Kimberly Glas, a commissioner of the U.S.-China Economic Security and Review Commission (USCC), has recommended eliminating the "de minimis" loophole to help curb the flow of fentanyl into the United States. Glas shared her statement in a January 8 episode of the China Desk podcast.
"But one of our commission recommendations examined how the Chinese are using a trade loophole called de minimis to get products into the U.S. market duty free," said Glas. "It has become a conduit to bring precursors into the United States, export those to Mexico to make fentanyl. This is an urgent crisis, we know it's out of control, and CBP says they can't control it despite the amount of technology because with fentanyl, there are no sniffing dogs or detection for this."
According to the USCC's 2024 Annual Report to Congress, Chinese chemical manufacturers exploit this loophole by shipping small packages of fentanyl directly into the U.S. The report indicates that these manufacturers may also send fentanyl precursors into the country, which are then smuggled across the border by Mexican criminal organizations, processed, and smuggled back. These manufacturers "exploit the less stringent reporting requirements and minimal likelihood of inspection" associated with de minimis shipments.
U.S. Customs and Border Protection (CBP) defines duty-free de minimis shipments as packages valued at $800 or less. CBP states that these shipments account for 92% of all cargo entering the U.S., adding that "bad actors are exploiting this explosion in volume to traffic counterfeits, dangerous narcotics, and other illicit goods including precursor chemicals and materials such as pill presses and die molds used to manufacture fentanyl and other synthetic drugs that are killing Americans."
In its report, the USCC recommended that Congress eliminate this loophole, also known as Section 321 of the Tariff Act of 1930. The report further suggests that Congress should provide CBP with "adequate resources, including staff and technology, for implementation, monitoring, and enforcement."
Glas is president and CEO of the National Council of Textile Organizations. She has served as a Congressionally appointed USCC commissioner since 2021.