New US Customs regulations are about to be issued, will SHEIN's status be in jeopardy?

On Tuesday, Earl Blumenauer, chairman of the House Ways and Means Trade Subcommittee, announced that he would draft a new bill to strengthen U.S. international trade import laws to prevent some companies from taking advantage of loopholes in lower duty-free thresholds to ship goods into the United States.

According to Blumenauer , more than 2 million packages pour into the U.S. every day , a number that will only climb in the coming years . If foreign companies selling goods in the U.S. market continue to split up shipments to evade tariffs and oversight, U.S. companies will continue to be at a competitive disadvantage in terms of cost.

At the same time, current legal loopholes make it easier for people to import illegal and harmful products because there is no way to tell whether the packages contain products produced through forced labor , infringe intellectual property rights , or involve other dangers .

This time, the Import Security and Fairness Act will prevent goods from non-market economies such as China from benefiting from low duty-free policies . The US government said that these countries ' treatment of its local companies is unfair , and this revision of customs policy can ensure that shipments from these countries and regions will no longer benefit from it.

Ron Sorini, a trade expert at Samet & Associates , said the proposal is the most comprehensive minimum legislation he has seen so far . He mentioned that it will hit SHEIN and similar platforms, which have used this loophole to beat H&M in the market competition and have been found to sell clothing with excessive chemical content .

The Council of American Textile Organizations also expressed support for the proposed bill , which would effectively prohibit non-market economy countries from exploiting the Section 321 de minimis mechanism loophole in U.S. trade law to the detriment of U.S. companies and workers and U.S. consumers .

AFL -CIO President Liz Shuler said the huge imbalance between the U.S. $800 customs duty-free threshold and China's $7 threshold must be addressed to create a level playing field .

However, Julia K. Hughes, president of the American Fashion Council , expressed a different view. She said that during the epidemic , e-commerce has become an important channel to reach consumers , and Congress should carry out appropriate law enforcement while ensuring that the e-commerce market is not affected .

However, the drafting and implementation of the new bill will certainly reduce the amount of customs tax and crack down on foreign companies that evade tariffs. Some brands in the market, including SHEIN, will be affected to varying degrees.

trade war

policy

Cross-border e-commerce market

USA

customs

SHEIN