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Trump closes loophole used by American shoppers to buy Chinese goods tariff-free (www.npr.org)

submitted 2 months ago by Powderhorn@beehaw.org to c/usnews@beehaw.org

6 comments fedilink hide all child comments

Popular e-commerce companies, including giants Shein and Temu, use the so-called "de minimis" exemption to ship tens of millions of packages — everything from end tables and lamps to shoes and underwear — to U.S. consumers every year.

So long as each individual package is worth $800 or less, they aren't required to pay import fees or go through typical customs inspections. But under an executive order signed by Trump Wednesday, that loophole will close on May 2.

These lower-value shipments will now face a tariff of 30% of the "value of the postal item containing goods for merchandise" with a minimum fee that will eventually rise to $50.

There goes AliExpress' business model ...

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[–] Midnitte@beehaw.org 12 points 2 months ago* (last edited 2 months ago)

I really hope Aliexpress, Shein, and Temu add "Trump Tariffs: 25%" to peoples checkouts - they should know exactly who is raising their prices.

[–] jarfil@beehaw.org 4 points 2 months ago (1 children)

In the EU, they forced them to charge VAT.

That effectively closed the "de minimis" loophole for larger sellers, and made AliExpress and friends open local distribution centers where they ship stuff in bulk, get it taxed in bulk, then forward it via local logistics. It's made new logistics providers pop up, including low cost solutions like delivery to affiliate shops, while offloading national posts.

The rest, like random eBay sellers, can still mark stuff as "sample" or "gift" to bypass any taxes or tariffs, but anything "too big", risks getting stopped at customs like in the old days.

[–] SteevyT@beehaw.org 2 points 2 months ago* (last edited 2 months ago) (1 children)

I'm not sure the "sample" option is available anymore. That's quit working for me to get stuff here for me to actually send to the lab for destructive testing lately.

[–] jarfil@beehaw.org 2 points 2 months ago (1 children)

It's still there as of 05.05.2023, in the "negligible value", "non-commercial", and "for trade promotion" categories:

https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=legissum%3Al11002

VAT is only applied to goods sold to customers, but for e-commerce "marketplaces and platforms" they replaced the exclusion of "under 22€" with a "simplified declaration under 150€":

https://taxation-customs.ec.europa.eu/customs-4/customs-procedures-import-and-export/customs-procedures/customs-formalities-low-value-consignments_en

Selling on AliExpress and declaring stuff as gift/sample, is a gamble, that's why AliExpress set up the bulk import to local distribution centers. You should still be able to get samples... but only directly from a manufacturer.

[–] SteevyT@beehaw.org 1 points 2 months ago* (last edited 2 months ago)

I wonder if it's an internal company change then. I had just assumed the trade compliance department was forwarding on the request for information questions to me and then passing back my answers.

Edit: I just realized, I'm US and your referring to Europe, so there might still be differences.