The end of de minimis: New US entry processes, EU duties

This post has been updated to reflect new developments. Attend our webinar series, Trade and Tariff Tuesdays, to hear Avalara experts discuss global trade issues and their business implications.

The United States and the European Union have ended de minimis exemptions for low-value imports. Businesses shipping low-value goods into the U.S. and EU must adhere to new cross-border compliance requirements, like the new process for low-value goods entering the U.S. through international mail, and the EU’s new €3 customs duty fee.

Key takeaways

• The U.S. $800 de minimis exemption ended in 2025. The U.S. has indefinitely suspended the de minimis exemption authorized under Section 321of the Tariff Act of 1930. Low-value imports entering the U.S. are now subject to applicable tariffs and require formal or informal customs entry.

• Starting July 24, 2026, the U.S. is launching a new postal entry process for international mail shipments valued at $800 or less. It will also test a new voluntary electronic process for mail shipments valued at $2,500 or less — Entry Type 13 — starting September 22, 2026.

• The EU ended the customs duty exemption for imports valued at or less than €150 on July 1, 2026. Low-value parcels are now subject to a €3 customs duty per item. 

In international trade, de minimis refers to the value below which imports can enter a country without incurring duties or other taxes. De minimis thresholds vary by country or region. Switzerland has one of the lowest de minimis thresholds, at CHF 5 (roughly $6). Australia has one of the highest, at AUD 1,000 (about $700).

Many countries currently provide a de minimis exemption, but a growing number of countries, including the U.S. and all members of the European Union, have eliminated duty-free status for low-value shipments.

Before the end of de minimis, the U.S. allowed most goods valued at or under $800 (per person, per day) to enter the country exempt from duty and import taxes. U.S. de minimis was authorized under Section 321(a)(2)(c) of the Tariff Act of 1930, so these imports were often called Section 321 entries. 

The U.S. no longer provides an exemption for Section 321 entries. The Trump administration indefinitely suspended de minimis treatment for products of China and Hong Kong effective May 2, 2025, and for products of all other countries as of August 29, 2025. With the enactment of the One Big Beautiful Bill Act of 2025, Congress repealed Section 321 for all commercial shipments effective July 1, 2027.

For nonpostal shipments previously eligible for the de minimis exemption in the U.S., a qualified party must file the appropriate entry type in the Automated Commercial Environment (ACE). Paper entry forms or documents are no longer accepted for low-value imports, and affected products can no longer be entered using Entry Type 86 (T86), a customs entry type created for low-value imports.

Acceptable entry types for shipments that previously qualified for de minimis treatment include Entry Type 11 (informal) and Entry Type 01 (formal), and effective July 24, 2026, a new informal entry process for international mail shipments.

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 Harmonized Tariff Schedule of the United States (HTSUS) 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.

New entry process for international postal shipments

Following the suspension of de minimis in 2025, U.S. Customs and Border Protection (CBP) established an interim entry process for international mail shipments. It provided two customs options for international postal shipments: the ad valorem duty methodology and the specific duty methodology. All covered international mail shipments were required to use the ad valorem duty methodology beginning February 28, 2026.

Effective July 24, 2026, imports valued at $2,500 or less arriving through the international postal network must be entered under a new entry process that will be considerably more burdensome for importers. CBP estimates that the new postal informal entry process will increase duties by more than $100 million per year.

Starting July 24, 2026:

• The party that files the postal informal entry (i.e., the owner or purchaser of the merchandise, or the designated licensed customs broker) must obtain a basic importation and entry bond to secure the transaction. 
• The filer must submit an International Mail Duty Worksheet (IMDW) to CBP no later than the seventh day of the month following the package’s arrival. The sheet must contain required information including:
  • Filer code 
  • Bond number
  • Description of merchandise 
  • Country of origin of merchandise
  • All applicable 10-digit HTSUS classification(s)
  • Quantity/weight (conditional and required only if using a specific duty rate)
  • Duty rate 
  • Value
  • Total duty owed
  • Carrier
  • Flight/conveyance number 
  • Tracking number (the S-10 bar code generated by the foreign post operator)
  • Arrival port and arrival date

Formal entry will still be required for certain imports, including shipments exceeding $2,500 in value and items subject to antidumping or countervailing duties.  

CBP is also testing a new voluntary electronic entry process for international mail shipments valued at $2,500 or less: the Entry Type 13 Test.  

Entry Type 13 — informal mail entry

Entry Type 13 is voluntary test conducted by CBP to evaluate a new electronic informal entry process for international mail shipments valued at $2,500 or less, including shipments that would previously have been eligible for the de minimis exemption. CBP is implementing this test to automate and streamline the collection of informal data entry for mail shipments. The Entry Type 13 Test will commence on September 22, 2026, and will continue indefinitely.

The Entry Type 13 Test offers an alternative to the new process for informal mail entries described above, for parties with the right to make informal entry under 19 C.F.R. § 143.26(a). Carriers can also voluntarily participate by reporting the tracking number generated by a foreign postal operator for each international mail shipment on a manifest. Entry Type 13 will allow filers to file informal entry for qualified international mail shipments electronically directly in ACE, without submitting an IMDW. 

Per CBP, Entry Type 13 also creates a temporary informal entry pathway for low-value international mail shipments subject to Partner Government Agency (PGA) data requirements or duties other than those set forth in Chapters 1–97 of the HTSUS, which are ineligible for the new process for informal mail entries.  

Shipments subject to antidumping and countervailing duties or quotas will remain ineligible for informal entry under the Entry Type 13 Test so must be entered under the formal entry procedures. See this Federal Register notice and ecommerce FAQ for more details.

The U.S. isn’t the only country ending duty-free status for low-value goods. Mexico, Thailand, Turkey, and Vietnam have also eliminated their de minimis exemptions, and as of July 1, 2026, the European Union no longer provides an exemption for goods valued at or less than €150.

A €3 customs duty now applies to small parcels that are valued at or less than €150 and shipped directly to consumers from outside the EU. The €3 fee is levied on each different category of item, identified by HS codes. Come November 1, 2026, the EU will also require new product identifier data (PID). Read our blog, The end of the EU’s €150 customs duty exemption, for additional details.

The end of de minimis has drastically altered cross-border ecommerce, with countries creating new entry processes and reporting requirements for low-value imports. 

Every commercial shipment entering the United States, regardless of value or country of origin, is now subject to full duty assessment and must be assigned the correct 10-digit Harmonized Tariff Schedule of the United States (HTSUS) code. New cross-border compliance requirements are also in effect in the EU.

While 10-digit HTSUS codes were already required for most U.S. clearance processes, Shane Bogdan, Director of Cross-Border Sales at Avalara, notes not everyone was providing them or classifying products accurately. In some instances, organizations may have affixed four random digits (e.g., 0000) to the end of a 6-digit HS code to make it the required 10-digit code. That will no longer fly.

“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.  

Avalara has a portfolio of solutions to help businesses comply with international trade requirements. 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.

Additionally, 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 7-day trial.

The U.S. received more than 1.36 billion de minimis shipments in 2024, overwhelming customs officials. While most low-value imports were legitimate, “bad actors” exploited the expedited import process to smuggle illegal and harmful goods into the country. Suspending de minimis should help stem the flow of illegal low-value imports into the U.S.

Other countries have also seen low-value shipments spike. Roughly 5.9 billion low-value direct-to-consumer shipments entered the EU in 2025, with over 90% originating from China. The large influx of packages raised safety and security concerns and contributed to the end of de minimis in the EU.

The United Kingdom is also looking to remove its customs duty relief for imports with a value of £135 or less, to level the playing field between brick-and-mortar and online retailers.

Is the $800 de minimis rule still in effect?

No. The U.S. eliminated the de minimis exemption for products originating in China and Hong Kong on May 2, 2025, and for all other countries on August 29, 2025.

What is the new entry process for low-value goods entering the U.S. by international mail? 

Beginning July 24, 2026, low-value mail shipments must use a new postal entry process. The new entry process requires 10-digit HTSUS codes, a continuous bond, and monthly submission of an International Mail Duty Worksheet (IMDW).

What is Entry Type 13?

Entry Type 13 is a test of a new electronic informal entry process for merchandise valued at $2,500 or less entering the U.S. through international mail. It will be available starting September 22, 2026.

Are other countries like EU members and the U.K. ending de minimis exemptions for duties? 

Yes. The EU ended its €150 customs duty exemption on July 1, 2026, and now applies a €3 fee per HS code. Mexico, Thailand, Turkey, and Vietnam also ended de minimis, and the U.K. is working to remove its customs duty relief for imports valued at £135 or less.

What is the ad valorem duty methodology for low-value postal shipments?

The ad valorem duty methodology applies the duty imposed on the country of origin. The tariff must be assessed on the value of each dutiable postal item.

What is the specific duty methodology for low-value postal shipments?

The specific duty methodology applies a specific duty based on the duty imposed on the country of origin: $80 per item for countries with an effective tariff of less than 16%; $160 per item for countries with an effective tariff of 16%–25% (inclusive); and $200 for countries with an effective tariff above 25%. This methodology was conceived when tariffs implemented under the International Emergency Economic Powers Act (IEEPA) were in effect. It’s no longer an option.