"Shortly after Nicki Patel, a California-based hospitality executive, ordered a dress from New Delhi-based House of Masaba for a friend's Indian wedding, she received a warning from the brand on WhatsApp that she would be hit with an import duty if she continued with the transaction. She thought to herself, "How bad could it be?" and confirmed the order. Then a $260 bill from shipping service DHL landed in her inbox, over two-thirds of the price of the outfit itself, $375."
""I was backed into a corner to pay it," she said. "Even if I had made a different decision, I felt as if I would have gotten hit with an import duty anyways, no matter what I bought or where I bought from." For anyone who has shopped online in the past month, Patel's scenario is a familiar (or, at least much-feared) one. On Aug. 29, the de minimis loophole, which allowed packages under $800 to enter the US without duties, officially ended."
International online shoppers now face import duties on packages previously exempt under the de minimis threshold. A California buyer paid a $260 DHL import charge on a $375 outfit after confirming a purchase from New Delhi. The de minimis loophole ended on Aug. 29, removing duty-free entry for packages under $800. The change has affected diverse retailers and labels, including fast-fashion platforms, luxury e-tailers and athleticwear companies. Canadian e-tailer Ssense cited the closure in its bankruptcy filing and Lululemon reduced revenue expectations. Small international brands must decide how to handle new duties, communicate changes to U.S. customers and revise growth plans.
Read at The Business of Fashion
Unable to calculate read time
Collection
[
|
...
]