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The Biden administration is proposing new rules to limit the “de minimis” exemption, which some Chinese e-commerce companies like Shein and Temu use to ship low-cost goods under $800 to U.S. customers without tariffs. The changes would subject certain shipments to closer inspection and tariffs, aiming to protect American consumers and businesses by ensuring a level playing field against Chinese platforms that have exploited this loophole. The Verge reports: Under the proposed rules, the US will prevent companies from claiming the de minimis exemption if their goods are covered by Section 301, Section 232, and Section 201 tariffs, which apply to products from China, steel, and aluminum, as well as washing machines and solar panels. In addition to slapping these shipments with tariffs, the rule change would subject them to closer inspection by US Customs and Border Protection.
The Biden administration said the proposal would help “protect consumers from goods that do not meet regulatory health and safety standards.” Even though Shein is headquartered in Singapore, it’s known for cheap fast fashion that’s mainly manufactured in China. The China-based Temu sells clothes, household items, electronics, and a variety of other goods made in the country as well.
Read more of this story at Slashdot.
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