Amazon Plans to Further Exploit de Minimus Loophole

Posted 6/28/24

While Fulfilled by Amazon merchants have long taken advantage of the duty-free treatment of small shipments, Amazon's own merchandise sales have customarily involved the payment of tax and duty, creating an opening for the Chinese e-tailers Shein and Temu.

Not for long.   Wednesday, Amazon announced a new channel for its platform which will sell consumer goods and clothing direclty from China to US customers.  Eliminating the US warehousing nexus puts the Seattle-based merchant on equal footing with its Chinese rivals, in terms of landed cost.

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