RIP De Minimis: Low Shipment Relief DEAD in 2025

Arne Mielken
Aug 4
4 min read

The U.S. kills off duty-free de minimis. Customs professionals must now reassess low-value import compliance—fast.

Commemorating the end of the U.S. de minimis duty exemption, this visual reflects the need for customs professionals to rapidly adapt to new low-value import compliance requirements.

If you're engaged in importing goods into the U.S., this alters everything.

Starting August 29, 2025, the $800 de minimis exemption will no longer apply to commercial shipments.

This marks the most assertive change in U.S. Customs policy in recent times, with worldwide implications.

In this blog, we address the key questions directly from President Trump's Executive Order and the associated fact sheet.

These are available for download below as well.

Arne's Takeaways

U.S. Customs just shut the door on low-value loopholes. No more $800 duty-free for couriers.
All shipments must now be entered formally, with full compliance and documentation.
Book a compliance audit or risk getting flagged. This is not business as usual.

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Key Questions Covered in This Blog

What is the U.S. de minimis exemption and what changed?
Which shipments are now affected?
What duties apply now—and how are they calculated?
Are there any exemptions left?
What legal powers is this based on?
What should Customs professionals do now?

Abbreviations Used In This Blog

CBP: U.S. Customs and Border Protection
IEEPA: International Emergency Economic Powers Act
ACE: Automated Commercial Environment

"This isn’t just about China. The U.S. has just redrawn the map for low-value imports—and everyone’s caught in it." Arne Mielken, Managing Director, Customs Manager

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What is the U.S. de minimis exemption and what changed?

Under U.S. Customs law, the de minimis exemption allowed goods valued under $800 to enter duty-free if sent via express couriers or the postal system. It meant millions of packages avoided scrutiny.

That loophole is now closed.

Effective 29 August 2025, all low-value commercial shipments—regardless of origin—must be declared and are subject to duties and controls. This includes imports from allies like Canada, the EU, and the UK.

Which shipments are now affected?

All commercial shipments under $800 sent via non-postal routes—like FedEx, DHL, and UPS—no longer qualify for automatic duty-free treatment.

Postal shipments (e.g., via USPS) still receive a temporary exemption, but even these now face new duties: either a flat rate or ad valorem tariffs based on origin and product category.

Exemptions remain limited to:

Gifts under $100
Personal goods under $200 brought back by travelers

What duties apply now—and how are they calculated?

There are two paths:

Ad Valorem Duties: Based on the existing IEEPA tariff schedules.
Flat Rates (temporary):
- <16% tariff = $80/item
- 16–25% tariff = $160/item
  25% tariff = $200/item

Flat rates are only available for six months, after which all shipments will be assessed based on value and origin.

Practical Expert Tip: Review your current shipping practices. Don’t rely on postal shipments as a workaround.

Are there any exemptions left?

Yes, but very few.

Personal travel returns valued under $200 and personal gifts under $100 still get exemptions. All commercial consignments must now clear Customs formally—even if they’re worth a few dollars.

Practical Expert Tip: Set up formal entry processes for all B2B and B2C low-value imports now.

What legal powers is this based on?

Trump used emergency authority under:

IEEPA
National Emergencies Act
Trade Act of 1974
3 U.S.C. § 301

The order cites national security risks tied to fentanyl, counterfeits, duty evasion, and the U.S. trade deficit.

What should Customs professionals do now?

Start by reviewing your current import strategies. If you're a U.S. importer or foreign exporter shipping to U.S. consumers, you need a new low-value entry compliance plan.

Classify your shipments properly. Don’t mislabel to dodge tariffs.
Use ACE and licensed brokers for non-postal shipments.
Prepare for flat rate duties to end. Plan for full ad valorem rates.

Practical Expert Tip: This is the right time to run an internal Customs compliance risk review.

Recap & Next Steps

This is a massive shift for importers, freight forwarders, e-commerce sellers, and compliance officers. U.S. Customs just changed the rules—and the penalties for getting it wrong can be steep.

✅ Reassess your low-value import models

✅ Stop relying on the $800 de minimis rule

✅ Get help from a qualified Customs Consultant

👉 Need help? Book a session at www.customsmanager.org or check out our U.S. Trade Compliance section at www.customsmanager.info.

Sources & Further Information

Downloads

SUSPENDING DUTY-FREE DE MINIMIS TREATMENT FOR ALL COUNTRIES

Fact Sheet: President Donald J. Trump is Protecting the United States’ National Security and Economy by Suspending the De Minimis Exemption for Commercial Shipments Globally

Disclaimer

Please note that the information provided in this article is for general informational purposes only and does not constitute legal, tax, or professional advice. While our aim is that the content is accurate and up to date, it should not be relied upon as a substitute for tailored advice from qualified professionals. We strongly recommend that you seek independent legal and tax advice specific to your circumstances before acting on any information contained in this article. We accept no responsibility or liability for any loss or damage that may result from your reliance on the information provided in this article. Use of the information contained in this article is entirely at your own risk.