The subcommittee that covers intellectual property issues under the House Judiciary Committee questioned how Congress should address the escalating volume of de minimis packages -- and the opportunities those shipments provide for sending counterfeits and goods made with forced labor, but the CBP witness responsible for de minimis and IP declined to back any of the ideas that were bandied about.
Mara Lee
Mara Lee, Senior Editor, is a reporter for International Trade Today and its sister publications Export Compliance Daily and Trade Law Daily. She joined the Warren Communications News staff in early 2018, after covering health policy, Midwestern Congressional delegations, and the Connecticut economy, insurance and manufacturing sectors for the Hartford Courant, the nation’s oldest continuously published newspaper (established 1674). Before arriving in Washington D.C. to cover Congress in 2005, she worked in Ohio, where she witnessed fervent presidential campaigning every four years.
House Ways and Means Committee Chairman Rep. Jason Smith and Trade Subcommittee Chairman Rep. Adrian Smith called out U.S. Trade Representative Katherine Tai for the lengthy wait for the Section 301 tariffs review, which officially started in July 2022 after a round of comments that year in May in favor of extending the action.
Rep. Adrian Smith, R-Neb., said that despite Democratic opposition in the House Ways and Means Committee to a package of bills renewing and altering the Generalized System of Preferences benefits program, he expects there will be enough support for the bill to pass under suspension of the rules, which requires two-thirds of the House. Most bills this year have passed under suspension of the rules, rather than with a rule fashioned by the very narrow Republican majority. Smith said GSP works well to get its beneficiary countries to treat U.S. exports more favorably.
Automakers and their trade groups cautioned the Bureau of Industry and Security to tailor its restrictions narrowly -- and allow a phase-in -- if they want manufacturers to stop buying information technology components from China for cars with advanced features, including electric cars.
Canadian Solar, which is ramping up a 5-gigawatt solar panel manufacturing factory in Texas, told the Office of the U.S. Trade Representative that tariff rate quotas on solar cells under the current safeguard action and Section 301 tariffs on machinery that helps make solar panels and cells are harming solar manufacturers. Canadian Solar also is working on opening a solar cell plant in Indiana, but it won't open until late 2025. It imports cells made in Thailand. The TRQ only allows five gigawatts' worth of tariff-free cells in annually.
In the first third of its first public hearing on promoting supply chain resilience, the Office of the U.S. Trade Representative and interagency officials heard from groups disputing the premise of the project -- that liberalizing trade was harmful to U.S. workers and manufacturing -- and from those who say the worker-centered trade approach of the Biden administration is not going far enough to restore American manufacturing.
An element of the Generalized System of Preferences benefits package that has passed the House Ways and Means Committee next month could result in some apparel items being added to the eligibility list for the first time, something sponsor Rep. Carol Miller, R-W.Va., has pushed for since 2023.
Acting CBP Commissioner Troy Miller, just after telling an appropriations committee member that CBP's staff "need help in the de minimis environment," told her that there are legislative proposals, that if they were to pass, "allow us to actually bring that level [of shipments] down to a manageable level for us."
The Forced Labor Enforcement Task Force is responsible for naming companies that are known to use Uyghur forced labor, including through labor transfers to other regions of China. But FLETF member and Deputy Undersecretary of Labor for International Affairs Thea Lee said she hasn't seen an effective way of monitoring those labor transfers, though the U.S. government believes they are growing.
The National Customs Brokers & Forwarders Association of America's president told the U.S. trade representative that customs brokers and others in the trade community aren't "pro forced-labor, pro-pollution, pro-unsustainable environmental practices," but that too often, "‘race to the top’ objectives do not take into consideration the ability to actually implement the policies, and the costs associated with the goals."