US Customs cracks down on Seko, Temu, Shein

U.S. Customs and Border Protection is cracking down on shippers that import goods into the country under the regulation protecting imports under the value of $800 from duty and tax obligations — and has suspended several customs brokers until they comply with the new regulations . [caption id="attachment_57134049" align="alignright" width="300"] (Courtesy/Canstock)[/caption] Goods must now be declared before arrival in the U.S. Prior to the change, shippers had up to 15 days after the cargo arrived to declare it under the regulation, formally known as the Entry Type 86 Test, according to U.S. Customs (CBP). “Since [the rule’s] introduction in 2019, CBP has seen an influx of shipments cleared under Entry Type 86,” according to a February statement from UPS . “The adjusted clearance deadline helps CBP effectively mitigate the risk previously enabled by shipments leaving the port of entry prior to CBP review. The change also helps promote better visibility to goods entering the U.S. commerce.” Preventing illicit shipments R isks include shipments that may contain illegal drugs or other contraband, Brandon Fried , executive director of the Airforwarders Association , told Air Cargo Next . “Our understanding is that recently CBP has intensified inspections and is reviewing electronic data submissions more rigorously,” he said. “These measures are aimed at identifying and eliminating instances where the program is misused to smuggle contraband, including materials for illicit drugs such as fentanyl. This increased enforcement activity directly affects customs brokers, e-commerce companies and their logistics partners who rely on the streamlined processes offered by the Type 86 program.” Under the tightened inspections, Chinese e-tailers Shein and Temu are affected, Fried said. “While the immediate impact may pose challenges for brokers and e-commerce giants like Shein and Temu, in the long run, these changes benefit the broader trade community and U.S. consumers by ensuring that only compliant goods enter the market,” he said. “By cracking down on illegal activities, CBP is working to create a fairer competitive environment for all businesses.” T emu and Shein , which are responsible for 30% of e-commerce shipments into the U.S. under the de minimis regulation’s $800 value, together averaged $3 billion in revenue from U.S. consumers in 2022, according to a U.S. Trade Commission report in November 2023. Shein and Temu have been under scrutiny for their business models, which may include forced labor and intellectual property theft, though both have denied the allegations. The online retailers did not respond to inquiries from Air Cargo Next by publication time. Seko fires back Freight forwarder Seko Logistics is one of the compan ies facing temporary suspension. In response , the company is pursuing legal action against the CBP, citing in a June 4 filing that its violations of the regulation are unknown. “We are incredibly disappointed by, and strongly disagree with, the original decision by CBP,” James Gagne , president and chief executive of S eko Logistics , said in a statement. “We intend to pursue all appropriate actions to protect our company, our clients and the U.S. consumer while we continue working as an important compliance partner in global supply chains in good standing with U.S. Customs. ” A cting CBP Commissioner Troy Miller said in a May 31 statement: “When businesses fail to comply with U.S. law, it can have far-reaching effects on the integrity of our trade system and the people reliant on the goods that flow through our ports every day.” Staying vigilant Each affected customs broker will have a chance for reinstatement once they show they comply with the regulation, according to CBP. “Shippers should be aware that CBP ’ s enhanced enforcement may lead to delays and increased scrutiny of shipment,” Fried said. “It is crucial for all parties involved in the import process to maintain accurate and transparent documentation and to stay informed about regulatory changes to avoid potential penalties or disruptions in their supply chains.” While the regulations are necessary to support enforcement to protect the integrity of U.S. borders, there is still a need for “CBP to consider the operational impact on brokers and provide clear communication and opportunities for compliance before taking such significant actions,” Fried said. Register here for Air Cargo Next ’s upcoming webinar, “Air Cargo and Pharma: Using Technology to Save Lives,” on Tuesday, June 18, at 11 a.m. ET.

US Customs cracks down on Seko, Temu, Shein

CBP tightens up its de minimis regulations to target illegal drugs

Allivate to further develop FRA, Dakosy cargo community system

ASL completes ATR 72-200F removal

Related Posts

Challenge Group launches engine dolly at LGG

New de minimis executive action targets Chinese retailers

CVC willing to bump DB Schenker bid after losing to DSV

ASL completes ATR 72-200F removal

Cargo Facts Free Newsletters

Cargo Facts Connect Podcast

Follow Us

Welcome Back!

Retrieve your password