Lighthizer 'Concerned' About Section 321 Provisions; USTR Review Underway
The Office of the U.S. Trade Representative is reviewing the Section 321 provisions that allow for duty exemptions for low-value goods in light of "efforts to circumvent the requirements of the de minimis provisions in U.S. law," USTR Robert Lighthizer told lawmakers in recently released written responses to House Ways and Means Committee members following a June 19 hearing (see 1906190035). Asked about "the operation and impact of U.S. de minimis policy" by Rep. Bill Pascrell, D-N.J., Lighthizer said he's "particularly concerned" about those efforts to improperly use the exemption.
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Among other things, Pascrell specifically inquired about whether "USTR reviewed which goods are entering the United States under the de minimis provision, and what tariff lines are most affected" and "how has the volume and types of trade claiming de minimis changed since 2015." Lighthizer said "we are looking at some of these questions and working with CBP and others to analyze the effects of the de minimis exemption and what it means for U.S. workers who have to compete with imports." The administration previously mentioned Section 321 concerns when announcing an executive branch initiative focused on preventing trade in counterfeit goods (see 1904030037).
Pascrell's questions were focused on general administration policy on de minimis, rather than as it specifically pertains to the U.S.-Mexico-Canada Agreement, which was also asked about several times. Lighthizer's response on the USMCA de minimis questions were noncommittal and very close to his responses to Senate Finance Committee members with similar questions (see 1907300048). A footnote in the USMCA that says that the U.S. could change its de minimis level to match Canada's and Mexico's levels has been controversial in Congress.