Global EditionASIA 中文雙語Fran?ais
World
Home / World / Americas

US might end zero tariffs on low-price goods

Trade association slams proposed changes, says it will affect companies and consumers

By BELINDA ROBINSON in New York? | China Daily Global | Updated: 2024-09-18 05:14
Share
Share - WeChat
Shein and Temu logos are seen in this illustration taken on Aug 22. [Photo/Agencies] 

US President Joe Biden has proposed removing a trade exemption that allows goods made in China and shipped by popular companies such as Shein and Temu to bypass import duties if they are worth less than $800.

A US trade association said such changes would also affect American companies and consumers who enjoy buying the low-cost goods.

The "de minimis'' exemption permits such packages to be flown into the United States without levies or processing fees.

The Biden administration wants the packages to no longer be exempt from tariffs if they fall under Sections 201 or 301 of the Trade Act of 1974, or Section 232 of the Trade Expansion Act of 1962, according to a statement released by the White House on Friday.

But the administration's changes will not go into effect right away, The New York Times reported, adding that the proposal will be subject to comment by industries before being finalized in the coming months. There also is a presidential election on Nov 5.

More than 1 billion de minimis packages from across the globe came through US customs in 2023, up from 134 million in 2015, according to Customs and Border Protection (CBP) data.

China is the biggest source of retail packages entering the US daily, with around 3 million falling under de minimis, CBP data shows.

Z. John Zhang, a professor of marketing at the Wharton School of the University of Pennsylvania, told China Daily that Chinese fast-fashion brands are so successful because they offer international consumers several perks.

"Prices are lower, helped by a significant extent by zero tariffs that the US is levying on small parcels of less than $800 in value," Zhang said.

Shein and Temu have defended their businesses.

"Since Temu's launch in September 2022, our mission has been to offer consumers a wider selection of quality products at affordable prices," a Temu spokesperson told  arstechnica.com, a technology news website. "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."

A Shein spokesperson told arstechnica that the company "makes import compliance a top priority, including the reporting requirements under US law with respect to de minimis entries".

The National Foreign Trade Council (NFTC), a trade association based in Washington, said the changes to the rule won't affect only Chinese fast-fashion brands, but also American companies and consumers who enjoy buying the low-cost goods.

In a letter dated March 6, the NFTC wrote to Jake Sullivan, national security adviser,  and Lael Brainard, director of the National Economic Council of the US, on behalf of several US trade organizations.

The trade body had urged the government to "protect an essential component of America's economic health and supply chain efficiency: de minimis treatment of low-value goods entering the US".

The letter was backed by the Consumer Technology Association, the Express Association of America (EAA), the National Association of Manufacturers, the National Foreign Trade Council TechNet and the US Chamber of Commerce.

"De minimis has benefitted thousands of American small businesses across all sectors," the letter said. "For example, de minimis allows businesses to obtain inputs for domestically manufactured products into the US more efficiently and with fewer unnecessary administrative requirements.

"It has also made purchasing goods online more affordable and accessible for consumers at a time of inflation and supply chain challenges."

Earlier this year, US lawmakers called on the federal government to amend or shut down the de minimis exemption. A group of 40 lawmakers asked Homeland Security Secretary Alexander Mayorkas in a February letter to explore amending the use of the rule.

The NFTC estimates that changes to the de minimis rule will more than double the price of a $50 package based on a processing fee of $31.67 and a brokerage fee of $20 after it arrives in the US.

It also could lead 88 other countries with de minimis policies to adjust their rules, which could hurt American exporters.

The de minimis exemption, Section 321 of the Tariff Act of 1930, was created in 1938. Its aim was to help facilitate global commerce and allow for small packages valued at less than $5 ($160 in today's dollars) to get to customers quickly and efficiently.

The value of the packages allowed under the rule has gone up steadily over the years from $200 in 1994 to $800 in 2016, per person, per day.

Agencies contributed to this story.

Most Viewed in 24 Hours
Top
BACK TO THE TOP
English
Copyright 1995 - . All rights reserved. The content (including but not limited to text, photo, multimedia information, etc) published in this site belongs to China Daily Information Co (CDIC). Without written authorization from CDIC, such content shall not be republished or used in any form. Note: Browsers with 1024*768 or higher resolution are suggested for this site.
License for publishing multimedia online 0108263

Registration Number: 130349
FOLLOW US
主站蜘蛛池模板: 最新国产在线播放| 女人爽小雪又嫩又紧| 国产精一品亚洲二区在线播放| 久久国产精品免费看| 精品乱人伦一区二区| 国产精品免费拍拍1000部| 中文字幕第12页| 最近韩国电影免费高清播放在线观看| 另类小说图片综合网| 18禁裸乳无遮挡啪啪无码免费 | 亚洲成人免费在线观看| 色老头综合免费视频| 国产高清小视频| 中文精品北条麻妃中文| 欧美精品dorcelclub全集31| 国产三级久久久精品麻豆三级 | 激情黄+色+成+人| 女人被狂c躁到高潮视频| 中日韩欧美电影免费看| 日韩亚洲av无码一区二区三区| 亚洲精品无码久久毛片| 视频在线观看一区二区| 国产精品高清一区二区三区不卡 | 咪咪色在线视频| 蜜臀精品无码av在线播放| 国产精品美女久久久久久久| 两根黑人粗大噗嗤噗嗤视频| 最近免费中文字幕完整7| 亚洲成av人片在线观看www| 污污的软件下载| 人人狠狠综合久久亚洲婷婷| 色综合天天综合中文网| 国产在线2021| 91免费国产在线观看| 国产高清小视频| 99久久精品日本一区二区免费| 我×鞠婧祎的时候让你在| 亚洲fuli在线观看| 激情五月综合网| 向日葵视频app免费下载| 色老头久久久久|