With the "de minimis" exemption suspended by the US government, we expect lengthy delays as we sort out what this means for shipments to the US. READ MORE
Goodbye to Duty‑Free Imports Under $800: What You Need to Know
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Effective August 29, 2025 at 12:01 a.m. EDT, the U.S. government will end the de minimis exemption, which previously allowed goods valued at $800 or less to enter the U.S. without paying duties The White House+1www.hoganlovells.com.
What’s Changing—and Why?
Global duty applies to all commercial shipments (excluding certain exemptions like informational materials or personal letters). Even small parcels will now require full customs clearance and duties, regardless of origin or transport method The White HouseWhite & CaseBDO Canada.
Packages via international postal services will face one of two new duty structures:
Ad valorem duty: based on the tariff rate for the country of origin.
Flat-rate duty, valid for six months:
$80 for countries with IEEPA tariff rates under 16%
$160 for rates between 16–25%
$200 for rates above 25% The White Housewww.hoganlovells.com.
After six months, only the ad valorem method remains applicable.
This policy shift stems from several declared national emergencies—such as the opioid crisis, narcotics trafficking, and unfair trade practices—and aims to eliminate loopholes used by traffickers and counterfeiters The White House+1Buckland Customs.
Immediate Impact: Shipping Chaos
Many international postal operators, including those in Europe, Australia, Japan, and Mexico, have already paused or suspended shipments to the U.S., citing uncertainty and lack of implementation guidance The GuardianAP News+1Robotics & Automation NewsThe Times of India+1.
As of late August, 25 countries have suspended U.S.-bound mail, with carve-outs for items like gifts or letters under $100 The Times of IndiaAP News+1Fashion Dive.
The Universal Postal Union (UPU) is urging U.S. authorities to provide clarity to avoid long-term disruptions to global postal services AP News.
What Businesses and Consumers Should Expect
E-commerce and small-scale exporters—particularly those using low-value shipments—will face a wave of new costs: tariffs, brokerage, customs entry fees, and potential bond requirements BDO CanadaGHY InternationalThe Wall Street JournalPwC.
Logistics firms are seeing rising demand for Foreign‑Trade Zones (FTZs), which allow deferred duty payments until goods are sold or consumed domestically The Wall Street Journal.
Operational complexity: businesses must adapt to new entry filing processes, classification requirements, and bond obligations, adding both time and cost GHY InternationalTrans.INFO.
Consumers may face price increases on low-cost imports previously landing duty-free AP NewsBDO CanadaThe Sun.
What You Can Do
For Businesses:
Audit your current shipping workflows—identify which SKUs rely on de minimis exemptions.
Recalculate landed costs, including tariffs, brokerage, compliance fees, and bond costs.
Explore FTZ options to defer duties—particularly useful for e‑commerce brands The Wall Street Journal.
Update systems and supply chain partners about new HTSUS classification and reporting requirements U.S. Customs and Border ProtectionPwCGHY International.
Communicate price changes or policy shifts transparently to customers to manage expectations.
For Consumers (and Businesses importing small quantities):
Look for items “Shipped from the U.S.” to avoid import duties and customs delays AP News.
Consider purchasing from local alternatives until logistics stabilize.
Be patient—postal services and carriers are adapting, but delays and costs are likely in the near term.
In Summary
The de minimis exemption ends on August 29, 2025, fundamentally altering how low-value goods enter the U.S. This move aims to curb misuse of the system—particularly smuggling and unfair competition—but comes with significant disruption to postal services, global shipping operations, and cross-border trade models.
If you're running an e‑commerce or logistics operation, adapting now is critical. And if you're a shopper, expect more customs paperwork—and possibly higher prices.
