The Biden administration announced Friday that it is cracking down on a tax loophole that has allowed Chinese online marketplaces like Shein and Temu to thrive.
Biden targets Shein, Temu with new rules to curb alleged 'abuse' of US trade loopholes
The de minimis exemption is a U.S. trade provision that allows low-value goods—those worth $800 or less—to be imported without incurring duties or taxes. That threshold was once set at $200 but was raised [PDF] to its current value in February 2016 to simplify customs clearance.
The director has previously noted that this allows many fast fashion and cheap goods, many of which are credibly accused of using or turning a blind eye to exploitative labor, to operate essentially duty-free, giving them an unfair advantage.
"Over the past ten years, the number of shipments entering the United States that claim the de minimis exemption has increased significantly, from approximately 140 million per year to over one billion per year," a White House statement said.
