Temu, Shein and other foreign e-commerce companies could lose an attractive loophole to avoid U.S. customs after regulators began cracking down on entities that facilitate overseas shipments.
U.S. Customs and Border Protection has suspended Seko Logistics participates in the Entry Type 86 plan for 90 days, information reported Wednesday. U.S. Customs and Border Protection Regulations Section 321 Class 86 allows expedited entry into the United States for shipments valued under $800
The Type 86 program allows importers to take advantage of an ancient law called “de minimis” that exempts packages worth less than $800 from duties. Shipping millions of packages every day brings huge savings to Shein and Temu. Lawmakers have been increasing pressure on government agencies to restrict minimal exports from China, as the exemption not only undercuts U.S. manufacturers but could also indirectly lead to the use of forced labor, as companies like Shein Fast fashion companies are struggling to keep up with intense demand. According to Customs and Border Protection data cited by The Information, the United States has imported 705 million packaged trace items so far in 2024, compared with 1 million for all of 2023.
While the suspension of a handful of customs brokers is unlikely to have much impact on Shein or Temu’s business, it is an encouraging sign that the government is starting to address the Type 86 vulnerability, which is a potential roadblock for Shein.Listed in the United States
