On August 29, 2025, at 12:01 a.m. Eastern Time, the United States officially ended the duty-free de minimis exemption for all countries.
From that date forward, every import—regardless of value, origin, or shipping method—is subject to duties and standard customs procedures.
This shift marks the close of an era in cross-border eCommerce and small-parcel logistics. Companies that relied on low-value duty-free shipments must now adapt to a fully regulated import environment.
What Was De Minimis?
For decades, the de minimis rule under Section 321 of the Tariff Act of 1930 allowed importers to bring in goods valued under $800 USD per person per day without paying duties or filing a formal customs entry.
The rule was originally designed to simplify processing for low-value goods, such as small personal imports and eCommerce parcels. It reduced paperwork for U.S. Customs and Border Protection (CBP) and lowered administrative costs for shippers.
Over time, however, de minimis became a cornerstone of global direct-to-consumer trade. Millions of packages entered the U.S. daily using this exemption, often enabling businesses abroad to ship products directly to American consumers without duty costs or complex documentation.
With the exemption now suspended, that simplified path no longer exists.
What Changed on August 29, 2025
- Universal Suspension of the $800 Duty-Free Threshold
Under Executive Order 14324 and the implementing notice from the U.S. Department of Homeland Security, the de minimis provision in 19 U.S.C. § 1321(a)(2)(C) was suspended for all countries.
Any shipment entered for consumption on or after August 29 must now be declared and assessed for duty—no matter how small its value.
(Federal Register Notice)
- Postal and Non-Postal Shipments Now Treated the Same
All imports—whether moving through postal networks, express carriers, or freight forwarders—are now subject to the same customs entry standards.
This includes full classification under the Harmonized Tariff Schedule (HTSUS), duty payment, and any applicable import taxes or user fees.
- CBP Entry and Data Requirements
CBP’s Automated Commercial Environment (ACE) now requires full entry data for all goods. Importers must provide:
- Complete HTS codes
- Accurate declared values
- Country of origin information
- Supporting documentation and invoices
Shipments that fail to meet data or compliance standards may be held, assessed penalties, or denied entry.
- Limited Exceptions
Only a narrow list of exemptions—such as specific government imports or informational materials covered under separate statutes—remains.
For commercial goods, no duty-free treatment applies.
What Businesses Need to Do Now
Recalculate Landed Costs
All products entering the U.S. now carry duty, brokerage, and clearance fees. Update pricing models and margin calculations accordingly.
Strengthen Classification and Compliance
Accurate tariff classification, country-of-origin labeling, and proper documentation are now essential to avoid penalties or shipment holds.
Reassess Fulfillment and Distribution Strategies
Cross-border eCommerce models based on daily small-parcel imports may no longer be cost-effective.
Options include:
- Storing inventory within the U.S.
- Using bonded or Foreign Trade Zone (FTZ) facilities
- Consolidating freight into formal entries before final-mile delivery
Partner with Licensed Experts
Customs brokers, compliance advisors, and logistics providers with established ACE and HTS expertise can help maintain speed and reliability under the new rules.
How Journey Helps Businesses After De Minimis Ends
The end of the de minimis exemption has transformed import logistics overnight. Journey Freight helps businesses adapt by providing:
- Customs and Trade Compliance Support — Licensed brokers manage filings, HTS reviews, and entry procedures across Canada, the U.S., and Mexico.
- Visibility and Risk Control — Real-time tracking and document management to avoid clearance delays and errors.
- Strategic Fulfillment Planning — Scenario modeling to evaluate U.S.-based inventory, bonded warehouses, and hybrid distribution solutions.
- Operational Continuity — End-to-end coordination to maintain on-time delivery and customer satisfaction in a post-de minimis environment.
When exemptions disappear, precision becomes the advantage.
Journey helps importers navigate the new rules with clarity, control, and confidence—so their customers see only what matters: shipments that arrive on time and as promised.
