China e-commerce shipments would lose US tariff exemption under proposed law

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China e-commerce shipments would lose US tariff exemption under proposed law
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NEW YORK : A bipartisan group of U.S. lawmakers planned to introduce a bill on Wednesday to eliminate a tariff exemption widely used by e-commerce sellers to send orders from China to U.S. shoppers, one of the sponsors said.The exception, known as the de minimis rule, exempts imports valued at $800 or le

NEW YORK : A bipartisan group of U.S. lawmakers planned to introduce a bill on Wednesday to eliminate a tariff exemption widely used by e-commerce sellers to send orders from China to U.S. shoppers, one of the sponsors said.

Ecommerce sellers such as China-founded, Singapore-based Shein and Temu, a rival owned by PDD Holdings Inc that operates the Chinese ecommerce site Pinduoduo, are big beneficiaries of the exemption. A federal brief in April said the companies “exploit” de minimis to avoid duties and import illegal items such as those made in China's Xingiang region with forced Uyghur labor.

De minimis shipments have drawn attention at least since 2019, when the U.S. Consumer Product Safety Commission reported it struggled to catch unsafe imports because of the heavy volume of low-value packages. Such shipments rose to 685.5 million in 2022 compared with 410.5 million in 2018, U.S. customs data showed.

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