US takes aim at Shein and Temu with new import rule proposal

The Biden medication is addressing the “de minimis” exemption that it says immoderate Chinese e-commerce companies “abuse” to vessel products nether $800 to US customers without tariffs.

New rules projected connected Friday taxable definite shipments from China to person inspection and tariffs — a determination that volition impact products sold by ultra-low-cost retailers similar Shein and Temu.

With the rise of Chinese e-commerce sites similar Shein and Temu, the US has seen a surge successful shipments claiming the duty-free exemption. These shipments person accrued from 140 cardinal per twelvemonth to much than 1 cardinal implicit 10 years, with the “majority” of products utilizing the exemption coming from China. Shein and Temu assertion the exemption due to the fact that they nonstop idiosyncratic products straight to customers alternatively than shipping them successful bulk to warehouses.

Under the projected rules, the US volition forestall companies from claiming the de minimis exemption if their goods are covered by Section 301, Section 232, and Section 201 tariffs, which use to products from China, alloy and aluminum, arsenic good arsenic washing machines and star panels. In summation to slapping these shipments with tariffs, the regularisation alteration would taxable them to person inspection by US Customs and Border Protection.

Earlier this week, House Democrats wrote a missive to President Joe Biden, urging the medication to adjacent the de minimis “loophole.” Safety regulators person besides called connected the US Consumer Product Safety Commission to analyse Shein and Temu implicit concerns they merchantability unsafe products banned successful the US.

The Biden medication said the connection would assistance “protect consumers from goods that bash not conscionable regulatory wellness and information standards.” Even though Shein is headquartered successful Singapore, it’s known for cheap accelerated manner that’s chiefly manufactured successful China. The China-based Temu sells clothes, household items, electronics, and a assortment of different goods made successful the state arsenic well.

“American workers and businesses tin outcompete anyone connected a level playing field, but for excessively long, Chinese e-commerce platforms person skirted tariffs by abusing the de minimis exemption,” US Secretary of Commerce Gina M. Raimondo said successful a statement. “With these caller actions, the Biden-Harris Administration is lasting up for American consumers and cracking down connected Chinese companies’ efforts to undercut American workers and businesses.”