Tax News Update    Email this document    Print this document  

February 17, 2023
2023-0315

Senate Finance holds trade hearing

The Senate Finance Committee's February 16 hearing, "Ending Trade that Cheats American Workers by Modernizing Trade Laws and Enforcement, Fighting Forced Labor, Eliminating Counterfeits, and Leveling the Playing Field," focused on how US manufacturers can/should keep parts that are manufactured under forced labor out of their supply chains, the benefits of the de minimis rule for duty- and tax-free importation of certain goods, and various ideas for customs modernization.

Chairman Ron Wyden (D-OR) discussed his December announcement of an investigation into possible auto industry reliance on supply chains tainted by forced labor. "I asked eight major automakers about their supply chains, and how they're cleaning them up," he said. "This is a flagship American industry that employs more than 90,000 Americans and contributes over $700 billion annually to the U.S. economy." Chairman Wyden further said that since the 2016 Trade Facilitation and Trade Enforcement Act (TFTEA), the last package of trade enforcement tools, Customs and Border Protection has faced additional challenges related to COVID-19, Fentanyl, counterfeit goods, and IP theft.

Ranking Member Mike Crapo (R-ID) said with the last comprehensive update to customs laws 30 years ago, "A smart reform, now, will not only allow us to seize new opportunities, but also to confront the rise of opportunists … The drafters of the last modernization could not possibly foresee the technological tools available to us today, or the sheer number of small businesses that now take advantage of international trade, or the benefit to consumers from widespread access to ecommerce … Modernization is imperative to counter both existing threats trying to make their way into this country, and those on the horizon." He described drugs and counterfeit goods entering the US and said contraband must be seized earlier.

Additional information is available in the attached Tax Alert.

———————————————

Contact Information
For additional information concerning this Alert, please contact:
 
Washington Council Ernst & Young
   • Any member of the group, at (202) 293-7474.

———————————————
ATTACHMENT

Senate Finance trade hearing

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement