The de minimis exemption is ending: Is your business ready?

Last updated on November 19, 2025, at 12:30 p.m. ET. Attend our webinar series, Trade and Tariff Tuesdays, to hear Avalara experts discuss global trade issues and their business implications.

The United States eliminated the de minimis exemption for all countries as of August 29, 2025. For products of China and Hong Kong, de minimis ended on May 2, 2025.

Following the lead of the U.S., the European Commission plans to remove its €150 de minimis exemption in 2026. The United Kingdom has also been reviewing this issue and will likely eliminate its £135 de minimis exemption as part of the Autumn Budget 2025.

Key takeaways

• The U.S. ended de minimis for all countries on August 29, 2025. The de minimis exemption was eliminated for products of China and Hong Kong effective May 2, 2025.
• With the de minimis suspension, all imports must include the 10-digit Harmonized Tariff Schedule of the United States (HTSUS) codes when filed electronically through the Automated Commercial Environment (ACE). Assigning the correct HTSUS codes helps ensure accurate tariff application, such as the ~51.1% average tariff on Chinese goods, the more than 76% tariff on Brazilian beef, and other country-specific (and product-specific) rates.
• Low-value international postal shipments are subject to applicable tariffs or to a flat duty ranging from $80 to $200 per item, depending on the country of origin.
• American travelers may bring back up to $200 worth of personal items duty free, and individuals can receive bona fide gifts valued up to $100 duty free.
• The EU and U.K. are likely to end their duty-free de minimis policies in 2026.

Read on for more information or jump to the sections that interest you most:

• What is the de minimis exemption for customs duties?
• Trump ends de minimis
• New entry process for low-value goods
• Postal operators suspend shipments to U.S.
• Impact on businesses
• Why is the U.S. eliminating de minimis?
• De minimis FAQ

The U.S. de minimis trade policy allows many goods valued at or under $800 (per person, per day) to enter the country exempt from duty and import taxes. De minimis is authorized under Section 321(a)(2)(c) of the Tariff Act of 1930, so these imports are often called Section 321 Entries.

Roughly 100 countries/territories have de minimis thresholds, but the U.S. threshold is (or historically has been) by far the most generous. Congress raised the de minimis threshold from $200 to $800 (per person per day) in March 2016. The $800 value is based on the aggregate fair retail value in the country of shipment.

On February 1, 2025, President Donald J. Trump issued three separate executive orders eliminating the de minimis exemption for Canada, Mexico, and the People’s Republic of China effective February 4. 

Trump ended up pausing the elimination of de minimis for Canada and Mexico to allow time for negotiations. He issued new executive orders on March 2 that maintained the de minimis exemptions for Canada and Mexico until “adequate systems are in place to fully and expeditiously process and collect tariff revenue” on de minimis shipments. 

The president allowed the de minimis exemption to cease for China on February 4, but he paused the tariffs on de minimis shipments from China on February 5 because United States Customs and Border Protection (CBP) needed time to prepare to process and collect tariffs expediently. Products of China and Hong Kong ceased to be eligible for de minimis on May 2, 2025.

The One Big Beautiful Bill Act of 2025 ends de minimis for all commercial shipments effective July 1, 2027. Yet some people close to the Trump administration hinted that de minimis would be eliminated much sooner than 2027 — and the rumors are true.

The U.S. suspended duty-free de minimis treatment for low-value shipments entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. ET on August 29, 2025.

That didn’t give businesses much time to prepare to apply the proper rate of duty to all low-value imports. And tariff rates vary considerably by country and product. As of August 6, 2025, for example, Brazilian beef is subject to a tariff of more than 76%, Brazilian orange juice byproducts are subject to a 50% tariff, and Brazilian orange juice is subject to a 10% tariff.

For non-postal shipments eligible for the de minimis exemption prior to the Executive Order of July 30, 2025, a qualified party must file the appropriate entry type in the Automated Commercial Environment (ACE) starting August 29, 2025. All imports filed through ACE must be assigned the correct 10-digit Harmonized Tariff Schedule (HTS) code.

HTS codes identify products that move across international borders. They’re sometimes called tariff codes because they drive tariff rates. It’s essential to apply the proper code to all imports because assigning the wrong HTS code can result in an incorrect rate of duty.

“10-digit HTS codes are already required for a majority of clearance processes,” explains Shane Bogdan, Director of Cross-Border Sales at Avalara, “but not everyone is providing them, nor are they being classified accurately. In some instances, organizations may be just affixing four random digits (e.g., 0000) to the end of a 6-digit HS code to make it the required 10-digit code.”

Paper entry forms or documents will no longer be accepted for low-value imports, and affected products won’t be able to be entered using Entry Type 86, or T86 (a customs entry type created for low-value imports).

Acceptable entry types include Entry Type 11 (informal) and Entry Type 01 (formal).

Entry Type 11

For Entry Type 11, the importer of record must submit a properly completed CBP Form 3461 through the ACE. Required information includes the importer and entry information, shipment and transport details, the transaction value, and the 10-digit HTS code for each imported item.

Entry Type 01

The formal Entry Type 01 is required for commercial shipments with a value greater than $2,500, as well as for products subject to additional duties, quotas, or regulations. Entry Type 01 is typically filed by a licensed customs broker filing both Form 3461 and Form 7501 or only Form 7501. It also requires the 10-digit HTS code for each imported item.

Entry Type 01 must be covered by a bond ensuring payment of applicable duties, fines, penalties, and taxes.

There’s a different entry process for international mail shipments.

New duty rates for international postal shipments

There are two customs options for international postal shipments, at least for now. Transportation carriers may select either option but must apply the same methodology to all postal shipments during a given period. Importers may change the methodology once per calendar month (or on another schedule determined by CBP) so long as they notify CBP at least 24 hours in advance.

1. Ad valorem duty methodology. Apply the duty imposed on the country of origin under the International Emergency Economic Powers Act (IEEPA). The tariff must be assessed on the value of each dutiable postal item (package).
2. Specific duty methodology. Apply a specific duty based on the IEEPA tariff for the country of origin as follows:
   • $80 per item for countries with an effective IEEPA tariff of less than 16%
   • $160 per item for countries with an effective IEEPA tariff of16%–25% (inclusive)
   • $200 for countries with an effective IEEPA tariff above 25%

The specific duty methodology option will cease to be available six months after August 29. From February 28, 2026, forward, only the ad valorem duty methodology may be used for international postal shipments. See the CBP ecommerce FAQ for additional guidance.

Postal operators in a growing number of countries, including Austria, Belgium, Denmark, Norway, Sweden, France,  Germany, and Japan are suspending certain parcel shipments to the U.S. before August 29, 2025, when the de minimis exemption ends.

Suspending the de minimis exemption “will entail considerable operational changes for postal operators around the world,” observes the Universal Postal Union (UPU), a specialized agency of the United Nations. The short implementation timeline “poses a significant challenge for the international postal network, particularly for the delivery of ecommerce items.”

To help facilitate duty collection and remittance across the UPU network, UPU is working with relevant postal stakeholders to accelerate the development of a scalable delivered duty paid solution. Avalara has been selected to join the UPU Consultative Committee (CC) to support regulatory modernization, develop best practices for data exchange and digital customs clearance, and advocate for inclusive, tech-forward solutions.  

“We are honored to join the UPU Consultative Committee and contribute to shaping a more connected and compliant global trade environment,” said Craig Reed, GM of Cross Border at Avalara. “Avalara’s mission of simplifying the complexities of cross-border compliance aligns closely with the UPU’s efforts to modernize postal infrastructure, streamline customs processes, and foster innovation. Together, we can unlock global growth opportunities for businesses and improve the delivery experience for consumers worldwide."

In the meantime, postal suspensions in at least 25 countries will remain in effect pending further information on how the U.S. will implement the required operational changes. 

Norway’s Posten Bring suspended shipments to the United States and Puerto Rico effective August 23.

The Posten Bring suspension doesn’t affect postal shipments with a value greater than $800, which never qualified for the de minimis exemption, or gifts between private individuals that have a value of less than $100. Posten Bring will also continue to ship Business Parcel and Pick Up Parcels if a 10-digit U.S. tariff code is provided. “The fees calculated during customs clearance will depend on the country of origin of the goods in the shipment, and if there are goods originating from two different countries, all the goods will be charged the highest fee.”

In Germany, Deutsche Post owner DHL issued the following statement: “The reason for the restrictions, which we expect to be temporary, are new processes for postal delivery which have been put in place by the US authorities. … Important questions have not yet been answered, including who will have to pay the tariffs and how.”  

This isn’t the first time DHL has suspended service to the United States. For one week in April 2025, DHL paused the delivery of packages with a value greater than $800.

France’s La Poste suspended package deliveries to the U.S. effective Monday, August 25, though it will continue to ship gifts valued less than 100 euros ($116) that are sent by individuals. 

In a slightly different twist, Australia Post is suspending transit shipments to the U.S. A transit shipment is when goods are sent from the origin country to the destination country via a third country. For example, parcels shipped from the Philippines to Australia and then on to the U.S.  

According to the Australian Broadcast Company, “any transit or misrouted items containing goods that are destined for the United States and arrive at Australia Post’s international mail processing centers will be returned to origin.” The Australia Post website says it is “monitoring the situation closely and will provide updates … as they become available.”

It’s worth remembering that U.S. Customs and Border Protection also needed time to implement systems to “fully and expediently process and collect tariff revenue” on low-value shipments. It took the agency about two months to prepare to process duties on de minimis shipments from China.

Delays and added costs are two potential fallouts.

International postal service disruptions will delay some shipments indefinitely. Once postal operators resume service to the U.S., they could require more time to process low-value shipments. 

Subjecting de minimis shipments to additional scrutiny will likely slow the process of clearing low-value, cross-border ecommerce packages when they reach the U.S. And CBP is increasing enforcement activity: It completed 71 audits in March 2025 that identified $310 million in duties and fees owed to the U.S. government — more than in January and February combined. 

Shipping costs could also increase: FedEx and UPS increased fees for low-value products from China and Hong Kong and could do the same for all low-value shipments moving forward. 

Companies that ship low-value goods into the U.S. from other countries may want to alert consumers of potential delays and increased costs, and plan accordingly. 

With CBP cracking down on enforcement and President Trump keen on making last-minute de minimis tariff changes, ecommerce businesses should be proactive and do all they can to streamline cross-border sales. Assigning the correct 10-digit HTS code to all low-value imports can help, as can confirming all imports comply with current trade restrictions. 

“Accurate and complete HTS codes ensure streamlined processing through customs, increase trade visibility and efficiency, and help maintain the integrity of the supply chain,” says Bogdan. Given the heightened focus on compliance, international sellers that proactively adopt cross-border compliance solutions should be in the best position to avoid being held up at customs.

Avalara has a portfolio of solutions to help businesses comply with de minimis exemption requirements and trade restrictions. These include our HS code classification services: Avalara Automated Tariff Code Classification, Avalara Self-Serve Tariff Code Classification, and Avalara Managed Tariff Code Classification. Schedule a call today for more details.

Avalara Tax Research can help your business find clear, concise answers to complex cross-border tax questions, including new duties on low-value imports. Learn about Avalara Tax Research and start a free 30-day trial.

There were more than 1.36 billion de minimis shipments in 2024. While most low-value imports are legitimate, “bad actors” have exploited the expedited import process to smuggle illegal and harmful goods into the country. Changing the de minimis exemption could help stem the flow of illegal low-value imports into the U.S.

While in theory “CBP monitors/reviews shipments the same regardless of value,” in reality, customs officials have struggled to keep up with the amount of low-value imports arriving in the U.S. each day. 

At New York’s John F. Kennedy International Airport alone, the entry point for 25% of all de minimis shipments, CBP often receives and processes between 750,000 and 1 million de minimis shipments each day. Nationwide, CBP daily processes close to 4 million de minimis shipments.

To put these figures into perspective, CBP processed approximately 139 million de minimis transactions in 2015, when the de minimis threshold was a quarter of what it is today. 

At certain points of entry, the volume of low-value shipments is overwhelming customs officials. Yet CBP does scrutinize many low-value imports, and in doing so has discovered plenty of illegal goods: fentanyl and drug-making paraphernalia; counterfeit goods; smuggled beef, pork, and poultry declared as footwear and jackets; textiles produced by forced labor; and weapons hidden inside chocolate, to name just a few. 

To “stop the abuse of the de minimis exemption,” the Biden White House announced a plan in September 2024 that included:

• Imposing tariffs on goods that injure or threaten domestic industry or national security
• Requiring additional data for de minimis shipments
• Requiring importers to file electronic certificates of compliance with CBP and the Consumer Product Safety Commission (CPSC) at the point of entry 

The Biden administration also called on Congress to “reform the de minimis exemption comprehensively.” It was particularly interested in stopping harmful drugs from illegally entering the U.S. and preventing imports of apparel and textile products made by forced labor (e.g., the Uyghurs in China). 

The de minimis mantle was picked up by the Trump administration, which didn’t hesitate to act. It ended de minimis for China and Hong Kong on May 2, 2025, and for all countries effective August 29, 2025.

What is the new de minimis rule?

The United States has ended the de minimis exemption for all countries. Effective August 29, 2025, products valued $800 or less are subject to applicable duties no matter the country of origin. De minimis ended for China and Hong Kong on May 2, 2025.

Is the $800 de minimis rule still in effect?

The de minimis exemption was in effect for all counties except China until August 29, 2025, when the U.S. ended duty-free treatment for low-value goods. The U.S. eliminated the de minimis exemption for products originating in China and Hong Kong on May 2, 2025.

How will ending de minimis affect businesses that import low-value goods? 

Businesses need to comply with new customs requirements and apply the proper rate of duty to imported goods valued at $800 or less.  

What does the end of the de minimis exemption mean for consumers buying goods from overseas?

U.S. consumers may pay more for international purchases because tariffs will apply to items that previously qualified for duty-free status. 

Are other countries eliminating de minimis exemptions for duties?

The EU and U.K. are likely to end their exemption for low-value imports in 2026.

This post was first published on November 6, 2024.