It’s a U.S. trade rule that let shipments under US$800 enter the country duty- and tax-free, under a simplified clearance process. Since 2016, it’s helped e-commerce businesses reach U.S. customers more easily and affordably.
Are you sending goods to the U.S.? If yes, you’ve probably taken advantage of the de minimis tariff exemption—a regulation that has simplified and reduced costs for cross-border sales since 2016. This rule permits shipments valued at under US$800 to enter the U.S. without incurring duties, taxes, or complicated customs inspections, enabling businesses of all sizes to easily connect with American customers.
Significant changes are on the horizon. Starting August 29, 2025, the U.S. has removed the de minimis threshold for all countries, meaning that all shipments, regardless of their value or country of origin, will be subject to all applicable duties and taxes and the Informal or Formal Entry process.
Here’s what this entails for your business—and how you can prepare.
What is the de minimis exemption rule?
The de minimis exemption is a U.S. trade regulation that has permitted goods valued at under US$800 to enter the country without incurring duties or taxes since 2016, utilizing a simplified entry process.
This de minimis rule has contributed to lowering shipping costs and accelerating delivery times, providing a significant advantage for e-commerce businesses and SMEs aiming to connect with U.S. customers.
How will de minimis removal affect businesses
Starting August 29, 2025, all shipments entering the U.S. will incur duties and taxes, regardless of their value or country of origin. This represents a considerable change for small and medium-sized enterprises.
With the de minimis removal, precise customs declarations are essential. You must accurately classify products, declare their value, and ensure that all documentation is correct—errors could result in delays, fines, or dissatisfied customers.
What could de minimis removal look like in practice?
Imagine you’re a UK-based brand sending fashion accessories to customers in the U.S. In the past, if your average order was below $800, you probably avoided duties entirely. Now, those same shipments will incur duties, taxes, and other import tariffs due to the recent changes in U.S. de minimis removal.
Or, if you’re an Australian skincare brand, your products may encounter entirely different rates—tariffs differ based on product type and country of origin, which means businesses will need to consider new costs depending on their shipping source and product offerings.
For e-commerce sellers and SMEs, the consequences are evident:
- Pricing strategies may need to change to account for duties and taxes.
- Shipping expenses could increase, particularly if customers are reluctant to cover the extra charges.
- Cart abandonment rates might rise if duties and taxes are not clearly communicated during checkout.
This is why effective planning is crucial—and this article is designed to assist you!
How to adapt to the removal of de minimis tariff exemption
The removal of the de minimis exemption doesn’t have to disrupt your operations; however, it does require some strategic changes. Here are some recommended practices to ensure your shipping strategy remains effective:
Ensure your documentation is in order
To ensure a smooth customs clearance process, it’s vital that your shipping documentation – including the Commercial Invoice – is complete and accurate. DHL Express’ MyGTS can guide you through all the data you need to provide to stay compliant and keep your shipment moving.
Tighten up your compliance processes
Double-check that your products are correctly classified under the HTS (Harmonized Tariff Schedule) codes. Consider using automated tools to calculate duties and taxes – they’ll save your business time and reduce costly errors.
Recalculate your landed costs
Factor in duties, taxes, and handling fees to get a true picture of your total shipping expenses. From there, you can update your product pricing or shipping options to maintain healthy margins.
Go DDP (Delivered Duty Paid) by default
Taking ownership of duties and taxes upfront makes for a smoother experience at checkout – and at delivery. When customers see the full cost ahead of time, there are no surprise fees at the door (a major reason for cart abandonment).
Enable duty/tax prepayment and real-time tracking
Giving customers the option to prepay charges – along with live updates on their shipment – will build their trust in your brand.
Leverage DHL’s specialized solutions
Use services like Break Bulk Express (BBX) to consolidate multiple parcels into one clearance entry, reducing per-shipment costs. Or tap into the DHL Fulfillment Network (DFN) to store inventory within the US and avoid customs processing altogether for domestic orders.
How DHL Express can help
DHL Express services to the U.S. remain fully operational, so you can continue relying on the same fast, reliable delivery experience.
Behind the scenes, our teams have been actively preparing for the de minimis changes to ensure your shipments stay fully compliant with U.S. customs regulations.
If you're using MyGTS (My Global Trade Services), you'll also notice updates that reflect the new rules – including accurate landed cost estimates based on the latest import requirements, helping you plan and price with confidence.
Your opportunity to grow globally
Although the removal of the de minimis exemption presents challenges, it also creates new opportunities. This could be an ideal time to reevaluate your global growth strategy. There is a vast market filled with potential customers for your products; now is the moment to discover where that demand exists.
Some countries may offer quicker entry and fewer regulatory hurdles, giving you the chance to scale rapidly. Others might be larger and more competitive but promise greater long-term returns. With DHL’s insights and local know-how, you can make informed decisions about where to grow – and how to get there efficiently.
De minimis tariff exemption FAQS
For most countries, the exemption ends on August 29, 2025. After that, all shipments – regardless of value – will be processed as informal or formal entries and subject to duties and taxes.
No. The exemption is being removed across the board, so SMEs should prepare now to avoid surprise costs or delays. With the right preparation and support, your business can adapt quickly – and even turn this change into a competitive edge.
DHL is already helping thousands of businesses prepare for the end of the de minimis exemption. Our expert teams will help you stay compliant with US customs regulations, including duties, taxes, and correct product classifications under HTSUS codes.
In short, with DHL Express as your logistics partner, the de minimis impact doesn’t have to be a roadblock – they can open new doors for growth. Stay up to date with the latest information on the U.S Tariffs here, and explore what’s possible for your SME with a DHL Express Business Account.
Share
