Alistair Berg/DigitalVision via Getty Images Temu, Shein and other foreign e-commerce companies might lose an attractive loophole that lets them avoid U.S. customs after regulators have begun cracking down on entities which facilitate shipments from overseas.
The U.S. Customs and Border Protection Agency has suspended Seko Logistics’ participation in the Entry Type 86 program for 90 days, The Information reported Wednesday.
Section 321 Type 86 of the U.S. Customs and Border Protection regulations allows for shipments with a value less than $800 expedited entry into the U.
S. The Type 86 program allows importers to capitalize on a centuries old law called de minimis which exempts packages with a value less than $800 from custom duties. With millions of packages shipped each day, the savings are tremendous for both Shein and Temu.
Lawmakers have been stepping up pressure on government agencies to stifle de minimis shipments from China as the exemption not only undercuts U.S. manufacturers but can indirectly result in the use of forced labor as fast-fashion companies like Shein struggle to keep up with furious demand.
According to data from Customs and Border Protection cited by The Information, 705 million de minimis packaged have been imported into the U.S. so far in 2024 compared to 1 million for all of 2023.
Although it's unlikely that the suspension of a handful of customs brokers will put much of a dent into the businesses of either Shein or Temu, it’s an encouraging si.
