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A loophole used by Shein/Temu to ship packages to US tax-free (2024)
Shein and Temu have both made use of a tax loophole called de minimis. While the rule has its detractors, it's unlikely to disappear completely.
An interim 2023 report from the US House Select Committee on the Chinese Communist Party said that Shein and Temu "likely" account for more than 30% of all shipments made to the US under the de minimis provision. In a July letter to the American Apparel and Footwear Association, Shein's executive vice chairman, Donald Tang wrote that the company supports "responsible reform of the de minimis exemption." Many retailers manufacture their products abroad and then ship them to the US in large quantities, meaning they can't use the de minimis provision as easily as Shein and Temu have.
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