FIGHTING for America Act of 2025

Bill Number

S. 1185

Origin Chamber

Senate

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-03-27: Read twice and referred to the Committee on Finance.

Last Updated

2026-03-05T16:46:55Z

AI-Generated Summary

Purpose of the Legislation

The "Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains for America Act of 2025" (FIGHTING for America Act of 2025) aims to improve oversight of low-value imports (under $800) that qualify for a "de minimis" exemption from import duties and taxes under section 321 of the Tariff Act of 1930. It addresses the rapid growth in such shipments, driven by e-commerce and global events like the COVID-19 pandemic, to prevent the smuggling of illicit drugs (e.g., fentanyl), counterfeits, and other unauthorized goods while protecting U.S. revenue and supporting fair trade for legitimate businesses.

Key Provisions

• Sense of Congress: Expresses the need to review and update customs procedures for de minimis shipments to safeguard revenue, block illicit goods, and ensure efficient use of resources amid rising direct-to-consumer imports.
• Priority Trade Issue Designation: Adds the abuse of de minimis exemptions for smuggling fentanyl and other illicit drugs as a priority under the Trade Facilitation and Trade Enforcement Act of 2015.
• Enhanced Transparency Requirements (amending section 321):
• Requires importers or related parties to submit additional documentation (e.g., seller/shipper identities, fair retail value in the origin country, details on sales platforms) separate from standard entry filings.
• Mandates inclusion of the 10-digit Harmonized Tariff Schedule (HTS) classification code, a detailed description of goods, and country of origin in entry filings.
• Allows U.S. Customs and Border Protection (CBP) to use this information for admissibility checks, revenue protection, and preventing illegal imports.
• Imposes civil penalties for false or incomplete information: up to $1,000 for first violations and $5,000 for subsequent ones, with higher penalties ($5,000–$10,000) for fraud leading to improper duty exemptions.
• Penalties can be reduced or waived on a case-by-case basis, but maximums apply to repeat offenders.
• Limitations on De Minimis Exemptions (amending section 321):
• Prohibits exemptions for goods subject to antidumping/countervailing duties, quotas, certain taxes, trade actions (e.g., under Sections 201 or 301 of the Trade Act of 1974), or ineligible for Generalized System of Preferences benefits as of January 1, 2025.
• Secretary of the Treasury can block exemptions for entire categories of goods showing sharp import increases or evidence of fraud/illicit activity; these must be listed publicly and reviewed annually.
• Disposition of Detained Goods (amending section 499):
• For de minimis shipments, CBP must notify interested parties (e.g., sellers, carriers) of detention and allows voluntary abandonment.
• If no response within 15 days, goods are deemed abandoned and forfeited to the U.S. government.
• Standard re-export or destruction rules do not apply to these detained de minimis items.
• Summary Forfeiture (adding to section 596):
• Allows immediate seizure without court proceedings for de minimis shipments violating import laws (e.g., intellectual property infringement, health/safety standards), with notice to carriers or brokers.
• Penalty Modifications (amending section 596):
• Increases penalties for aiding unlawful imports to the greater of the goods' domestic value or $5,000, regardless of seizure.
• Information Sharing for Intellectual Property (amending section 628A):
• Expands CBP's ability to share suspicions and nonpublic details (e.g., packaging images from online platforms or carriers) with intellectual property rights holders for testing and enforcement.
• Customs User Fee (amending section 13031 of the Consolidated Omnibus Budget Reconciliation Act of 1985):
• Introduces a $2 processing fee per de minimis shipment, paid by the filer.
• For postal shipments, the Secretary (with U.S. Postal Service input) may apply similar fees via regulations.
• Reporting Requirements:
• Within 270 days of enactment: Report to Congress on partner agencies' (e.g., FDA, USDA) role in reviewing de minimis goods, with recommendations for better coordination.
• Annually: Detailed report to congressional committees on de minimis usage, including shipment volumes by HTS code and origin country, forgone revenue, violations/penalties, detentions/forfeitures, criminal referrals, trends from Mexico/Canada, and enforcement resources.

Significant Changes to Existing Law

• New Documentation Mandates: Previously, de minimis entries required minimal info; now, detailed submissions (e.g., HTS codes, seller details) are mandatory, with regulations due within 180 days.
• Exemption Restrictions: Expands ineligibility beyond basic criteria to include trade remedy goods and high-risk categories, with public lists for transparency.
• Streamlined Enforcement: Introduces faster abandonment (15 days) and summary forfeiture for de minimis violations, reducing processing times compared to prior rules.
• Fee Introduction: Adds a nominal processing fee for de minimis entries, which were previously free, to offset enforcement costs.
• Enhanced Penalties and Sharing: Raises fines for fraud/aiding violations and broadens info disclosure to IP holders, including from e-commerce platforms.
• Effective Date: Changes take effect 60 days after enactment, applying to entries 30 days after new regulations are issued.

Potential Impacts

• Government Agencies: CBP faces increased administrative workload for verification and reporting but gains tools for better interdiction of drugs/counterfeits, potentially reducing illicit entries. Treasury and partner agencies (e.g., for health/safety) may see improved coordination, though staffing needs could rise. Annual reports promote accountability and resource allocation.
• Citizens and Businesses: Legitimate U.S. importers and consumers benefit from reduced unfair competition from cheap, duty-free illicit goods, but small e-commerce sellers face higher compliance costs and fees, possibly raising prices. Protects American workers in industries hit by dumped imports.
• International Relations: Could slow low-value trade from major exporters (e.g., China for e-commerce, Mexico/Canada for cross-border shipments), prompting diplomatic pushback if viewed as barriers. Strengthens U.S. efforts against global drug trafficking but may complicate postal/international mail agreements.

Main Stakeholders Affected

• U.S. Customs and Border Protection (CBP): Primary enforcer, responsible for new regulations, verifications, and reports.
• Importers and E-Commerce Platforms: Must provide more data; trustworthy ones gain from leveled playing field, while bad actors face penalties/forfeitures.
• Carriers, Freight Forwarders, and U.S. Postal Service: Notified of detentions; postal network may incur new fees, affecting international mail handling.
• Foreign Sellers/Shippers: From countries like China, Mexico, or Canada; increased scrutiny could reduce de minimis advantages.
• Intellectual Property Holders: Benefit from expanded info sharing to combat counterfeits.
• U.S. Consumers and Workers: Indirectly protected from unsafe/illicit goods and unfair imports, but may see higher costs for low-value online purchases.

Notable Legal, Constitutional, or Political Implications

• Legal: Bolsters CBP's authority to demand info and seize goods without full judicial process for certain violations, aligning with existing forfeiture laws but expanding to de minimis contexts. Penalties emphasize civil remedies over criminal, with built-in mitigation to avoid overreach. Requires regulations to ensure fairness.
• Constitutional: Supports government's plenary power over foreign commerce (Article I, Section 8) by balancing trade facilitation with revenue protection and public safety (e.g., drug interdiction), without apparent due process issues due to notice requirements.
• Political: Reflects bipartisan concerns over fentanyl smuggling, e-commerce abuses, and trade deficits; promotes "America First" policies by aiding U.S. manufacturers while targeting illicit flows. Annual reporting ensures ongoing congressional oversight, potentially influencing future trade pacts or enforcement budgets.

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

Sponsor

Sen. Wyden, Ron [D-OR]

Recent Actions

• 2025-03-27: Read twice and referred to the Committee on Finance.
• 2025-03-27: Introduced in Senate

Bill Versions

• Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains for America Act of 2025 — issued 2025-03-27 — PDF (22 pages)