Latest news with #Section321DataPilot
Yahoo
14-03-2025
- Business
- Yahoo
U.S. Customs Sees Dropoff in External Revenue Month Over Month
United States Customs and Border Protection (CBP) released its monthly report Wednesday, detailing the progress it made last month. And for the most part, its seizure and revenue metrics have declined. Though it completed a similar number of audits in February as it did in January, the yield from those audits proved to be markedly less than they were in the previous month. More from Sourcing Journal Trump Promised Tariffs Would Benefit US Manufacturers. They Say It's Not That Simple Apparel Prices Rose in February, Could Go Higher As China Pushes Back on Tariffs Tariff Ticker: EU, Canada Slap US With Retaliatory Duties, Industry Urges 'Extreme Caution' in Escalating Trade Wars In January, CBP completed 30 audits that flagged $71 million in outstanding duties and fees, but in February, 28 audits found $2.9 million in unpaid duties or fees, down 96 percent from January. Those duties and fees come from 'imported goods that had been improperly declared in accordance with U.S. trade laws and customs regulations,' per CBP's report. In its February report, the agency noted it had 'collected over $74.5 million of this identified revenue and from previous fiscal years' assignments.' In January, that figure stood at $703 million, which means that, month over month, that revenue stream decreased by about 90 percent. External revenue wasn't the only metric that saw a double-digit drop in February, when stacked up against January. Last month, CBP stopped about 51 percent fewer shipments on suspicion of violating the forced labor laws than it did in January. In January, CBP stopped 1,986 shipments with a value of $13 million, while in February it stopped 1,024 shipments with a total value of $9.7 million. Last year, apparel, footwear and textiles accounted for 13 percent of the overall number of shipments stopped by CBP on suspicion related to the Uyghur Forced Labor Prevention Act (UFLPA). Counterfeits, too, have become an area of focus for CBP—and, amidst shrinking seizure value in other categories, the illegally duplicated items proved a bright spot for the agency last month. In February, the agency seized 1,815 shipments containing over $525 million worth of counterfeits. That far exceeds the value of counterfeits seized by the agency in January; in that month, it seized 1,977 shipments with a total counterfeit value of over $291 million, which means, between January and February, the value of stopped counterfeit goods increased by 55 percent. One of CBP's most pressing tasks at the moment is integrating a system that can handle the tariffs and fees that would be brought in should the Trump administration make good on its threat to axe the de minimis provision. To date, it has used its Section 321 Data Pilot, with partners like Amazon, FedEx and Shein, to verify how preemptive information about low-value shipments can help the agency clear them before they reach U.S. entry points. But CBP has yet to announce whether it will re-up that pilot, fully implement a program based on the results from the pilot or set other measures for processing an influx of shipments in place. In the meantime, goods coming from China that are ineligible for de minimis entry have been subject to tariffs decreed by Trump. That reality hasn't been sitting well for many brands and retailers; data from BlueCherry shows that economic and political fluctuations are a serious concern for four in 10 executives working in fashion and apparel. Paul Magel, president, business applications and technology outsourcing at BlueCherry's owner, CGS, said he believes much of the worry plaguing those brands and retailers comes from the question over which sourcing destinations could be slapped with tariffs next. As that uncertainty continues to loom, it has started to affect retailers' future plans. Per CBP, the proportion of goods entering the United States via ship stayed around 35 percent in February, up less than one percentage point from January. And data from the National Retail Federation (NRF) shows that inbound cargo remains high as brands and retailers play the waiting game on yet more tariffs. January's imports were up 13.4 percent year on year, according to the NRF's Global Port Tracker, which it runs in tandem with Hackett & Associates. Jonathan Gold, vice president for supply chain and customs policy at NRF, said the trade group doesn't see that trend stopping. 'Retailers are continuing to bring as much merchandise into the country ahead of rising tariffs as possible,' Gold said in a statement earlier this week. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
Trump administration weighs adding Shein, Temu to forced labor list
The Trump administration is discussing whether to add low-priced Chinese retail companies Shein and Temu to the Department of Homeland Security's forced labor list, two sources familiar with the discussions told Semafor. Listing the two companies, which are popular in the US, would be a significant move by the administration and signal its interest in cracking down on consumer products imported from China. Both sources noted that the administration has made no final decision on the matter and could ultimately decide not to list either. DHS, as well as a representative for Temu, didn't immediately return requests for comment. A Shein spokesperson said in a statement: 'We are not aware of any such consideration. Furthermore, a complete and fair review of the facts would demonstrate we are in full compliance with the UFLPA. We have made it our priority to implement best in class standards, including our voluntary participation in the CBP Section 321 Data Pilot program. We have confidence in our products and the integrity of our supply chain.' The forced labor list, established by Congress through the 2021 Uyghur Forced Labor Prevention Act, singles out companies that rely on forced labor to mine, produce, or manufacture goods in China's Xinjiang region. Trump has already taken action that affects the two giant Chinese fashion firms, shutting down a loophole this week called the 'de minimis' exemption that allowed companies shipping packages valued under $800 into the US to avoid taxes and extra scrutiny. The halt is part of Trump's 10% additional tariffs on China. 'It would be a pretty bold move,' to add the fast-fashion companies to the list, said Greta Peisch, a former general counsel for the US trade representative under the Biden administration. She added that, alongside the ending of the shipping exemption, it would show the Trump administration is 'really targeting consumer goods.' A bipartisan investigation by the House select committee on China in 2023 concluded that Temu was probably shipping goods made with forced labor into the US on a 'regular basis,' while also faulting Shein's use of the de minimis exception. Shein, which was founded in China but now has headquarters in Singapore, has said in the past that it does not tolerate forced labor. Shein is facing an investigation in the European Union over its compliance with consumer laws, Bloomberg reported. The prices of goods shipped by Shein, Temu, and Amazon Haul into the US are projected to rise given Trump's move to close the de minimis loophole, Reuters reported. Shein called for a 'complete makeover' of the de minimis provision back in 2023, Semafor reported at the time.
