Shein’s taken a step to make sure it’s all buttoned up on trade compliance.
The Singapore-headquartered company announced Thursday it has been participating in a government program designed to test the practicality of receiving advanced information about incoming low-value shipments.
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U.S. Customs and Border Protection (CBP) put the program, called the Section 321 Data Pilot, into action in 2019. Section 321—more colloquially known as de minimis—stipulates that eligible shipments valued at less than $800 can enter the United States without taxes or duties.
As of February 2023, CBP estimated that 85 percent of goods entering the U.S. come in under de minimis entry.
That figure has grown since 2019, and continues to accelerate. The agency said it created the program as a way to “monitor and protect against illegitimate trade while providing the public the benefits of duty-free shipments for qualified imports.” The pilot effectively mandates that participants must submit advanced, additional information about the shipments they import with de minimis entry.
The kind of data CBP seeks includes a definitive understanding of who—or what entity—is shipping the parcel in, who will receive it, product photos and more. The agency uses that data to flag high-risk shipments for further inspection, while also expediting clearance for legitimate shipments coming into the U.S.
CBP has been working with online marketplaces, carriers and logistics providers since the outset of the program, but has expanded its mandate—and its participants—over the course of the past four years. Shein joins Amazon, eBay, DHL, FedEx, UPS and others in volunteering for the program.
According to the fast-fashion e-tailer, after participating in the pilot for 30 days, CBP affirmed that it had received all relevant import information and processed it efficiently and without technical problems.
Donald Tang, Shein’s executive chairman, said the company’s voluntary commitment to the program shows it has an interest in facilitating lawful trade.
“Our participation in CBP’s Section 321 Data Pilot reaffirms Shein’s standards of transparency and compliance,” Tang said in a statement. “By disclosing more details about the contents of each package, we can help ease CBP’s burdens so they can focus on maintaining the efficient flow of legitimate trade, while protecting public safety, the U.S. economy and importantly—American consumers.”