Attorney General Alan Wilson asks Biden to crack down on trade loophole that facilitates drug trade

(COLUMBIA, S.C.) – Attorney General Alan Wilson led a team of 13 states in asking the Biden Administration to crack down on a loophole in trade practices that facilitates an illegal narcotics trade, thus exacerbating the national drug crisis.

The De Minimis Trade Provision is a regulation intended to exempt foreign souvenirs and low-value gifts from taxes, but historically the price threshold has risen and is now $800. By raising the threshold, the number of qualifying entries has increased exponentially. While helpful in some regards, it has also fueled fentanyl and other drug trafficking and poses economic concerns by illegally shipping products created with slave labor, including from the Uyghur people in China.

“Our country is being ravaged by a drug crisis, and we desperately need to close gaps to prevent these poisons from entering the country in the first place,” said Attorney General Alan Wilson. “Criminals will always find ways to break the law or take advantage of existing loopholes, but that doesn’t mean we make it easy on them. It’s up to us to make it as hard as possible to traffic these illegal goods that harm Americans’ safety and livelihoods.”

The letter states, “With respect to fentanyl specifically, a Customs and Border Protection official recently acknowledged that a ‘common pathway for fentanyl, precursor chemicals, and pill presses to get into the hands of criminals is through small package shipments….’ That same official acknowledged that fentanyl has contributed to more than 100,000 overdose deaths over the last two years alone.” China is shipping fentanyl directly to the United States and to Mexican drug cartels, and it’s ending up on Americans' front doors.

It is illegal to ship products made through forced labor into the United States, but the current provision has created a loophole for the entry of these goods. Products made from slave labor are cheaper to purchase, so consumers buy them not knowing the circumstances of production. By screening the de minimis shipments, officials would be able to discern if these goods were created from slave labor. Without the screening, not only is the law being broken, but American manufacturers are also unfairly competing with lower prices from what is supposed to be prohibited.

Attorney General Wilson is asking the Biden Administration to address the shortcomings of the existing de minimis trade provision by cracking down on the loophole and increase screening and enforcement measures.

Alaska, Arkansas, Florida, Indiana, Kentucky, Louisiana, Mississippi, Ohio, South Dakota, Texas, Utah, and West Virginia joined the letter.

Read the letter here.