Modernizing Customs Policies is Important to Eliminating Barriers for Small and Medium-Sized Enterprises, Boosting Economic Growth
UPS (NYSE: UPS) applauds Senators John Thune (R-SD) and Ron Wyden (D-OR), and Representatives Aaron Schock (R-IL), Joe Crowley (D-NY), John Larson (D-CT) and Elise Stefanik (R-NY) for their leadership reintroducing bipartisan legislation in the U.S. Senate and the U.S. House of Representatives, raising the "de minimis" threshold.
These bills, S.489 and H.R. 978, are a significant step in facilitating trade, particularly for small and medium-sized enterprises. The legislation would raise the de minimis value, the monetary value below which shipments entering the United States are free from tariffs, taxes or formal customs procedures, from the current $200 level to $800. The de minimis value has not been updated in more than 20 years. Similar bipartisan legislation had over 240 House and 25 Senate cosponsors in the previous Congress.
"Raising de minimis levels helps foster trade, which in turn grows the economy and jobs," said Laura Lane, president of UPS Global Public Affairs. "It will also reinforce efforts to raise de minimis levels globally, which is particularly important with the ongoing Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership negotiations." Lane noted the wide variety of customs policies and practices around the globe that often create bottlenecks at the borders, creating barriers to American exports.
In addition to promoting faster border clearance for low-value shipments, a higher de minimis level would allow customs officers to focus enforcement efforts on urgent priorities such as ensuring product safety and protecting intellectual property. Furthermore, the legislation would have no impact on security, since all shipments entering the U.S. undergo a security review regardless of value.
UPS (NYSE: UPS) applauds Senators John Thune (R-SD) and Ron Wyden (D-OR), and Representatives Aaron Schock (R-IL), Joe Crowley (D-NY), John Larson (D-CT) and Elise Stefanik (R-NY) for their leadership reintroducing bipartisan legislation in the U.S. Senate and the U.S. House of Representatives, raising the "de minimis" threshold.
These bills, S.489 and H.R. 978, are a significant step in facilitating trade, particularly for small and medium-sized enterprises. The legislation would raise the de minimis value, the monetary value below which shipments entering the United States are free from tariffs, taxes or formal customs procedures, from the current $200 level to $800. The de minimis value has not been updated in more than 20 years. Similar bipartisan legislation had over 240 House and 25 Senate cosponsors in the previous Congress.
"Raising de minimis levels helps foster trade, which in turn grows the economy and jobs," said Laura Lane, president of UPS Global Public Affairs. "It will also reinforce efforts to raise de minimis levels globally, which is particularly important with the ongoing Trans-Pacific Partnership and Transatlantic Trade and Investment Partnership negotiations." Lane noted the wide variety of customs policies and practices around the globe that often create bottlenecks at the borders, creating barriers to American exports.
In addition to promoting faster border clearance for low-value shipments, a higher de minimis level would allow customs officers to focus enforcement efforts on urgent priorities such as ensuring product safety and protecting intellectual property. Furthermore, the legislation would have no impact on security, since all shipments entering the U.S. undergo a security review regardless of value.
