Reinstatement of de minimis protection proposed for US territories

By Pacific Island Times News Staff

Territorial delegates have introduced a bill seeking the reinstatement of the de minimis protections for U.S. territories.

Guam Del. James Moylan said H.R. 5960, titled “Territorial De Minimis Exemption Act,” seeks to reverse the impact of a presidential directive, which abruptly suspended the de minimis exemption for low-value shipments from the U.S. territories.

President Trump’s E.O. 14324 resulted in packages being treated as foreign shipments, creating delays, unexpected fees and confusion for residents and

 businesses throughout the islands. 

The new bill would restore the duty-free treatment Congress originally intended for Guam, American Samoa, the U.S. Virgin Islands and the Northern Mariana Islands, and creates safeguards to ensure federal agencies consider territorial impacts before imposing future trade or tariff restrictions.

“The recent executive order suspending the de minimis exemption has a real impact on the lives of the people of Guam and is an unjust policy to levy on 

only those living in the U.S. territories,” Moylan said.

“Through this legislation, we’re making our voices clear: Americans in the Territories should be treated equally to those in the states," he added.

The bill is co-authored by Moylan, CNMI Del. Kimberlyn King-Hinds, Rep. Stacey Plaskett of the U.S. Virgin Islands and Rep. Amata Radewagen of American Samoa.

 “The Northern Mariana Islands and our sister territories have a clearly defined status under U.S. law. We are not foreign countries, but neither are we part of the

 customs territory,” King-Hinds said.

“Our relationship is unique, and that is reflected in the laws that govern how 

our goods move through the American market. This bill restores that balance and makes sure federal policy honors the intent of Congress,” she added.

Plaskett stressed that territorial residents deserve to be treated as full participants in the U.S. economy.

“For too long, U.S. territories have been treated as afterthoughts in trade policy—swept into restrictions meant for foreign countries despite being integral parts of the United States," she said.

"This legislation permanently protects the de minimis exemption for our territories and requires federal agencies to consider territorial impacts before enacting trade restrictions. Our residents pay taxes, serve in uniform, and are American citizens in every sense—they deserve economic policies that recognize that reality,” she said.

Radewagen underscored the economic burden placed on island residents and small businesses when federal policy misclassifies the territories.

“Our people in the islands deserve the same federal services at the same rates as the rest of the United States. That’s an important principle of fairness, and it’s also important for our local economies, so our hardworking small businesses have services and shipping at standard U.S. rates,” she said.

H.R. 5960 proposes to restore duty-free treatment for goods originating in the territories, reinstates the “bona fide gifts” exemption for all four territories by adding the Northern Mariana Islands, and requires federal agencies to consult with territorial leaders before imposing future tariff or trade changes.

 “Our residents should never be placed at a disadvantage because of where they

 live. This bill reaffirms that Americans in the territories deserve equal

treatment and federal decisions that recognize our legal status,” Moylan said.

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