For years, South African businesses especially e-commerce entrepreneurs and SMEs have enjoyed a vital edge thanks to the de minimis rule. This allowance let low-value parcels (once capped at R500, now higher) enter the country without duties or taxes, making it easier and more cost-effective to import small, high-margin items from markets like China and the US.
But the global trade landscape is shifting, and that advantage is disappearing. With the US closing its de minimis loophole as of August 2025, South African importers face a new reality. This isn’t just a policy update abroad, it’s a game-changer for local importers, reshaping the retail environment and calling for fresh strategies.
What’s Changing: The Essentials
As of 29 August 2025, the US has ended its de minimis exemption for all imports. Previously, shipments valued under US$800 could enter duty- and tax-free with minimal customs hassle. Now, every parcel regardless of value or origin must clear full or informal customs, with duties and taxes applied. This shift hit Chinese and Hong Kong shipments earlier, back in May 2025, impacting many South African importers who rely on those supply chains.
Why the change? The US government aims to protect tariff revenue, level the playing field for domestic producers, and clamp down on illicit trade from counterfeit goods to contraband. The result: more paperwork, longer customs delays, stricter product classifications, and potentially higher landed costs.
Closer to home, South Africa’s National Treasury and SARS are tightening the screws too. Online giants like Temu and Shein, which capitalised on duty concessions and mis-declarations, now face increased import duties up to around 45% plus 15% VAT on clothing and apparel. Compliance and customs enforcement have become far more rigorous.
What This Means for South African Importers
These global and local changes hit at the heart of importers’ margins and operations:
Costs are climbing. Duties, taxes, customs fees, and shipping expenses are rising, squeezing profits especially on lightweight or low-margin items.
Customers expect transparency. Surprise customs charges at checkout drive cart abandonment. Pricing strategies must evolve to clearly reflect all landed costs upfront.
Operations get more complex. More paperwork, stricter classification rules, and potential delays mean importers need sharper customs processes. Dropshipping directly to US customers may become riskier.
The competitive landscape shifts. Local manufacturers and retailers could gain ground as imported goods lose some cost advantage. South African importers who adapt swiftly can turn this to their benefit.
Strategies to Keep Your Business Profitable
Adapting now is crucial. Here are some practical steps to consider:
Audit your product lines and supply chains. Identify where de minimis exemptions once helped and map out the cost impact now. Decide where to absorb costs, shift suppliers, or adjust prices.
Get your sourcing and classification right. Use accurate HTS codes, confirm country of origin, consolidate shipments, and explore duty-free or preferential trade agreements to cut costs.
Be upfront with pricing and customers. Incorporate duties and taxes into your pricing or offer Delivered Duty Paid (DDP) options. Clear communication reduces surprises and builds trust.
Localise your inventory. Holding stock in domestic or nearby warehouses means fewer, larger shipments saving on repeated duties and speeding up delivery.
Strengthen customs compliance. Partner with reliable customs brokers and develop robust documentation processes to avoid delays and penalties.
Plan for different scenarios. Stay flexible by preparing for further duty changes, shifting trade agreements, and evolving competition.
Immediate Actions for Importers
Start by reviewing your trade contracts and shipping arrangements with these new costs in mind. Update your cost models to include duties and customs fees that were once negligible. Talk to your logistics partners many have new tools to help with landed cost calculations and customs compliance. Make sure your pricing and checkout processes clearly communicate potential duties and delivery times to your customers. Finally, explore any relevant trade agreements and consider investing in technology to streamline classification and documentation.
Why South African Importers Can Still Win
Though the US changes bring challenges, they also open doors. With higher duties and tighter compliance on foreign imports, local and regional products can become more competitive on price, delivery, and trust. Brands that focus on quality, compliance, and after-sales service will stand out. Early movers who embrace these changes will avoid the worst shocks and set themselves apart in a more level playing field.
Looking Ahead: Turning Challenge into Opportunity
The closure of the de minimis loophole signals a new chapter for South African importers one that demands smarter, more sustainable business practices. It’s not the end of global trade but the start of a more mature, strategic approach. Local retailers finally get a fairer shot at competing.
In this evolving landscape, choosing the right logistics partner is more important than ever. At DHL, we’re ready to support you through this transition. Our experts can help design consolidated shipping strategies that protect your margins, while our seamless customs clearance services ensure compliance and speed.
Let’s build a stronger, more resilient future for your business together. Open a DHL business account today to access tailored solutions made for importers navigating this new world.
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