De minimis was a rule that let shipments under $800 enter the U.S. duty-free with simplified clearance.
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The End of the U.S. De Minimis Rule: What Your Business Needs to Know
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If your business imports products into the United States, you’ve probably relied on the de minimis exemption. This rule let de minimis shipments - that is, shipments valued under $800 - clear U.S. Customs duty and tax free, with minimal paperwork. The exemption previously allowed the importation of cheap goods, benefiting American buyers seeking affordable products. This rule resulted in almost 1.4 billion packages entering the U.S. duty-free last year.
As of August 29, 2025, everything changed. The U.S. government eliminated the de minimis threshold for all countries, making the rule apply regardless of country of origin. That means every shipment — regardless of value or origin — will now go through formal or informal customs entry and be assessed import duties, taxes, and fees.
This will have a significant impact not only domestically but around the world, especially for America’s status as a primary market for global imports. The impact will reach far beyond the U.S., affecting buyers in America and other countries and the way global e-commerce operates.
What is the de minimis exemption rule?
The de minimis exemption is a longtime U.S. trade rule that has allowed goods valued under US$800 to enter the country without paying duties or taxes, and with expedited clearance.
The rule helped reduce shipping costs and speed up delivery times for low-value goods — giving a big boost for e-commerce businesses and SMEs wanting to reach U.S. customers.
How the end of de minimis will impact your business
With the U.S. exemption gone, all imports are treated like regular customs entries. For companies of all sizes that previously relied on the easy customs clearance of low value de minimis shipments, this means shifting towards a new landscape of higher tariffs, increased compliance requirements, and potentially higher costs for imported goods.
Here’s what it all means in practice:
- Duties, taxes, and processing fees will now apply even to small orders, customs authorities will collect duties and taxes on all shipments, requiring payment before release and ensuring that shipments are accepted only with proper documentation and compliance.
- Product classification (HTS codes), declared values, and documentation must be 100% accurate to avoid delays or penalties, and businesses must comply with new customs requirements for electronic data and regulatory adherence. Customs authorities will determine the correct duties and compliance requirements based on the information provided.
- The importation process will now involve more entities, such as customs brokers and logistics providers, and stricter provisions to ensure compliance with the updated regulations.
- Under the new policy, businesses or customers may need to pay additional costs, such as higher prices or duties, to maintain margins.
- If duties/taxes aren’t paid in advance or clearly displayed at checkout, cart abandonment could spike when customers are hit with surprise fees and the payment of duties is required at delivery.
Examples
A UK accessories brand orders under $800 used to enter duty-free. After August 29, they’ll all incur tariffs based on HTS codes, impacting the purchase process and increasing costs for the customer. Such shipments are now subject to duties and compliance checks.
Australian skincare label: Tariff rates will vary by product type, meaning landed costs must be recalculated by SKU.
Our experts have been tracking changes leading up to this moment. Learn more about this.
5 Ways to Minimize De Minimis-Related Disruptions
Small businesses and importers are most affected by the end of the de minimis rule. But changes to the rules don’t have to hurt your business. By carefully reviewing the manner in which you handle shipping, documentation, and compliance procedures to align with the new rules and avoid penalties, businesses like yours can minimize disruption and even thrive in this new landscape.
Get Your Commercial Invoice Right
Ensure commercial invoices are complete, accurate and include all required data. Tool like DHL’s MyGTS can help automate compliance and prevent clearance delays.
Classify Products with the Right HS Codes
HS Codes classify your goods for customs. Using the correct one ensures proper duties, avoids delays, and keeps your shipment compliant. Use the U.S. Harmonized Tariff Schedule (HTSUS) or MyGTS to assign the correct codes for your shipment.).
Recalculate your landed costs
Use DHL’s MyGTS to calculate duties, taxes, and brokerage fees to understand your true shipping cost per order. Then, adjust your retail pricing or shipping fees maintain healthy margins.
Reduce Cart Abandonment with Delivered Duty Paid (DDP)
Absorbing duties and taxes upfront gives customers a transparent, all-inclusive price. This reduces abandoned carts caused by surprise doorstep fees.
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.
Explore Express Shipping Consolidation or U.S. Fulfillment with DHL
Cut costs by combining multiple shipments under one customs entry with DHL’s Break Bulk Express (BBX). You can also use the DHL Fulfillment Network (DFN) to store inventory inside the U.S., avoiding customs entirely for domestic deliveries.
Adapting from challenge to opportunity
There’s no way around it: the elimination of de minimis is a significant challenge. However, it’s important to know that it is a challenge faced by everyone. That means opportunity still exists to craft a global shipping strategy that connects with potential customers and overtakes complacent competitors.
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.
Frequently asked questions about U.S. de minimis changes
August 29, 2025. After that date, every shipment is subject to duties, taxes, and formal or informal entry procedures.
No, there are no loopholes. The exemption is being removed across all countries.
DHL is actively assisting businesses with HTS classification, landed cost calculations, and streamlined customs clearance, so your U.S. customers continue getting fast, predictable deliveries.
The de minimis rule is not unique to the United States, as most countries set their own de minimis level. The U.S. threshold has historically been notably higher compared to regions like the EU, where lower thresholds are common. Here’s how some other countries and customs unions set their de minimis rules.
European Union De Minimis Rule
The European Union currently sets its de minimis threshold at €150, meaning shipments valued below this amount are exempt from customs duties, though VAT may still apply.
Canada and Mexico's De Minimis Rule
For most countries outside the United States–Mexico–Canada Agreement (USMCA), the limit is just C$20 (about US$15). But shipments from the U.S. or Mexico get higher thresholds—C$150 (around US$110) for customs duties and C$40 (about US$30) for taxes.
Australia's De Minimis Rule
When shipping to Australia, the de minimis threshold applies only to duties, not to its Goods and Services Tax (GST). Goods valued under AUD $1,000 (about USD $666 as of July 26, 2024) can typically enter duty-free. However, alcohol and tobacco don’t get any de minimis relief at all. For shipments worth more than USD $600, duties and taxes may apply.
As your logistics partner, the de minimis impact doesn’t have to be a roadblock, it 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.
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