What is de minimis and why it matters to global shipping

In the world of international shipping, few terms have a bigger impact on small e-commerce brands than de minimis. This often-overlooked customs concept determines whether your overseas shipments are subject to import duties and taxes, or cleared duty-free at the border. For growing businesses, understanding de minimis rules can make the difference between a seamless delivery and unexpected costs that hurt profit margins.

As global trade regulations evolve, staying informed about your de minimis threshold is no longer optional, it’s essential. Knowing how this rule works helps you manage pricing, maintain compliance, and enhance your customers’ post-purchase experience. This guide will walk you through what the de minimis policy means, how it affects shipping, and why mastering these details is key to building a more resilient cross-border business.

What does de minimis mean?

In customs and international trade, de minimis refers to the value threshold below which imported goods are exempt from duties and taxes. Simply put, it’s the limit that determines whether a shipment is taxed when entering a country — a key concept for any business engaged in international shipping.

Each country sets its own de minimis value, which can range from a few dollars to several hundred. Shipments below this de minimis threshold are typically cleared faster and without additional charges, enabling e-commerce sellers to offer more affordable and efficient delivery to customers.

The de minimis rule was designed to make trade smoother and more cost-effective. By simplifying customs clearance for low-value shipments, it reduces paperwork and minimizes the burden on customs authorities.

Determining the de minimis value

When planning your shipments, it’s important to understand how a country’s de minimis value is calculated and what this means for your cost structure, compliance and shipping strategy.

At its core, the de minimis value typically includes:

• The declared value of goods (i.e., price paid or payable for the items)
• The cost of shipping or freight to the destination
• The cost of insurance, if separately charged

It’s worth noting that the calculation of de minimis can differ significantly between countries. According to the Global Express Association¹, some countries base the exemption threshold solely on the value of the goods, while others include freight and insurance, and some exclude certain product types entirely.

Factors that determine de minimis thresholds

De minimis thresholds vary by market. The exact limit and how it is applied is shaped by product rules, national customs law, trade arrangements, and shifting government policy.

Type of goods imported

Not all items qualify for a de minimis exemption. Certain restricted or excise goods — such as alcohol, tobacco, and controlled substances — are excluded from duty-free treatment regardless of their value. These items must always undergo full customs declaration and tax assessment.

For other categories, how the exemption applies can depend on the importing country’s taxation model.

For example, in Australia, a vendor-collection system applies to low-value imported goods (A$1,000 or below). Since July 1, 2018, overseas sellers, online marketplaces, and re-deliverers with turnover above a specified threshold must register with the Australian Taxation Office (ATO), charge a 10% Goods and Services Tax (GST) at checkout², and remit it directly to the ATO. Meanwhile, the traditional border collection process continues for goods valued over A$1,000.

Country’s customs regulations

Beyond product type, national customs regulations play a defining role in how the de minimis threshold is applied. For example, the Global Express Association tracks major differences between countries¹: Singapore maintains a relatively high threshold to support trade efficiency, while others like Canada and Japan set more moderate limits to balance customs revenue and import volume.

In some cases, regulations can shift rapidly. In the United States, for instance, the long-standing US$800 de minimis exemption was suspended on August 29, 2025, removing duty-free treatment for low-value imports³. This change means that virtually all shipments entering the US, regardless of value, may now be subject to import duties and additional customs scrutiny.

Trade agreements

Preferential trade agreements can reduce or eliminate duties for qualifying goods that meet rules of origin, which can lessen the role of de minimis. In the European Union, VAT rules were overhauled in July 2021: The small-consignment VAT exemption was removed and the Import One-Stop Shop (IOSS) introduced for consignments up to €150; customs duty relief generally still applies below €150⁴.

Government policies

Governments adjust de minimis thresholds to meet revenue, compliance, or industrial policy goals. Recent proposals and reforms show thresholds and collection models can change quickly — for example, EU customs/VAT reforms slated for coming years, and the US 2025 suspension. Staying current with official guidance is essential.

Tip: Before pricing and promising delivery times, check the destination market’s current rules (customs website or trade portal) and confirm whether freight and insurance are included in the de minimis value calculation. This helps avoid unexpected duties, paperwork, and delays.

De minimis’ impact on small e-commerce brands

For small and growing e-commerce businesses, the de minimis exemption can make or break international sales. When shipments qualify for duty-free entry under this rule, cross-border transactions are faster, simpler, and often cheaper for both sellers and customers. But when countries lower or remove their de minimis threshold, small brands can face a range of new operational and financial pressures.

Without the relief provided by the de minimis rule, e-commerce businesses may experience:

• Increased costs: Every shipment, regardless of value, may attract import duties and taxes, adding expenses that quickly erode profit margins.
• New paperwork: Businesses must now file complete customs declarations, submit commercial invoices, and pay processing fees even for low-value parcels.
• Potential delays: Goods that once cleared automatically under de minimis may now be held for inspection, extending delivery times.
• Impact on shipping operations: Teams may need to adjust international shipping workflows and ensure every package includes precise customs details to prevent holds or fines.
• Higher prices for consumers: The added costs often get passed to buyers, making products less competitive in global markets.

For small e-commerce brands, these challenges can create barriers to market entry and affect the overall customer experience, especially when delivery speed and affordability are central to brand reputation.

Your roadmap to global growth in a de minimis world

Navigating fluctuating de minimis rules and complex customs procedures can be daunting, especially for small e-commerce businesses expanding into new international markets. That’s where having the right logistics partner makes all the difference.

With decades of experience in logistics solutions, DHL Express Singapore supports growing brands through every stage of cross-border trade — from customs documentation to last-mile delivery. 

By combining global reach with local expertise, DHL Express provides:

• Customs intelligence and support to simplify declarations and prevent clearance delays
• End-to-end visibility with advanced shipment tracking and proactive updates
• Time-definite delivery options that give you and your customers confidence in every shipment

For small e-commerce brands, adapting to evolving de minimis policy changes isn’t just about compliance — it’s about sustaining long-term growth. By understanding how these thresholds impact your pricing, fulfillment, and customer experience, and partnering with a trusted logistics provider like DHL Express, you can focus on what truly matters: Expanding your reach and building a resilient, globally connected business.