The US House Ways and Means Committee has introduced a key provision in its budget reconciliation bill to permanently end de minimis access for commercial shipments from all countries by July 1, 2027. The move has drawn strong support from the National Council of Textile Organizations (NCTO), which represents the entire US textile value chain from fiber to finished goods.

NCTO President and CEO Kim Glas praised the committee's leadership, particularly Chairman Jason Smith (R-MO) and Rep. Greg Murphy (R-NC), for acting on what she described as a ‘destructive loophole’ that has long harmed US textile manufacturers and facilitated the entry of illicit goods, including narcotics such as fentanyl, into the country.

De minimis rules currently allow low-value shipments to enter the US duty-free and with minimal customs inspection. According to Glas, nearly four million such shipments enter the US each day, many of which are unregulated and pose safety and security risks.

While commending the proposed 2027 deadline, NCTO is urging lawmakers and the administration to expedite the timeline. Glas noted that express shippers have already adapted their logistics operations, especially for Chinese imports, and are well-positioned to meet new enforcement standards.

Glas also acknowledged the Trump administration’s earlier action to exclude Chinese goods from de minimis benefits, noting that China accounts for about two-thirds of all such shipments. She called on the Biden administration to use executive powers to immediately close the loophole for all countries, pending congressional action.

The legislation is expected to be marked up by the committee soon as it moves through the legislative process.