Latest news with #DeMinimis
Express Tribune
18-07-2025
- Business
- Express Tribune
Temu faces CCP scrutiny for anti-competitive practices
Listen to article Temu, a Chinese e-commerce platform, has come under the radar of the Competition Commission of Pakistan (CCP) over alleged misleading practices that are said to distort the local market. Temu entered the Pakistani market a few months ago with an aggressive digital advertising campaign, flooding platforms with promotional content. These ads, which promoted heavy discounts and seemingly risk-free purchases, quickly attracted consumers while putting local sellers at a disadvantage due to the scale and pricing Temu offered. A coalition of independent retailers and sellers, the Chainstore Association of Pakistan, submitted a grievance to the CCP, alleging that Temu's practices are anti-competitive and harmful to both consumers and domestic businesses. "We write to alert the Competition Commission of Pakistan regarding growing anti-competitive market behaviour stemming from the influx of unregulated foreign e-commerce platforms such as Temu and Shein," the statement said. These platforms, which have no physical or legal presence in Pakistan, are operating freely via online portals, offering artificially underpriced and/or substandard products shipped under the De Minimis exemption, without paying any taxes or import duties. Meanwhile, local retailers, online sellers, and manufacturers are fully compliant with tax, customs, and regulatory obligations. This creates a distorted and unfair playing field, with serious economic consequences. The association has pointed out the massive displacement of formal, tax-paying local businesses, along with the loss of consumer protection, quality control, and regulatory oversight. Temu is currently encouraging pre-payments in foreign currency with no cash-on-delivery option, which the association claims is likely to undermine the country's current account balance. "We request the CCP to take action and initiate a formal investigation into the market practices of such foreign platforms operating without compliance." The association has recommended regulatory collaboration with the Ministry of Commerce, FBR, and SECP to enforce registration and fair competition. It has also urged logistics and courier companies to only process shipments with valid commercial invoices and ensure each parcel has the correct declared retail value. It further called for the use of a verifiable tracking system and the submission of all shipment data digitally to relevant authorities for monitoring. Pakistan's formal retail sector, manufacturers, importers, and e-commerce players are being rendered uncompetitive by these practices, which pose long-term risks to the integrity of the country's tax and trade ecosystem. "These foreign operators are violating the spirit of fair competition and undermining Pakistan's regulated economy. CAP is ready to provide any assistance in this matter and supports all actions CCP deems appropriate," the association said. Additionally, a separate complaint has also been filed through the Office of Fair Trade in Islamabad by a group of independent sellers who claim that Temu is distorting the market and misleading consumers, making it difficult for local businesses to compete. One of the central allegations is Temu's pricing strategy, described by complainants as predatory. By selling products at extremely low prices, Temu is accused of undermining fair competition and threatening the survival of small local retailers who comply with all regulatory and taxation policies. Logistics and import industry insiders have reported that Temu frequently under-declares the value of goods, breaks high-value orders into smaller parcels to stay below tax thresholds, and mislabels products to avoid customs duties. These practices are not only unethical but also illegal and raise concerns about whether newly introduced policies will be effective if enforcement is not strengthened. Despite increasing evidence, customs authorities have taken limited action. While local businesses are often penalised for minor issues, platforms like Temu continue to operate without proper enforcement, creating an uneven playing field. Domestic sellers face growing regulatory and financial pressure despite contributing to local employment and the economy.
Fibre2Fashion
03-07-2025
- Business
- Fibre2Fashion
US Senate votes to end de minimis loophole by 2027, NCTO welcomes move
The US Senate has passed a sweeping budget reconciliation bill that includes a critical trade provision aimed at permanently ending de minimis duty-free treatment for commercial shipments from all countries by July 2027. The move is being hailed as a major victory by the National Council of Textile Organizations (NCTO), which has long advocated for reforming what it calls a harmful loophole in US trade law. The bill will now proceed to the House of Representatives, with the goal of delivering a final version to President Trump's desk before the July 4 holiday. US Senate has passed a budget reconciliation bill that includes a provision to permanently end de minimis duty-free treatment for commercial shipments by July 2027. NCTO has praised the move, calling it vital to protect US manufacturers from unsafe, low-value imports. NCTO urged immediate executive action and House approval to close this loophole, which has hurt domestic industry and consumer safety. 'On behalf of the US textile industry, I would like to commend Senate leaders for including an important provision in the broader budget reconciliation bill that would permanently end de minimis for commercial shipments from all countries, effective July 2027. The Senate language mirrors a provision included in the House reconciliation package passed earlier in May,' Kim Glas, president and CEO of NCTO , said in a press release. Glas praised the bipartisan leadership behind the effort: 'We sincerely appreciate Sens. Lindsey Graham (R-SC) and Sheldon Whitehouse (D-RI) for leading efforts on a legislative solution that would codify and permanently end duty-free de minimis treatment for millions of low-value packages from China and all countries, closing a loophole in US trade law that has harmed American manufacturers and workers and endangered American consumers.' She emphasised the devastating impact the loophole has had on the domestic industry: 'This provision would help rebalance the playing field for the domestic textile industry, which has seen the closure of 28 plants over the past 23 months. We are urging congressional leaders to ensure inclusion of this critical provision in the final version of the reconciliation bill this week, which would bring us one step closer to marking a significant milestone for the US textile industry and a broad coalition of organisations dedicated to advocating for ending this destructive loophole.' Glas also warned that the current de minimis system facilitates the entry of dangerous and unethical goods. 'De Minimis acts as a gateway for facilitating four million packages a day valued at $800 or less that often contain unsafe, toxic and unethical products made with forced labour, as well as lethal fentanyl and other illicit narcotics to the US market duty free and virtually unchecked. We applaud the Senate and House for validating that this loophole has caused widespread harm across businesses and communities and ending it once and for all.' Finally, she expressed appreciation for prior executive action and called for further immediate steps: 'We are also grateful that the Trump administration has already used executive authorities to end de minimis access for Chinese goods—which represent approximately two-thirds of all de minimis shipments—while also laying the groundwork to close de minimis to commercial shipments from all countries. We request that the administration utilise its executive authorities to immediately close this damaging loophole for commercial shipments from all countries in the interim until this legislation ultimately takes effect.' The textile industry now awaits final confirmation from the House as stakeholders push for swift enactment of the new trade rule, which could mark a turning point for US manufacturers facing growing pressure from low-cost, unregulated imports. Fibre2Fashion News Desk (KD)
Yahoo
01-07-2025
- Business
- Yahoo
China Warns Nations Not to Sign Trade Deals With US at Its Expense
Beijing has doubled down on a warning to other countries not to broker trade deals with the United States if they come at China's expense. Following declarations from members of the Trump administration last week that a trade agreement had been reached after weeks of tension and multiple international sit-downs between Chinese and American officials, the Chinese Commerce Ministry released comments over the weekend that seem to indicate the truce may be a tenuous one. More from Sourcing Journal Joor's Solution to Fashion's Need for Speed is a Digital Trade Show Asia-to-North America Air Cargo Demand Plunges 10.7% After De Minimis Suspension China Dominates Textile Machinery Investment as Global Shipments Show Divergence in 2024 On Saturday, a Ministry spokesperson said China stands in firm opposition to any trade agreements made with the U.S. that could threaten its interests in exchange for relief from sweeping duties. 'If such a situation arises, China will not accept it and will take resolute countermeasures to safeguard its legitimate rights and interests,' the spokesperson said in response to a media inquiry about the state of America's trade talks with other nations as the 90-day pause on President Donald Trump's 'Liberation Day' tariffs winds down. 'Since April, the United States has been pushing so-called 'reciprocal tariffs' on its trade partners. This is a typical act of unilateral bullying that seriously undermines the multilateral trading system and disrupts the normal international trade order,' they said, according to state-sponsored media outlet Xinhua. China urged countries across the globe to aim to resolve their trade issues with the U.S. with an eye toward fairness and justice, while upholding and defending established international trade rules. 'It is proven that only by firmly defending its principle and position can a country truly protect its legitimate rights,' the Ministry spokesperson said. These comments come just days after Trump acolytes touted their success in convincing China to lower trade barriers surrounding the export of rare earth minerals, like magnets, that the U.S. aims to purchase for use in several critical technologies. In early June, Trump squashed a previous agreement brokered in Geneva in May, saying that China refused to cooperate after the fact. U.S. Trade Representative Ambassador Jamieson Greer accused China of violating the terms of the trade truce by restricting the export of the minerals and placing U.S. companies on blacklists. The White House has released very little other information about the contents of the China agreement, including whether tariff rates have been changed, though China said in a statement on the matter on Friday that it plans to 'review and approve the export applications of controlled items that meet the conditions in accordance with the law.' It also said it expects the U.S. to 'cancel a series of restrictive measures taken against China accordingly.' With the July 9 tariff deadline looming, some administration officials, like Treasury Secretary Scott Bessent, have hinted that the president might be willing to move the goal posts to give trade partners more time to come to the table with terms for new deals. Last week, he said he could see a scenario where all deals are wrapped up by Labor Day—a significant extension of the administration's previously stated timeline. Commerce Secretary Howard Lutnick said that about 10 deals could be finalized imminently. However, Bessent changed his tune on Monday, saying that while some countries are negotiating in good faith, others 'should be aware that if we can't get across the line…we could spring back to the April 2 levels,' referring to the double-digit duty rates set by the president on Liberation Day. Trump also pushed back on hints that the tariff pause could be extended on Sunday, appearing on Fox News to say that letters to trading partners would be sent out 'pretty soon,' informing them of the decided upon tariff rates. 'We'll look at how a country treats us; are they good, are they not so good? Some countries we don't care, we'll just send a high number out,' he said.
CNBC
17-06-2025
- Business
- CNBC
International stocks are the best trade for the next five years, according to Bank of America investor survey
Investors are really pumped about the future of international stocks. Bank of America's latest fund manager survey showed investors expect equities outside the United States will prove the best-performing asset class over the next five years. "Less than [one quarter] think U.S. assets will continue to dominate ranked returns, and just 5% anticipate bonds to perform best," strategist Michael Hartnett wrote. The rest of the world is trouncing the U.S. stock market this year. The iShares MSCI All-Country World Index ex-U.S. ETF ( ACWX ) is up 15% in 2025, far outpacing the S & P 500's 2.6% advance. That marks the ACWX's largest outperformance over the S & P 500 since the fund's inception in 2008. This comes as positioning in the U.S. dollar reached lows not seen in more than 20 years. ACWX .SPX YTD mountain ACWX vs SPX in 2025 Investors have been pulling away from the dollar this year as many of President Donald Trump's policies, particularly on trade, put the U.S. currency's safe-haven status into question. Trump earlier this year unveiled steep tariffs on imported goods, many of which were later halted for 90 days while the U.S. entered into trade negotiations with leading partners. Along with heightened tensions in the Middle East and Europe, that's led investors to load up on gold. Hartnett noted that "'long gold' is the most crowded trade for the third month running (per 41% of investors), confirming that the 24-month streak for 'long Magnificent 7' (now 23%) as most crowded trade has come to an end." Investors surveyed also rotated more into emerging markets and global equities in June, Hartnett added. "In June, investors are most overweight Eurozone, EM, and banks vs most underweight U.S. stocks, the U.S. dollar, and energy," he said. Elsewhere Tuesday morning on Wall Street, Truist lifted its price target on Etsy by 9%, to $60 from $55, implying about 11% upside compared with Monday's closing price, saying investors should buy the dip in the stock. "While the company does have exposure to the De Minimis exemption being eliminated in China, we believe it's relatively better insulated than some of its competitors including Temu (owned by PDD, [not rated]) and Shein (private) which have started raising prices on goods as a result of the Chinese Tariffs, and the end of the De Minimis exemption," analyst Youssef Squali wrote.
CNBC
17-06-2025
- Business
- CNBC
Truist says this internet retailer's revenue is tracking above expectations so investors should buy the dip
Truist Securities sees a rosy outlook ahead for Etsy . The investment firm maintained its buy rating on the e-commerce retailer, but lifted its price target to $60 per share from $55. This updated forecast is roughly 11% above Etsy's Monday closing price of $53.89. Shares of Etsy have risen nearly 2% this year. ETSY YTD mountain ETSY YTD chart As a catalyst, analyst Youssef Squali pointed to Truist card data, which has revealed that Etsy's 2025 marketplace revenue is tracking ahead of consensus estimates for the quarter. As a result, the analyst has raised his revenue estimate for the current quarter to $463 million from $455 million. Meanwhile, monthly active users, or MAU, on the Etsy app picked up in both April and May. "We note that MAU Y/Y growth eclipsed double-digits in May, the first time in over 22 months, which we attribute to the company's efforts to re-engage in short-term GMS [gross merchandise sales] conversion activity along with an increase in marketing efficiency," the analyst wrote. Although tariffs could be a sore spot for Etsy, the company remains relatively well-insulated, Squali said. Around 50% of its gross merchandise sales last year came from domestic transactions, and no single country's makes up more than 4% of Etsy's total sales, he said, highlighting the diversified nature of Etsy's seller base. Also, its exposure to the eliminiation of the de minimis exemption — which previously exempted importers that shipped goods valued at less than $800 from duties — is "manageable," the analyst said. "While the company does have exposure to the De Minimis exemption being eliminated in China, we believe it's relatively better insulated than some of its competitors including Temu (owned by PDD , [not rated]) and Shein (private) which have started raising prices on goods as a result of the Chinese Tariffs, and the end of the De Minimis exemption," he wrote. "Another benefit to Etsy from this dynamic is a pullback in ad spend at Temu and Shein." The analyst expects Etsy's gross merchandise sales growth and margins to improve in the latter half of this year, citing management's refocus on investing in growth. Squali added that Etsy's prioritization into paid social channels — at a time of declining organic traffic from Google search — could begin paying off. "Additionally, and importantly, Etsy saw growing contribution of GMS from Paid Social channels in 1Q, which we view as a positive signal for future growth as Etsy utilizes Paid Social channels to re-engage lapsed buyers on the platform," the analyst said.
