The End of the U.S. De Minimis Exemption: Impact on Low‑Value Shipments
The End of the U.S. De Minimis Exemption: Impact on Low‑Value Shipments
Background Under the U.S. de minimis rule, commercial shipments valued at $800 or less could enter the United States without paying duty or going through a formal customs entry. Between 2015 and 2024, annual de minimis shipments ballooned from about 134 million to more than 1.36 billion parcels, driven largely by cross-border e-commerce.
What will change?
Every commercial shipment up to $800 will incur duty. Even small parcels will require a customs entry and full documentation.
Logistics costs will rise. Low‑value consignments will become more expensive because of duty payments and longer clearance times. Some businesses may need to adjust their pricing models to remain profitable.
Consolidated shipments become more attractive. Instead of sending multiple small packages, it may be cheaper to bundle orders into fewer, larger shipments.
How to prepare
Analyse your order patterns – Determine how many of your shipments fall below the $800 threshold. If there are many, consider consolidating them to reduce the number of customs entries.
Engage professionals – Freight forwarders and customs brokers can help classify your products correctly and ensure accurate documentation, reducing the risk of overpaying duties or facing delays.
Adjust pricing and shipping options – You may need to raise shipping fees or offer customers alternative methods, such as postal services, to maintain margins.
Communicate with U.S. customers – Explain the new rules and any resulting changes to shipping costs or delivery times. Transparent communication will help manage expectations and maintain customer satisfaction.
While the end of the de minimis exemption marks a significant shift for cross‑border e‑commerce, proactive planning and clear communication will help you adapt. By rethinking logistics and pricing strategies, you can continue to serve the U.S. market effectively under the new rules.
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