Editorial · August 17, 2025
De Minimis Import Rule: What Ended for Small Shipments
The de minimis import rule lets shipments worth $800 or less enter the United States without duty. That rule ends for every country on August 29, 2025. A presidential order signed on July 30, 2025 suspends it. Anyone who buys from overseas, or ships small parcels into the country, should plan now.
What the rule was
The rule comes from Section 321 of the Tariff Act of 1930, found at 19 U.S.C. 1321. It lets the government waive duty on small imports. The waiver applies when the cost of collecting the duty would be more than the duty is worth.
The dollar limit has changed over time. Public Law 114-125, passed in 2016, raised it from $200 to $800 per person, per day. For years, a package worth $800 or less could usually clear customs with no duty and little paperwork.
The rule helped online shoppers and small sellers. A seller could ship single orders straight to buyers in the United States and skip most customs steps. Many parcels crossed the border each day under this rule.
What the July 30 order changed
On July 30, 2025, the President signed Executive Order 14324. It is titled "Suspending Duty-Free De Minimis Treatment for All Countries." The order says duty-free treatment under the statute is no longer available for covered goods.
The suspension starts for goods entered on or after 12:01 a.m. Eastern time on August 29, 2025. It applies no matter the value of the goods. It also applies no matter the country of origin, the way the goods travel, or how they are entered.
Before this order, a separate action had already ended the rule for goods from China and Hong Kong. The new order widens the change to the whole world.
The order covers articles that are not already excluded by 50 U.S.C. 1702(b). That section covers items such as personal communications and some informational materials. Most ordinary goods are inside the new suspension.
How shipments are handled after August 29
The order treats two kinds of shipments in two ways. Shipments sent by courier or freight company are not postal. They now need a customs entry. The entry is filed in ACE, the electronic system run by U.S. Customs and Border Protection (CBP). A qualified party must file it. All duties, taxes and fees that apply must be paid.
Shipments sent through the international postal system get a temporary path. They can arrive without a CBP entry for now. The carrier collects the duty and sends it to the government. This holds until CBP publishes a new entry process in the Federal Register.
The order gives postal carriers two ways to work out the duty. The first is a percentage of the package value, based on the tariff rate for the country of origin. The second is a flat amount per package. The flat amount is $80 where the rate is under 16 percent. It is $160 where the rate is 16 to 25 percent. It is $200 where the rate is above 25 percent. The flat option is open for six months. After that, the percentage method is required.
Carriers must also hold an international carrier bond. CBP may ask for entry bonds on small informal entries valued at $2,500 or less. Postal shipments that are subject to antidumping or countervailing duties, or to quotas, still need a full entry.
What small sellers should check
Start with your own shipments. Look at how many parcels you send into the United States each month. Note which ones are worth $800 or less. Until now, those likely cleared with no duty. After August 29, they may not.
Next, check how each parcel travels. A postal parcel follows the carrier rule. A courier parcel needs an entry. Ask your carrier who will file it and what it will cost. Some carriers charge a brokerage fee on top of the duty.
Then check your product codes and origin. Duty depends on what the item is and where it was made. Write the country of origin on every record. The postal rule needs it, and the courier entry needs it too.
Last, look at your prices. If your buyers used to pay no duty, they may now see a bill at the door. Some sellers will choose to collect the duty at checkout so the buyer pays nothing on delivery. Others will raise prices. Either way, tell buyers before the date so there are no surprises.
What to watch next
Several details are still open as of mid-August. CBP has to publish the steps for postal entries. It also has to say which parties count as qualified to file or pay on behalf of carriers. The order also tells the Department of Homeland Security to decide whether the tariff schedule needs changes to carry it out.
The order also says the suspension stays in place even if a court strikes down the tariffs it relies on for its duty rates.
Watch CBP.gov and its trade messages for guidance. Check with your carrier or a licensed customs broker before the deadline. Rules can shift in the weeks ahead, and the details for your goods may differ from the general rule described here.
Sources
- 19 U.S.C. 1321, law.cornell.edu/uscode/text/19/1321
- Executive Order 14324, "Suspending Duty-Free De Minimis Treatment for All Countries," July 30, 2025, whitehouse.gov