The chances are that you have never heard of “the exclusion of de minimis”. However, if you are a fan of TEMU, Shein or, more importantly, brands such as Takomo Golf, you love you.
And it can simply end those big deals you have received. For Takomo and others, it places a serious trace on the company’s value proposal and can force a review of its entire business strategy.
This requires an explanation.
What is “DE MINIMIK EXCEPTION?”
Have you ever wondered why, no matter what you do, you can’t get the price of a set of takomo handcuffs to exceed $ 800? Or, if you order handcuffs, a road tree and some wedge, they come in separate shipments?
The reason is Excluding minimum.
DE minimum exemption is simple. Anydo individual shipment of everything for an individual customer at the US worth less than $ 800 is exempt from import tasks. The only additional fee for something like golf clubs would be a goods processing fee, usually just a few dollars.
If the shipment comes through sea transport, there is a port maintenance fee that is usually 0.125 percent of the total value. There is no port maintenance fee for air goods shipments.
However, an executive order of the White House has been, since May 2, ending the exclusion de minimis.
After that date, any shipment originating from China or Hong Kong under $ 800 will be subject to all applicable tasks. This can be as low as $ 25 per item (going up to $ 50 per item in June) or may be 30 percent, depending on the value of the shipment.
This means that a group of takomo 101t player, currently priced at $ 589 per group of shares, can be dumped to more than $ 767 since May 2.
The phenomenon of “point of point”
Since the exception of $ 800 de minimis came into force in 2015, there has been a dramatic increase in what is known as “point work”.
By transporting the point, a company can sell products made in China without the need for shares, handle or send nothing on its own. The original manufacturer deals with all logistics, everything from mounting to storage and transport. A company does not even need an actual business location or headquarters. When a consumer order from that company’s website, that order goes directly to the factory. The factory then collects, packs and sends single order. The company never touches, stores or even sees the products it sells.
If you bought anything from Tokyo, check the shipping label. It comes directly for you from Hong Kong, though Takomo Co, Ltd. It is based in Finland.
The benefit of the point ship is considerable. There are thousands of Chinese suppliers who specialize in the personalization and private labeling of their products. They are also very good in integrating their processes into e -commerce businesses. The company that sells to the consumer becomes the front “brand”. Because he never sees, touches or deals with the current product, there is no need to worry about congestion or understanding, sales forecasts, inventory management or a workforce too beyond the office staff.
Profit margins are higher and low in cost to social media marketing at no cost runs sales.
Not all direct consumer companies are alike
Since de minimis guidelines came into force in 2016, excluded ship imports have increased over 400 percent, which is in accordance with the increase in e -commerce. Temu and Shein have already set up prices since the executive order was announced on April 2.
We know that the new tariff world will affect players. No one, however, is 100 percent safe for what will happen as the situation seems to be changing every day. What we know is that direct companies to the consumer will be affected differently by the main OEMs. We also know that prices will rise, likely across the board.
The end of the DE minimis exemption will not affect DTC brands that are collected, packaged and transported to the US that includes brands such as the Sub 70 and The Sports Brands Inc. The army of Ben Hogan, MacGregor, Ram, Zebra and Teardrop.
However, those companies will be hit by the fees of the ingredients they import from China and other countries. A DTC brand tells us that shipments from the shaft suppliers have increased. It has also protected the air in other ingredients to take forward the pending tariffs.
The executive order that ends the exclusion of De Minimis specifically aims to China. We do not know how, or if, this will affect DTC brands like Haywood, centered on Vancouver, BCE after checking Scotland based Golf Caley The website and finding “404-page messages have not been found” on the products of the products, Caley has confirmed MygolfSSS that it is currently, stopping shipments to the US due to the latest tariff announcements.
We have yet reached Takomo and Haywood, without any response.
MygolfSpy will stay on top of it…
tariff situation It is unpredictable and fluent, to say at least, and will continue to evolve in the coming weeks. MygolfSSS will do the best to stay on top of things to keep you, the golf consumer, as far as possible.
office How will the end of De Minimis Golfers affect? first appeared in MygolfSSS.
