321 Coalition Says Applying 301 Tariffs to de Minimis Shipments Infeasible, Renews Call for FTZ Law Change
Objections to the exemption of low value shipments from the Section 301 duties on goods from China demonstrates the need for a change in law to allow for de minimis exemptions for goods withdrawn from foreign-trade zones, the 321 Coalition said in comments to the Office of the U.S. Trade Representative. The comments were part of the docket on the fourth tranche of Section 301 tariffs on goods from China, which are now on hold as the U.S. and China work toward a trade deal (see 1907010012). The coalition similarly said it would like to see federal law changed to allow for de minimis entry for goods from foreign-trade zones as part of CBP's customs framework review (see 1902140022).
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While several companies asked USTR to apply the tariffs to de minimis imports, that "would not be feasible" because "CBP applies Section 301 tariffs based on HTS code, and de minimis shipments by nature do not require an HTS number," the 321 Coalition said. Instead, allowing for de minimis exemptions for goods coming out of FTZs would "significantly help address the two primary concerns vocalized in the List 4 hearing, namely: (1) the higher risk of customs noncompliance, including counterfeit goods, and (2) the disadvantage of U.S. distributors to their foreign competitors when the de minimis rule applies only to goods imported from foreign warehouses," it said.