TWO of the world's most popular online shopping firms, Shein and Temur of China, are among other shopping sites that will feel the pinch of proposed US rules that would hit many low-value shipments with new taxes - a measure aimed at curbing the flood of packages from such sites.
The Biden administration said the plan was intended to stop 'abuse' of an exemption that allowed packages worth less than US$800 to enter the US without facing tariffs and other fees.
The US said the 'de minimis' rule has helped firms such as Shein and Temu, which typically ship directly from the manufacturer to the customer, undercut competitors with lower prices.
In statements, the two companies defended their business models, reports BBC News.
The US raised the exemption from tariffs and other fees for shipments from US$200 to $800 in 2016 to facilitate trade and allow officials to focus on higher priority shipments.
But lawmakers have voiced increasing alarm about 'exploitation' by firms such as Temu and Shein, as the two make rapid inroads in the US market.
The new rules would remove the exemption for Chinese goods that currently face tariffs from the US - a wide range of products including shoes, machinery and 70 per cent of textiles and apparel.
They would also increase what information shippers must provide to authorities.
Temu said its success was due to an 'efficient business model that cuts out unnecessary middlemen, allowing us to pass savings directly to our consumers'. It said it was reviewing the rules and remained committed to 'delivering value to consumers'.
'Temu's growth does not depend on the de minimis policy,' it added.
Shein said its success came from its 'on-demand business model' and that it supported reform of the de minimis exemption so that the rules were applied 'evenly and equally'.
The company said compliance was a priority and that it was already participating in a trial programme with US Customs and Border Protection (CBP).
SeaNews Turkey
The Biden administration said the plan was intended to stop 'abuse' of an exemption that allowed packages worth less than US$800 to enter the US without facing tariffs and other fees.
The US said the 'de minimis' rule has helped firms such as Shein and Temu, which typically ship directly from the manufacturer to the customer, undercut competitors with lower prices.
In statements, the two companies defended their business models, reports BBC News.
The US raised the exemption from tariffs and other fees for shipments from US$200 to $800 in 2016 to facilitate trade and allow officials to focus on higher priority shipments.
But lawmakers have voiced increasing alarm about 'exploitation' by firms such as Temu and Shein, as the two make rapid inroads in the US market.
The new rules would remove the exemption for Chinese goods that currently face tariffs from the US - a wide range of products including shoes, machinery and 70 per cent of textiles and apparel.
They would also increase what information shippers must provide to authorities.
Temu said its success was due to an 'efficient business model that cuts out unnecessary middlemen, allowing us to pass savings directly to our consumers'. It said it was reviewing the rules and remained committed to 'delivering value to consumers'.
'Temu's growth does not depend on the de minimis policy,' it added.
Shein said its success came from its 'on-demand business model' and that it supported reform of the de minimis exemption so that the rules were applied 'evenly and equally'.
The company said compliance was a priority and that it was already participating in a trial programme with US Customs and Border Protection (CBP).
SeaNews Turkey