2024-09-16 20:31:00
Last Friday (13), the United States government announced new rules that change the status of low-value goods purchased on Chinese platforms, such as Ago, <a href="https://www.archyde.com/how-shein-king-of-fast-fashion-managed-to-undress-amazon/" title="How Shein, king of “fast fashion” managed to undress Amazon”>AliExpress e Shein. With this new measure, the country follows Brazil’s example and should end the exemption for international purchases of up to US$ 800known as the “minimis exemption”.
What changes with the new rule?
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Currently, many products purchased on international platforms enter the US without paying taxes, as long as they cost up to US$800. With the change, items such as clothing, shoes and electronics will now be taxed. The federal tax rate is expected to be around 40%while textiles can reach a 70% taxation.
The move aims to increase oversight of imports, especially of products from China, and protect the US domestic market. According to the White House, the “minimis” exemption has made it difficult to comply with several trade, security and intellectual property rules in the country.
Comparison with Brazil
The US government is adopting a similar stance to what Brazil has already done with the Shipment As Perwhich imposed stricter controls on goods imported from Chinese platforms. In Brazil, goods below US$ 50 are taxed with 20% federal taxwhile products above this value pay 60%. In addition, states still apply ICMS of 17% about these purchases.
Impacts for consumers and companies
The new rule in the US still needs to be voted on by Congress, but it already has the support of both major parties. Commerce Secretary Gina Raimondohighlighted that the change will allow fairer competition between American and Chinese companies, which have long used the exemption to get around tariffs.
As in Brazil, imports are expected to decrease in the US. Image: Archive
Market analysts believe that large American companies, such as Amazonmay be the main beneficiaries. Amazon imports many Chinese products and already pays the taxes due, which puts the company at an advantage over its international competitors that, until now, benefited from tax exemptions.
In addition to the tariff changes, the US government also announced plans to increase customs inspectionrequiring more specific data about shipments. This includes detailed information about the goods and the personal data of buyers requesting exemption.
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#Brazil #tax #lowvalue #purchases #AliExpress #Shein
What are the new tax rates on low-value goods from Chinese platforms?
US Government Imposes New Rules on Low-Value Goods from Chinese Platforms: What You Need to Know
In a significant move, the United States government has announced new rules that change the status of low-value goods purchased on Chinese platforms, such as Ago, AliExpress, and Shein. This development follows the example set by Brazil and marks the end of the exemption for international purchases of up to $800, known as the “minimis exemption.”
What Changes with the New Rule?
Currently, many products purchased on international platforms enter the US without paying taxes, as long as they cost up to $800. With the change, items such as clothing, shoes, and electronics will now be taxed. The federal tax rate is expected to be around 40%, while textiles can reach a staggering 70% taxation.
The primary objective of this move is to increase oversight of imports, especially of products from China, and protect the US domestic market. According to the White House, the “minimis” exemption has made it difficult to comply with several trade, security, and intellectual property rules in the country.
Comparison with Brazil
The US government is adopting a similar stance to what Brazil has already done with the “Shipment As Per” which imposed stricter controls on goods imported from Chinese platforms. In Brazil, goods below $50 are taxed with a 20% federal tax, while products above this value pay 60%. In addition, states still apply ICMS of 17% on these purchases.
Impacts for Consumers and Companies
The new rule in the US still needs to be voted on by Congress, but it already has the support of both major parties. Commerce Secretary Gina Raimondo highlighted that the change will allow fairer competition between American and Chinese companies, which have long used the exemption to get around tariffs.
Impact on Imports and Consumer Behavior
As in Brazil, imports are expected to decrease in the US. Market analysts believe that this move will lead to a reduction in cross-border e-commerce, as consumers may choose to purchase similar products from domestic retailers to avoid the added taxes.
What Does This Mean for Online Retailers?
This change is likely to have significant implications for online retailers, particularly those that rely heavily on imports from China. They may need to reassess their pricing strategies and explore alternative sourcing options to remain competitive in the US market.
Conclusion
the new rules imposed by the US government on low-value goods from Chinese platforms are expected to have far-reaching consequences for consumers, companies, and the overall e-commerce landscape. As the US follows Brazil’s example, it remains to be seen how this move will shape the future of cross-border e-commerce and trade between the two nations.
Keyword-rich phrases used in the article:
Low-value goods
Chinese platforms
AliExpress
Shein
Minimis exemption
International purchases
Federal tax rate
Textiles taxation
US domestic market
Shipment As Per
ICMS
Cross-border e-commerce
Online retailers
Trade rules
* Intellectual property rules
Optimized meta description:
The US government has introduced new rules for low-value goods from Chinese platforms, ending the $800 exemption. Learn how this change will impact consumers, companies, and the e-commerce industry.
$50 pay 60%, plus an additional ICMS of up to 17%.
US Imposes New Tax Rules on Low-Value Goods from Chinese Platforms: What You Need to Know
The United States government has announced a new set of rules that will change the status of low-value goods purchased on Chinese platforms such as AliExpress, Shein, and Ago. The move is aimed at increasing oversight of imports, especially from China, and protecting the US domestic market. In this article, we’ll explore what changes with the new rule, how it compares to Brazil’s similar stance, and the impacts it will have on consumers and companies.
What Changes with the New Rule?
The new rule ends the exemption for international purchases of up to $800, known as the “minimis exemption.” This means that items such as clothing, shoes, and electronics will now be taxed. The federal tax rate is expected to be around 40%, while textiles can reach a 70% taxation rate.
Comparison with Brazil
The US government is adopting a similar stance to what Brazil has already done with the Shipment As Per, which imposed stricter controls on goods imported from Chinese platforms. In Brazil, goods below $50 are taxed with a 20% federal tax, while products above this value pay 60%. In addition, states still apply a 17% ICMS (tax on goods and services) on these purchases.
Impacts for Consumers and Companies
The new rule in the US still needs to be voted on by Congress, but it already has the support of both major parties. Commerce Secretary Gina Raimondo highlighted that the change will allow fairer competition between American and Chinese companies, which have long used the exemption to get around tariffs.
Consumers can expect to pay more for low-value goods from Chinese platforms, which may lead to a decrease in imports. Market analysts believe that large American companies, such as Amazon, may be the main beneficiaries of this change. Amazon imports many Chinese products and already pays the taxes due, which puts the company at an advantage over its international competitors that, until now, have benefited from the exemption.
What Are the New Tax Rates on Low-Value Goods from Chinese Platforms?
The new tax rates on low-value goods from Chinese platforms are expected to be as follows:
Federal tax rate: around 40%
Textiles: up to 70% taxation rate
ICMS (tax on goods and services): up to 17% (varies by state)
The changes are expected to have a significant impact on the e-commerce industry, particularly for Chinese companies that have become popular in the US market. While the move is aimed at protecting the US domestic market, it remains to be seen how consumers will react to the increased costs of imports.
Conclusion
The new tax rules on low-value goods from Chinese platforms are a significant development in the e-commerce industry. The changes are aimed at increasing oversight of imports and protecting the US domestic market, but they may also lead to increased costs for consumers. As the rule is set to take effect, it will be interesting to see how consumers, companies, and the market as a whole adapt to the new landscape.
FAQs
What is the “minimis exemption”?
The “minimis exemption” is a rule that allows international purchases of up to $800 to enter the US without paying taxes.
Which Chinese platforms are affected by the new rule?
The new rule affects popular Chinese platforms such as AliExpress, Shein, and Ago.
What is the expected federal tax rate on low-value goods from Chinese platforms?
The federal tax rate is expected to be around 40%.
* How does the new rule compare to Brazil’s similar stance?
Brazil has a similar rule, known as the Shipment As Per, which imposes stricter controls on goods imported from Chinese platforms. In Brazil, goods below $50 are taxed with a 20% federal tax, while products above
