US Textile Sector Hails End of De Minimis Exemption for All Countries
The US textile and apparel industry has welcomed the recent decision to end the de minimis exemption for shipments from all countries, a move widely seen as a significant victory for domestic manufacturers and a step towards a more equitable global trade landscape. The change, announced with an effective date of September 1, 2025, will impact how goods valued under a certain threshold are imported into the United States.
Historically, the de minimis threshold has allowed low-value shipments to enter the US without the typical duties, taxes, and complex customs procedures. While this policy was initially intended to facilitate legitimate small-value personal shipments and foster e-commerce, concerns have grown over its potential misuse and its adverse effects on domestic industries.
The US textile sector, in particular, has been a vocal advocate for the removal of this exemption, arguing that it has created an uneven playing field. According to industry representatives, the de minimis rule has been exploited by some overseas manufacturers to evade import duties and regulations that are applied to larger shipments. This has resulted in a competitive disadvantage for American textile producers, who bear the full cost of duties and compliance, making their products less competitive in the domestic market.
The National Council of Textile Organizations (NCTO) and other leading industry associations have expressed their strong support for the new policy. They believe that ending the de minimis exemption for all countries will help to:
- Level the Playing Field: By ensuring that all imported textiles and apparel are subject to the same import regulations and duties, regardless of their value, the change aims to create a fairer competitive environment for US-based manufacturers.
- Strengthen Domestic Manufacturing: With reduced pressure from duty-free, low-value imports, domestic textile and apparel producers are expected to see an improvement in their ability to compete and potentially expand their operations.
- Enhance Supply Chain Integrity: The de minimis exemption has sometimes been associated with challenges in tracking and verifying the origin and labor practices of imported goods. The new policy may contribute to greater transparency and accountability within global supply chains.
- Protect American Jobs: Industry leaders believe that by supporting domestic production, the decision will help to safeguard and create jobs within the US textile and apparel manufacturing sector.
While the precise implications for consumers and the broader e-commerce landscape are still being assessed, the sentiment within the US textile industry is overwhelmingly positive. The expectation is that this policy shift will foster a more robust and sustainable domestic textile and apparel sector, better equipped to thrive in the global marketplace. The industry looks forward to a future where fair competition and adherence to import regulations are the norm for all goods entering the United States.
US textile sector praises end of de minimis exemption for all countries
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