News / Warning to forwarders as US mulls duty waiver on cheaper imports

SME forwarders should not be “betting their businesses” on a continuing flood of Chinese e-commerce into the US, as the country eyes stricter de minimis rules.

An increasing chorus is challenging the dominance of Chinese online platforms like Shein and Temu, following exponential market growth thanks in large part to the US de minimis policy, which exempts imported goods valued at less than $800 from paying duty.

Tony Chiappetta, co-owner of US forwarder Argents, told The Loadstar: “The likes of Shein and Temu have really stretched the limit of this de minimis loophole.

“I would certainly be hesitant in this climate as an importer or a forwarder to bet too much of my business on this continuing, at least to the degree it has been utilised over the past few years.

“Both sides of the [US political] aisle are eager to raise tax revenue, although in very different ways. This could very well be something either could make the argument for.”

A major concern around Shein and Temu is their Chinese ownership, their links to the Chinese government and the continuing political stand-off between the world’s two richest countries.

A suggestion that de minimis be removed has been touted as a win for US consumers, but this idea has received push-back. Several studies by American universities claim that with low-income consumers making around 74% of the purchases benefiting from the exemption, they would be disproportionately financially hit.

President of forwarder GLC Sophia Huluta said she expected “continued scrutiny” from US officials over the influx of cheap Chinese goods, but saw space for domestic companies to benefit.

“The space is mainly dominated by Chinese suppliers, as many US companies have not fully invested in these platforms.”

But she added: “I do think it is fair to say there is still some discovery, investment and review by many US forwarders into these portals as well.”