Shein is participating in the US Customs and Border Protection Section 321 Data Pilot program, which is designed to speed up low-cost e-commerce deliveries while preventing illegal or hazardous goods from slipping through customs.
Shein voluntarily joined the initiative earlier this year, which tests whether online marketplaces can help CBP identify and target high-risk shipments for inspection while streamlining the clearance of legitimate goods.
Shein, Temu, AliExpress, and other Chinese marketplaces benefit greatly from Section 321 of the US Tariff Act of 1930, commonly known as the de minimis rule, which allows individuals in the US to import goods worth up to $800 per day without paying duties and taxes. The de minimis rule streamlines entry for low-value shipments, which now make up 92% of all cargo entering the US, but consequently makes it easier for counterfeits and narcotics to slip through inspection. Shein and Temu together represent more than 30% of de minimis imports into the US.
The CBP launched the Section 321 Data Pilot program in 2019 with nine voluntary participants including Amazon, eBay, FedEx, DHL, UPS, PreClear, XB Fulfillment, BoxC Logistics, and Zulily, which since went out of business and was later acquired by Bed Bath & Beyond.
The CBP expanded the program in February 2023 after seeing improvements in shipment risk assessments, fewer holders, and smoother processing. Shein announced its participating in the program on Dec 19, 2024.
By joining the new Section 321 Data Pilot, Shein aims to help address transparency and compliance concerns at a time when US law makers are debating potential reforms to the rule. There's currently no information about whether Temu was invited to join the pilot program.