There Is $60 Billion
Sitting on the Table.
Foreign sellers hide behind a 1987 treaty. But the law already exists to override it — and recover up to $60 billion in annual U.S. tax revenue they've never paid.
The Supreme Court established the legal principle in South Dakota v. Wayfair (2018). The law already exists. IRC §864, the TCJA, and established withholding mechanisms give the IRS the authority to act today.
A free marketplace must be a fair marketplace.Open competition only works when every participant plays by the same rules. Right now, they don't.
Foreign seller share of U.S. marketplaces
Up from 18% in 2017. At million-dollar sellers: 57% Chinese, 39% American. Marketplace Pulse, 2025
When the tax treaty was written
The U.S.–China Income Tax Treaty predates the commercial internet, Amazon, and e-commerce by decades.
E-Commerce Is America's Greatest Entrepreneurship Engine
It allows anyone, anywhere in the United States to build a business. It creates jobs in every state. It generates tax revenue in every community. And it is under threat.
$1.2T
U.S. e-commerce sales (2024)
Doubled from $571B in just five years
Source: U.S. Census Bureau
2M+
American jobs created by marketplace sellers
Growing 11% year-over-year
Source: AboutAmazon.com
50 states
E-commerce sellers in every state
Rural sellers saw 30%+ growth in 2024
Source: Amazon Small Business Report
55K+
Sellers exceeded $1M in sales (2024)
76% of Amazon sellers are profitable
Source: AboutAmazon.com
All of this is being lost to foreign sellers with a regulatory cost advantage.
Foreign sellers pay $0 in U.S. income tax. American sellers pay up to 50.3%. Same platforms. Same customers. Same products. If nothing changes, the American entrepreneurs who built this $1.2 trillion industry will be pushed out of it.
The IRS Can Recover $9–60 Billion Per Year. No new law required.
Foreign sellers generate an estimated over $220 billion in annual U.S. marketplace sales — storing goods in American warehouses, shipping to American customers, using American infrastructure. They pay zero U.S. income tax.
Under IRC §864, these sellers already have a U.S. Trade or Business. The TCJA (2017) strengthened this authority. The Supreme Court confirmed in South Dakota v. Wayfair (2018) that economic activity alone creates a tax obligation. Established withholding mechanisms (FIRPTA, §3406, §1441) provide the collection tools. The law exists. Apply it.
Revenue from foreign sources — not American taxpayers.
This revenue comes entirely from foreign sellers profiting from American consumers and infrastructure. No new tax on American citizens. No new tariff. No new legislation. Simply enforcing existing law against foreign entities who owe but don't pay.
Scale of the Opportunity
At its upper estimate, annual recoverable revenue from foreign seller taxation equals approximately 31% of all tariff revenue the United States collected in fiscal year 2025—recovered without a single new trade restriction or tariff. See full methodology
What the IRS Must Do — Four Actions
Issue Guidance Under IRC §864 & the TCJA
Declare that foreign sellers exceeding $500,000 in annual U.S. marketplace sales or 200 transactions have a U.S. Trade or Business — generating Effectively Connected Income subject to U.S. taxation at standard rates.
Assert the "Later in Time" Principle
Clarify that the TCJA (2017) supersedes the 1987 treaty's PE exemption under IRC §7852(d) — or that the treaty's "preparatory or auxiliary" exemption does not apply when marketplace fulfillment is the seller's primary business.
Implement Marketplace Withholding
Require platforms to withhold a percentage of disbursements to foreign sellers using existing authority: FIRPTA (§1445), backup withholding (§3406), or §1441/§1442. Collected at the platform level before funds reach foreign accounts.
Enforce Filing & Coordinate with Congress
Require foreign sellers to file Form 1120-F or 1040-NR. If additional authority is needed, provide Congress specific recommendations exercising the "later in time" override of the 1987 treaty.
The Legal Framework: Why This Works
The argument rests on three pillars—each independently robust, together forming an overwhelming case for IRS action.
IRC §864 & the TCJA: The Law Already Exists
Under IRC §864(b), foreign sellers with substantial U.S. activity already have a U.S. Trade or Business. The TCJA (2017) strengthened this — and under the "later in time" rule (IRC §7852(d)), domestic law supersedes the 1987 treaty. No new legislation required.
Learn MoreWayfair Establishes the Precedent
In South Dakota v. Wayfair (2018), the Supreme Court held 5-4 that physical presence is NOT required — economic nexus based on sales volume is enough. Every state adopted this for sales tax. The same principle should apply federally to income tax.
Learn MoreWithholding Mechanisms Already Exist
FIRPTA (IRC §1445) already requires 15% withholding on foreign property sales. Backup withholding (§3406) requires 24% when no TIN is provided. IRC §1441/§1442 requires 30% withholding on foreign income. Marketplaces already collect sales tax this way — the infrastructure is in place.
Learn MoreThe Wayfair Analogy
If states can tax a seller with $100,000 in sales and no physical office, why can't the IRS tax a foreign seller with $10 million in sales and inventory sitting in American warehouses?
Wayfair redefined what it means to do business in America: "substantial economic presence" is enough. Applied federally to income tax, that standard captures every foreign seller currently operating tax-free in America.
States after Wayfair (sales tax)
A seller with $100,000 in annual sales to state residents owes state sales tax. No office. No warehouse. No employees. Just sales.
IRS today (income tax — the gap)
A foreign seller with $10 million in U.S. sales, inventory in 5 American warehouses, and 50,000 U.S. customers owes zero U.S. income tax. Because the 1987 treaty says so.
What should happen
The IRS issues guidance declaring that $500,000+ in annual U.S. marketplace sales constitutes a U.S. Trade or Business under IRC §864. All foreign sellers file Form 1040-NR or 1120-F and pay at standard U.S. rates.
The Evasion Problem Is Already Accelerating
When China required platforms to report seller revenue in 2025, Chinese sellers didn't comply — they evaded. U.S. LLC registrations by Chinese operators surged nearly 400% year-over-year.
780 sellers switched Amazon registrations to Hong Kong in a single month. Major sellers maintain U.S. LLCs not for compliance — but for appearances, while profits flow to China untaxed.
This is why mandatory U.S. entity and EIN registration must be paired with mandatory marketplace-level tax withholding (15–30%, using existing authority under FIRPTA, §3406, and §1441). Entity requirements alone can be circumvented. Payment withholding at the platform level cannot.
Sources: Marketplace Pulse; EcomCrew; Seller Labs, 2025
Why Withholding at the Platform Level Is Critical
Marketplace facilitator laws—already in place for sales tax in all 50 states—prove that platforms can and do withhold taxes on behalf of sellers. Extending this model to income tax withholding (at a rate between 15–30%, consistent with FIRPTA, §3406, and §1441 precedent, on net marketplace payments) is administratively straightforward and evasion-resistant, because the payment never reaches the foreign seller untaxed.
A Precedent Already Exists
The U.S. already withholds 30% on U.S.-source income paid to foreign persons under IRC §1441–1446 (FIRPTA, FDAP income). Applying equivalent withholding to marketplace disbursements is consistent with existing U.S. tax architecture—not a novel departure from it.
Source: IRS Publication — IRC §1441–1446
The De Minimis Victory
The closure of the de minimis loophole in 2025 is a meaningful step forward. Over 1.36 billion duty-free packages entered the U.S. from China in 2024 under this exemption. Closing it was the right call.
But tariffs on packages address import duties—not income tax. Foreign sellers still owe zero U.S. income tax on their profits. The de minimis closure is a floor, not a solution.
Source: NBC News, May 2025
In 2017, foreign sellers held 18% of U.S. marketplace sales.
By 2023, they crossed 50% on Amazon.
Now the pattern is accelerating across all major U.S. marketplaces — Amazon, Walmart, TikTok Shop, Temu — and American sellers can't compete.
This is not traditional competition. It is a policy-enabled asymmetry embedded in the system — playing out across every major U.S. marketplace.
Source: Marketplace Pulse, January 2025
A Built-In 50% Cost Advantage. By Design.
Same product. Same marketplace. Same American customer. The foreign seller pays zero U.S. income tax — federal and state — a built-in 50% cost advantage on every transaction (up to 37% federal + up to 13.3% state that American sellers pay and foreign sellers don't). The CCP amplifies it further with direct subsidies, tax credits, and below-market government loans for cross-border sellers targeting America across every major U.S. marketplace. We are handing our competitors a 50% cost advantage — the keys to destroy American commerce.
Selling a $30 product on any major U.S. marketplace
Same $30 price. Zero U.S. income tax.
Illustrative model. Excludes company-level fixed costs. Source: AEBA policy analysis.
Why should an American pay more
to sell to Americans than a foreigner does?
Same marketplace. Same American customer. Same product. The American seller pays up to 50.3% in combined federal and state income tax. The foreign competitor pays zero — across every major U.S. marketplace. We are handing our competitors a 50% cost advantage — the keys to destroy American commerce.
See the Full Timeline: The Silent Takeover →Ten Ways the System Is Broken
The problem is not a single loophole. It is a systemic failure — exploited simultaneously across tax, customs, consumer protection, and intellectual property.
No Consumer Protection
Americans injured by foreign-sold products have no legal recourse — foreign sellers cannot be effectively sued or compelled to pay judgments in U.S. courts.
Intellectual Property Theft at Scale
Chinese sellers copy American products, list counterfeits on the same platforms, then reopen under a new name when caught — with no consequence.
USPTOZero U.S. Income Tax on $220B+ in Sales
$220 billion+ in annual U.S. marketplace sales across all major platforms. Zero U.S. income tax (federal and state). A 50% built-in cost advantage over every American competitor who pays combined rates up to 50.3%.
Marketplace Pulse / AEBA analysisSystematic Tariff Fraud
Sellers undervalue invoices, mislabel goods, and reroute through Vietnam and Mexico to evade tariffs — at a volume CBP cannot inspect.
CBP enforcement reportsState-Sponsored Competition
The CCP subsidizes cross-border sellers targeting America with tax credits, direct grants, and below-market government loans.
ITIF, April 2025Review and Search Manipulation
Foreign sellers manipulate reviews, sabotage competitor listings, and game algorithms — with zero accountability — while American businesses absorb the damage.
FTC enforcement recordsLax Platform Enforcement
Every enforcement action is undone the next day when the same seller opens a new account.
Forced Labor and Contraband
Forced-labor goods undercut U.S. manufacturing, and the de minimis loophole doubled as a fentanyl smuggling channel — closed in 2025, but income tax evasion continues.
House Select Committee on the CCP, 2023USPTO Overwhelmed by Weaponized Filings
Chinese USPTO filings surged from 8,000 in 2010 to 48,000 in 2020 — fraudulent patents filed specifically to remove American sellers from marketplaces.
USPTO annual reportNational Economic Security Risk
Tens of thousands of American businesses destroyed through structural disadvantage — the same threat profile that led Congress to act on TikTok, at larger economic scale.
The Data Is Clear
Each number below is sourced, updated, and represents a measurable dimension of the crisis. Every statistic reflects a policy failure costing American businesses and the U.S. Treasury right now.
Foreign share of top sellers on U.S. marketplaces
American sellers dropped below the majority in 2023 and have not recovered.
Marketplace Pulse, Jan. 2025Share of new Amazon seller registrations that are Chinese
American sellers: 26.8% of new registrations. Down from 70.6% in 2015.
Marketplace Pulse, 2024Estimated Chinese seller revenue across all major U.S. marketplaces
$132B on Amazon alone, plus Temu, Shein, TikTok Shop, Walmart & others. Zero U.S. income tax paid.
AEBA Tier 1 Bottom-Up Analysis, 2024Packages from China that entered the U.S. duty-free in 2024
Up from 139 million in 2015. De minimis loophole now closed (2025).
House Select Committee on the CCP, 2025U.S.–China trade deficit (2022)
Over 40% of the nation's total trade gap. E-commerce untaxed outflows compound this.
U.S. Census Bureau, 2022Increase in U.S. LLC registrations by Chinese operators in 2025
A direct response to China's new seller reporting requirements—evading, not complying.
EcomCrew / Marketplace Pulse, 2025Foreign Seller Marketplace Share: A Decade of Shift
Percentage of top sellers on major U.S. marketplaces that are foreign-based
Source: Marketplace Pulse (2025)
Annual U.S. tax revenue not collected because the IRS has not applied IRC §864 and the TCJA to foreign marketplace sellers
Source: AEBA analysis, Appendix A
Structural cost advantage foreign sellers hold over every U.S. competitor — up to 37% federal + 13.3% state income tax they don't pay
Source: AEBA unit economics model
Total U.S. tariff revenue collected in 2025 — the benchmark for what the tax fix could approach
Source: U.S. CBP, 2025
America Already Lost Its Factories.
Can It Afford to Lose Its Brands?
The promise was simple: America would design the products, build the brands, and let the world manufacture. That promise has one condition. The brand builders have to survive. Right now, they can't.
We Lost Manufacturing
Factories moved to China. The argument: America would compete on higher-value work — design, innovation, brand-building — keeping the commercial value while outsourcing production.
We Are Losing the Brand Builders
The small businesses that honored that bargain — designing products, building audiences, selling direct — are being systematically eliminated. Not by better products. By a 50% tax advantage (up to 37% federal + 13.3% state), CCP subsidies, and zero U.S. tax liability.
We Lose the Creators Entirely
Foreign sellers own 70–80% of marketplace sales, entrenched behind years of reviews, rankings, and customer data built under a rigged system. The pipeline from American idea to American shelf is permanently broken.
Retail. Warehousing. Last-mile delivery. Consumer data. Every layer is under threat.
See the Full Picture: All Six Layers →The Brand Is the Product. And We Are Giving It Away.
An American small business that builds a brand creates real assets: a name, a customer base, IP, market position — a node in the American economy paying taxes and employing people.
When a Chinese seller with a 50% cost advantage copies that product and buries it with manipulated reviews, the American brand loses everything: IP stolen, customers captured, market position transferred to an entity that paid nothing to build it. This happens 50,000 times a year. There is no legal mechanism for recovery.
If Nothing Changes — The 10-Year Scenario
Foreign sellers hold 65–70% of U.S. marketplace sales.
New American entrants face years of accumulated reviews, rankings, and customer data built under a rigged system — a wall they cannot climb.
The American brand-building pipeline collapses.
The startup that would have become a $50M American brand never makes it past year two — you cannot outwork a 50% structural tax advantage.
American entrepreneurs exit the product economy.
The next generation of American entrepreneurs abandons product-building entirely — because the economics are permanently broken.
Americans become consumers only. Never creators.
America buys. China builds and brands. The last competitive advantage we kept after losing manufacturing — gone.
Even if we fix the rules tomorrow, the moats built under the broken system will persist for a decade. Reviews don't disappear. Search rankings don't reset. Customer relationships don't transfer back.
This is why delay compounds the damage. Every year of inaction is a year of moat-building that will take a decade to undo.
The Review Moat
A Chinese seller from 2018 has six years of reviews — often manipulated. An American startup today launches against 40,000 ratings earned under a rigged system, and changing the tax rules alone won't erase them.
The Search Moat
Marketplace algorithms favor long sales histories and established ad spend — all built with a 50% cost advantage — ranking positions that would have taken 5–7 years to build fairly.
The Capital Moat
Chinese sellers extracted billions in untaxed U.S. profit and reinvested it in product development and pricing power — capital American competitors, paying full taxes, cannot match.
Congress Acted on TikTok When It Saw the Threat. The Threat Here Is Larger.
When Congress determined that a Chinese-owned social media platform posed a national security risk, it acted. The argument was straightforward: a foreign adversary controlling access to American consumers and their data is unacceptable.
The e-commerce crisis is structurally identical — and larger in economic consequence. Foreign sellers aren't just accessing American consumers; they are displacing the American businesses that serve them, capturing value that would have stayed here, paying zero taxes, and meeting zero consumer protection standards. TikTok protected American attention. This protects American commerce. It is more consequential.
The Test of Seriousness
Can we afford to lose the ability of Americans to build product brands?
No. Brand ownership is where innovation, employment, and tax revenue originate — losing it is not an economic abstraction.
Is this a problem that solves itself with time or market forces?
No. Markets do not self-correct against a state actor. This distortion is government-made and requires a government response.
Is the solution technically difficult or legally unclear?
No. The IRS has authority. The Supreme Court established the principle. The mechanism already exists. This is a question of will.
Does delay make the problem better or worse?
Worse, every year — moats deepen, businesses close permanently, and the cost of recovery compounds.
Every day of inaction is a transfer.
A transfer of wealth, of brands, of commercial sovereignty—from American hands to foreign ones.
No new law. No trade war. No treaty renegotiation. The authority already exists under IRC §864 and the TCJA. Wayfair established the precedent. What is missing is the will to act.
Every Layer of American Commerce Is Under Threat
Outdated laws — written before e-commerce existed — give foreign sellers a 50% cost advantage. The result: systematic displacement at every layer.
Offshored to China. 6M jobs lost 2000–2010.
Deep Dive →57% of million-dollar marketplace sellers are Chinese. $0 U.S. income tax.
Deep Dive →Temu, Shein, TikTok Shop replacing American retailers. 15,000 stores closing in 2025.
Deep Dive →5.6M sq ft leased by Chinese 3PLs in NJ alone. CFIUS can't review leases.
Deep Dive →UniUni ($285M Chinese VC) covers 65% of U.S. population.
Deep Dive →Foreign platforms collect American purchasing behavior at scale.
Deep Dive →The Full Reform Package
Three immediate actions. Thirteen structural reforms. All of it doable now.
IRS Applies Existing Domestic Law
Declare that $500,000+ in annual U.S. marketplace sales constitutes a U.S. Trade or Business under IRC §864. The TCJA strengthened this authority. Implement withholding under FIRPTA (§1445), backup withholding (§3406), or §1441/§1442. No new law required.
Administrative action only. Effective upon issuance.
Mandatory Withholding at the Platform Level
Marketplaces withhold a percentage (15–30%, per existing precedent under FIRPTA, §3406, and §1441) of disbursements to foreign sellers and remit to the IRS — exactly how sales tax collection already works. Evasion-proof by design.
Precedent: FIRPTA 15% (§1445), backup 24% (§3406), foreign persons 30% (§1441). Rate at IRS discretion.
Mandatory U.S. Entity + EIN
Every seller on a U.S. marketplace must hold a U.S. legal entity and EIN. No entity, no marketplace access. Pairs with withholding to close the evasion loop.
Addresses the Hong Kong re-registration surge documented in 2025.
Complete 16-point framework below — addressing tax, enforcement, consumer protection, trade fairness, and platform accountability.
Apply IRC §864 & the TCJA — Override the Treaty Shield
Foreign sellers hide behind the 1987 treaty to avoid U.S. income tax. But IRC §864 and the TCJA already establish their tax obligations. Under §7852(d), domestic law supersedes the treaty. The IRS should apply existing law and implement mandatory marketplace withholding.
Mandatory U.S. Entity, EIN and Tax Compliance
All sellers—foreign and domestic—must maintain a U.S. legal entity, a U.S. Employer Identification Number, and pay U.S. income and corporate tax rates on U.S.-source income.
Mandatory Marketplace Tax Withholding
Marketplaces must withhold a percentage of disbursements to foreign sellers and remit directly to the IRS. Established precedent ranges from 15% (FIRPTA, §1445) to 24% (backup withholding, §3406) to 30% (§1441/§1442). The IRS should determine the appropriate rate using these existing frameworks.
180-Day Fund Hold Period
Foreign seller funds must be held for 180 days to allow resolution of consumer protection claims, IP disputes, and fraud investigations—preventing fund flight to foreign accounts before legal remedies can be pursued.
U.S. Responsible Persons and Liability Bonds
Foreign companies must appoint a U.S.-based responsible person and maintain liability bonds of $1M+ in a U.S. bank account. Creates enforceable domestic legal recourse for injured consumers.
Tariffs Based on True Country of Origin
Tariffs based on the entity and entity owner's true country of origin, closing transshipment loopholes via Vietnam, Mexico, and Canada. Clearly defined exemptions for genuinely U.S.-owned and operated companies.
Federal Incentives for Domestic Manufacturing
Direct federal incentives for small businesses to invest in and manufacture within the United States—rebuilding American industrial capacity at the small-business level.
90-Day Product Pre-Registration
Foreign sellers must pre-register all products 90 days before sale. IP owners may review and block infringing products before they go live. Platforms and ad-tech companies must build this into their infrastructure.
Open All Import Records to the Public
All HTS/HS/Import records must be publicly accessible—enabling self-policing by American businesses, journalists, researchers, and law enforcement tracking foreign seller activity.
Mandatory Seller and Product Origin Disclosure
Marketplaces must visibly display the seller's country of origin, HS/HTS codes, and all tariff information for every listed product—giving consumers and sellers full visibility to self-police.
Mandatory U.S. Insurance Coverage
All foreign and Chinese sellers must be insured by licensed U.S. insurance providers—creating a domestic claims mechanism for consumers injured by defective or counterfeit products.
Marketplace Liability for Policy Enforcement
Platforms must be held liable for enforcing their own marketplace policies—including review manipulation, search ranking abuse, counterfeit listings, and other forms of commercial fraud.
Equal Fee Structures for All Sellers
Marketplaces cannot offer preferential incentives, lower fees, or special promotional terms to foreign sellers. All seller treatment must be equal regardless of country of origin.
No USPTO Registrations Without a U.S. Entity
Trademark and patent registrations at the USPTO must require a valid U.S. legal entity—closing the loophole enabling mass weaponized filings from foreign entities (48,000 Chinese USPTO filings in 2020 alone).
All Compliance Testing Must Be U.S.-Based
Product compliance and safety testing for any good sold on U.S. marketplaces must be conducted by accredited U.S. testing facilities—not foreign labs with no accountability to U.S. standards.
Close the De Minimis Loophole
The $800 duty-free threshold was exploited to avoid tariffs, smuggle fentanyl, and circumvent customs inspection. The 2025 closure was the right call. This must be made permanent and airtight.
Expected Outcomes
$9–60B in Recovered Tax Revenue
Annually — recovered without new taxes, new laws, or new tariffs
A Level Playing Field
All marketplace participants held to identical standards, regardless of where they are incorporated
Enhanced Consumer Protection
Real accountability for product safety, counterfeits, and fraud—with enforceable domestic remedies
Increased Industrial Capacity
Federal incentives rebuild American manufacturing at the small-business level across rural and urban areas
Reduced Supply Chain Risk
Less dependence on overseas supply chains vulnerable to geopolitical disruption or manipulation
Balanced Trade Relations
Reciprocity enforced consistently—the same rules we apply to American companies, applied to everyone
This Is Not Just a Business Problem.
American Consumers Are Being Harmed.
The cost of inaction shows up in emergency rooms, pharmacies, and data breach reports — not just boardrooms.
Americans seriously injured by counterfeit products every year
More than 75% of harmful counterfeit products entering the U.S. originate from China. With no U.S. legal entity required and no liability bonds mandated, injured consumers have no recourse.
Source: USPTO estimatesCounterfeit Medications
Fake pharmaceuticals and supplements with unknown, unregulated ingredients sold through standard marketplace listings.
FDA enforcement recordsUncertified Electrical Products
Chargers, cables, and devices that fail U.S. safety standards cause fires and electrocutions. UL certification is ignored.
CPSC product safety databaseChildren's Product Risks
Toys and children's products bypassing U.S. safety requirements listed alongside compliant domestic goods with no disclosure.
CPSCConsumer Data Theft
Foreign marketplace operators harvest U.S. consumer data and sell it on dark web marketplaces. 1,862 data breaches recorded in 2021—68% more than 2020.
ITRC Annual Data Breach Report, 2021Substandard or counterfeit PPE
Entered U.S. channels during COVID-19, per DHS reporting
Source: DHSFlagged cross-border transactions
Suspicious e-commerce activity flagged in 2022, indicating money laundering through storefronts
Source: DEA, 2022Chinese USPTO trademark filings in 2020
Up from 8,000 in 2010. Fraudulent patents weaponized to remove American sellers from platforms.
Source: USPTO Annual ReportA Win Worth Noting: The De Minimis Loophole Is Closed
The 2025 closure of the de minimis exemption—which allowed over 1.36 billion packages to enter the U.S. duty-free from China in 2024—is a meaningful and necessary step. The exemption was being exploited to avoid customs scrutiny, evade tariffs, and smuggle fentanyl. Closing it was the right decision.
However: tariff reform addresses duty on imports, not income tax on profits. Foreign sellers still owe zero U.S. income tax on billions in marketplace earnings. The de minimis closure is a floor. The IRS action is the ceiling.
Source: NBC News, May 2025
In the News
The e-commerce fairness crisis is well-documented. These are the stories from journalists, researchers, and analysts covering it.
The SAFE Act: Senate Bill Targets Foreign Seller Fraud on U.S. Marketplaces
Senator Bill Cassidy (R-LA) introduced the Securing Accountability in Foreign Entries (SAFE) Act — legislation that directly advances AEBA's core mission by requiring verifiable, accountable parties to serve as importers of record. Foreign entities without meaningful U.S. presence can no longer hide behind the system.
“American markets should be safe from foreign fraudsters. We’re making it easier to do business with the partners we trust, and harder for those we don’t.”
— Sen. Bill Cassidy (R-LA)
How the SAFE Act Advances AEBA's Mission
Importer Accountability
Requires verifiable U.S. presence — aligns with AEBA Priority 03: Mandatory U.S. Entity + EIN.
Levels the Playing Field
Ends the decades-long practice letting foreign sellers bypass the rules American businesses follow.
Customs Integrity
Strengthens bonding requirements and trade enforcement — closing gaps that enable fraud.
Bipartisan Momentum
Backed by Flexport, Coalition for a Prosperous America, and trade enforcement organizations.
China Reaches Global Majority on Amazon
For the first time, Chinese sellers hold the majority position on Amazon globally. Their share of new seller registrations reached 62.3%, while American sellers fell to 26.8%.
Are Chinese Sellers Taking Over Amazon? It Depends on the Category
SmartScout analysis finds that 57% of Amazon sellers earning over $1M in revenue are Chinese. In cities with the most Amazon sellers, more than half are in China—Shenzhen alone hosts 102,000+.
White House Takes Action on Trade Loophole Exploited by Chinese E-Commerce
The Biden administration proposed eliminating the de minimis exemption for goods subject to tariffs, targeting Chinese platforms that structured entire expansion strategies around this $800 threshold.
De Minimis Loophole Shut Down: SHEIN and Temu Face New Tariffs
Trump's executive order ended the de minimis exemption for Chinese goods. Over 1.36 billion packages entered the U.S. duty-free in 2024 alone. New tariffs: 90% of value or $75—rising to $150.
How China's State-Backed E-Commerce Platforms Threaten American Consumers and U.S. Technology Leadership
ITIF analysis shows China uses unfair industrial policy—subsidies, regulatory support, state-backed logistics—to boost domestic platforms' global expansion at the expense of American competitors.
How to Close Loopholes on Chinese E-Commerce and Boost U.S. Retailers
In 2018, China exported $5.3B in low-value single packages globally. By 2023, that number ballooned to $66B—with nearly $20B imported to the U.S. alone. This must stop.
Trump Tariffs Mean Higher Prices, Big Losses for Amazon Sellers That Source from China
As tariffs rise, the reliance of American sellers on Chinese manufacturing becomes a vulnerability. Over 70% of Amazon sellers source from China—a supply chain risk amplified by recent trade policy shifts.
Chinese Businesses Acquire U.S. IP to Curtail Competition from Chinese Competitors
Chinese sellers are filing fraudulent U.S. patents for pre-existing products—then weaponizing those patents to remove American sellers from online marketplaces. Fighting these claims often costs more than the product is worth.
Free markets only work when they are fair markets.
Join the American E-Commerce Business Alliance
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