No-tariff shipments popular with Shein, Temu hit US customs speedbump

A new U.S. crackdown on customs brokers handling billions of dollars in inexpensive online shopping orders from giants like China-linked Shein and Temu is likely to cause delivery delays and bottlenecks, industry experts said.

U.S. Customs and Border Protection announced late last week it suspended "multiple" brokers from an expedited clearance program for those duty-free, direct-to-consumer imports partly over concerns that contraband was being brought into the country this way. While the agency did not specify a number, customs experts they were aware of up to six suspended companies.

The move is part of a CBP effort that includes increased inspections of such packages at U.S. airports and reviews of electronic information submissions by customs brokers.

"All ports of entry are being affected so there really isn't a way to avoid delays," said Chad Schofield, co-founder of U.S.-based e-commerce logistics platform BoxC.

The crackdown comes as more than 1 billion packages, averaging around $50 in value, are forecast to arrive in the U.S. this year driven by robust consumer demand for fast-fashion made by Chinese factories, among other things.

E-commerce powerhouse Shein, which is trying to expand its market share before going public, and Chinese-owned e-retailer Temu depend on the expedited clearance process, which is available for direct-to-consumer shipments valued at $800 or less. U.S. brokers handling those packages submit shipping information electronically to CBP, speeding up processing.

Customs brokers that participate in that program handle clearance for 62% of those shipments, an administrative burden that would otherwise fall on exporters or transportation firms, said Cindy Allen, CEO of consultancy Trade Force Multiplier LLC.

Shein could not be immediately reached for comment. Temu said its operations were unaffected.