The de minimis rule lets low-value shipments (under $800) enter the U.S. duty-free. On August 29, 2025, U.S. Customs and Border Protection (CBP) will extend full duties and fees to all non-postal parcels, closing long-standing loopholes.
Background: What Is the De Minimis Rule?
The de minimis provision, from Section 321 of the Tariff Act of 1930, exempts qualifying shipments from duties, taxes, and formal entry, simplifies cross-border commerce for low-value parcels and raised from $200 to $800 in 2016.
Effective Date
All non-postal shipments valued at $800 or below will lose duty-free status on August 29, 2025. Postal parcels remain exempt, but carriers like couriers and freight forwarders must now collect full duties and fees.
Key Changes Taking Effect August 29, 2025
1. Stricter Documentation Requirements
• Digital platforms provide detailed shipment manifests
• Incomplete or inaccurate data may trigger duty assessments
2. Enhanced Enforcement on Split Shipments
• CBP targets artificial order splitting to evade duties
• Aggregated shipments above $800 face review and potential duties
3. Expanded Audits for E-Commerce Sellers
• Random and targeted audits to verify compliance
• Non-compliant sellers risk fines, penalties, and shipment delays
Impact on Businesses and Sellers
These updates aim to protect domestic industries and level the playing field. Key impacts:
- Increased administrative workload and paperwork costs
- Potential duty payments on previously exempt parcels
- Higher reliance on customs brokers for accurate classification
How to Stay Compliant
1. Maintain Accurate Records
• Invoice values, product descriptions, and harmonized tariff codes
2. Consolidate Shipments Ethically
• Avoid splitting orders solely to remain under $800
3. Partner with Experienced Brokers
• Leverage professional expertise for classification and valuation
4. Automate Declarations
• Integrate shipping platforms with CBP’s Automated Commercial Environment (ACE)
Practical Tips for E-Commerce Sellers
- Audit and revalue your SKUs to reflect true costs
- Train your logistics team on new CBP guidelines
- Monitor monthly shipment volumes to forecast duty liabilities
- Subscribe to CBP trade notices for real-time updates
Conclusion
With full duties and fees hitting non-postal shipments under the $800 threshold on August 29, 2025, e-commerce sellers and logistics providers must adapt. Strengthen documentation, leverage technology, and seek expert advice to avoid unexpected costs and maintain smooth operations.
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