For more information on pursuing trade policy interests through the legislative process, please contact Nicole Bivens Collinson at (202) 730-4956 or via email.
De Minimis. The End China’s De Minimis Abuse Act (H.R. 7979, introduced April 15 by Rep. Murphy, R-N.C., and approved April 19 by the House Ways and Means Committee) would (1) prohibit the use of de minimis entry for imports subject to antidumping or countervailing duties and/or Section 301, Section 232, or Section 201 tariffs, (2) add a new 10-digit HTSUS classification requirement for all de minimis entries from countries subject to Section 301 tariffs, and (3) establish new civil penalties ($5,000 for the first violation and $10,000 for subsequent violations) for de minimis violations. According to press reports, Ways and Means rejected a proposal to prohibit all imports from China from utilizing de minimis entry.
The U.S. Foreign-Trade Zone Parity Act (H.R. 8059, introduced April 17 by Reps. Wenstrup, R-Ohio, and Correa, D-Calif.) would allow companies operating in FTZs to utilize de minimis entry procedures.
GSP. The GSP Reform Act (H.R. 7986, introduced April 15 by Rep. Smith, R-Neb., and approved April 19 by Ways and Means) would renew the Generalized System of Preferences through Dec. 31, 2030, retroactive to its Dec. 31, 2020, expiration. According to a committee press release, the bill would also (1) permanently ban China from GSP, (2) increase the competitive needs limitation from $215 million to $500 million to incentivize supply chain shifts out of China and “toward trusted allies,” (3) increase the GSP rule of origin from 35 to 50 percent over time while incentivizing additional U.S. content in GSP-eligible products, (4) create new country eligibility criteria related to agricultural exports, digital trade, and labor and environmental issues, (5) remove countries with growing military and economic ties with China, and (6) establish an expedited petition process for adding products to, or removing them from, GSP eligibility.
Forced Labor. The Stop China’s Exploitation of Congolese Children and Adult Forced Labor Through Cobalt Mining Act (H.R. 7981, introduced April 15 by Rep. Smith, R-N.J., and approved April 19 by Ways and Means) would require the Forced Labor Enforcement Task Force to lead a comprehensive investigation into the use of forced labor in the cobalt mining industry of the Democratic Republic of the Congo and develop a strategy to ensure that cobalt mined by forced labor does not enter the U.S. market. A one-pager on this bill states that this investigation “will identify what products and priority sectors the U.S. government should apply its Section 307 prohibition [on imports made with forced labor] and will consider the risk of transshipment or downstream products that potentially reenter the U.S. through a third country.” A press release from Smith’s office notes that China processes 90 percent of the world’s cobalt, which is used to power electric vehicles, solar panels, and other green products, and that Chinese entities reportedly have ownership stakes in 15 of the DRC’s 19 cobalt mines.
In an April 16 letter, the two leaders of the House Select Committee on the Chinese Communist Party urged Secretary of State Antony Blinken to “expand and elevate U.S. diplomatic efforts to combat [Chinese] state-sponsored forced labor.” The letter welcomed the import bans that some allies and partners have imposed on Chinese goods made with forced labor but expressed concern that they fall short of the standards in the Uyghur Forced Labor Prevention Act and are therefore “leading companies to build two separate supply chains.” Diplomatic efforts should first focus on the European Union and the United Kingdom, the letter said, “which some have described as ‘dumping grounds’ for these products that are otherwise banned for importation into the United States.”
China. The End Chinese Dominance of Electric Vehicles in America Act (H.R. 7980, introduced April 15 by Rep. Miller, R-W.V., and approved April 19 by Ways and Means) would exclude vehicles the batteries of which contain materials sourced from prohibited foreign entities from the clean vehicle credit.
The Securing American Agriculture Act (H.R. 8003, introduced April 15 by Reps. Hinson, R-Iowa, and Slotkin, D-Mich.) would direct the Department of Agriculture to publish an annual assessment of U.S. dependency on critical agricultural products or inputs from China.
Trade Agreements. The Stop Executive Overreach on Trade Agreements Act (H.R. 7983, introduced April 15 by Rep. Fischbach, R-Minn., and approved April 19 by Ways and Means) would define the term “free trade agreement” for purposes of the clean vehicle tax credit to mean agreements that (1) are approved by Congress and (2) eliminate restrictions on substantially all trade with the partner country. A one-pager on the bill states that it would end the Biden administration’s use of “critical minerals agreements” to qualify as FTAs and thus require the negotiation of traditional trade agreements that open foreign markets to U.S. goods and services in order to qualify more foreign suppliers for the tax credit.
Customs. S. 4183 (introduced April 18 by Sen. Cornyn, R-Texas) would amend the Homeland Security Act of 2002 relating to the authority of U.S. Customs and Border Protection to consolidate, modify, or reorganize customs revenue functions.
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