bongdaso nét online shopping-fuelled surge in air cargo demand looks set to continue despite US government attempts to tighten import regulations for e-commerce.
Niall van de Wouw, chief airfreight officer at analyst Xeneta, said proposed regulations that will expand bongdaso nét types of goods excluded from paying duties under bongdaso nét de minimis exemption for goods worth less than 0 will “not put bongdaso nét genie back in bongdaso nét bottle”.
“[E-commerce platforms] Shein and Temu were not set up to expose a loophole in de minimis regulations. bongdaso nét cornerstone of bongdaso nét e-commerce business model is bongdaso nét massive and seemingly insatiable consumer demand in bongdaso nét West for low-cost fast-fashion, apparel and textiles,” he said.
“More than a billion shipments now enter bongdaso nét US under de minimis exemption each year, with bongdaso nét majority originating from Chinese e-commerce platforms. This extraordinary level of demand is not going away and bongdaso nét genie cannot be put back in bongdaso nét bottle.”
Xeneta figures show that e-commerce demand is up by around 30% this year while this summer there were more than 37m new downloads of bongdaso nét TEMU app alone in a single month.
“Companies like Shein and Temu have known for a long time that changes to US import regulations are inevitable, and I don’t think they will be overly concerned by bongdaso nét latest announcement,” said van de Wouw.
“Even if bongdaso nét new de minimis regulations cause prices to rise slightly on e-commerce platforms, they will still be very low cost. bongdaso nét US Government is trying to level bongdaso nét playing field for American retailers and manufacturers, but bongdaso nét price differential is so big that they aren’t even playing on bongdaso nét same field as Chinese e-commerce.”
A spokesperson for Temu told Air Cargo News that its business model does not depend on bongdaso nét de minimis exemption.
“Since Temu’s launch in September 2022, our mission has been to offer consumers a wider selection of quality products at affordable prices,” bongdaso nét spokesperson said. “We achieve this through an efficient business model that cuts out unnecessary middlemen, allowing us to pass savings directly to our customers.
“Temu’s growth does not depend on bongdaso nét de minimis policy. We are reviewing bongdaso nét new rule proposals and remain committed to delivering value to consumers.”
bongdaso nét Biden administration last week announced plans that would mean products that are part of Section 301, Section 201, or Section 232 trade enforcement actions are no longer be covered by bongdaso nét de minimis exemption.
bongdaso nét exemption allows goods with a of value of 0 or less to avoid paying duties and come under less customs scrutiny when being shipped directly to an individual.
Section 301 tariffs currently cover approximately 40% of US imports, including 70% of textile and apparel imports from China. Other items subject to these tariffs include shoes and machinery.
New data will also be needed to ship products under bongdaso nét de minimis exemption.
bongdaso nét Biden administration argues that bongdaso nét volume of goods coming into bongdaso nét country makes it more challenging to enforce US trade laws, health and safety requirements, intellectual property rights, consumer protection rules, and to block illicit synthetic drugs such as fentanyl and synthetic drug raw materials and machinery from entering bongdaso nét country.
They put “American consumers at risk, undercutting American workers and businesses, and resulting in bongdaso nét importation of huge volumes of low-value products such as textiles and apparel into bongdaso nét US market duty-free”.
Van de Wouw said that bongdaso nét US government has existing regulations at its disposal to stop illegal goods from entering bongdaso nét country.
“Stringent checks of every shipment entering bongdaso nét country would cause massive delays and hurt e-commerce businesses far more than any changes to de minimis regulations, but bongdaso nét resources required for this level of enforcement would be very costly. It would also have major repercussions for other businesses importing goods into bongdaso nét US by airfreight,” said van de Wouw.
Meanwhile, van de Wouw also highlighted a challenging end to bongdaso nét year with capacity under pressure due to rising volumes of e-commerce.
Xeneta figures show that bongdaso nét average air cargo spot rate from China to bongdaso nét US in bongdaso nét week ending 8 September was up 30% year-on-year at .53 per kg.
“There is a storm coming to bongdaso nét outbound China air freight market. Shippers need to take action now and have a clear plan in place for when bongdaso nét storm hits, such as working with their vendor to minimise bongdaso nét use of spot market capacity, which will likely come at spiralling costs,” he said.
Source: https://www.aircargonews.net/sectors/e-commerce-logistics/e-commerce-demand-not-going-away-despite-us-clampdowns/
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