Murphy Introduces Legislation to Fight China's Tariff Evasion

Washington, D.C. — Congressman Greg Murphy, M.D. introduced the End China’s De Minimis Abuse Act, legislation to prevent China from evading tariffs on Chinese goods.

"We must not allow China to systematically bypass tariffs at the expense of American businesses and workers," said Congressman Greg Murphy, M.D. "Nearly two-thirds of all imports that come into the U.S. under a privileged existing exemption are from China. By updating our de minimis law, we are creating a fairer playing field for American businesses to compete and ending abuse by Chinese companies. President Trump continues to make significant progress in addressing China’s unfair trade practices; Congress must now act to codify necessary reforms in support of his agenda. This bill is a great first step in addressing our flawed de minimis laws, and I look forward to working with President Trump on a comprehensive proposal that will support American workers."

Background
In 2018, President Trump imposed new tariffs on more than half of Chinese imports pursuant to Section 301 of the Trade Act of 1947. Under current law, goods valued at under $800 are free of duty, and of any tax, if a shipment is imported by one person to another on the same day. Many Chinese firms have avoided paying these tariffs on imports less than $800 in value as a result of the de minimis privilege.

The legislation ends de minimis exemptions for products subjected to trade enforcement tariffs, improves transparency and data collection on de minimis entries into our supply chains, and adds penalties for those who violate U.S. law through de minimis entries.