International Trade Today (Warren Communications) - Washington, DC

On January 19, 2022, Mara Lee of International Trade Today featured an article on "Republicans in Congress Concerned About Proposed de Minimis Carve-Out": 

Rep. Kevin Brady, R-Texas, the ranking member on the House Ways and Means Committee, said he knows that Rep. Earl Blumenauer, D-Ore., is sincere in his concern that the more generous de minimis threshold since 2016 has had unintended consequences. Blumenauer was one of just 24 House Democrats who supported the Trade Facilitation and Trade Enforcement Act that raised the threshold to $800. Blumenauer introduced a bill (see 2201180053) that would bar importers of Chinese goods from using de minimis, and would also end the ability to send exports to Canada and Mexico to wait in warehouses until a U.S. buyer makes an online purchase.

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E-Merchants Trade Council says that Blumenauer’s bill would have a major impact on e-commerce, both by ending the ability to ship imported goods from Canadian and Mexican warehouses and take advantage of de minimis, and because sellers would have to pay customs brokers for processing their imports.  EMTC says that it typically costs $50 to $150 for each imported shipment.

See the full article at: Republicans in Congress Concerned About Proposed de Minimis Carve-Out itt-2022-01-19.pdf

EMTC has posted an Issue Alert analyzing the Import Security and Fairness Act which was revised upon introduction as H.R. 6412 on January 18, 2022.  The major changes: 1) narrowed the scope to bar de minimis shipments from China; and 2) bars de minimis shipments from distribution or processing facilities in a foreign country.

EMTC is engaging with Chairman Blumenauer's and HWM Staff to discuss the impact of the bill on e-sellers, e-commerce marketplace platforms, the supply chain, and ultimately, consumers.

EMTC will file comments on H.R. 6412 and we urge you to join EMTC to add your voice as an e-seller to this advocacy effort.

EMTC has learned that Representative Blumenauer, Chair of House Ways and Means Trade Subcommittee, plans to introduce a bill next week that bars de minimis provision for low value goods from "non-market economies" which primarily affects goods from China.  Click the link to EMTC's Import Alert on the Import Security and Fairness Act for an analysis of how this bill may affect your business.

Back on December 16, 2021, EMTC filed a written statement for the record with the House Ways and Means Trade Subcommittee for the December 2nd hearing on "Supporting U.S. Workers, Businesses, and the Environment in the Face of Unfair Chinese Trade Practices".  

EMTC will file comments on this bill and we urge e-sellers to join EMTC to contribute what the impact the bill will have on their business.

BUSINESS WIRE - St. George, UT

Zonos, the global technology leader in cross-border commerce, announced today new and expanded Classify features to help businesses that sell internationally to harmonize (or re-harmonize) their product catalogs in preparation for the 2022 Harmonized System (HS) code changes.

The full article may be found at:  Zonos' New Classify Tools Anticipate 2022 Harmonized System Change Disruptions | Business Wire

American Shipper posted a new article by Eric Kulisch, Air Cargo Editor:

"The Biden administration on Friday again urged global ocean carriers to accept more export freight and restore service at underutilized West Coast ports to ease supply chain constraints and give U.S. agriculture companies a fair chance to sell their goods in overseas markets. The request signals that the White House will remain focused on trying to tighten regulation of the industry next year."

EMTC CEO, Marianne Rowden, was quoted in the article:

The joint letter “tells me that the administration is really feeling the heat from farmers and ranchers, who are now more dependent on foreign markets for profitability,” Marianne Rowden, CEO of the E-Merchants Trade Council and former head of the American Association of Exporters and Importers, said in an email. “The only way I could see the administration making a difference is by ordering these carriers to other West Coast ports through the Coast Guard denying them access to the Port of LA/Long Beach and saying that idling the ships off the coast is a national security risk.”

See the full article on the FreightWaves American Shipper website or download here.

On December 16, 2021, EMTC filed a written statement for the record with the House Ways and Means Trade Subcommittee for the December 2nd hearing on "Supporting U.S. Workers, Businesses, and the Environment in the Face of Unfair Chinese Trade Practices".  

EMTC's comments are drafted to counter the testimony of hearing witness Kimberly Glas, President & CEO, National Council of Textile Organizations, who recommended that Congress "Close the Section 321 De Minimis Tariff Loophole."  See page 11 of testimony.

Now is the time for all companies involved in the e-commerce industry to join EMTC as it is clear that Congress has its sights on restricting e-commerce shipments.  Therefore, EMTC will mount a broad grassroots effort to educate Congress and policymakers about how critical e-commerce is to MSME e-sellers.

Politico reports that the Internet Assocation that represents global internet companies will be shutting down at the end of 2021.  See Politico article at "The Internet Association is Shutting Down as Giants Decide to Go It Alone".

The Platform Economy Insights (PEI) provides the following context on this development:

Context – All “tech” companies are not alike. Business models are often vastly different, leading to different perspectives on public policy issues. And trade association politics is complicated and often changing. IA was created because the few Internet firms lobbying in DC saw themselves as different from software, hardware (consumer and network), telecommunications and content companies, which each had trade groups to lobby government. It’s said that “Internet Time” moves faster, so it’s not surprising that the IA folded quickly. The trade groups on the other side of those issues have shifted too, with big cable, big telecom and video industries continuing on in various forms and names. Top takeaways of the IA news: The Internet giants have problems with each other (i.e. Microsoft v Google); Facebook seems far more willing to call for major regulation than the other platforms (supporting DMA and Sec. 230 reform); The Internet giants are so big that they seem to prefer to go it alone rather than find common ground with mid-size companies; Digital work platforms may need to create a more specialized industry group, and; The big regulatory changes are coming from Europe.

See the PEI's Update on Public Policy Impacting Digital Platforms (December 16, 2021) or Platform Economy Insights.

EMTC filed comments with U.S. Customs and Border Protection (CBP) on its FRN seeking a new data collection request from Office of Management and Budget (OMB).   The FRN also announces an Evaluative Proof of Concept (EPoC).  See the FRN at 86 Fed. Reg. 55629.

CBP seeks to replace the Manufacturer Identification Code (MID) through an EPoC by using LEI, GLN, and DUNS to determine which would be the best GBI.  EMTC has series concerns about CBP's GBI proposal.

To read EMTC's comments, please click the link to download: EMTC Comments on GBI.

Washington, D.C.-

The House Ways and Means Trade Subcommittee held a hearing on "Supporting U.S. Workers, Businesses, and the Environment in the Face of Unfair Chinese Trade Practices"

The issue that caught a lot of attention was Chairman Blumenauer highlighting the testimony of Kimberly Glas, President & CEO, National Council of Textile Organizations, who recommended that Congress "Close the Section 321 De Minimis Tariff Loophole."  See page 11 of testimony.

Discussion of this issue appears at the following time points in the hearing: 15:42, 28:20 and 49:00.

EMTC believes now is the time for the e-commerce industry to make its voice heard in Congress.  After nearly two-years of lockdowns, small businesses are trying to reinvent their companies using the e-commerce supply chain.  Americans have built their e-commerce businesses based on legislation passed by Congress, and changing the rules will have a devastating impact.    

EMTC speaks to Congressional staff on a continuous basis on issues important to the e-commerce industry.  Contact EMTC's CEO, Marianne Rowden, at mrowden@emtc.org, if you will be negatively affected by elimination of Section 321 and De Minimis.

Periodically EMTC will post material from the third-party sources to keep you apprised of e-commerce and digital economy developments around the world.  One such source is Platform Economy Insights (PEI) published by our friend, Brian Bieron, who has years of experience working on digital economy public policy issues.   We recommend companies engaged in e-commerce for both physical and digital goods subscribe to informational feeds on these topics.  PEI is a good service because it provides context and analysis to understand news reports.  Below is a headline about an important development:

PEI sites a report in the Financial Times on “European Council Agrees on DMA and DSA Plans and Vestager Presses Forward” and provides the following summary:

In Brief – The Council of Europe, the EU’s legislative body made up of the bloc’s 27 Member States, has agreed on draft language for the Digital Services Act (DSA) and the Digital Markets Act (DMA), two landmark bills rewriting the rules of the digital economy. The DSA is a comprehensive update of the EU’s eCommerce Directive that provides the legal framework for digital platforms in Europe and aims to regulate better policing of harmful content by platforms. The DMA aims to address competition concerns in the digital economy that are attributed to the largest “gatekeeper” platforms. The European Commission unveiled drafts of both last December and they have been under review in the European Parliament and in the Member States, who meet in the Council. (Links to legislative schedules for DSA and DMA.) Commissioner Margrethe Vestager, a leader on digital policy on the European Commission as well as the bloc’s top antitrust official, followed up the recent Council actions that largely backed the Commission’s DSA and DMA drafts by calling for the Parliament to also conclude work quickly, counseling those who are concerned with digital platforms that “Perfect not be the enemy of very, very good.”