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

The Biden management is addressing nan “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 move that will impact products sold by ultralow-cost retailers for illustration Shein and Temu.

With nan rise of Chinese e-commerce sites for illustration Shein and Temu, nan US has seen a surge successful shipments claiming nan duty-free exemption. These shipments person accrued from 140 cardinal per twelvemonth to much than 1 cardinal complete 10 years, pinch nan “majority” of products utilizing nan exemption coming from China. Shein and Temu declare nan exemption because they nonstop individual products straight to customers alternatively than shipping them successful bulk to warehouses.

Under nan projected rules, nan US will forestall companies from claiming nan de minimis exemption if their equipment are covered by Section 301, Section 232, and Section 201 tariffs, which use to products from China, steel, and aluminum, arsenic good arsenic washing machines and star panels. In summation to slapping these shipments pinch tariffs, nan norm 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 nan management to adjacent nan de minimis “loophole.” Safety regulators person besides called connected nan US Consumer Product Safety Commission to analyse Shein and Temu complete concerns they waste vulnerable products banned successful nan US.

The Biden management said nan connection would thief “protect consumers from equipment that do not meet 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, family items, electronics, and a assortment of different equipment made successful nan 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 nan de minimis exemption,” US Secretary of Commerce Gina M. Raimondo said successful a statement. “With these caller actions, nan Biden-Harris Administration is opinionated up for American consumers and cracking down connected Chinese companies’ efforts to undercut American workers and businesses.”