New White House rules would close a tax loophole that lets Shein and Temu cheaply ship from China to American shoppers. The Biden administration says it undercuts U.S. workers, retailers and manufacturers.
A U.S. Customs and Border Protection technician monitors overseas parcels as they get scanned at a mail inspection facility in Chicago.Shein and Temu, the ultra-cheap, ultra-fast retail giants, could be facing a new reality under rules proposed by the White House on Friday.
Instead of bringing large shipments into U.S. warehouses in bulk, Shein and Temu ship small individual orders directly to American shoppers. That means those packages can legally skip import taxes because U.S. law exempts shipments under $800 from import tax.The volume of these direct-to-consumer shipments that use the import-tax loophole — called"de minimis" — has ballooned. Last year, more than 1 billion packages were shipped to the U.S.
"Our mission has been to offer consumers a wider selection of quality products at affordable prices," a Temu spokesperson said in a statement."We achieve this through an efficient business model that cuts out unnecessary middlemen, allowing us to pass savings directly to our customers. Temu's growth does not depend on the de minimis policy.
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