Kim Glas,  President and CEO of the National Council of Textile Organizations (NCTO), issued a statement praising US Customs and Border Protection’s (CBP) proposed rule to limit the use of the de minimis exemption for imports, a loophole that has been detrimental to US manufacturing and consumers.

In her statement, Glas highlighted that the proposed rule seeks to exclude de minimis benefits for imports affected by US trade remedies, such as Section 301 tariffs on Chinese goods. These imports, which typically enter the US duty-free under the de minimis provision, often evade penalties normally imposed on products that violate US trade laws. Glas argued that this loophole has led to a surge of illegal imports, harming US manufacturing jobs and industries, particularly the textile sector.

CBP noted that de minimis shipments entering the US have skyrocketed over the past decade, rising from 139 million shipments in fiscal year 2015 to over 1.36 billion in FY 2024. This exponential increase, CBP stated, has posed significant challenges to enforcing trade laws, as well as ensuring consumer protection, intellectual property rights, and health and safety standards.

Glas emphasized the need for swift reform, urging the administration to act quickly on this overdue rule. She also called on the incoming Trump administration to not only support the proposed rule but also implement more comprehensive measures to address the de minimis issue, including an executive order to end the exemption entirely. Furthermore, she urged Congress to collaborate with the new administration to provide a permanent solution to the problem, ensuring fair competition for US manufacturers.

NCTO expressed its commitment to working with CBP, the administration, and lawmakers to resolve this pressing issue.