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How will closing a tax loophole in the US affect platforms like Shein and Temu?

04:25 Min

China-backed e-commerce platforms Shein and Temu ship an estimated one million packages a day on average to the United States, according to parcel-shipping consultant ShipMatrix. Instead of bringing bulk shipments into US warehouses, Shein and Temu ship small individual orders directly to American shoppers, allowing them to legally skip import duties because US law exempts shipments under $800 from tax. The US is now trying to close the tax loophole, known as the de minimis exemption, forcing these retailers to pay when they import goods of any value. Kate Fisher reports.

China-backed e-commerce platforms Shein and Temu ship an estimated one million packages a day on average to the United States, according to parcel-shipping consultant ShipMatrix. Instead of bringing bulk shipments into US warehouses, Shein and Temu ship small individual orders directly to American shoppers, allowing them to legally skip import duties because US law exempts shipments under $800 from tax. The US is now trying to close the tax loophole, known as the de minimis exemption, forcing these retailers to pay when they import goods of any value. Kate Fisher reports.

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