NCTO calls for stronger De Minimis reforms in house bill.

The National Council of Textile Organizations (NCTO) urged US Congress for stricter regulations on de minimis trade, a provision allowing duty-free imports under a certain value. NCTO argues China exploits this loophole to flood the market with cheap goods, harming American workers and businesses.

While they appreciate the initial steps taken by the House Ways and Means Committee, the NCTO believes the current bill HR 7979 doesn't go far enough. They propose a comprehensive reform that:

  • Strengthens restrictions on China benefiting excessively from de minimis.
  • Excludes sensitive sectors like textiles and apparel, which account for half of de minimis entries according to US Customs and Border Protection.

The NCTO highlights the devastating impact on the US textile industry, with 14 plant closures in recent months attributed to the surge of Chinese imports. They claim this not only hurts American jobs but also raises concerns about forced labor practices in China.

The urgency for reform extends beyond the textile industry. The NCTO emphasizes the potential for de minimis abuse to facilitate trafficking of illegal goods like fentanyl.

With strong support from figures like Rep. Earl Blumenauer who advocates for a complete ban on Chinese de minimis benefits, the NCTO urges Congress to seize this opportunity for comprehensive reform and close the loophole definitively.