Shein has officially joined the U.S. Customs and Border Protection (CBP) Section 321 Data Pilot program, which aims to streamline the import process for low-value e-commerce shipments while preventing illegal and hazardous products from entering the United States. This initiative is particularly significant as it reflects Shein's commitment to transparency amid ongoing scrutiny regarding its low-priced items that often circumvent CBP review due to the de minimis exception of the Tariff Act of 1930. The company is now tasked with submitting detailed import information about its packages and shipments entering the U.S. [604d9370]
After just 30 days in the program, CBP confirmed the receipt and processing of Shein's import data. Donald Tang, Shein's executive chairman, emphasized that increased visibility into shipments not only assists CBP but also helps ease the agency's burdens in managing the influx of imports. The Biden-Harris administration had announced plans in September 2024 to limit products shipped under the de minimis provision, which is part of a broader effort to enhance regulatory oversight in the e-commerce sector [604d9370].
In a related context, SEKO Logistics has recently won conditional reinstatements from CBP in two international trade programs, following suspensions that have not been publicly detailed. SEKO is pursuing unconditional reinstatements, arguing that CBP has not provided sufficient evidence of compliance issues. The agency has been proactive in suspending customs brokers from its expedited customs clearance program to prevent abuse of tariff exemptions for direct-to-consumer imports [7cc9bde8].
During the 2024 Trade Summit, Senior Official Performing the Duties of the Commissioner Troy Miller addressed the importance of partnerships with the trade community, particularly in light of recent enforcement actions against forced labor and intellectual property rights violations. In fiscal year 2023, CBP seized shipments worth nearly $2.5 billion in intellectual property violations and repaid over $62 million in withheld wages related to forced labor cases [ff174a12].
Miller also highlighted the challenges posed by the de minimis environment, where over one billion packages claiming de minimis preferences were processed in the U.S. last year. He noted the risks associated with illicit goods, including counterfeit pharmaceuticals and narcotics, entering the market through de minimis shipments. CBP is intensifying its enforcement efforts against synthetic drugs like fentanyl and is working to improve data quality and information sharing in these shipments [ff174a12].