Territorial Representatives Introduce Bipartisan Bill to Reinstate De Minimis Exemption for U.S. Territories

Washington, D.C. - Congresswoman Uifa'atali Amata (American Samoa) with Congresswoman Kimberlyn King-Hinds (Northern Mariana Islands), Congresswoman Stacey Plaskett (U.S. Virgin Islands), and Congressman James Moylan (Guam) worked together in introducing H.R. 5960, a bipartisan bill to restore duty-free treatment for low-value shipments from the U.S. territories following the recent suspension of de minimis privileges under Executive Order 14324.

The legislation addresses concerns raised by territorial residents about being charged rates or classifications that treat their shipments as foreign. It restores the tariff treatment Congress specifically designed for Guam, American Samoa, the U.S. Virgin Islands, and the Northern Mariana Islands, and it makes clear that the territories should not be swept into trade restrictions aimed at foreign countries. The measure responds to mail delays, unexpected charges, and other disruptions created by recent federal tariff changes.

Congresswoman Aumua Amata of American Samoa said the bill reinforces fairness for island communities and businesses.

"Our people in the islands deserve the same federal services at the same rates as the rest of the United States," said Congresswoman Amata. "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. Thank you to Reps. King-Hinds, Moylan, and Plaskett as we work together on our bipartisan legislation."

Congresswoman King-Hinds, the bill's sponsor, said the bill reaffirms federal recognition of the territories' distinct relationship to the United States.

"The Northern Mariana Islands and our sister territories have a clearly defined status under U.S. law," said Congresswoman King-Hinds. "We are not foreign countries, but neither are we part of the customs territory. 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."

Congresswoman Plaskett of the U.S. Virgin Islands said the measure is an important step in ensuring fairness and consistency in federal trade policy.

"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," said Congresswoman Plaskett. "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. This legislation represents our united voice as territorial delegates: our constituents are Americans, and federal trade policy must reflect that reality."

Congressman Moylan of Guam, who is also an original cosponsor of the measure, noted the importance of restoring the exemption for territorial residents.

"I am proud to join my colleagues in introducing this essential legislation. 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 US Territories. Through this legislation we're making our voices clear: Americans in the Territories should be treated equally to those in the States."

Under the bill, the U.S. Department of the Treasury would be required to admit goods originating in the covered territories duty-free, consistent with the treatment Congress intended prior to January 1, 2025. The bill also restores parity among the territories by adding the Northern Mariana Islands to the list of areas eligible for the "bona fide gifts" exemption under the Tariff Act of 1930.

The bill includes a new requirement that federal agencies consult on the territorial effects of any future trade or tariff changes. This provision reflects the concern shared by all four territorial delegates that federal policy decisions can unintentionally sweep the territories into rules designed for foreign countries. The consultation requirement ensures that federal agencies consider how proposed policy changes may affect territorial residents, local businesses, and the cost of essential goods and services.

"Territorial economies are deeply integrated with the broader U.S. market," Congresswoman King-Hinds concluded. "When federal policy overlooks our legal status or disrupts the systems that connect our islands to the rest of the country, the impact is immediate. This legislation provides a clear, permanent fix."

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