Shein’s executive chairman Donald Tang said the US’ move to close a loophole that allows low-value shipments to enter the country duty free won’t be a problem for it.
The US proposed rules last week to crack down on a trade exemption for packages that fall under the $800 “de minimis” threshold – a measure aimed at curbing the flood of packages from shopping sites such as Shein and Temu.
However, Tang said changes to the tax rules in North America wouldn’t have a major impact on the fast fashion giant’s market position, The Business of Fashion reported.
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“Shein has a competitive advantage because of its on-demand model and not the de minimis rules,” he said.
“The efficiency and the wide choice we provide gives the company not just a few points advantage, but a significant advantage.”
The executive chair said Shein would like to see any changes reflect taxes on the wholesale price when goods enter the country, rather than on the retail price.
Moves to close the loophole in the US has reignited political scrutiny in the UK as the fashion giant prepares for an estimated £50bn listing on the London Stock Exchange.
Labour chair of the business select committee Liam Byrne has called on the government to prohibit the import of products made by forced labour in the Chinese region of Xinjiang.
Byrne told The Financial Times that it was important for ministers to satisfy themselves that Shein passes the highest standards on forced labour protections.
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