The White House announced on September 12 that it was acting at the request of Democratic lawmakers to close a legal loophole through which manufacturers — mostly from China — dodge tariffs on cheap goods and flood the United States with illegal and unsafe products.
The Biden administration is targeting a so-called “de minimis” exemption that allows packages worth less than $800 to enter the U.S. duty-free. U.S. Customs and Border Protection said more than 1 billion such packages entered the U.S. in fiscal year 2023.
White House officials have attributed the more than fivefold increase from a few years ago to the growth of Chinese e-commerce platforms like Shein and Temu, and administration officials named both popular fashion retailers during a press briefing on Sept. 12.
The moves will have a major impact on Chinese apparel and “will significantly reduce the number of shipments through de minimis waivers,” said Daleep Singh, deputy national security adviser for international economics.
This could hinder Americans’ ability to buy items like cheap T-shirts, tank tops, or bras.
The administration is also looking to tighten information collection requirements and consumer safety standards — and block products that don’t meet the requirements — and the White House is calling on Congress to pass legislation this year to “comprehensively reform the de minimis exemption,” Singh added.
In an open letter sent on September 11, a total of 126 House Democrats urged President Biden to use his executive powers, citing their inability to act “in the context of prolonged congressional gridlock that has prevented legislation from passing.”
Congresswoman Rosa DeLauro, one of the leaders of the initiative, has expressed concern about the alleged use of forced labor in cheap fashion products from China. Human rights group Amnesty International has reported that Shein, in particular, maintains “questionable labor and human rights standards.”
The organization said Shein’s model relies on subcontracting to produce garments, leaving no room for transparency or accountability about workers’ conditions and giving workers no right to form unions or organize.
Navtej Dhillon, deputy director of the National Economic Council, also said the moves address concerns about fentanyl shipments and the decline of the U.S. industry.
“Some foreign companies are trying to use this route to ship illegal and dangerous products to our health, safety, and consumer protection laws, and to evade tariffs to undermine U.S. manufacturers,” he said. “Textile and apparel production supports tens of thousands of jobs in important states like Georgia and North Carolina. These American workers and manufacturers deserve to compete on a level playing field.”
Kim Glas, president and CEO of the National Council of Textile Organizations, said the industry group “strongly supports closing the de minimis loophole,” noting that 18 textile mills have closed in the United States in the past year.
Last year, Shein said it supported “responsible reform” to the policy but did not make specific recommendations.
“The de minimis exemption needs to be radically changed to level the playing field for all retailers,” SHEIN Executive Vice President Donald Tang said in a statement. “At the same time, American consumers deserve to know that the products they buy are authentic and ethically produced. We believe that de minimis reform can and should achieve both.”
(According to VOA)