WASHINGTON, DC – Reps. Brian Fitzpatrick (PA-1), Brad Wenstrup (OH-2), Mike Carey (OH-15), Ruben Gallego (AZ-3), Lou Correa (CA-46), and Carol Miller (WV-1) introduced H.R. 8059, the U.S. Foreign Trade Zone Parity Act, a bipartisan bill to prevent U.S. trade policy from favoring the foreign e-commerce distribution operations that undermine U.S.-based operations.

Current U.S. law allows companies to ship products directly from foreign warehouses to U.S. consumers duty and tax-free (including exemption from additional Section 301 China tariffs) if the products are valued at $800 or less. Retailers and brands located within U.S.-based foreign trade zones (FTZs) are barred from this same duty-free benefit on otherwise identical shipments and face up to a 60% cost disadvantage per shipment. This bill fixes that issue, allowing companies operating in the nearly 300 U.S. based FTZs to utilize de minimis entry procedures, creating parity with foreign distributors.

The U.S. Foreign Trade Zone Parity Act complements the Ways and Means Committee’s strong action this week to crack down on China’s de minimis abuses by making products subject to the Section 301 tariffs ineligible for de minimis entry.

“E-commerce shipments from outside the United States should not be afforded special treatment compared to shipments from inside the U.S.,” said Congressman Fitzpatrick.  “I’m proud to co-sponsor this bipartisan legislation that would create parity in U.S. trade laws and preserve the jobs of hardworking Americans.”

"Our current trade policy counterintuitively benefits adversaries like China, and causes the loss of American jobs and opportunity. I believe it's important for our trade and foreign policy to align; and I'm pleased that my colleagues, both Democrat and Republican, have joined me on this bill to ensure our trade policy doesn't punish U.S. businesses operating within the U.S.," said Congressman Wenstrup.

“For nearly a century, U.S. Foreign Trade Zones have supported American jobs, improved trade and lessened our dependence on foreign adversaries. However, it’s time we update our trade rules for a 21st century economy. I’m proud to join Representative Wenstrup in this effort to keep America competitive,” said Congressman Carey.

“Foreign Trade Zones are vital to the strength of our supply chain and for supporting U.S. jobs,” said Congressman Gallego. “I am proud to back this bill to finally bring parity to FTZs, ease supply chain burdens, and keep our economy moving.”

"The National Association of Foreign-Trade Zones (NAFTZ) is grateful for the introduction of the bipartisan U.S. Foreign Trade Zone Parity Act of 2024 (H.R. 8059) led by Representatives Brad Wenstrup (R-OH) and co-sponsored by Lou Correa (D-CA), Carol Miller (R-WV), Ruben Gallego (D-AZ), Brian Fitzpatrick (R-PA), and Mike Carey (R-OH). The legislation will level the playing field for U.S.-based operations distributing from an FTZ and ensure retention of American jobs while spurring further economic growth within the boundaries of the United States. Congressman Wenstrup’s bill eliminates the existing incentive to establish or relocate operations across the border, resulting in no change to the volume of de minimis trade, only where those transactions originate and extends that parity to operations under the oversight of two distinct federal agencies. We recognize the on-going dialogue associated with de minimis entry and this legislation is intended solely to provide parity to U.S. FTZs based on whatever action Congress ultimately takes where de minimis is concerned," said Jeff Tafel, President, the National Association of Foreign-Trade Zones.