The US government closed a loophole that allowed China-based online retailer Shein to flood the country with billions of duty-free packages annually. The test was introduced in 2019, but instead of being effective, it created a way for low-value parcels to enter the country with little oversight. As a result, over a billion packages from China arrived duty-free each year, mostly from companies like Shein and Temu, which took advantage of this loophole at the expense of US competitors such as Amazon.com Inc. This issue highlights how government regulation can sometimes spiral out of control, affecting not only businesses but also consumers who unknowingly benefit from these loopholes.
Source: https://www.bloomberg.com/opinion/articles/2025-02-07/shein-and-temu-crashed-a-customs-loophole-the-us-was-right-to-close