If they have a location, even just a stock pile storage, in the United States it isn't Alibaba cracking down it is the United States. The US is doing this through the credit card processing companies coming down saying they will stop processing credit cards etc.
I haven't purchased through Alibaba, but have friends that have and they have tried to get me to, I may on something like this.
Why not provide the tax-exempt paperwork if you have it? There is nothing they can do with it. With my companies that are in the United States(I am a US Citizen but full time live outside of the US right now and run the companies remotely) if you don't submit that we charge tax and pay it. There is a way around the tax issue and that is ship them to a state like Montana that does not have sales tax and then forward them to yourself. I have customers that I know are doing that, but can't prove it so I can't do anything about it.
I am going to send you a PM about the quote you received.