Coalition for a Prosperous America Complains of Section 321 'Loophole' for Section 301 Tariffs
The exemption from Section 301 tariffs for goods entered as Section 321 de minimis shipments amounts to a "loophole" that blunts the intended effects of the tariffs, said Michael Stumo, CEO of the Coalition for a Prosperous America, in a Nov. 20 post on the conservative website LifeZette. "It’s a rather strange decision by CBP," Stumo said. "The administration had imposed a tariff on thousands of products that fall within the Section 301 list. But CBP then decided that, as long as an importer brings in less than $800 worth of an item on a particular day, no duties will be collected." Stumo alleged that there's no "statutory or regulatory foundation for the decision, and it contradicts the administration’s goal of changing China’s behavior."
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Stumo also claims that "importers are also trying to make the 'express entry' loophole bigger" by revising the Section 321 regulations to allow foreign-trade zones to play a larger role. There has been some discussion of making such changes (see 1808150007). "Lobbyists representing importers are hoping to change that, and bring large amounts of Chinese cargo into FTZ warehouses -- and then distribute the goods in the US without paying tariffs," Stumo said. "It’s unclear why CBP decided to prioritize the 'express entry' law over the administration’s tariffs under Section 301. But there’s little doubt that importers will use the CBP’s guidance to avoid paying tariffs." CBP and the Express Association of America didn't immediately comment.