Fast fashion retailer Shein has stepped up to partner with the U.S. Customs and Border Protection (CBP) and initiated the Section 321 Data Pilot program. This plan is to prevent illegal and dangerous goods from entering the country while streamlining the processing of low-value e-commerce shipments.
A small step towards increased transparency
Thus Shein’s participation demonstrates the company’s desire to increase the southern countries’ imports’ transparency. It has the obligation to provide CBP with specific information on its imports to help the latter monitor more effectively the company’s packages and shipments arriving in the United States. Within its initial month of implementation, CBP was assured that Shein complied with the program’s rules, as the company received and processed all the necessary data.
Responding to Concerns Pertaining Imports
The cheap garments that Shein offered have been accused of abusing the de minimis rule of the Tariff Act of 1930 which permits new imports that are worth less than a certain amount to enter the country free from tariffs and lengthy CBP scrutiny. They have, however, done so sparingly and this has led lawmakers to question the miscues and forced labor claims. By agreeing to join the pilot program, Shein wants to resolve these issues as well as strengthen CBP’s ability to identify misuses in the import process.
Regulatory Challenges and Image Revamp
On actus contra to the de minimis provision, Biden-Harris administration has also initiated measures in its reform with the remits possible before the upcoming presidential term. Such a focus has applied pressure on firms, including Shein and its rival Temu to enhance their operation.
The company has recently embarked on reforming its corporate image in a bid to satisfy critics who have continued to pour scorn on the attire. It has, however, only recently created two major advisory boards to chart its course on sustainability and responsibility. Besides, it got the third-party certification of waste management at its Center of Innovation for Garment Manufacturing in Guangzhou China. By doing so it plans to prove its commitment to the federal legal requirements regarding safe trading along with customer concern regarding Shein’s business legitimacy and, thus, secure its future in the United States market.
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