The Import Security and Fairness Act is poised to enhance safety and fairness in the U.S. economy by addressing issues related to the importation of electric bicycles and other consumer goods. PeopleForBikes, a trade association for the bicycle industry, supports policies that ensure imported products meet safety standards. The act, backed by bipartisan congressional support, seeks to eliminate the “de minimis” threshold exemption for goods from China and Russia, which currently allows imports under $800 to enter the U.S. duty-free, bypassing strict customs inspections.
Since the de minimis threshold was raised from $200 to $800 in 2016, there has been a shift in consumer purchases from American retailers to foreign online sellers, benefiting from duty-free pricing and less regulatory oversight. This has inadvertently given foreign sellers a competitive edge and allowed potentially unsafe products, like low-cost electric bicycles and lithium ion batteries, to enter the market without meeting safety standards. The proposed legislation aims to lower this threshold, increasing scrutiny on imports and holding foreign sellers accountable for safety standards.
PeopleForBikes has advocated for a lower de minimis threshold to protect consumers and support domestic businesses. The Import Security and Fairness Act would not only enhance consumer safety by subjecting imports to more rigorous testing and standards, particularly for lithium ion batteries in mobility devices, but it would also shift economic benefits back to U.S. manufacturers and retailers. The implementation of this act, along with new CPSC regulations, represents a significant step towards ensuring the safety and integrity of e-mobility products while supporting the U.S. economy and government interests.
Key Takeaways:
- The Import Security and Fairness Act aims to enhance consumer safety by increasing scrutiny on imported goods, particularly those that bypass current customs duties due to the de minimis threshold.
- Raising the de minimis threshold has inadvertently favored foreign online sellers by allowing them to sell goods duty-free, thus undermining U.S. retailers and potentially compromising product safety standards.
- Adjusting trade policies to lower the de minimis threshold and implementing stricter CPSC regulations could lead to safer electric bicycles and other mobility devices by preventing the entry of untested and potentially hazardous products into the U.S. market.
“It would also shift the economic benefit from selling these products back to responsible manufacturers and retailers in the United States. This would be a big win for the government, the economy, and consumers alike.”
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