The United States is proposing rules that would impose new taxes on many low-value shipments from China, a move aimed at stopping the flow of packages from shopping malls like Shein and Timo.
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The Biden administration said the plan was aimed at stopping the “abuse” of an exemption that allows packages worth less than $800 (£600) to enter the US without paying customs duties and other fees.
The US says the “minimum” rule has helped companies like Shein and Temu, which typically ship directly from the manufacturer to the customer, offer lower prices than their competitors.
In their statements, the two companies defended their business models.
In 2016, the United States raised the exemption from customs duties and other fees on shipments from $200 to $800 to facilitate trade and allow officials to focus on higher-priority shipments.
However, Timo and Shen are now urging the Americans to create new rules. That would eliminate duty-free status for most Chinese goods. It would also expand the information that carriers must provide to authorities.
According to Timo, their success is due to “an efficient business model that eliminates unnecessary middlemen and allows savings to be passed directly to consumers.”
