House report says Temu and Shein are skirting U.S. import tariff law

A House committee report asserts that Temu and Shein have exploited loopholes in U.S. law to get around paying import duties. The report says the two e-commerce giants are bringing products into the U.S. under Section 321 of the Tariff Act of 1930, which waives tariffs on goods if their retail value does not exceed $800.

Fast Fashion: Is Temu Legit? Is Shein Legit?

Both Temu and Shein are being accused by the House CCP committee of regularly avoiding U.S. import tariff law, and are extending their violations into dodging human rights issues.

Temu is belongs to Chinese parent company Pinduoduo and its tariff violations are said to exceed over $100 billion.

While both Temu and Shein are dealing with allegations of abusing human rights in the Uyghur region and are failing to adhere to the Uyghur Forced Labor Prevention Act. These are solid reasons why a consumer might wonder, is Temu legit?

According to the CNBC report,“these results are shocking: Temu is doing next to nothing to keep its supply chains free from slave labor,” Mike Gallagher, a Wisconsin Republican and chair of the House CCP Committee, said in a statement. “At the same time, Temu and Shein are building empires around the de minimis loophole in our import rules — dodging import taxes and evading scrutiny on the millions of goods they sell to Americans.”

There’s a big backstory to Shein and why it’s so cheap, and we recommend you read our blog about it.