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China Trade Small Parcel
LaFonda D, Sutton-Burke, U.S. Customs and Border Protection Director of Field Operations poses for a portrait at the agency's overseas mail inspection facility at Chicago's O'Hare International Airport Feb. 23, 2024, in Chicago. The explosive growth of cross-border e-commerce involving major China-backed players such as Shein and Temu has caught the attention of the U.S. lawmakers amid a bitter U.S.-China trade war and cast a spotlight on a tax rule that critics say has allowed hundreds of millions of China-originated packages to enter the U.S. market each year without duty and without reliable information for lawfulness. (AP Photo/Charles Rex Arbogast)

How Chinese retailers can offer Americans steep bargains on clothes and why that could change

The flow of millions of small parcels into the U.S. from China thanks to the explosive growth of online shopping has caught the attention of Congress

By DIDI TANG
Published - Mar 04, 2024, 12:18 AM ET
Last Updated - Mar 04, 2024, 12:18 AM EST

WASHINGTON (AP) — As a substitute teacher in her mid-20s, Lindsey Puls was delighted to discover the fashion world of Shein more than 10 years ago, lured in by its super-low prices — with tops selling for a few dollars, dresses under $10, and free shipping on orders over $29.

Puls, who has a blog called “Have Clothes, Will Travel,” joined other influencers in modeling her low-priced but trendy purchases on social media like Instagram and TikTok, contributing to a surge in popularity for Shein. The company, which was founded in China and sells clothing manufactured there, is now the top fast fashion retailer in the U.S.

“From my experience, they have pretty good designs for the price and extensive varieties,” said Puls, who lives in Shiocton, Wisconsin. “The U.S. is in this phase where ‘more is better.' Many people want to get as much clothing as money can buy."

How can stylish imports from the other side of the Pacific be so cheap? The answer has much to do with a trade rule known as the de minimis exception, which allows parcels valued under $800 to enter the U.S. duty-free per person per day.

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