markets by subjecting them to a larger customs control – as required by the UFLPA together with Section 307 of the 1930 rate law More generally, that the entry of items completely or partially prohibits with the help of forced labor.
Despite the complex and often opaque nature of supply chains, extra steps can be taken to minimize the chances of importing products that break us forced labor laws. These include the improvement of the tools described to the CBP to enable more efficient geographical targeting and to ensure that the transfer is tackled – a Top concern From the officials of Trump Administration.
It would also be essential to expand this executive order to register for shipments from Macau – a special administrative region under increasingly tighter CCP control, such as Hong Kong, who has become a playground for the Elite of China. It is an area that is known for its casinos and Money Wit Operations, Prostitution and Triade activities.
Nevertheless, the Trump government’s decision to close the minimis exemptions with regard to China is a necessary – and daring – first step aimed at protecting American interests and human rights. It not only deals with the predatory behavior of an opponent towards American companies, but also tries to make a room for safe and slave labor -free products for Americans.
The weight now falls on the shoulders of the congress to codify this executive order with regard to an issue that affects all Americans. There is no time left.