What was the de minimis exemption?
For decades, the United States allowed imports valued under $800 to enter the country duty-free and with minimal customs processing. This threshold, known as the de minimis exemption, was designed to reduce administrative burden on low-value shipments that would cost more to process than the duties they would generate.
The exemption became enormously significant with the rise of cross-border e-commerce. By 2024, approximately 4 million packages per day entered the US under the de minimis exemption, many originating from Chinese e-commerce platforms.
What changed?
On August 29, 2025, the de minimis exemption was suspended for all imports to the United States regardless of value, country of origin, or mode of entry. This means every shipment entering the US is now subject to applicable duties, taxes, and formal or informal customs entry procedures.
For shipments entering through the international postal system, duties are assessed using either ad valorem rates based on effective tariff rates or specific duty amounts of $80 to $200 per item depending on country of origin.
Why was it suspended?
The administration cited several justifications. National security concerns including the potential for illicit goods such as fentanyl to enter through low-value shipments. Revenue recovery from billions in duties that were being avoided. Competitive fairness as domestic retailers argued that foreign e-commerce platforms had an unfair advantage by avoiding duties. Enforcement of trade policy as the de minimis loophole effectively exempted certain goods from tariffs that Congress or the President intended to impose.
Impact on e-commerce
The suspension has dramatically affected cross-border e-commerce, particularly shipments from China. Air cargo volumes from China to the US have declined significantly as the economics of low-value direct-to-consumer shipping changed overnight. E-commerce platforms have been forced to absorb duties, raise prices, or restructure their logistics.
For US-based e-commerce sellers who source products from overseas, the change means higher landed costs for sample orders and small quantity purchases, more complex customs processing for every inbound shipment, and the need to work with a customs broker even for low-value imports.
Impact on small businesses
Small businesses that relied on the de minimis exemption for sourcing samples, small batch imports, and direct supplier purchases now face additional costs and administrative complexity. The informal entry process still exists for shipments valued under $2,500, which is simpler than formal entry, but duties now apply at all value levels.
Strategies to adapt
Consolidate small orders into larger shipments to spread customs processing costs. Work with a freight forwarder who can handle consolidation and customs clearance efficiently. Factor duty costs into your product sourcing and pricing models. Consider bonded warehousing if you hold imported inventory for resale.
ASR helps small and large importers alike
Whether you ship one container per year or one hundred, our customs clearance team ensures every shipment is processed efficiently and duty-optimized. Contact us at shipping@asrwe.com or +1 786 373 3003.
