What is de minimis?
In international shipping, de minimis refers to the minimum shipment value below which import duties or taxes are not charged by the destination country. If your parcel’s value stays under this threshold, it typically qualifies as a duty free import, meaning it can clear customs without paying import duty, and sometimes without paying tax as well.
Many businesses may wonder what qualifies as a duty free import. The answer is simple: Shipments that meet the de minimis threshold are usually eligible for duty-free entry into the country.
By keeping your shipment’s value below the de minimis limit, you can reduce costs, enjoy faster customs clearance, and better predict your total expenses.
There are generally two types to know:
- Duty de minimis: Value under which no customs duty is applied.
- Tax/VAT de minimis: Value under which import tax, for example, VAT or GST, is waived.
Different countries set their own thresholds based on local policies, so checking before you ship is essential. According to the World Customs Organization, these limits help ensure smoother customs processing and support growing cross-border e-commerce1.
Thailand’s de minimis threshold
For exporters in Thailand, parcels valued at 1,500 THB or less are exempt from import duty. However, it’s important to note that a 7% VAT applies to all imports, regardless of value2.
So, for example:
- If you’re shipping a 1,200 THB cosmetic kit to Singapore, no Thai duty applies and it may clear Singaporean customs if it’s under their de minimis threshold (SGD400).
- If you’re shipping a 1,800 THB electronic gadget overseas, Thai, and possibly destination country, duties might apply.
Always check both Thai and destination country thresholds for each shipment.
Why de minimis is good news for businesses and shoppers
The de minimis rule delivers peace of mind and big benefits:
- Save on costs: Shipments below the threshold may avoid import duties or taxes.
- Fewer surprises: Prevents unexpected charges for your customers.
- Faster customs clearance: Less paperwork helps you ship internationally with fewer delays.
- Encourages more sales: Makes international orders, especially lower value ones, more budget-friendly for recipients.
Not all de minimis thresholds are the same
Each destination decides its own duty/tax-free shipping value. Here’s a quick look at some of the countries in APAC and global thresholds3:
Country
| Duty-Free De Minimis
| Tax-Free (VAT/GST)
|
Thailand
| From Jan 1, 2026, Thailand no longer
has a duty-free de minimis limit
| None (VAT applies)
|
Singapore
| SGD 400
| SGD 400
|
Malaysia
| MYR 500
| MYR 500
|
Philippines
| PHP 10,000
| PHP 10,000
|
Australia
| AUD 1,000
| AUD 1,000
|
US
| USD $800
| USD $800
|