North Columbus News

Washington, D.C. – Representative Mike Carey (OH-15) has announced his co-sponsorship of H.R. 8059, the U.S. Foreign Trade Zone Parity Act, a bipartisan bill aimed at preventing U.S. trade policy from favoring foreign e-commerce distribution operations that undermine U.S.-based operations. The bill is led by Rep. Brad Wenstrup (OH-02) and co-sponsored by Reps. Lou Correa (CA-46), Carol Miller (WV-01), Brian Fitzpatrick (PA-01), and Ruben Gallego (AZ-03).

Current U.S. law allows companies to ship products directly from foreign warehouses to U.S. consumers duty and tax-free if the products are valued at $800 or less, including exemption from additional Section 301 China tariffs. However, retailers and brands located within U.S.-based foreign trade zones (FTZs) do not receive this same duty-free benefit on otherwise identical shipments and face up to a 60% cost disadvantage per shipment.

The proposed bill aims to address this issue by allowing companies operating in 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 recent actions to crack down on China’s de minimis abuses by making products subject to Section 301 tariffs ineligible for de minimis entry.

“For nearly a century, U.S. Foreign Trade Zones have supported American jobs, improved trade, and lessened our dependence on foreign adversaries,” said Carey. “However, it’s time we update our trade rules for a 21st-century economy.”

“Our current trade policy counterintuitively benefits adversaries like China and causes the loss of American jobs and opportunity,” said Rep. Wenstrup.

Joseph R. Nardone, President & CEO of the Columbus Regional Airport Authority, stated: “Representing Foreign-Trade Zone 138... we believe this bill will correct a significant economic disparity affecting U.S. companies.”

Kenny McDonald, President & CEO of the Columbus Partnership, added: “Rep. Wenstrup’s bill is going to go a long way towards sustaining our region’s economic vitality.”

Peter Bragdon of Columbia Sportswear Company remarked: “It protects American jobs by allowing U.S. companies to compete on a level playing field with businesses located outside the U.S.”

Jim Marcum, CEO of David’s Bridal said: “David’s Bridal is proud of the tremendous effort by Congressman Wenstrup... ensuring American businesses can compete on a level playing field with foreign businesses.”

Taldi Harrison from REI Co-op noted: “Creating parity for United States Foreign Trade Zones will level the playing field...”

Jeff Tafel, President of the National Association of Foreign-Trade Zones commented: "The legislation will level the playing field for U.S.-based operations distributing from an FTZ."