What Is De Minimis?
You may have heard in the news recently about changes to something called De Minimis.
De minimis is a U.S. customs rule that enables goods valued at USD 800 or less per importer, per day to enter the country duty‑free and with simplified customs clearance.
It was designed to reduce paperwork and costs on low‑value shipments, and is heavily used by e‑commerce platforms and small businesses for shipments to the U.S.
What has recently changed in the U.S. regarding de minimis
- Removal of de minimis for All Countries
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On July 30, 2025, an executive order was signed eliminating the De Minimis privilege for all countries, effective August 29, 2025.
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This means that every international parcel under USD 800 sent to the US will now be subject to duties—either a fixed tariff ($80–$200 per item) during a six‑month transition, or an ad‑valorem duty thereafter.
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Implications for a Retailer Shipping to the U.S.
If you manufacture or source goods in China or Hong Kong, de minimis no longer applies, meaning every parcel—even low‑value—will incur duties and additional customs processing.
From August 29, 2025, those additional duties will apply to every shipment from other countries like Australia too—regardless of country of origin (COO).
Some of the impacts on foreign businesses include:
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Increased landed cost and reduced margins.
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More complex customs documentation (HTS codes, valuation, certificates).
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Risk of parcels being held or returned if under‑declared.
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Higher compliance costs for low value shipments
How to Avoid These Issues: Use a U.S.‑Based 3PL Warehouse
One strategy businesses are now adopting is to:
- Import your goods into the U.S. in bulk,
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Clear customs through the regular tariff processes, and then
- Utilise a local U.S.-based 3PL warehouse who can store, pick, pack and despatch your orders
This helps in a number of ways:
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No international customs on each order: domestic shipping avoids tariffs entirely.
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Speeds up delivery and improves customer experience.
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Clears customs once with reliable valuation—not for every drop‑ship parcel.
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Simplifies logistics: easier returns, inventory tracking, and same‑day shipping.
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Mitigates risk of paperwork errors on low‑value shipments.
Conclusion
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De minimis has long allowed duty‑free imports under USD 800.
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As of May 2025, shipments from China/Hong Kong lose that privilege.
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By August 29, 2025, all international parcels entering the U.S. lose the exemption.
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This dramatically increases costs and complexity for foreign retailers shipping direct to U.S. consumers.
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One workaround is to bulk import into the U.S., use a local 3PL warehouse, and fulfil domestically—avoiding international duty per order.
If you’re selling into the U.S., now is a good time to rethink your US domestic fulfillment strategy. Setting up a reliable U.S. 3PL partner can help minimise the impact of the removal of De Minimis as well as provide added benefits for your customers and operations..
Need help with finding a reliable 3PL warehouse in the USA?
We offer a FREE 3PL finding service and have over 50 warehouse partner locations across the US and Canada.
Contact us today for a free consultation.
