Dive Brief:
- Shein has joined a U.S. Customs and Border Protection data pilot program in which it will submit import information about its packages and shipments entering the U.S., according to a Thursday press release.
- The initiative, called the CBP Section 321 Data Pilot program, aims to prevent illegal and hazardous products from entering the U.S. and “expedite the shipment of legitimate low-value e-commerce parcels.”
- The fast fashion giant said its participation in the program underscores its “commitment to rigorous transparency.”
Dive Insight:
Shein’s shipments to the U.S. have come under lawmaker scrutiny because its low-priced items circumvent CBP review and certain import tariffs due to the de minimis exception provision of the Tariff Act of 1930. Because of this lack of review, Shein and its fast fashion competitor Temu have faced congressional review over forced labor concerns.
“By voluntarily providing increased visibility into its shipments, the company seeks to assist CBP in focusing its resources on identifying misuse of the import process,” the company said in its Thursday release.
After Shein’s first 30 days in the program, CBP confirmed it received and processed all of the company’s relevant import data, per the release.
“By disclosing more details about the contents of each package, we can help ease CBP’s burdens so they can focus on maintaining the efficient flow of legitimate trade, while protecting public safety, the U.S. economy, and importantly — American consumers,” Donald Tang, executive chairman of Shein, said in the release.
In September, the Biden-Harris administration announced it wanted to limit products shipped under de minimis. An overhaul of the provision could begin before the new presidential administration takes office in January.
Thursday’s announcement marks another step Shein is taking to clean up its image after facing a series of legal and regulatory challenges since launching in the U.S.
Earlier this month, the fast fashion company created two independent advisory boards to help reach its sustainability and corporate responsibility objectives. It also earned third-party certification for waste management at its Center of Innovation for Garment Manufacturing in Guangzhou, China.
