Import Security and Fairness Act

Bill Number

H.R. 322

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-01-09: Referred to the House Committee on Ways and Means.

Last Updated

2025-02-26T09:06:24Z

AI-Generated Summary

Purpose of the Legislation

The Import Security and Fairness Act aims to strengthen import regulations by limiting duty-free treatment for low-value shipments (known as "de minimis" entries, typically under $800) from certain high-risk countries and requiring more documentation to verify these shipments. This is intended to improve security, prevent unfair trade practices, and address issues like intellectual property violations in international commerce.

Key Provisions

• Exceptions to De Minimis Exemptions (amending Section 321 of the Tariff Act of 1930):
• Prohibits duty-free entry for articles originating from or shipped from "nonmarket economy countries" (countries where the government heavily controls prices and production, like China) that are also on the U.S. Trade Representative's "priority watch list" for poor protection of intellectual property rights (as defined in the Trade Act of 1974).
• Maintains the $800 threshold for other eligible shipments but excludes the specified countries from this benefit.

• Documentation and Information Requirements (new subsection (c) to Section 321):
• U.S. Customs and Border Protection (CBP), under the Secretary of the Treasury, must issue regulations within 180 days of enactment requiring submitters of de minimis entries to provide details such as:
• Description and classification of the item (using the Harmonized Tariff Schedule, a standard system for categorizing imports).
• Country of origin and shipment.
• Shipper and importer identities.
• Transaction value in the U.S.
• Additional details may include sales, transportation, or online platform data.
• Submitters must certify the information is accurate to the best of their knowledge, subject to penalties; unverified info can be submitted if reasonably believed true.
• Civil penalties for violations: $5,000 for the first offense, $10,000 for subsequent ones, in addition to other laws.

• Handling Imports Involving Suspended or Debarred Persons (new subsection (d) to Section 321):
• Authorizes regulations to deny de minimis exemptions for shipments facilitated by individuals or entities barred from federal business due to misconduct.

• Enhanced Examination of Merchandise (amending Section 499 of the Tariff Act):
• Updates references to "Customs Service" to "U.S. Customs and Border Protection."
• For detained de minimis shipments, CBP must notify potentially interested parties (e.g., importers or shippers) and allow them to provide information or voluntarily abandon the goods.
• If no response within 30 days, CBP can deny entry (requiring export at importer's expense) or deem the goods abandoned, transferring ownership to the U.S. for disposal.

• Effective Date:
• Applies to goods entered or withdrawn from warehouses starting 180 days after enactment.

Significant Changes to Existing Law

• Tightens De Minimis Rules: Previously, shipments under $800 from any country could enter duty-free with minimal scrutiny. Now, exclusions apply to specific high-risk countries, ending blanket exemptions for them.
• Adds Mandatory Documentation: Introduces new paperwork requirements for de minimis entries, which were previously informal and low-oversight, to enable better verification by CBP.
• Introduces Penalties and Enforcement Tools: Creates civil fines for non-compliance and streamlines detention/abandonment processes, shifting from reactive to proactive oversight.
• Authorizes Exceptions for Barred Parties: Expands CBP's authority to block exemptions based on involvement of debarred entities, linking import rules to federal contractor standards.

Potential Impacts

• On Government Agencies: Increases workload for CBP and the Treasury Department in processing documentation, issuing regulations, and enforcing detentions/abandonments. Provides better tools to combat illicit trade but may require additional resources.
• On Citizens: U.S. consumers, especially frequent online shoppers, may face higher costs or delays for low-value imports from targeted countries, potentially reducing access to inexpensive goods while enhancing protection against counterfeit or unsafe products.
• On International Relations: Could strain trade ties with nonmarket economy countries on the priority watch list (primarily China), signaling U.S. concerns over intellectual property theft and unfair practices. May encourage those countries to improve IP enforcement to regain eligibility.

Main Stakeholders Affected

• Importers and E-Commerce Platforms: Small businesses and online sellers (e.g., via Amazon or Alibaba) must comply with new documentation, facing penalties for errors; larger platforms may need to update systems for data collection.
• U.S. Customs and Border Protection (CBP) and Treasury Department: Gain enforcement authority but bear implementation costs.
• Foreign Exporters and Shippers: Entities in excluded countries (e.g., Chinese manufacturers) lose duty-free access for low-value goods, potentially reducing U.S. market competitiveness.
• U.S. Consumers: Affected by possible price increases or supply disruptions for budget imports.
• Intellectual Property Holders: U.S. companies and creators benefit from reduced influx of potentially infringing goods.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: Enhances CBP's regulatory powers under the Tariff Act, potentially leading to more litigation over documentation accuracy or detentions. Penalties align with existing trade laws but introduce specificity for de minimis, which could be challenged if seen as overly burdensome on commerce.
• Constitutional Implications: No direct conflicts apparent; supports Congress's authority over tariffs and commerce (Article I, Section 8). However, increased scrutiny might raise due process concerns if notifications or abandonments are not handled fairly.
• Political Implications: Reflects bipartisan concerns (introduced by Reps. Suozzi and Dunn) about trade imbalances and national security in e-commerce. Positions the U.S. as tougher on unfair imports, aligning with broader "America First" policies, but could escalate trade tensions without violating WTO rules if targeted narrowly.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Suozzi, Thomas R. [D-NY-3]

Cosponsors (3)

Rep. Dunn, Neal P. [R-FL-2], Rep. Allen, Rick W. [R-GA-12], Rep. Salinas, Andrea [D-OR-6]

Recent Actions

• 2025-01-09: Referred to the House Committee on Ways and Means.
• 2025-01-09: Introduced in House
• 2025-01-09: Introduced in House

Bill Versions

• Import Security and Fairness Act — issued 2025-01-09 — PDF (9 pages)