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NZ had a similar loophole for our 15% GST (GST === our VAT/Salestax) however the loophole was closed by forcing the major overseas online retailers to collect the GST for the NZ government.

I didn't notice any bad effects - although it likely reduced online sales since prices went up by 15% for goods < $600.

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In the US, sales tax is imposed by states and local governments. AFAIK, Temu does collect and remit sales tax.

Import duties are levied by the Federal government. Temu's customers are exempt because their orders are under the de minimis limit.

When that "de minimis" limit was introduced, importing singular <$800 orders were probably a lot rarer and/or more difficult. When the average shipment being imported was an order of magnitude or more larger, it wouldn't be worth the paperwork (or the crazy inefficiency in the system from any retailers attempting it).

Technological progress has allowed massive amounts of what are essential non-existent packages to just blast through the system. We are in new territories, and it is maybe time that the rules became updated.

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