How to make use of the de minimis rule to lower customs duties and taxes

For Vietnamese exporters, from startups and small businesses to growing e-commerce sellers, international shipping opens the door to incredible opportunities. In 2023, Vietnam’s top export destinations were the United States (US$118 billion), China (US$85.7 billion), Japan (US$25.1 billion), Hong Kong (US$17.1 billion), and Germany (US$14.1 billion), according to the Observatory of Economic Complexity (OEC).¹ Yet, despite such strong demand, many exporters find their profits reduced by import duties and taxes at the destination country.

Here’s the good news: there’s a ‘hidden rule’ that can help you reduce or even avoid these charges — the de minimis rule. By understanding and leveraging it, you can make your products more affordable, speed up customs clearance, and grow your cross-border sales with ease.

What is the de minimis rule in international shipping?

The de minimis rule defines the minimum shipment value below which goods can enter a country duty- and/or tax-free. Understanding how the de minimis rule works helps exporters plan shipments strategically and avoid unexpected costs.

Essentially, if your shipment’s declared value is under the de minimis threshold of your buyer’s country, the goods are cleared through customs without paying import duty or value-added tax (VAT).

There are usually two types of de minimis thresholds:

• Duty de minimis – the value below which no customs duty applies.
  
• Tax or VAT de minimis – the value below which no VAT or goods and services tax (GST) is charged.
  

For example, if you export a parcel to Singapore worth under S$400, it qualifies for GST relief, which means your buyer won’t need to pay goods and services tax on arrival. This can make your product more affordable and attractive to international customers.

This threshold allows Vietnamese exporters to compete more effectively by keeping total landed costs lower for buyers abroad. It also simplifies customs documentation, making shipments faster and more predictable. For frequent exporters, this can even form part of a larger strategy to test new markets with low-risk, smaller consignments.

De minimis thresholds across key export markets

Each country has its own de minimis value, and these thresholds vary widely. For exporters in Vietnam, the most common markets include Asia Pacific, the US, and Europe — each with distinct regulations.

Here’s a comparison of estimated 2025 de minimis thresholds for popular export destinations:

Thresholds can change periodically, so exporters should always check the latest rules on the DHL Express Vietnam website before shipping.

Why de minimis matters for Vietnamese exporters

For Vietnamese SMEs and e-commerce sellers, de minimis thresholds directly impact competitiveness and customer satisfaction. When a shipment qualifies under a country’s de minimis limit:

• Buyers avoid paying duties or taxes at checkout.
  
• Orders clear customs faster with fewer formalities.
  
• Sellers can offer lower total prices and faster delivery.
  

These benefits translate to higher conversion rates and repeat purchases in international markets. For e-commerce sellers, this can also reduce customer disputes, as buyers face fewer unexpected costs or delivery delays.

By contrast, if a shipment exceeds the threshold, the buyer must pay additional import fees upon delivery — a potential barrier that can lead to cart abandonment. Understanding de minimis rules helps you price your products confidently, set accurate shipping expectations, and improve customer experience abroad.

Partnering with DHL Express means having a trusted logistics expert to help you navigate these varying tax environments, so you can focus on growing your export business.

Why thresholds differ between countries

De minimis thresholds are not globally standardized. Each government sets its own limits based on trade priorities and economic policies.

Countries with higher thresholds, like China and Singapore, typically aim to:

• Encourage cross-border e-commerce.
  
• Simplify customs processing for small parcels.
  
• Reduce administrative costs for customs authorities.
  

Meanwhile, economies with lower or zero thresholds, such as Vietnam and the European Union, maintain stricter policies to:

• Protect domestic producers from cheap imports.
  
• Ensure fair tax collection on all transactions.
  

These differences highlight the importance of tailoring export strategies to destination markets. Understanding how and why these thresholds vary gives Vietnamese exporters a strategic edge when planning global expansion.

How to adapt your export strategy

To make the most of de minimis opportunities, Vietnamese exporters should tailor their strategies according to each target market:

• Selling to high-threshold markets (China, Singapore): Focus on sending low-value shipments under the de minimis limit to reduce landed costs and make your products more appealing.
  
• Selling to low-threshold markets (EU, Japan, Vietnam): Include duties and taxes in your pricing strategy, and communicate them transparently to customers to avoid surprises at checkout.
  
• Leverage DHL Express customs expertise: DHL Express offers simplified customs clearance and digital tools to help calculate the total landed cost. including duties, taxes, and shipping, before you ship. Combined with dedicated account management and round-the-clock support in many markets, this helps ensure compliance and greater visibility of costs across destinations.
  
• Monitor regulatory updates: Thresholds are not fixed. Governments regularly review them as e-commerce evolves. Existing trade frameworks such as the Regional Comprehensive Economic Partnership (RCEP) continue to shape tariff reductions and duty exemptions across the Asia Pacific region.
  

By staying informed and working with a reliable logistics partner, exporters can adapt to these changes and maintain a competitive edge.

Ready to ship duty-free from Vietnam?

Navigating customs regulations can feel complex, but with the right partner, it doesn’t have to be. DHL Express helps Vietnamese SMEs and online sellers:

• Optimize cross-border shipments under the de minimis rule.
  
• Ensure faster, compliant customs clearance.
  
• Expand into new international markets confidently.
  

Whether you’re exporting apparel, handmade goods, or electronics, understanding de minimis thresholds is key to maximizing your profit margins and customer satisfaction. With DHL Express, you can focus on building your brand while experts handle the complexities of global trade.

Open a business account with DHL Express today to enjoy preferential rates, expert customs support, and seamless international delivery for your growing business.