The United States-China Economic and Security Review Commission, a government entity created by the United States Congress, is charged with monitoring and submitting to Congress an annual report on the national security implications of the bilateral economic and trade relationship between the two countries, in order to provide recommendations to Congress for appropriate legislative and administrative action.

In its latest report, published in November 2024, the Commission proposed prohibiting retailers from China from importing products on e-commerce platforms under the “de minimis” rule. This rule allows goods worth up to $800 to be imported into the United States without paying any tariffs.

According to U.S. Customs and Border Protection, China exported $10.400 billion worth of de minimis shipments during fiscal year 2021, the latest year for which country-specific data is available. Additionally, the Commission's report argues that China is implementing the de minimis rule to avoid paying tariffs imposed under Section 301, for example, on the import of clothing items by platforms such as Shein and Temu (these companies are estimated to account for more than half of all shipments). de minimis from China).

Under Section 301, apparel imports must enter the United States with a 7.5% tariff, however, the Commission's study estimates that due to imports under the rule de minimis$7,800 billion in tariffs were avoided in 2021, equivalent to 9.2% of total tariffs collected that year.

In addition to evading Section 301 tariffs, the Commission alleges that Chinese exporters are also using warehouses in Canada and Mexico where products are stored in bonded warehouses near the U.S. border until a direct sale is made to the consumer through e-commerce platforms.

Source: Inside Trade