Editor’s note: This story is part of a series on the de minimis rule’s supply chain impact and its uncertain future. Read the previous story here . The White House is making moves to limit China-founded e-commerce platforms Shein and Temu’s use of the de minimis exemption , but industry observers aren't sure how much the plan will affect its intended targets.
The Biden-Harris administration's proposal unveiled Friday looks to cut off the use of de minimis, which exempts shipments of less than $800 from import duties and taxes, for a range of products covered by Section 201, 232 and 301 tariffs. This would raise duties for many companies reliant on parcel shipping between the U.S.
and China, such as Shein and Temu, which experts say would likely trickle down to price hikes for consumers who flock to the companies for a variety of fast fashion goods. Beyond the need to pay import duties, scrapping the exemption would also call for standard reporting, bond and document requirements for these shipments, just like other freight entries, Flexport wrote last week . The proposal also aims to push businesses to provide more detail about goods’ destinations and shipments’ contents, such as describing cargo as a "100% cotton men's T-shirt" rather than just a T-shirt, Flexport added.
The White House says this will promote greater visibility into de minimis shipments. "Some companies exploit the de minimis to conceal shipments of illegal and dangerous products and avoid complian.